CIBC Costco Mastercard Review 2023

CIBC Costco Mastercard Review 2023

Written by Caitlin Wood
Last Updated November 29, 2022

Earlier this year, Costco announced that CIBC would become the exclusive issuer of Costo Mastercards in Canada, taking over for Capital One. Current Capital One Costco Mastercard holders will have their account moved to CIBC; one of Canada’s biggest banks.

When Will The CIBC Costco Mastercard Be Available?

The new CIBC Costco Mastercard was launched today on March 04, 2022. Cardholders can manage their new accounts by registering for CIBC online banking. There, users can pay their bills and view their credit card statements.

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 Costco 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. You will still be able to enjoy all the benefits of the new card with your current card. Do note, that you do not have to apply for the new CIBC Costco Mastercard, you will automatically receive it in the mail by August 31, 2022.

CIBC Costco Mastercard Benefits

The new CIBC Costco Mastercard comes with a number of benefits including no annual fee. However, cardholders will need to hold a Costco membership and pay the yearly Costco membership fee ($60 or $120). Other perks include:

High Earn Rate

  • Earn 3% cash back at restaurants
  • Earn 3% cash back at Costco Gas and 2% cash back at non-Costco gas stations up to $5,000 (1% after)
  • Earn 2% cash back on Costco.ca purchases up to $8,000 (1% after)
  • Earn 1% cash back everywhere Mastercard is accepted (including Costco warehouses)

Welcome Bonus

CIBC Costco Mastercard is also offering a $20 welcome bonus. Those who receive their new CIBC Costco Mastercard will need to do the following by December 31, 2022 to earn the bonus:

  • Activate your card and make a purchase
  • Register for CIBC Mobile Banking App or CIBC Online Banking

Once you complete these two actions, you’ll receive the $20 as a credit on your next credit card statement.

Mobile Device Insurance Coverage

The new CIBC Costco Mastercard also comes with mobile device insurance, which provides coverage up to $1,000 for cellphones, tablets and smartphones. Whether you need to repair or replace your device, you’ll have up to 2 years after purchase to do so. Coverage includes loss, theft or accidental damage such as drops, cracks or spills.

However, the coverage will only be valid if you purchase the full amount of the device on your card (this includes financing it through your mobile service provider).

Purchase Security And Extended Warranty Insurance

An added perk to your CIBC Costco Mastercard is the purchase security and extended warranty insurance. The purchase security offers coverage from loss, theft and accidental damage for items you’ve purchased (within 90 days of purchase). The extended warranty doubles the length of your purchase’s manufacturer’s warranty (up to one year). However, like the mobile device insurance, the entire purchase must be purchased on the card to be valid.

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. They currently offer three different low installment plans:

  • 6-Month Installment Plan – Pay your purchases over 6 months with a low rate of 4.99%
  • 12-Month Installment Plan – Pay your purchases over 12 months with a low rate of 5.99%
  • 24-Month Installment Plan – Pay your purchases over 24 months with a low rate of 6.99%

In order to be eligible for the CIBC Pace It program, users must have a minimum purchase amount of $100, they must be the primary cardholder, they must be registered for CIBC online banking. Moreover, you’ll need to pay a one-time installment fee of 1.5% of the purchase amount.

CIBC Payment Protector

The CIBC Payment Protector is an optional add-on for those who’d like some extra security. If you were to ever experience a job loss, disability, or a critical illness (or death), the CIBC Payment Protector would help you cover your credit card payments. Users can add this layer of protection for a monthly fee of $0.99 per $100 you owe on your credit card statement.

CIBC Online Banking Tools

CIBC Costco Mastercard also comes with online banking tools to help you manage your payments and simplify your shopping experience.

  • Redeem Your Gift Certificate Digitally – As of January 2023, you can access your Costco cash back gift certificate and redeem it at a Costco warehouse thorough the CIBC Mobile Banking App.
  • Mobile Wallet – You can use Apple Pay, Google Pay or Samsung Pay to make purchases with your new card.
  • Get Cash Back On International Money Transfers – You can also use your CIBC Costco Mastercard to fund your transfers using the CIBC Global Money Transfer service. Moreover, you can earn 0.25% cash back on every dollar spent. You can also take advantage of their zero transaction fees and no interest (if you pay the minimum balance).

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
– Purchase Security And Extended Warranty Insurance
– CIBC Pace It™
– CIBC Payment Protector (Optional add-on)
– 6 types of insurance coverage

How To Apply For The New CIBC Costco Card?

Customers who already have the Capital One Costco Mastercard do not have to apply for the new CIBC Costco Mastercard. Their accounts will be automatically transferred to CIBC and they will receive their new card by mail by August 31, 2022.

Those who do not have an existing account with Costco will likely have to apply, however, details on the application process will be revealed later this month.

CIBC Costco Mastercard FAQs

Will I lose my cash back that I earned on my old Costco card?

No, Capital One will be mailing out your cash-back certificate in January of 2022. This will cover all cash back earned from January 01, 2021 to December 31, 2021.

Will the new CIBC Costco card affect my pre-authorized payments with my existing Costco card?

No, it will not affect your pre-authorized payments with your card as the new card will not be changing your 16-digit credit card number. All your information will be transferred over to the new CIBC card.

When will the new CIBC Costco earn rate apply?

The new CIBC Costco benefits will begin starting March 04, 2022. The earn rate, insurance and Pace It program will automatically become active starting March 04, 2022.

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 31, 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 Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. 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.

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