CIBC Costco Mastercard Review 2024: Avid Costco Shoppers Should Not Leave Home Without It

• No annual fee
• Doubles as a Costco membership card, so you need less in your wallet
• Send money abroad to over 120 countries with a $0 transfer fee
• Add up to two additional cardholders at no cost
• Cardholders can access CIBC’s Pace It Installment Plan with eligible Costco purchases, allowing them to spread payments at low interest rates over a fixed term
• Earn 3% cash back on restaurant and Costco Gasoline purchases
• Earn 2% cash back on non-Costco gas purchases and Costco.ca purchases
• Earn 1% cash back on all other purchases including at Costco
• Built-in mobile device insurance with $1,000 of coverage for devices purchased with the card
• Purchase security insurance for 90 days after the eligible item’s purchase date
• Extended warranty insurance, extending the manufacturer’s warranty on eligible items to a maximum of one additional year

One of two Costco Mastercards offered by CIBC, the CIBC Costco Mastercard comes with solid cash-back rewards in addition to easy-to-meet application requirements. To qualify, applicants need to make $15,000 in annual income and have a good or excellent credit score. They also need to have a valid and active Costco membership—a cost of approximately $60 plus tax.

Cardholders earn 3% cash back on all restaurant and Costco gas purchases, 2% on all other gas purchases and Costco.ca purchases and 1% on all other purchases. While all gas purchases are capped at an $5,000 threshold—after which fill-ups only earn 1% cash back—those are still decent numbers for a card with no annual fee.

Though the CIBC Costco Mastercard has decent earning potential given its lack of annual fee, the additional perks are around industry standard for no-annual-fee cards. Cardholders have access to purchase insurance for 90 days after an eligible purchase and extended warranty of up to one additional year.

One major drawback of the Costco-branded credit card is its redemption policy. Cash-back rewards are redeemed once per year in the form of a Costco gift certificate, which is only redeemable in a Canadian Costco warehouse—and does not include Costco.ca. Though that severely limits the cash-back use, Costco lovers will have no problem niching down at their favourite store.

As an added bonus, cardholders can access low-rate installment plans through CIBC’s Pace It Installment Plan Program. Large eligible purchases of over $100 at Costco or Costco.ca can be put on an fee-free installment plan with the following interest rates:

• 6 months: 5.99%
• 12 months: 6.99%
• 24 months: 7.99%

• No annual fee
• Earn 3% cash back on all restaurant and Costco gas purchases
• CIBC Costco Mastercard doubles as your Costco membership card

Earning Rewards

Like any other cash-back card, earning rewards with CIBC’s Costco Mastercard is simple. Purchases made at restaurants and at Costco gas stations earn 3% in cash back, other gas purchases and Costco.ca purchases earn 2% cash back and all other purchases earn 1%. Note that all gas purchases have an annual spending cap of $5,000, after which gas purchases—including those made at Costco—will only earn 1%. The same goes for Costco.ca purchases, which are capped up to $8,000 annually.

Redeeming Rewards

Redeeming your cash back is easy, but your spending locations are limited. Primary cardholders are given a Costco gift certificate each year equal to the cash-back amount they earned. This gift certificate can only be redeemed in Canadian Costco warehouses, which excludes Costco.ca.

That said, a number of cardholders have written on Reddit that they can redeem their gift certificate for any purchase and receive the remaining balance in cash at checkout. Forbes Advisor Canada has not verified these claims, but if true, the card’s redemption program has a lot more flexibility than at first glance.

If you’re a Costco Executive Member, you’ll earn even more cash back with CIBC’s Costco Mastercard. Executive Members also earn a 2% annual certificate each year, up to a maximum of $1,000, based on their purchases of eligible items. CIBC’s gift certificate is a separate reward that could come at a different time of the year, depending on when you first signed up for your Executive Membership. But, the Executive Membership is not cheap, coming in at $120 per year—double the price of a standard membership. Still, the potential for two gift certificates as an Executive Costco member who also holds this credit card is a nice added bonus for what you’d be paying.

Readers should note that Costco’s website states explicitly that their similar reward certificate to the CIBC Costco Mastercard—the Executive Member annual 2% certificate, for example—cannot be exchanged for cash in-store.

Rewards Potential

Depending on your spending habits and how diligently you fuel up at Costco, this card has impressive earning potential for no annual fee.

Forbes Advisor Canada estimates that based on average Canadian consumer spending habits, cardholders could earn a net cash back of up to $422.58 each year. That kind of cash back rivals the BMO CashBack World Elite Mastercard, which made our list of best Cash Back Cards in Canada. The card itself is only limited by the caps on the highest earn rates it offers and the fact that the cash back you receive cannot be spent anywhere other than Costco.

• Add two additional cardholders at no cost: CIBC’s Costco Mastercard allows for three authorized users with no annual fee for each of them.
• No rewards cap on restaurant purchases: All purchases made with the card at eligible restaurants earn 3% cash back—with no annual spending cap.
• Mobile device coverage: Cardholders can get up to $1,000 in repair or replacement coverage for a mobile device purchased with their CIBC Costco Mastercard.
• Pace your purchases: CIBC Costco Mastercard holders have access to special interest rates using CIBC’s Pace It Installment Plan on Costco and Costco.ca purchases.

Interest Rates

• Regular APR Min: 20.75%
• Cash Advance APR: 22.49% (21.99% for Quebec residents)
• Balance Transfer APR: Undisclosed

Fees

• Cash Advance Fee: $5 within Canada, $7.50 outside Canada
• Balance Transfer Fee: Undisclosed
• Foreign Transaction Fee: 2.5%
• Annual Fee: $0
• Any Other Fees:
  • Overlimit fee: $29
  • Dishonoured cheque/insufficient balance transfer fee: $40
  • Account maintenance fee: $10
  • Dishonoured payment fee: $42

CIBC Costco Mastercard vs. PC Financial Mastercard

Compared to CIBC’s offering, the PC Financial Mastercard has a slightly different schema with solid earning potential. Rather than earning cash back, PC cardholders earn 10 PC Optimum points per dollar spent on purchases made in Loblaw-owned stores, 30 points per one litre of fuel at Esso and Mobil gas stations and 10 points per dollar spent on all other purchases. With 10 PC Optimum points equaling one dollar in cash, the card has similar earning rates for Costco cardholders that shop in Loblaw-owned stores. But, CIBC’s card gas earning are based on per-dollars spent, not litres used, so cardholders will notice a difference with gas prices being as high as they are.

The PC Financial Mastercard also has a brand-only redemption process, as PC points can only be redeemed in Loblaw-owned stores.

Though identical in the lack of annual fees, that’s where the similarities stop. CIBC’s Costco card jumps ahead of PC’s in terms of earning power, earning approximately $130 more per year according to our research. Additionally, CIBC’s offering comes with extended warranty and purchase protection perks that PC’s card lacks. That said, the PC Financial Mastercard has a small welcome bonus of 20,000 PC points—valued at $20.

CIBC Costco Mastercard vs. Walmart Rewards Mastercard

Similar to CIBC’s Costco card, the Walmart Rewards Mastercard earns brand-specific cash back. This time it comes in the form of Walmart Reward Dollars at a rate of 1.25% on Walmart in-store and Walmart.ca purchases—and 1% in rewards for all other purchases. Those earn rates are also similar to CIBC’s Costco card, with Costco purchases earning 1% cash back, but CIBC’s card has better cash-back rewards on non-branded purchases, such as gas and restaurant buys.

Because of the greater earning rates of the CIBC card it comes well ahead of Walmart’s offering in terms of earning potential. Walmart’s Mastercard earns just over $300, which is $120 less than the CIBC Costco Mastercard. Sure, both cards come with helpful installment plans for consumers looking to make strategic purchase decisions.

CIBC Costco Mastercard vs. Amazon.ca Rewards Mastercard

It’s well known that Amazon is the largest online retailer, and shoppers that use Amazon for all of their essentials would be well-served to use the Amazon.ca Rewards Mastercard. Amazon cardholders pay no annual fee, earn 1.5% in Amazon points on eligible Amazon.ca and Whole Foods purchases, with all other purchases earning 1% back. The Amazon.ca Rewards Mastercard also comes with a $65 Amazon Gift Card on approval and 5% back on eligible Amazon.ca purchases, restaurant purchases and Whole Foods stores and other grocery stores in the first six months—up to $3,000. That’s a total welcome bonus of over $200 in value.

To top it off, Amazon’s card earns nearly the exact same as CIBC’s, not including the welcome bonus. Amazon’s card also comes with rental car insurance, lost baggage assistance and ticket replacement assistance—perks that CIBC’s offering does not have. Because of these factors, Amazon’s card is a better pick for those that spend a lot of time, and money, on Amazon.ca.

Related: Best Credit Cards for Amazon

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With this card, the scoring model used takes into account factors such as, but not limited to, cash-back rates and categories, fees, welcome bonuses, and other benefits and features. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

Avid Costco shoppers that use the Canadian warehouse retail giant on a regular basis can cash-in on big earning rewards on standard purchases—especially if they fuel up at Costco. That said, if you’re looking for a card with a bit more perks, or with more extensive cash-back rewards categories, there are other options out there.