The CIBC Costco Mastercard is a no-fee credit card provided by CIBC in partnership with Costco. It has replaced the previous Costco Capital One card and is designed exclusively for Costco members. It serves as membership proof for accessing Costco wholesale warehouses and offers cash back rewards on all purchases, with extra bonuses for spending at restaurants and Costco gas stations.
While competitive as a no-fee card, it lacks enhanced benefits. You’ll only receive a welcome bonus if you enroll in a new Executive membership, and its insurance coverage is basic. Notably, there isn’t a bonus cash back category for spending within Costco warehouses, which seems like a missed opportunity considering the card’s association with the retail giant.
While the cards offer convenience and aligns with the Costco brand, some users might find the rewards underwhelming. Our comprehensive review will delve into all the specifics and give you an idea if this card deserves a space in your wallet.
Our Verdict: CIBC Costco Mastercard
| Best For | Frequent Costco shoppers looking for a no-fee cash-back card tied to their membership. |
| What we like about the card | – Decent earn rates with 3% back on restaurants and Costco gas – No annual fee- Includes mobile device insurance |
| What we don’t like about the card | – No bonus rewards for shopping at Costco warehouses – Rewards only issued once per year as a Costco gift card |
CIBC Costco Card
The main Costco card offers only 1% cash back for in-store purchases, which isn’t very rewarding. While giving decent rates without any annual fee, it doesn’t offer better rewards for big Costco shopping trips than other grocery cards.
The card’s insurance protections are limited compared to better options, which is important for expensive Costco purchases. Additionally, waiting for an annual cash-back coupon limits flexibility, unlike cards that allow more redemption choices.
| Annual Fee | $0 (need Costco membership) |
| Earn Rate | – 3% cash back at restaurants and Costco gas – 2% cash back at other gas stations and Costco.ca – 1% cash back on all other purchases |
| Welcome bonus | $60 statement credit when you sign up for the card and an executive membership |
| Interest Rate | Purchase: 20.75% Cash Advance: 22.49% (21.99% Quebec) |
| Perks | Purchase Protection, Extended Warranty Insurance, Mobile Device Protection, and the card doubles as a membership ID |
Transitioning From The Old Capital One Costco Card
Previous Costco Mastercard holders had their accounts automatically transferred to CIBC in early 2022. All the account details moved over seamlessly, and no new application was required.
Existing cardholders simply had their Capital One card turned into the new CIBC version. Cash back balances were maintained through the changeover as well.
What We Like About The CIBC Costco Mastercard
Decent Earn Rates For A No Fee Card
The earn rates are fairly decent across common spending categories for a card that costs nothing each year to keep. That being said, the spending caps are relatively low. Your 3% cash back is limited to $8,000 in annual spending, and the 2% caps out at $5,000. After that, the reward is reduced to just 1%.
$0 Annual Fee And Low Minimum Income
Having no annual fee makes this an affordable card for all Costco members. It also has lower eligibility requirements as you can be approved with $15,000 personal income.
Includes Mobile Device Insurance
You’ll receive insurance coverage using the CIBC Costco Mastercard. The extended warranty extends the manufacturer’s warranty by up to one year, giving you added protection.
Moreover, eligible purchases made with the card are covered by purchase security from RSA Group for 90 days after your purchase. This coverage protects against theft, loss, or damage during that period.
Additionally, buying mobile devices with either card gives you insurance coverage up to $1,000, safeguarding against damage or theft. Of the three insurance types included, mobile device coverage is the most valuable.
Free Upgrade To The World Mastercard
If you qualify with a personal income of $60,000 or a household income of $100,000, you’re eligible for a complimentary upgrade to a World Mastercard version. While it doesn’t provide additional rewards, insurance, or any notable perks, it does grant access to the benefits offered by World Mastercard.
Doubles As A Membership
One key advantage of the CIBC Costco Mastercard is that it doubles as a membership, which helps you get access to the exclusive wholesale warehouse. Another essential element of the card is that it’s a Mastercard, as Costco only accepts Mastercards for credit card purchases.
What We Would Watch Out For
No Bonus Rewards At Costco Warehouses
Surprisingly, although a Costco-branded card, you won’t earn any elevated cash back for in-store shopping. All those bulk buys and cheap hot dog combos will only get 1%.
Limited Insurance Coverages Included
While mobile device insurance is great, the insurance offered is limited. You will want to look elsewhere for travel, medical, or online shopping security.
Looking for the best credit card options?
How To Apply For The CIBC Costco Mastercard
Applying for the card is straightforward if you meet the eligibility criteria of:
- Being a current Costco member or simultaneously applying for a membership
- $15,000 personal income
You can apply online, over the phone, or in person at a CIBC branch. In most cases, approval decisions are made instantly.
How Can I Redeem Cash Back On My Costco CIBC Mastercard?
Each January, if you have a CIBC Costco World Mastercard or CIBC Costco Mastercard, you’ll get a cash back gift certificate that can only be used at Costco. This certificate includes all the cash back you earned in the previous year.
To get the Costco cash back gift certificate in January, you need to keep your account open and in good standing until December 31st.
How The CIBC Costco Card Compares To The Old Capital One Version
The CIBC Costco Mastercard is largely similar to the previous Capital One card regarding rewards and no annual fee. The earn rates improved across categories like:
- 3% on dining and Costco gas (was 2% gas)
- 2% Costco.ca online (was 1%)
The CIBC card also now includes mobile device insurance as an added perk.
Top CIBC Costco Mastercard Alternatives
Since Costco only accepts Mastercard, you’ll need to use a card operating on that network. Furthermore, credit card companies generally classify Costco purchases under the merchant category (MCC 5300). This means, unfortunately, you won’t benefit from enhanced earn rates in the grocery category. Given these two constraints, the best credit cards for Costco are limited. However, here are some options:
| Annual Fee | Earn Rate at Costco Stores | Other Key Earn Rates | |
| CIBC Costco Mastercard | $0 | 1% | – 3% dining and Costco gas – 2% gas and at Costco.ca – 1% elsewhere |
| MBNA Rewards World Elite | $120 | 1% | – 5% on restaurant, grocery, digital media, membership, and household utility – 1% elsewhere – 10% birthday boost |
| Tangerine Money-Back | $0 | 0.5% | – 2% on up to 3 categories – 0.5% elsewhere |
| BMO CashBack World Elite | $120 | 1% | – 5% groceries – 4% transit – 3% gas – 2% bills – 1% elsewhere |
Tangerine Money-Back Card
Unlike the CIBC Costco card, the no-fee Tangerine Money-Back card empowers you to customize 2% bonus cash back categories to align with your spending patterns. Did your latest run stock up on pantry essentials or fill the freezer? Choose grocery. Fuel up the tank at the Costco pump? Select gas. The nice thing is you can swap categories every few months if your spending changes.
However, merchandise is not a selectable category, meaning you’ll only earn 0.5% back in Costco stores. While below CIBC’s 1% flat rate, it aligns with 2% on gas. Furthermore, you’ll have up to two additional categories to earn 2% cash back. These categories have no earn caps—a rarity that lets high spenders maximize rewards.
Shoppers searching for savings will appreciate no limits or strings with their rewards. Unlike CIBC’s Costco card, your redemptions aren’t restricted to annual Costco credits.
BMO World Elite CashBack Mastercard
The BMO CashBack World Elite Mastercard packs premium perks complimenting a loyal Costco member. Despite having a high $120 yearly fee, the card offers roadside assistance, robust insurance, and concierge access. The card also offers World Elite travel benefits to complement lowered Costco vacation prices. While you’ll still get 1% back when shopping at Costco, there are significantly less redemption restrictions.
However, you can earn more in other categories, such as 5% on groceries. Meanwhile, transit earns 4%, gas earns 3% cash back, bills get 2%. Everything else earns a baseline 1% back without any fine print or strange exclusions.
One key drawback is the BMO card’s high-income requirements: $80K personal or $150K, which may restrict some from accessing its premium perks. Furthermore, BMO imposes $500 monthly spending caps on their higher-earning categories, dropping to 1% afterward.
MBNA Rewards World Elite Mastercard
As with other alternatives, you’ll still earn 1% at Costco stores, given the restrictive categorization as a merchant. For $120 annually, the card offers strong insurance protections more in tune with protecting big buys—and even price protection if any Costco deals happen after a big purchase.
You’ll also receive 5% on restaurant, grocery, digital media, membership, and household utility categories. All other purchases earn 1%. Interestingly, you’ll receive a 10% birthday bonus on the points accumulated in the prior 12 months. This card asks for the same income as the BMO World Elite CashBack Mastercard, at a relatively high $80K personal or $150K household.
Bottom Line
The CIBC Costco Mastercard may be Costco’s official credit card, but it’s imperfect. While earning cash back with no fee is nice, the rewards for shopping at warehouses could be better.
Spending a lot dining out and on gas can justify a spot in your wallet. However, remember that you can only redeem rewards in January as a Costco gift card. Otherwise, explore some alternative Mastercards to maximize your bulk buys.
