Despite being branded with the company’s name, the CIBC Costco Mastercard is not the best credit card for Costco – better options include the Rogers Red World Elite Mastercard and the MBNA Rewards World Elite Mastercard, which offer better rewards both at and outside of Costco.
We've sorted through a warehouse full of credit card details and created a simple comparison of your Costco credit card options, presented for you in the article below.
Key Takeaways
- The CIBC Costco Mastercard earns 1% cash back at Costco warehouses, 3% back at restaurants and Costco gas, and 2% back at other gas stations and costco.ca.
- Other Mastercards that provide better rewards on Costco purchase include the Rogers World Elite Mastercard and the MBNA World Elite Mastercard.
- Costco accepts all Mastercards, both in store and online.
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All about the CIBC Costco Mastercard
Costco and Capital One ended their partnership in 2022, resulting in CIBC taking the title of Costco's preferred credit card issuer.
The CIBC Costco Mastercard is a no fee credit card with a major flaw: no special earn rate when shopping at Costco. Here’s how the rewards shake out:
- 3% cash back on restaurants and Costco gas
- 2% cash back at other gas stations, EV charging, and at Costco.ca
- 1% cash back on all other purchases
What we like:
- No annual fee
- Doubles as your Costco membership card
- Up to 3% back in cash back
Things to note:
- No special earn rate at Costco Warehouses
- Only available to Costco members
- Only includes 3 types of insurance
How to redeem your cash back on your CIBC Costco Mastercard
You’ll receive your rewards each January on your statement date as a gift certificate that you can use at Costco warehouses.
- You can always access your gift certificate via mobile
- If you receive statements, you’ll also get your gift certificate in the mail
To redeem your cash back, bring a copy of your gift certificate and your CIBC Costco Mastercard to any Canadian Costco warehouse and the cashier will scan it for you at checkout. Your gift certificate will be applied to your purchase and any change will be given in cash.
Pro Tip: If you’re due a lot of cash back, ask for your refund as a cheque. They’ll print it for you in-store in about 10 minutes.
CIBC Costco Mastercard vs. 3 competitor cards
Here's a shortlist of some of the best CIBC Costco Mastercard alternatives that will reward you better.
| Card name | Welcome bonus | Annual fee | Average return | Types of insurance | Apply |
|---|---|---|---|---|---|
| MBNA Rewards World Elite® Mastercard® |  $150 GC Boost + 30,000 bonus points (terms) | $120 | 2.86% | 12 | Apply now |
| Rogers Red World Elite® Mastercard® | None | $0 | 1.5% | 6 | Apply now |
| RBC Cash Back Preferred World Elite Mastercard | None | $99 | 1.5% | 3 | Apply now |
| BMO AIR MILES®† World Elite®* Mastercard®* | $150 GeniusCash + Up to 9,000 bonus miles, first year free (terms) | $120 | 1.35% | 14 | Apply now |
High rewards with the best Mastercard in Canada
×4 Award winner 
GC: $125 + $25
4x Award winner Because of its high earn rates, the MBNA Rewards World Elite® Mastercard® took home the award for the best Mastercard in Canada. Here’s what they look like:
- 5 points for every $1 spent on restaurants, groceries, and select recurring bills (up to $50,000 spent annually per category)
- 1 point per $1 spent on all other purchases
What we like:
- Up to 30,000 bonus points
- Up to 5 points per $1 spent on purchases
- 10% bonus points every year on your birthday
- Includes 12 types of insurance
Things to note:
- $120 annual fee
- High income requirements of $80,000 personal or $150,000 household
A no fee Mastercard with decent insurance
The Rogers Red World Elite Mastercard is a rare World Elite Mastercard with no annual fee. It earns cash back at an insane clip:
- Earn 2% unlimited cash back on all eligible non-U.S. dollar purchases if you have 1 qualifying service with Rogers, Fido, Comwave, or Shaw
- Earn 1.5% unlimited cash back on eligible non-U.S. dollar purchases
- Earn 3% unlimited cash back on all eligible purchases made in U.S. dollars
One of the biggest perks comes with being a Rogers customer: you can get 50% more cash back if you redeem your rewards on Rogers services.
What we like:
- Up to 3% cash back (base earn rate is still 1.5%)
- Cash back goes 50% further if you redeem it on Rogers bill payments
- Includes 6 types of insurance
- No annual fee
Things to note:
- $15,000 minimum annual spend
- High income requirements of $80,000 personal or $150,000 household
Earn WestJet Dollars and get a companion voucher
The WestJet RBC World Elite Mastercard allows you to up to 2% back in WestJet Dollars on anything you buy – but the biggest perk is the companion voucher that will get your traveling companion anywhere in Canada or the continental U.S. for $119 (or anywhere else for $399).
Plus, WestJet's credit card trounces Costco's card in terms of coverage categories 10 to 3.
What we like:
- Big savings with the companion voucher
- Free checked bags on WestJet flights
- Welcome bonus of up to 450 bonus WestJet Dollars
- 3¢ off per litre at Petro-Canada
What we don't like:
- High income requirements of $80,000 personal or $150,000 household
- Only earns WestJet dollars
Bonus miles on warehouse purchases
×1 Award winner GC: $150
1x Award winner The BMO AIR MILES World Elite Mastercard may not have the best rate of return of the cards on our list, but it has one of the best insurance packages, comes with a generous welcome bonus, and, best of all, gives you 2x the miles for your purchases at Costco. We also love the current limited time offer, which saves you up to 7 cents a litre on gas at Shell stations.
There is a $120 annual fee, but it’s waived for the first year, which gives you a great opportunity to try out the card and see if it’s worth it.
What we like:
- Get up to 7,000 welcome bonus Air Miles
- Earn up to 3 Miles per $12 spent on purchases
- Annual 25% discount on 1 Air Miles reward flight booking
- Automatic Air Miles Onyx status
- Includes 14 types of insurance
- Save up to 7 cents per litre at Shell
What we don't like:
- Low rewards compared to other premium cards
- High income requirements of either $80,000 personal or $150,000 household
FAQ
Can you use Visa cards at Costco?
Costco warehouses only accept Mastercard, debit, or cash – but you can use Visa for online purchases at costco.ca.
What is the best cash back Mastercard for Costco purchases?
The best Mastercard for Costco is the Rogers Red World Elite Mastercard. This card offers 1.5% back on your purchases, bonus rewards on USD purchases, and a decent array of insurance coverage options.
Does the Costco Mastercard offer airport lounge access?
No, the CIBC Costco Mastercard does not offer airport lounge access or any other travel benefits.
Do you need to be a Costco member to get the CIBC Costco Mastercard?
Yes, you must be a Costco member to apply for the card, which doubles as your membership card.
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