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CIBC Costco Mastercard review

CIBC Costco Mastercard review

The no annual fee CIBC Costco Mastercard has high earn rates on purchases at Costco.ca, Costco Gas and dining out

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4.1

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Welcome Offer Ends Dec 15, 2024

Get a $30 statement credit with a CIBC Costco Mastercard®†

3% cash back at restaurants and at Costco gas

2% cash back at other eligible gas stations, electric vehicle charging stations and at Costco.ca

1% cash back on all other purchases including at Costco

20.75% Purchase APR non-Quebec residents†

22.49% Balance Transfer Rate non-Quebec residents†

22.49% Cash Advance APR non-Quebec residents†

$0 Annual Fee Up to 3 additional cardholders for $0

2.5% Foreign Transaction Fee

Good Recommended Credit Score

$15,000 Required Annual Personal Income

4.1

CIBC Costco Mastercard review

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Quick overview of the CIBC Costco Mastercard

Costco was a magical place as a kid. I remember going with my parents and perusing the aisles, checking out books, clothes and sporting equipment, all while munching on free food samples. What I didn’t know at the time was how expensive each trip to Costco usually is. As an adult, I now know you’ll have to somehow pay for those skids of coffee beans, $1.50 hot dogs and giant-sized condiment bottles. And, if you’d like to earn credit points while shopping at Costco, there’s only one game in town, Mastercard, since that’s the only credit card accepted at all Costco locations.

Enter the CIBC Costco Mastercard, which might just be the shopping companion you need for the bulk-buying paradise. It has no annual fee, so you can add it to your wallet exclusively for Costco trips without too much worry, and offers good cash back rewards.

Overall, it’s a fairly basic credit card that will allow you to shop at Costco while earning some cash back on all purchases. Read on to see if it might be the right card for you.

Who’s the card for?

This Costco credit card, which is exclusive to Costco members, is for those shoppers who might not already have a Mastercard in their wallet. Mastercards are the only credit card accepted at the retailer across Canada, so having one on those trips is a must – unless you want to put your purchases on your debit card and forgo any points earning potential. 

Since the highest reward category for the card is with Costco gas and eating out, it’s also a good choice for people who don’t mind filling up while doing their shopping and also enjoy a regular night dining out. 

Pros and cons

Pros

Pros

  • No annual fee

  • No fee for additional cards

  • Earn up to 3% cash back

  • Can double as your Costco membership card (though you’ll still have to pay the Costco membership fee)

  • Mobile device insurance

Cons

Cons

  • Exclusive to Costco members

  • Low cash back rate of 1% for purchases at Costco

  • High interest rate of 20.75%

  • Cash back can only be redeemed at Costco

CIBC Costco Mastercard welcome bonus

Get a $30 statement credit with a CIBC Costco Mastercard®†

How to earn cash back with the CIBC Costco Mastercard

The CIBC Costco Mastercard is a simple rewards card with a simple rewards structure. Nothing complicated here. 

  • Earn 3% cash back at restaurants and at Costco gas†
  • Earn 2% cash back at other gas stations, electric vehicle charging stations and at Costco.ca†
  • Earn 1% cash back on all other purchases†

To get the most cash back from the card, you’ll want to use it while dining out and purchasing gas at Costco gas stations since those are the highest cash back earning categories. 

How to redeem cash back with the CIBC Costco Mastercard

Unlike some other cash back cards that allow you to redeem your rewards on demand, the CIBC Costco Mastercard cash back is given yearly in the form of a certificate. It’s given each year in January in the form of a physical or digital certificate. Cash back can be redeemed directly using your phone and the CIBC mobile banking app.

Cash back certificates can only be redeemed at any Costco warehouse in Canada, which limits its flexibility.  

Extra benefits

  • Mastercard’s zero liability protection
  • CIBC Pace It installment plans for Costco purchases
  • Fraud alerts
  • Digital disputes platform

CIBC Costco Mastercard insurance coverage

  • Mobile device insurance: Get up to $1,000 to repair or replace your mobile device if it was purchased using your Costco Mastercard. 
  • Purchase security and extended warranty insurance: Get up to a one-year warranty extension on purchases made with your card. The Purchase Security feature offers global protection against loss, theft or damage for eligible purchases made with your card. If your item is stolen or damaged, CIBC may replace it, repair it or reimburse you for the original cost.

What people have to say about this card

According to one Reddit user, replying to a thread asking if the CIBC Costco Mastercard is worth it, the card is only valuable to those who dine out at restaurants often and gas up at Costco gas stations. 

In the same thread, another user shared a tip to maximize rewards by purchasing Costco shop cards on Costco.ca that can then be redeemed at physical Costco locations. Doing this will earn you extra cash back (for purchases on Costco.ca) instead of the standard 1% for shopping directly at the warehouse. The low cash back rate for the CIBC Costco Mastercard when shopping at Costco locations is a major gripe among users in that thread.

How CIBC Costco Mastercard compares

CIBC Costco Mastercard Vs. Rogers Red World Elite® Mastercard®

Rogers Red World Elite® Mastercard®

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4.2

Excellent

Suggested credit score

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Pros

  • Lucrative cash back rates on USD and CAD purchases, especially for Rogers, Fido or Shaw customers

  • No annual fee with valuable insurance benefits

  • Competitive against foreign transaction fee cards

  • Convenient cash back redemption options

  • Redemption bonus of 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases

  • Travel insurance perks and airport lounge access

Cons

  • High income requirement: $80,000 personal or $150,000 household

  • Foreign transaction fee applies

  • Limited redemption options for statement credits

Eligibility

Recommended Credit Score

Excellent

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

Pros

  • Lucrative cash back rates on USD and CAD purchases, especially for Rogers, Fido or Shaw customers

  • No annual fee with valuable insurance benefits

  • Competitive against foreign transaction fee cards

  • Convenient cash back redemption options

  • Redemption bonus of 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases

  • Travel insurance perks and airport lounge access

Cons

  • High income requirement: $80,000 personal or $150,000 household

  • Foreign transaction fee applies

  • Limited redemption options for statement credits

Eligibility

Recommended Credit Score

Excellent

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

Earn 3% unlimited cash back on purchases made in US dollars

3%

Earn 2% unlimited cash back on all eligible non-US dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw

2%

Earn 1.5% unlimited cash back on everything else

1.5%

Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases

1.5x Cash Back

Purchase APR

20.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$0

Foreign Transaction Fee

2.5%

If you’re looking for a card you can use at Costco, you might be debating between the CIBC Costco card and the Rogers Red World Elite® Mastercard® – two no-fee options. Both are rewards cards but the Rogers Red World Elite® Mastercard® does it a little better and with a few extra features.

It offers 3% cash back on purchases made in US dollars, lounge access with Dragon Pass, travel insurance and a cash back welcome bonus. Earn 1% cash back on all other purchases†.

CIBC Costco Mastercard Vs. MBNA Rewards World Elite Mastercard

MBNA Rewards World Elite® Mastercard®

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4.0

30,000 pts

Welcome offer

Good

Suggested credit score

Earn up to 30,000 bonus MBNA Rewards Points†† for cash back, gift cards and more.

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Pros

  • High earn rates: Up to 5 points per $1 on groceries, restaurants, digital media, memberships, utilities

  • Generous welcome bonus of up to 30,000 points, covering first-year annual fee

  • Points never expire, flexible redemption options including travel and statement credit

  • Birthday bonus: Up to 15,000 points annually, 10% of points earned in the previous year

  • Comprehensive benefits: Price protection, purchase assurance, extended warranty, travel insurance

Cons

  • High income requirements: $80,000 personal or $150,000 household income

  • Annual fee of $120 after the first year

  • Travel insurance package not as robust as other cards at similar price points

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

Pros

  • High earn rates: Up to 5 points per $1 on groceries, restaurants, digital media, memberships, utilities

  • Generous welcome bonus of up to 30,000 points, covering first-year annual fee

  • Points never expire, flexible redemption options including travel and statement credit

  • Birthday bonus: Up to 15,000 points annually, 10% of points earned in the previous year

  • Comprehensive benefits: Price protection, purchase assurance, extended warranty, travel insurance

Cons

  • High income requirements: $80,000 personal or $150,000 household income

  • Annual fee of $120 after the first year

  • Travel insurance package not as robust as other cards at similar price points

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

MBNA offers up to a 30,000-point welcome bonus

30,000

You get five points‡ per dollar spent on groceries, restaurants, digital media, memberships, and household utilities

5

All other purchases outside those categories earn one point per $1 spent.

1

Purchase APR

19.99%

Balance Transfer Rate

22.99%

Cash Advance APR

24.99%

Annual Fee

$120

Foreign Transaction Fee

2.5%

While the CIBC Costco Mastercard is a fairly no frills, no fee credit card, the MBNA Rewards World Elite Mastercard packs a lot more features – but at a price.

First, you’ll start off with a great welcome bonus points for cash back or gift cards. Not a bad little nest egg to offset the price of the card. It also comes higher earn rates. Earn 5 MBNA Rewards points for every $1 spent†† in several categories, including groceries, restaurants, digital media, memberships and household utilities.
You’ll also earn birthday bonus points, equal to up to 10% of the points earned the prior year (to a maximum of 15,000 points). 

  •  ††, ‡, ✪, ***, ††††, Terms and Conditions apply. 

    This offer is not available for residents of Quebec. For residents of Quebec, please click here. 

    Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.

    The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.

Is it worth it?

The CIBC Costco Mastercard isn’t going to blow anyone away with its features. It lacks a few of the more enticing things offered by other, more premium cards like travel insurance and lounge access. The fact that it only offers 1% cash back when shopping at Costco is – forgive me for saying it – a little weird for a card that is exclusive to Costco owners and is named after the place. Still, if you’re looking for a card that’ll earn you cash back to use at Costco, dine out often and don’t mind getting your gas at Costco gas stations, this card is worth considering. 

  • †Terms and Conditions Apply. This offer is not available for residents of Quebec.

  • This is a digital-exclusive offer.†

    To be eligible for this offer:

    1) this offer must have been directly communicated to you from CIBC or from a partner/affiliate; and

    2) you must apply for the eligible card through the link provided in the CIBC or partner/affiliate communication to you.†

    This offer is reserved for you. Please do not forward it to anyone else.

    CIBC may approve your application, but you are not eligible to receive this Offer if you have opened, transferred or cancelled another Aventura card within the last 12 months.†

    Any opinions, analyses, reviews, or recommendations expressed on this page are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by our advertising partners.


  • The information for the CIBC Costco Mastercard® has been collected independently by Money.ca. The card details on this page have not been reviewed or provided by the card issuer.

FAQs

  • Can I use my CIBC Costco Mastercard anywhere?

    +

    You sure can! The CIBC Costco card is accepted anywhere Mastercard is accepted. Despite its name, the CIBC Costco Mastercard isn’t only accepted at Costco.

  • Does CIBC Costco Mastercard have travel insurance?

    +

    Unfortunately, it doesn’t. It does, however, have mobile device insurance. If you’re looking for a no-fee Mastercard that includes travel insurance, you might want to consider the Rogers Red World Elite® Mastercard®.

  • Does the CIBC Costco Mastercard cover car rental insurance?

    +

    No, the CIBC Costco Mastercard doesn’t offer car rental insurance. There are other cards that offer car rental insurance, such as the Rogers Red World Elite® Mastercard® and the Tangerine World Mastercard.

  • Does the CIBC Costco Mastercard have lounge access?

    +

    No, the CIBC Costco Mastercard doesn’t offer lounge access. If you’re looking for lounge access, you should look into travel rewards cards or the World Elite cards, such as the ones offered by Rogers or MBNA.

Justin da Rosa Freelance Writer

Justin is a writer and editor who has been covering personal finance for over 10 years. He's written for companies such as KOHO, Ratehub, BMO, Zoocasa, and Questrade, among others. Justin also created a course in Content Creation, which he taught at York University for four years. When not writing, Justin can be found at a live concert, on the golf course, riding a motorcycle, or sailing.

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