CIBC Mastercard Costco Card Review

Welcome to our blog post about the exciting CIBC Mastercard Costco card! If you’re someone who loves shopping at Costco, this credit card might just be perfect for you. In this post, we’ll explore all the amazing features of the CIBC Mastercard Costco card, including its rewards program, fees, requirements, and benefits.

With the CIBC Mastercard Costco card, you can earn up to 3% cash back on eligible purchases at gas stations, 2% cash back on eligible purchases at restaurants and eligible travel purchases, and 1% cash back on all other purchases. And the best part? This card comes with no annual fee and offers Mastercard benefits such as extended warranty coverage, purchase protection, and travel insurance.

We’ll dive deeper into the details of the CIBC Mastercard Costco card in this blog post. You’ll learn all about how it works, how to apply for it, and tips for using it responsibly so you can maximize your rewards.

Whether you’re a current cardholder or thinking about applying for this amazing card, this post will provide you with valuable information and insights to help you get the most out of your shopping experience. So, let’s get started and explore the amazing benefits of the CIBC Mastercard Costco card together!

About CIBC and Costco

CIBC is a Canadian financial institution that offers a wide range of financial products and services, including credit cards, loans, mortgages, and investment accounts. The bank has been in operation for over 150 years and has a strong reputation for providing quality financial services to Canadians.

Costco, on the other hand, is a membership-based retail giant that offers a wide variety of products at discounted prices to its members. The company was founded in 1983 and has since grown into one of the largest retailers in the world, with over 800 locations in more than a dozen countries.

CIBC and Costco have a longstanding partnership that dates back to 2002 when CIBC became the exclusive issuer of Costco co-branded credit cards in Canada. Since then, CIBC has issued various Costco-branded credit cards, including the CIBC Mastercard Costco card.

This partnership has been successful for both companies, with CIBC benefiting from increased credit card revenue, and Costco benefiting from increased customer loyalty and spending. The CIBC Mastercard Costco card has become a popular option among Costco shoppers, as it offers cash back rewards on eligible purchases and exclusive benefits to Costco members.

Overall, the partnership between CIBC and Costco has been a fruitful one, with both companies benefiting from their collaboration. The CIBC Mastercard Costco card is just one example of the successful products that have been developed as a result of this partnership.

About The CIBC Mastercard Costco Card

The CIBC Mastercard Costco card is a credit card that offers cash-back rewards for purchases made at Costco and other merchants. Here are some key details about this card:

Rewards:

• 3% cash back on eligible purchases at Costco gas stations

• 2% cash back at any other gas station and online at costco.ca 

• 1% cash back on all other purchases including at Costco 

Fees:

• Annual fee: $0

• Interest rates: Standard interest rate on purchases is 19.99% and on cash advances is 22.99%

• Balance transfer fee: 1% of the amount transferred, minimum $7.50

Requirements:

• You must be a Costco member to apply for and use this card

• Applicants must meet CIBC’s credit criteria

Benefits:

• Mastercard benefits such as extended warranty coverage, purchase protection, and travel insurance are included

• Purchase security and extended warranty insurance

• Mobile device insurance

Is This A Costco-Specific Credit Card?

Yes, the CIBC Mastercard Costco card is a Costco-specific card, meaning it can only be used at Costco and Costco gas stations. While the card is issued by CIBC, it is only available to Costco members and can be used exclusively at Costco locations. This is because the CIBC Mastercard Costco card is designed to provide Costco members with a convenient and rewarding way to shop at the retail giant.

However, it’s worth noting that while the card can only be used at Costco and Costco gas stations, it does come with some additional benefits, such as Mastercard benefits like extended warranty coverage, purchase protection, and travel insurance. It also offers cash-back rewards on eligible purchases, which can be redeemed for statement credits or Costco Cash.

Overall, if you are a frequent Costco shopper looking for a credit card that offers cash-back rewards and additional benefits, the CIBC Mastercard Costco card can be an excellent choice. However, if you’re looking for a credit card that can be used more widely, you may want to consider a different option that is accepted at more locations.

When was this card launched?

The CIBC Mastercard Costco card was launched in 2014 as part of a new partnership between CIBC and Costco Wholesale Canada. This partnership made CIBC the exclusive provider of Mastercard credit cards for Costco members in Canada.

The launch of the CIBC Mastercard Costco card provided Canadian Costco members with a new credit card option that offered cash back rewards on eligible purchases, as well as other benefits such as no annual fee for the primary cardholder and additional cardholders, and access to exclusive offers and events. Since its launch, the CIBC Mastercard Costco card has become a popular credit card option for Canadian Costco members.

Eligibility To Apply

The eligibility requirements for the CIBC Mastercard Costco card are fairly straightforward. To be eligible for the card, you must:

• Be a Canadian resident: The card is only available to Canadian residents.

• Be a Costco member: You must have a valid Costco membership to apply for the CIBC Mastercard Costco card.

• Meet the credit requirements: Like most credit cards, the CIBC Mastercard Costco card has credit requirements that applicants must meet. These requirements are not publicly disclosed, but generally include factors such as credit score, income, and debt-to-income ratio.

• Be at least 18 years old: Applicants must be at least 18 years old to apply for the card.

If you meet these eligibility requirements and are interested in applying for the CIBC Mastercard Costco card, you can apply online through the CIBC website or in person at a CIBC branch. Keep in mind that meeting the eligibility requirements does not guarantee approval for the card, as the final decision is based on various factors, including creditworthiness and other criteria set by the card issuer.

How Much Cash back will I earn If I spend $100?

The amount of reward points you will earn for spending $100 with the CIBC Mastercard Costco card depends on the category of the purchase. Here are the details:

• 3% cash back on eligible restaurant and gas purchases: If you spend $100 on eligible restaurant and gas purchases, you will earn $3 in cash back rewards.

• 2% cash back on eligible Costco and Costco.ca purchases: If you spend $100 on eligible Costco and Costco.ca purchases, you will earn $2 in cash back rewards.

• 0.5% cash back on all other eligible purchases: If you spend $100 on other eligible purchases, such as groceries or clothing, you will earn $0.50 in cash back rewards.

How Much Cash Back will I earn If I spend $500 At Costco?

If you spend $500 at Costco with the CIBC Mastercard Costco card, you will earn cash back rewards according to the following categories:

• 2% cash back on eligible Costco and Costco.ca purchases: If you spend $500 on eligible Costco and Costco.ca purchases, you will earn $10 in cash back rewards.

• 0.5% cash back on all other eligible purchases: If you spend $500 on other eligible purchases, such as groceries or clothing, you will earn $2.50 in cash back rewards.

Pros and Cons Of The CIBC Mastercard Costco Card

Pros:

• Generous rewards program: The CIBC Mastercard Costco card offers cash back rewards on eligible purchases, which can be redeemed for statement credits or Costco Cash.

• No annual fee: The card has no annual fee, making it an affordable option for frequent Costco shoppers.

• Mastercard benefits: The card comes with Mastercard benefits, such as extended warranty coverage, purchase protection, and travel insurance, providing extra value for cardholders.

• Additional cards: You can add additional cardholders to your account at no extra cost, making it easier for family members to share the benefits of the card.

• Contactless payments: The card comes with contactless payment technology, which allows for quick and easy purchases.

• Identity theft protection: The card comes with identity theft protection, which helps monitor your credit report and alert you of any potential fraud or identity theft.

Cons:

• Limited redemption options: Cash back rewards earned on the CIBC Mastercard Costco card can only be redeemed for statement credits or Costco Cash, limiting the flexibility of rewards redemption.

• High interest rate: The card’s interest rate is relatively high, so if you carry a balance, you may incur significant interest charges.

• Limited acceptance: The CIBC Mastercard Costco card can only be used at Costco and Costco gas stations, so it may not be as widely accepted as other credit cards.

• Credit requirements: Like most credit cards, the CIBC Mastercard Costco card has credit requirements that may exclude some applicants.

Overall, the CIBC Mastercard Costco card is an excellent choice for frequent Costco shoppers who want to earn cash back rewards on their purchases. While it has some limitations, such as limited redemption options and acceptance, its generous rewards program and Mastercard benefits make it a compelling option for many.

Is there any annual cap on the cash back earned?

Yes, there is an annual cap on the cash back rewards earned with the CIBC Mastercard Costco card. The card offers up to 2% cash back on eligible Costco and Costco.ca purchases and up to 0.5% cash back on all other eligible purchases. The maximum amount of cash back rewards you can earn in a year is:

• $1,000 on eligible Costco and Costco.ca purchases

• $7,000 on all other eligible purchases

Other Alternate Credit Cards For Costco Purchase Rewards

While the CIBC Mastercard Costco card is an excellent option for earning rewards on Costco purchases, there are other credit cards available that can also be used to make purchases at Costco and earn rewards. Here are a few alternate credit card options to consider:

• Capital One Costco Mastercard: This credit card is similar to the CIBC Mastercard Costco card in that it can only be used at Costco and Costco gas stations. It offers 3% cash back on restaurant and eligible travel purchases, 2% cash back on eligible gas purchases, and 1% cash back on all other eligible purchases.

• Tangerine Money-Back Credit Card: This credit card can be used anywhere Mastercard is accepted, including at Costco. It offers 2% cash back on up to three categories of your choice (such as groceries, gas, or restaurants) and 0.5% cash back on all other purchases.

• BMO CashBack World Elite Mastercard: This credit card can also be used at Costco and offers 1.5% cash back on all eligible purchases. It also includes travel insurance and purchase protection benefits.

• SimplyCash Preferred Card from American Express: This credit card can be used anywhere American Express is accepted, including at Costco. It offers 2% cash back on all eligible purchases and includes travel insurance and purchase protection benefits.

It’s important to note that while these credit cards can be used to make purchases at Costco, they may not offer the same exclusive benefits to Costco members as the CIBC Mastercard Costco card. Additionally, some of these cards may have annual fees and different rewards structures, so it’s important to carefully consider which credit card is the best fit for your spending habits and lifestyle.

Final Words

In conclusion, the CIBC Mastercard Costco card is an excellent option for Costco shoppers who want to earn cash-back rewards on their purchases. With 3% cash back on eligible restaurant and gas purchases, 2% cash back on eligible Costco and Costco.ca purchases, and 0.5% cash back on all other eligible purchases, the rewards can quickly add up. Plus, the card offers exclusive benefits to Costco members, such as extended warranty coverage and travel insurance.

While the CIBC Mastercard Costco card is a great option for earning rewards at Costco, there are also other credit cards available that can be used to make purchases at Costco and earn rewards. It’s important to carefully consider which credit card is the best fit for your spending habits and lifestyle before making a decision.

Overall, whether you choose the CIBC Mastercard Costco card or another credit card, earning rewards on your Costco purchases can be a great way to save money and maximize your spending. With the right credit card and a little bit of planning, you can enjoy the benefits of cashback rewards and exclusive benefits while shopping at one of Canada’s favorite retailers.