CIBC Costco Mastercard Review 2021

CIBC Costco Mastercard Review 2021

Written by Caitlin Wood
Last Updated November 25, 2021

Earlier this year, Costco announced that CIBC would become the exclusive issuer of Costo Mastercards in Canada, taking over for Capital One. 

On Thursday, November 25, 2021, more information was released on what Costco customers should expect from the new CIBC Costco Mastercard. 

When Will The CIBC Costco Mastercard Be Available?

The new CIBC Costco Mastercard is currently expected to launch in March 2022. More information and exact dates will likely be released by Costco and CIBC in the new year.

What If I Already Have A Costco Mastercard?

Anyone with an existing eligible Costo Mastercard co-branded card will automatically be moved to the CIBC Mastercard, after which they will be able to earn the new rewards and take advantage of the new benefits offered by CIBC. 

Current cardholders should continue to use their co-branded Costco credit card until their new CIBC one arrives. 

CIBC Costco Mastercard Benefits

  • No annual fee
    • But cardholders will need to hold a Costco membership and pay the yearly Costco membership fee ($60 or $120)
  • 3% cash back at restaurants
  • 2% cash back on Costco.ca purchases up to $8,000 (1% after)
  • 3% cash back at Costco Gas and 2% cash back at non-Costco gas stations up to $5,000 (1% after)
  • 1% cash back everywhere Mastercard is accepted (including Costco warehouses)
  • Mobile Device Insurance coverage

CIBC Pace It™

Cardholders will be able to take advantage of CIBC Pace It™. Think of it like a buy-now-pay-later service. All eligible purchases at Canadian Costco warehouses and on Costco.ca can be paid off in installments. There will be special interest rates for members and no installments fees.

CIBC Costco Mastercard vs. Capital One Costco

CIBC Costco MastercardCapital One Costco
Annual Fee$0$0
Cash Back Rewards– Restaurants: 3%
– Gas: 2-3%
– Costco.ca purchases: 2%
– Purchases: 1% 
– Restaurants: 3%
– Gas: 2%
– Purchases: Up to 1%
Additional Features– Mobile device insurance
– CIBC Pace It™
– 6 types of insurance coverage

Is The New CIBC Costco Mastercard Worth It?

If you are currently a cardholder of the Capital One Costco credit card, you will automatically receive the new CIBC Mastercard in the mail before August 2022. Because of this, it is worth it, especially if you make a lot of purchases at Costco. 

Furthermore, for members who like to take advantage of Costco.ca, the new 2% cash back on online purchases may make this new card a good option. 

Are there better credit cards on the market with higher cash back rewards? Yes, but the majority of these cards will come with high annual fees. Make sure you keep that in mind when deciding if the CIBC Costco Mastercard is right for you. 

Caitlin is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security. One of the main ways she’s built good financial habits is by budgeting and tracking her spending through the YNAB budgeting app. She also automates her savings so she never forgets to put aside a portion of her income into her TFSA. She believes investing and passive income is key to earning financial freedom. She also uses her Aeroplan TD credit card to collect Aeroplan points so that she can save money when she travels.

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