Costco is a go-to retailer for Canadians who want deep discounts on bulk purchases. The trade-off is that you need a Costco membership to shop in most warehouses, which costs $65 per year for a Gold membership or $130 per year for an Executive membership. Costco also restricts which credit cards you can use in different situations—for example, in stores and at Costco fuel stations in Canada, only Mastercard credit cards are accepted; online at Costco.ca, Visa is accepted.
If you shop at Costco regularly, you may have seen the CIBC Costco Mastercard promoted in stores and online. This no-fee credit card also acts as your Costco membership card and offers tiered cash-back rewards for purchases. Below is a clear, SEO-friendly review of the CIBC Costco Mastercard, its strengths and limitations, and a look at some alternative cards that could earn you more rewards depending on how and where you shop.
CIBC Costco Mastercard review
CIBC Costco Mastercard — key details
Annual fee: $0
Rewards:
- 3% cash back at restaurants and at Costco gas stations
- 2% cash back at other gas stations and at Costco.ca
- 1% on all other purchases (including in-store at Costco)
Welcome offer: None at this time.
Card details
| Interest rates | 20.75% on purchases; 22.49% on cash advances |
| Income required | $15,000 per year |
| Credit score | 560 or higher |
The pros
The CIBC Costco Mastercard is a no-fee cash-back card that doubles as your Costco membership card, so you only need to carry one card. It rewards frequent shoppers with 3% back at restaurants and Costco gas stations, 2% back at other gas stations and on purchases at Costco.ca, and a base 1% back on other purchases, including in-store Costco purchases.
The card also includes standard protections such as extended warranty and purchase protection, plus mobile device insurance that can cover up to $1,000 for repair or replacement when you charge or finance a device to the card. Cardholders who meet higher income requirements may qualify for the CIBC Costco World Mastercard, which adds World Mastercard benefits such as car rental insurance and travel perks.
The cons
Although the card has no annual fee, you must be a Costco member to access the full value of the card, and membership itself costs $65 (Gold) or $130 (Executive). The card’s higher cash-back rates are capped by category: gas rewards apply at the higher rates only on the first $5,000 charged annually (then revert to 1%), and Costco.ca purchases earn the elevated 2% rate up to $8,000 per year before returning to the 1% base. Cash-back is paid as Costco gift certificates issued in January rather than as monthly statement credits or direct deposits.
Frequently asked questions
What credit cards does Costco Canada accept?
In Canadian Costco warehouses and at Costco fuel stations, Mastercard is the only credit card network accepted. Online at Costco.ca, Visa is accepted. Other payment methods—debit, Costco Shop Cards, Apple Pay and cash—are accepted in various locations and at different points of sale.
Does the CIBC Costco Mastercard charge a foreign transaction fee?
Yes. CIBC charges a 2.5% fee on purchases made in foreign currency. If you travel frequently or make many U.S.-dollar purchases, consider holding a separate no-foreign-transaction-fee card alongside your Costco Mastercard.
Does the CIBC Costco Mastercard include travel insurance?
No. The CIBC Costco Mastercard provides extended warranty, purchase protection and mobile device insurance, but it does not offer travel insurance. If you need travel coverage, look for a travel-oriented credit card.
Can you earn bonus points on grocery purchases at Costco?
Grocery purchases at Costco are typically coded as “wholesale club” by card networks. That means many cards that give higher rewards on groceries may only provide the base earn rate for Costco purchases. The CIBC Costco Mastercard’s structure is designed specifically for Costco’s coding and rewards categories.
Does the CIBC Costco Mastercard cover Costco membership fees?
No. The card does not pay your Costco annual membership. It does, however, act as your membership card so you don’t need to carry both.
What happened to the Capital One Costco Mastercard?
Costco transitioned from Capital One to CIBC as its Canadian credit card partner in March 2022. The Capital One Costco Mastercard is no longer issued or accepted.
Recent changes to Costco membership fees and rewards
On Sept. 1, 2024, Costco Canada raised membership fees: Gold Star memberships increased from $60 to $65 and Executive memberships rose from $120 to $130. Executive members also saw the maximum annual 2% reward rise from $1,000 to $1,250.
Costco credit cards in Canada: three things to know
1. Mastercard coding matters
Card networks assign merchant category codes that determine how purchases are classified. Mastercard treats Costco purchases as wholesale club transactions, which means a card that pays a high grocery rate elsewhere might only pay the base rate at Costco.
2. Costco.ca accepts Visa (in-store shopping is Mastercard-only)
If you prefer using a Visa card, you can shop online at Costco.ca. Another workaround for in-store purchases with a Visa is to buy Costco Shop Cards online with your Visa and then redeem those cards in warehouses.
3. Costco’s membership rewards
Executive members earn a 2% reward on eligible purchases by the primary and additional cardholders, up to the program limit (current maximum $1,250). Because Executive membership costs more, upgrade only if your annual Costco spend makes the extra fee worthwhile. Executive rewards are issued as gift certificates redeemable in warehouses.
Top CIBC Costco Mastercard alternatives in Canada
| Our top pick | Your spending personality |
|---|---|
| Rogers Red World Elite Mastercard Annual fee: $0 |
You want straightforward cash back |
| Scotia Momentum Visa Infinite + Card Annual fee: $120 |
You want cash back with a Visa |
| TD Aeroplan Visa Infinite Card Annual fee: $139 |
You want travel rewards with a Visa |
If you want cash back
At a glance: The Rogers Red World Elite Mastercard offers a simple flat-rate structure that can outperform the CIBC Costco Mastercard in some situations. It delivers 1.5% cash back on in-store Costco purchases (2% for Rogers, Fido or Shaw customers), and 3% cash back on U.S. dollar purchases. Its flat rate avoids category exclusions and caps that can limit rewards on other cards.
Annual fee: $0
Rewards:
- 3% cash back on U.S. dollar purchases
- 1.5% on other purchases (2% for eligible Rogers, Fido and Shaw customers)
Card details
| Interest rates | 25.99% on purchases; 27.99% on cash advances and balance transfers |
| Income required | $80,000 per year |
| Credit score | 725 or higher |
Pros: Higher flat-rate cash back in some categories; immediate redemption option once rewards reach threshold; strong U.S. dollar return. Cons: Higher income requirement to qualify.
If you want cash back from a Visa
At a glance: If you prefer a Visa card for online Costco purchases, the Scotia Momentum Visa Infinite + Card offers 1% back on online purchases, plus elevated rates in other categories. While Visa cannot be used in Canadian Costco warehouses, it is accepted online at Costco.ca, making this card a useful complement to in-store options.
Annual fee: $120 (first year waived in many offers)
Rewards:
- 4% cash back on groceries, recurring bills and subscriptions
- 2% on gas and public transit
- 1% on everything else, including Costco.ca purchases
Card details
| Interest rates | 20.99% on purchases; 22.99% on cash advances and balance transfers |
| Income required | Variable, generally higher-income thresholds apply |
| Credit score | 725 or higher |
Pros: Best Visa option for Costco.ca purchases; strong grocery rewards elsewhere. Cons: Can’t be used in-store at Costco warehouses.
If you want travel points from a Visa
At a glance: For travel-focused shoppers, the TD Aeroplan Visa Infinite Card earns Aeroplan points that can be redeemed for flights and travel benefits. It awards points on online Costco purchases and delivers greater value if you redeem points strategically for travel.
Annual fee: $139 (often waived the first year)
Rewards:
- 1.5 Aeroplan points per $1 on gas, groceries, EV charging and Air Canada purchases
- 1 point per $1 on most other purchases, including Costco.ca
Card details
| Interest rates | 21.99% on purchases; 22.99% on cash advances and balance transfers (varies by province) |
| Income required | Personal income around $60,000 or household income of $100,000 |
| Credit score | 680 or higher recommended |
| Point value | Aeroplan points typically average about $0.02 each for travel redemptions |
Pros: Strong travel benefits and partner airline redemptions. Cons: Cannot be used in Costco warehouses; points values can vary.
Payment methods accepted at Costco in Canada
| Payment method | Point of sale |
|---|---|
| Mastercard | Costco warehouses ✅ · Costco.ca ✅ · Costco gas stations ✅ |
| Visa | Costco warehouses ❌ · Costco.ca ✅ · Costco gas stations ❌ |
| American Express | Not accepted at warehouses, online or gas stations ❌ |
| Debit card | Costco warehouses ✅ · Costco.ca (most PIN-based debit) ✅ · Costco gas stations ✅ |
| Costco Shop Card | Accepted in warehouses and online; physical cards work at gas stations ✅ |
| Cash | Accepted in warehouses ✅; not accepted online or at gas stations ❌ |
| Apple Pay | Accepted in warehouses and online; not accepted at fuel stations ✅/❌ |
Other credit card guides
- The best instant approval credit cards
- The best credit cards for gas
- The best credit cards for grocery purchases
- The best cash-back credit cards