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CIBC Costco Mastercard Review 2023

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 replaced Capital One in March 2022, and existing customers were issued new cards.

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 if 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 want 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

You can send money internationally using your card via CIBC Global Money Transfer. There are no transaction fees, and you can send up to $12,000. To avoid interest fees, ensure you pay off your balance within the grace period.

To proceed with an international money transfer as a Costco cardholder, simply use the CIBC app or log in on the website.

Your recipient can receive payment through their bank account, Visa debit or credit card, a MoneyGram cash pickup location, and more.

Related:

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 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 10,000+ partners and a minimum of 0.50% 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% – 26.99% on purchases; 22.99% – 28.99% 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 February 2023

Get one of the no-fee cash back credit cards in Canada ($100 bonus)

Earn 2% unlimited cash back in up to 3 spending categories.

Get a $100 welcome bonus after spending $1,000 in the first two months.

1.95% low-rate balance transfer and purchase protection insurance.

No annual fees to use the card; cashback is paid out monthly.

Get up to 5% cashback and grow your savings ($20 bonus)

Best free prepaid reloadable Mastercard plus a $20 welcome bonus.

Free budgeting app with automatic savings features.

Increase your credit score with optional credit building add-on.

Earn up to 2.00% interest on your entire balance.*

Earn up to 5% cash back at over 10,000 retail locations ($25 Bonus)

Get a $25 bonus when you are approved for the Card.

No annual account fees.

Earn up to 5% unlimited cash back at 10,000+ participating stores.

Guaranteed instant approval credit card.

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

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 is passionate about helping others win with their 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, CBC News, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, and many other personal finance publications. You can learn more about him on the About Page.

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 2023”

  1. Gravatar for TARA

    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. Gravatar for VK

    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. Gravatar for N B

    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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