The CIBC Costco Mastercard is a no-annual-fee cash back credit card available exclusively to Costco members in Canada. It offers cash back rewards on a variety of purchases, including at restaurants, gas stations, and Costco itself, with no limit on total earnings. The card also functions as your Costco membership card and provides access to purchase protection and extended warranty insurance. Understanding its eligibility requirements, reward structure, and redemption process is key for Canadian Costco members considering this financial product.
Eligibility and Application Requirements
To apply for a CIBC Costco Mastercard in Canada, you must first be a Costco member with a valid Costco Wholesale membership. This requirement applies to both the primary cardholder and any authorized users added to the account. For the standard CIBC Costco Mastercard, applicants must have a minimum individual annual income of $15,000. A higher tier of the card, the CIBC Costco World Mastercard, requires a minimum individual annual income of $50,000 or a minimum household annual income of $80,000. The card has a minimum credit limit, though the specific amount is determined by CIBC based on the applicant's credit profile. The application process is integrated with Costco membership verification, ensuring the card is only issued to current members. The same membership requirement applies to the CIBC Costco Business Mastercard for business applicants, who must also have an active Costco membership to apply.
Detailed Cash Back Reward Structure
The CIBC Costco Mastercard offers a tiered cash back system on eligible purchases where Mastercard is accepted, with no annual fee and no limit on the total cash back you can earn. Cardholders earn 3% cash back on purchases at merchants classified as restaurants, which includes dining and food delivery services. For fuel purchases, you earn 3% cash back at Costco gas stations and 2% cash back at other gas stations and electric vehicle charging stations. Purchases made at Costco.ca also earn 2% cash back. All other purchases, including those made inside Costco warehouses, earn 1% cash back. The cash back is calculated on net purchases, which means returns are deducted before rewards are applied. For Quebec residents, specific promotional rates or terms may apply as indicated in provincial documentation. The CIBC Costco Business Mastercard earns 3% on restaurant purchases and at Costco gas, aligning with the personal card's top tier for those categories. The CIBC Costco Mastercard offers cash back on eligible purchases where Mastercard is accepted. Cardholders earn 3% cash back at restaurants and Costco gas stations. They also earn 2% cash back at other gas stations, electric vehicle charging stations, and on purchases at Costco.ca. Furthermore, the card provides 1% cash back on all other purchases, including those made at Costco warehouses.
- 3% cash back at restaurants and on food delivery.
- 3% cash back at Costco gas stations.
- 2% cash back at other gas stations and electric vehicle charging stations.
- 2% cash back on purchases at Costco.ca.
- 1% cash back on all other purchases, including in-warehouse Costco purchases.
The personal CIBC Costco Mastercard provides the standard cash back rates. For the CIBC Costco Business Mastercard, cardholders earn 3% cash back on purchases at restaurants. The business card also earns 3% cash back on purchases at Costco gas stations. Cardholders can earn additional cash back on top of existing programs like Skip+ when using the card for food delivery.
Annual Redemption and the Cash Back Certificate Process
Cash back rewards are accumulated throughout the calendar year from January to December. You can track your total earned cash back through your monthly statement, the CIBC Mobile Banking App, or CIBC Online Banking. The cash back is issued annually as a Costco cash back gift certificate, which is delivered with your January credit card statement. This digital certificate can be redeemed at Canadian Costco warehouses for any merchandise or for cash. You can redeem the certificate digitally in-store using the CIBC Mobile Banking App or by printing it from CIBC Online Banking. The certificate is a single annual payout, consolidating all rewards earned in the previous year. This process replaced the previous cash back coupon system following the transition from Capital One to CIBC. The gift certificate for the 2022 calendar year was a combined certificate covering rewards from both the old and new card programs, ensuring no rewards were lost during the switch.
Cardholders receive an annual cash back gift certificate in their January statement. This certificate can be redeemed digitally in Canadian Costco warehouses using the CIBC Mobile Banking App. Alternatively, cardholders can print their gift certificate through CIBC Online Banking. The certificate can be redeemed for anything at Costco warehouses in Canada, including cash.
- Receive your annual cash back gift certificate with your January credit card statement.
- Access the certificate digitally via the CIBC Mobile Banking App or CIBC Online Banking.
- Present the digital certificate at any Canadian Costco warehouse checkout.
- Choose to apply the value to your purchase or receive it as cash.
The cash back gift certificate is issued annually, covering rewards earned from January to December of the previous year. Cardholders cannot redeem partial cash back throughout the year. The gift certificate is the only method for redeeming the earned cash back rewards. Cardholders can track their annual cash back total through their statement, the CIBC Mobile Banking App, or CIBC Online Banking.
Key Card Features, Benefits, and Installment Plans
The CIBC Costco Mastercard consolidates your payment method and warehouse access into a single card, as it also serves as your Costco membership card with all membership details printed on the back. Cardholders have access to CIBC Pace It installment plans, which offer special interest rates with no installment fees on eligible Costco purchases in Canada and at Costco.ca. The card includes Purchase Security Insurance, which covers eligible new purchases against theft or damage for a limited period, and Extended Warranty Insurance, which can extend the original manufacturer's warranty by up to one additional year. For mobile devices, the card provides up to $1,000 of repair or replacement coverage when the full purchase price is charged to the card. The card also supports contactless payments via Apple Pay, Google Pay, and Samsung Pay, and includes Mastercard Zero Liability Protection against unauthorized transactions. Cardholders can also send money abroad to over 120 countries with a $0 transfer fee using this card, and cash advance fees do not apply if the balance is paid by the payment due date. The CIBC Pace It installment plan feature offers special benefits for Costco purchases. Cardholders can access special Installment Plan interest rates with no installment fees on eligible Costco purchases in Canada and at Costco.ca. This feature allows payments for larger purchases to be spread over a fixed term. These special rates are a distinct benefit for eligible Costco purchases made with the card.
- Special Installment Plan interest rates are available for eligible Costco purchases.
- No installment fees are charged on eligible Costco purchases in Canada and at Costco.ca.
- Plans allow you to spread payments for larger purchases over a fixed term.
- Installment plans are also available for other eligible non-Costco purchases, but different rates may apply.
The CIBC Pace It feature is designed to provide flexibility for managing larger purchases. It helps cardholders avoid high-interest credit card debt by spreading payments over a fixed term. The special rates for Costco purchases are a distinct benefit of this card. For all other eligible purchases, different installment plan interest rates may apply.
Transition from Capital One and Account History
The CIBC Costco Mastercard program began following a transition from the previous Capital One Costco Mastercard. All eligible Capital One Costco Mastercard accounts were automatically converted to the CIBC Costco Mastercard as of March 4, 2022. Eligible cardholders did not need to reapply for the new card, and no additional credit check was conducted for the transition. For the 2022 calendar year, cardholders received a single cash back gift certificate in January 2023 that combined rewards earned on both the Capital One program from January 1 to March 3, 2022, and the CIBC program from March 4 to December 31, 2022. This ensured a continuation of rewards for existing members during the issuer changeover. The card was recognized as the Top Retail Loyalty Rewards Credit Card for 2024 and 2025 by Rewards Canada. The transition plan was communicated to members, with further details published in the April issue of the Costco Connection magazine, which explained why the switch was made and how to apply for a new card.
Insurance Protections and Security Features
The CIBC Costco Mastercard comes with a suite of insurance protections included at no extra cost. Purchase Security Insurance covers eligible new purchases against theft or damage for a limited period from the date of purchase. Extended Warranty Insurance doubles the original manufacturer's warranty period, up to a maximum of one additional year, on most items purchased with the card. For mobile devices, specific coverage provides up to $1,000 for repair or replacement when the full purchase is charged to the card. CIBC also offers optional CIBC Payment Protector Insurance for credit cards, which can help cover payments if you are unable to work due to disability, illness, or involuntary unemployment. The card is protected by Mastercard's Zero Liability Policy, which means you are not held responsible for fraudulent purchases processed through the Mastercard network if you have used reasonable care to safeguard your card and PIN. CIBC monitors for fraud and may send alerts via text, email, or phone to authenticate suspicious transactions. A digital dispute process allows you to report unrecognized transactions directly through online or mobile banking by selecting the transaction and following the report an issue instructions.
Key insurance documents for cardholders include the Insurance certificates for the Costco Mastercard and Costco World Mastercard. For Quebec residents, there is a separate Product Summary and Fact Sheet. These documents detail the Purchase Security and Extended Warranty Insurance benefits. The Extended Warranty Insurance can extend the original manufacturer's warranty by up to one additional year on most purchases.
- Insurance certificates for the Costco Mastercard and Costco World Mastercard.
- A separate Product Summary and Fact Sheet specifically for residents of Quebec.
- Detailed terms and conditions for Purchase Security and Extended Warranty Insurance.
- Information on the scope and limits of mobile device repair coverage.
These insurance documents outline the specific coverage periods, claim procedures, and exclusions for each benefit. CIBC is committed to upholding the Mastercard Zero Liability Protection policy. This policy protects cardholders from liability for fraudulent purchases processed through the Mastercard network. Cardholders must use reasonable care to safeguard their card and PIN to be eligible for this protection.
Managing Your Account, Support, and Additional Perks
You can manage your CIBC Costco Mastercard account through CIBC Online Banking and the CIBC Mobile Banking App, where you can view statements, track cash back, and redeem your annual gift certificate. For all card inquiries, including general support and reporting a lost or stolen card, cardholders in Canada and the United States can contact a dedicated service line. If you notice a transaction you do not recognize, you can submit a digital dispute by signing into online or mobile banking, selecting the transaction, and following the instructions to report an issue. The card also enables you to send money abroad to over 120 countries with a $0 transfer fee, and cash advance fees do not apply if the balance is paid by the payment due date. Specific insurance certificates and product summary documents, including a separate fact sheet for Quebec residents, are available for detailed review from CIBC. Additional perks include a promotional offer for Disney+ subscribers, where using an eligible CIBC credit card to pay for a Disney+ Standard with Ads subscription results in a monthly $4.50 statement credit. Account management features include viewing credit card statements on a mobile device or online. Cardholders can make purchases using Apple Pay, Google Pay, and Samsung Pay by adding the card to a mobile wallet. For all Costco Mastercard inquiries, including general support and lost or stolen cards, cardholders can call a dedicated number for Canada and the U.S. Cardholders can also submit digital disputes for unrecognized transactions through online or mobile banking.
- CIBC Online Banking and the CIBC Mobile Banking App for full account management.
- A dedicated phone line for Costco Mastercard inquiries in Canada and the U.S.
- A digital dispute process within online banking to report unrecognized transactions.
- Fraud monitoring with alerts sent via text, email, or phone call.
- The ability to add your card to mobile wallets for Apple Pay, Google Pay, and Samsung Pay.
- Online tools to estimate potential cash back based on your monthly spending.
These tools give cardholders control over their account security and reward tracking. The credit card also functions as the Costco membership card, with all membership details on the back. This integration eliminates the need to carry a separate Costco membership card. CIBC also monitors for fraudulent activity and will notify cardholders to authenticate suspicious transactions.
Frequently asked questions
What are the income requirements for the CIBC Costco Mastercard?
To qualify for the standard CIBC Costco Mastercard, you need a minimum individual annual income of $15,000. For the upgraded CIBC Costco World Mastercard, which offers additional World Mastercard experiences, the requirement is a minimum individual annual income of $50,000 or a minimum household annual income of $80,000. Both cards require an active Costco membership. The World Mastercard tier has the same fees and rates as the standard card but includes extra benefits available only to World Mastercard holders.
How much cash back do I earn at Costco with this card?
You earn 1% cash back on purchases made inside Costco warehouses. You earn 3% cash back at Costco gas stations and 2% cash back on purchases made at Costco.ca. There is no limit on the total amount of cash back you can earn across all categories. The cash back is earned on net purchases, meaning any returns are subtracted before the reward is calculated. This structure applies to the personal CIBC Costco Mastercard, while the business version has a focus on 3% back at restaurants and Costco gas.
How and when do I get my cash back rewards?
Cash back is earned from January to December each year. You receive your rewards as an annual Costco cash back gift certificate, which is included with your January credit card statement. You can redeem this digital certificate at Canadian Costco warehouses using the CIBC Mobile Banking App, by printing it from CIBC Online Banking, or for cash. The certificate can be used for anything sold in Costco warehouses. You track your accumulating cash back total throughout the year via your statement or online banking tools.
Is there an annual fee for the CIBC Costco Mastercard?
No, the CIBC Costco Mastercard has no annual fee. It also has no limit on the total cash back you can earn. The card does have a minimum credit limit, which is determined by CIBC upon application approval. The card offers valuable insurances, flexible installment payment options through CIBC Pace It, and other benefits all without a yearly charge. This makes it a cost-effective option for Costco members seeking a rewards card.
Do I need to be a Costco member to get this card?
Yes, you must be a Costco member with a valid Costco Wholesale membership to apply for the CIBC Costco Mastercard. This requirement applies to both the primary cardholder and any authorized users. The card itself also functions as your Costco membership card, with all membership details printed on the back. This integration means carrying the credit card grants you access to Costco warehouses, combining two cards into one.
What insurance comes with the CIBC Costco Mastercard?
The card includes Purchase Security Insurance for eligible new purchases and Extended Warranty Insurance, which can extend a manufacturer's warranty by up to one additional year. It also offers specific coverage for mobile device repair or replacement up to $1,000. Optional CIBC Payment Protector Insurance is available for an extra cost. These insurance certificates are provided for review, and a separate Product Summary and Fact Sheet is available for residents of Quebec to account for provincial regulations.
Sources and further reading
- Apply for the CIBC Costco Mastercard cibc.com
- Costco credit card change costco.ca
This article explains how things work and is not financial, tax or legal advice. Rules, limits and rates change, so check the current figures with the Canada Revenue Agency, your province or your financial institution before you act.