CIBC Costco Mastercard Review 2022

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by Enoch Omololu

Updated

Advertiser Disclosure

Costco members can now earn more cash back when they use their Costco Mastercard to buy gas or shop online at Costo.ca.

If you currently have a Capital One Costco Mastercard, then you already know that CIBC has replaced Capital One on March 4, 2022, and will be issuing new cards that will arrive before August 31, 2022.

This CIBC Costco Mastercard review covers what it offers in benefits, as well as all the features you can expect to enjoy.

CIBC Costco Mastercard- At a Glance

Rewards: 3% cash back at restaurants and Costco gas; 2% cash back at other gas stations and Costco.ca; 1% cash back on everything else.

Interest rates: 19.75% for purchases and 21.49% for cash advances.

Insurance: Mobile device insurance, purchase security, and extended warranty benefit.

Annual fee: $0

CIBC Costco Mastercard Benefits

Like its predecessor, the CIBC Costco Mastercard does not have an annual fee. It offers cash back on all your spending as follows:

3% cash back: When you eat at restaurants or purchase gas at a Costco gas station, you earn 3% cash back.

2% cash back: Earn 2% in cash back rewards on gas purchases at non-Costco gas stations and when you shop online at Costco.ca.

1% cash back: Cardholders earn an unlimited 1% cash back on all other purchases including Costco.

The cash back you can earn on gas purchases (3% at Costco Gas and 2% elsewhere) is limited to a maximum spending of $5,000 per year. Additional spending on gas above this threshold earns 1% cash back.

Also, online purchases at Costco.ca will only earn 2% cash back up to a maximum spending of $8,000 per year. After you meet this threshold, all other online purchases at the merchant earn 1% cash back rewards.

CIBC Costco Mastercard Insurance

The new card offers mobile device insurance for personal mobile devices including your smartphone or tablet.

This benefit provides up to $1,000 coverage in the event the device becomes lost, stolen, or damaged within 2 years of purchasing it.

Like the Capital One Card, the CIBC Costco Mastercard is maintaining these benefits:

Purchase security: Items you buy can be replaced or repaired if they become lost, stolen, or damaged within 90 days of purchase.

Extended warranty: This extends the manufacturer’s warranty by up to one extra year.

Other Features

Costco members will continue to be able to use the new card as their membership card, and they can also upgrade to the CIBC Costco World Mastercard.

If you are looking to buy a big-ticket item at Costco, you will have access to CIBC Pace It Installment Plans.

When you use the CIBC Costco Mastercard to pay for your purchase, special installment rates are available as follows:

  • 4.99% for 6 months
  • 5.99 for 12 months
  • 6.99% for 24 months.

Downsides of the CIBC Costco Mastercard

As already noted, there are spending caps for gas and online Costco.ca purchases which limit how much cash back you can earn at the 3% and 2% reward rates.

The new Costco Mastercard does not offer a welcome bonus and you will need to wait until January to redeem the cash back you have accumulated.

A Costco cash back gift card certificate is issued once a year in January with the amount of cash back you earned in the previous year.

Lastly, the new branding means you will need to register for CIBC Online Banking and download the CIBC Mobile Banking app in order to pay your credit card bill.

While this account is free, it is another bank account you now need to manage.

Capital One vs. CIBC Costco Mastercard

The Capital One Costco Mastercard remains in use until next year.

If you already have the card, CIBC will automatically issue you the new card in the mail before August 31, 2022.

In the meantime, you can continue to use your current card and earn rewards as usual.

The Capital One Costco Mastercard currently offers:

  • 3% cash back on restaurant purchases
  • 2% cash back on gas purchases
  • Up to 1% cash back on all other purchases

The 1% cash back category includes Costco purchases, and you only earn 0.50% back on your first $3,000 in purchases.

It also doubles as your membership card.

Best Costco Mastercard Alternatives

Top Costco credit cards include the National Bank World Elite Mastercard and Rogers World Elite Mastercard credit cards.

You can also use the credit cards below to earn competitive cash back on various purchases.

Neo Mastercard (Standard)

Rewards: Average of 5% cash back at partners and a minimum of 1% cash back across all purchases

Welcome offer: Get 15% cash back on your first purchases; plus a $25 welcome cash bonus.

Interest rates: 19.99% – 24.99% on purchases; 21.99% – 26.99% for cash advances.

Annual fee: $0

Tangerine Money-Back Credit Card

Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases.

Welcome offer: Get an extra 10% cash back on up to $1,000 in spending in the first 2 months ($100 value).

Interest rates: 19.95% for purchases, balance transfers, and cash advances.

Annual fee: $0

If you have a $60,000 income, you can also look at the Tangerine World Mastercard. It offers the same cash back rewards as the entry-level Tangerine credit card, plus:

  • No annual fees
  • Mobile device insurance
  • Rental car insurance
  • Mastercard Airport Experiences provided by Loungekey complimentary membership
  • Access to free Boingo Wi-Fi around the world

Learn more in this review.

Related:

Best Credit Offers in July 2022

Earn up to 10% cash back for a limited time ($100 bonus)

One of the best no-fee credit cards in Canada.

Get 2% unlimited cash back on up to 3 purchase categories.

Get 0.5% unlimited cash back on all other purchases.

Get 10% bonus cash back in first 2 months ($100 value).

1.95% balance transfer offer for 6 months.

Get up to 10% cashback and grow your savings ($20 bonus)

Free prepaid reloadable Mastercard (use referral code CASHBACK during signup for $20 free).

Access to a portion of your paycheque 3 days early.

Free budgeting app with automatic savings features.

1.20% savings interest on every dollar balance.*

Compare the best personal loan rates in Canada

Get the best rates from multiple lenders.

Borrow up to $50,000 regardless of your credit score.

Pre-approvals are available in as fast as 5 minutes.

Low-interest rates start at 1.99% and terms from 4-60 months.

The NeoCard pays up to 5% cash back at select retailers

Get a $25 bonus when you apply for the Card.

Up to 5% cash back at participating stores.

No annual account fees and 1% minimum cash back guaranteed.

Guaranteed instant approval credit card.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

3 thoughts on “CIBC Costco Mastercard Review 2022”

  1. you didnt mention the other Costc CIBC mastercard offered. CIBC costco Mastercard, you were very thorough with explaning everything. i was hoping you had information on the CIBC world costco card and the difference between the 2 cards.

  2. Horrible customer service (long wait)

    I try to change my PIN on my new Costco CIBC card but failed mane time on phone (2-3h each). I give up after a month trying. Now I try to cancel my card but have to go thru customer wait x2 (the first agent can’t do it, waited for 4h) and to get hang up by the second agent after 3h wait and only 2 minutes in cancel process to get hang up. .. Now I still trying… I will give bad review where I can till I my card get cancelled.

    COSTCO WHAT ARE YOU DOING?????

    VK

  3. Costco CIBC card, long waiting time on the phone since 4 months, I can’t get hold of them. I get fed up after 2 or 3 hours waiting ✋️.

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