The CIBC Costco Mastercard is now available for all Costco members to apply for. You can learn more here.
Late last year, we learned that Capital One was no longer going to be offering the Costco Mastercard. We were all left wondering who was going to take over the (lucrative, we assume) Costco credit card contract.
Earlier this year, we learned that CIBC was going to be taking over, but we didn’t have details on what the new card was going to look like – other than it was going to have no annual fee.
But CIBC has just released more details on their new CIBC Costco Mastercard.
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Earn up to 3% cash back with the CIBC Costco Mastercard
We now know what the new CIBC Costco Mastercard will offer for rewards.
It’s going to be a no annual fee cash back credit card, with this to offer for rewards:
- 3% cash back on gas at Costco and restaurants,
- 2% cash back at Costco.ca (up to $8,000 in annual spend),
- 2% cash back on gas at non-Costco stations (up to $5,000 total spent, including Costco gas), and
- 1% cash back everywhere Mastercard is accepted (including Costco warehouses).
CIBC has this press release with all the details so you can see for yourself.
The good news
So, let’s start with the good. Earning 3% back on gas at Costco and 2% on all other gas is very good for a no annual fee card.
It’s also nice to see the restaurant bonus from the previous Capital One card is still present here.
And we love the bonus category for shopping online at Costco. Even though you’re only earning 2% back on up to $8,000 in annual spend, that’s still a nice bonus.
Finally, the baseline rewards are upped – you’re earning 1% back on all other purchases where Mastercard is accepted, whereas previously you earned 0.5% back on your first $3,000 in annual spend before being upped to 1%.
The bad news
So, it’s very good. But there’s one flaw – there’s no bonus for shopping at Costco warehouses.
This was the one big thing we wanted, and it doesn’t look like we’re going to get it, which leaves us quite disappointed.
So, many of our best Costco credit alternatives are still valid if you do a lot of shopping at Costco.
For example, the
It does have an annual fee of $199 (which is waived for the first year), but when you shop at a Costco Warehouse, you’re earning double in rewards.
Here are a few other top credit cards you could consider, with varying rewards and annual fees.
What else we know about the new CIBC Costco Mastercard
We have a few more details besides the rewards.
Changeover details
The official changeover will be in March 2022. All existing Capital One Costco Mastercards accounts will be transferred over to CIBC at that time, and you’ll start earning the new benefits, even before you get your new card (which may not happen until the end of August).
Your credit limit will remain the same, and any pre-authorized payments you have don’t need to be changed.
If you want this card but don’t have the Capital One card, you’ll be able to apply for it in March 2022.
If you want the earliest access possible – you can still sign-up for the Capital One card now. When the changeover happens, you’ll be among the first to get the updated benefits of the CIBC Costco Mastercard.
Some insurance will be included
The card will also feature some insurance.It’ll include mobile device insurance, an insurance that’s becoming more popular. It will also icnlude basic extended warranty and purchase protection.
CIBC installment plans will be available
If you need some help spreading out bigger payments, this card will be able to help.
It will feature CIBC Pace It – CIBC’s credit card installment plan, which can help spread out bigger payments. You could get lower interest rates when you agree to payment plans on larger purchases.
Your turn
Overall, there’s quite a bit to like about what this new credit card will offer – sadly, it’s not going to offer a bonus when shopping at warehouses. It definitely does offer an upgrade over the previous Capital One card.
But that’s our opinion – what’s yours?
What do you think about CIBC’s plans for their Costco Mastercard?
Let us know in the comments below!
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