Previously Capital One Mastercard, CIBC and Costco have teamed up to bring Costco customers a Cashback Mastercard. This new Mastercard brings you 3% cash back on eligible purchases charged to the card.
Costco members receive zero annual fees and no-limit cashback rewards. This card comes with a few of the typical Costco perks, device insurance, and the CIBC Pace It program.
In this article, I'll go over some of the benefits of the new CIBC Costco Mastercard so that you can see if it's right for you.
CIBC Costco Master Card Review Quick Summary
- A variety of levels of cashback depending on what you're buying
- A zero fee card, but requires a $60 or $120 membership to Costco
- Bonus levels of cashback that reset annually
- Added perks like protection insurance, mobile device insurance, and flexible payment plans
- Very low threshold for applications, particularly credit score
- The cashback isn't the best after your initial annual bonuses
- No travel benefits
- Although this is a solid card, there are other cashback cards that simply offer more
With the current state of Canada's economy and rising prices on household items, who's not in the market for a card that provides you not only cash back, but Costco cashback?
Your MBNA Mastercard offers you Costco cash back on every purchase made with the card, up to 3% (more on this later.) Considering this is a zero annual fee card, you are making money on your daily spending.
Costco cash that is earned can be redeemed at any Costco location.
Do I need a Costco membership if I have CIBC Costco Mastercard?
Yes, you will need a Costco membership to qualify for Costco credit cards. Ultimately, most savings with the Costco credit card, like cashback rewards, will come from buying Costco items. So, applying for this card wouldn't make much sense if you don't have a membership.
Is there an annual fee with the CIBC Costco Mastercard?
The CIBC Costco Mastercard has zero annual fees. However, it's important to note that although there is no fee, you must pay for a Gold or Executive membership at Costco. This will cost you $60 for the Gold or $120 for the Executive.
Do I need a minimum income to apply for the card?
The Costco credit card requires a minimum income of $15,000 annually. This should be relatively easy for anyone with even a part-time job to get accepted for an application.
Suppose you're looking to apply for the CIBC Costco World Mastercard. In that case, however, you'll need a minimum income of $60,000 or a household income of $100,000.
Is there a welcome bonus with the Costco credit card?
There is no outright welcome bonus for this Costco credit card. However, there are some additional limited-dollar perks that people who apply for the card will get when they sign up and will continue to get each year.
- Costco gas stations always offer 3% cash back. However, for non-Costco gas stations, you will receive 2% cash back for the first $5,000 in annual spending. After this, it will go to 1%.
- Costco.ca purchases are typically 1% cash back. However, for the first $8,000 in annual spending, you will receive 2% cash back. After that, it reverts to 1%.
How does the cashback reward system work?
The Costco Mastercard cashback system is quite simple. Anywhere Mastercard is accepted, you'll earn cashback. You will earn:
- 3% cash back on Costco gas and eligible restaurants
- 2% cash back (1% after spending limits) at non-Costco gas stations and Costco.ca.
- 1% cash back on all other purchases, including inside a physical Costco store.
Spending limits are highlighted in the welcome bonus section above. However, to reiterate, you'll earn an extra 1% cashback on non-Costco gas stations up until you've spent $5,000, and you will earn an additional 1% cashback on Costco.ca purchases until you've purchased over $8,000 worth.
There is no limit to how much cashback returns you can earn, and the above limitations reset annually.
How will I receive my cashback rewards?
Every year, you will receive cashback rewards via a gift card. These gift certificates can be used to purchase practically anything at Canadian Costco warehouses. You will either get a digital gift card sent to you or, if you choose, a physical gift card with your January statement sent via mail.
How much interest does the card charge?
The CIBC Costco Mastercard is much like any other card. It charges 19.75% on purchases and 21.45% on cash advances.
One thing to note is that cash advances do not earn cashback rewards, unlike purchases. So not only are they a disadvantage from an interest standpoint, but they also provide no benefit for those seeking rewards.
Also, unlike purchases, which are typically interest-free for a month, cash advance claims accrue interest immediately after they are utilized.
Can I add someone else to my card?
Additional cardholders are free. However, like yourself, they must have a Costco membership card to be added. You are allowed a maximum of three additional cardholders.
Is there travel insurance on the Costco Mastercard?
Sadly, the card does not offer travel insurance like so many other CIBC cards. Qualifying members can apply for the CIBC Costco World Mastercard, bringing more to your card.
What happens to my Costco credit card if I cancel my membership?
If you cancel your membership at Costco, your Costco credit card will also be cancelled. In order to use this card, you must be a member.
Additional features of the Costco Mastercard
Now that we've gone over the core features of this card, we'll go over some additional perks that you get by being a Costco Mastercard holder. Leave it to Costco to include some extras with the card.
Costco Master card offers Purchase Security, Extended warranty insurance, mobile device insurance, and flexible payment plans.
Purchase security is available to cardholders at no additional cost and covers most personal property items. If your items are lost, stolen, or damaged within 90 days of purchase, they will attempt to replace, repair, or reimburse you for them.
Extended warranty insurance
This card also offers an extended warranty. This excess insurance will cover your purchases one year beyond the manufacturer's warranty and is usable on most purchases with the card. If your manufacturer warranty options are exhausted, this is a great way to get added coverage on your items.
Mobile device insurance
Mobile device insurance covers replacing or repairing your mobile devices, such as a phone or tablet, in the event of loss, theft, or damage. This insurance extends to 2 years following your purchase.
However, this insurance has a few caveats for you to be covered. Let's go over them.
First, you need to have purchased your mobile device in full with your Costco credit card. In addition, you must have activated that device with a wireless provider.
Alternatively, suppose you've chosen to finance your phone through your provider like many. In that case, you only need to set it up so your monthly phone bill is charged to your CIBC Costco credit card.
Considering most phone and wireless providers charge over $20 a month for device insurance, this is a superb feature with the Costco credit card.
Payment Protector Insurance (Additional cost)
CIBC also includes CIBC Payment Protector Insurance which covers you for any surprises that may interrupt your ability to make your payment, such as:
- Illness or injury.
- Sudden loss of employment.
- Critical illness or death.
Payment Protector Insurance Coverage is available for you and your spouse.
- Single coverage is 0.99$ per 100$ on amount you owe.
- Coverage including spouse is 1.19$ per 100$ on amount you owe.
CIBC Pace It program
CIBC understands that you may need something that just can't wait in today's world. With the Costco Mastercard, you can access CIBC's Pace It program. Pace It is a purchase installment plan offering lower interest rates and payments at a pace you can handle.
The program is designed to offer interest rate relief for significant or unplanned expenses. Purchasers can pick a particular amount of monthly installments, and an interest rate is decided from there.
- 6 monthly payments at 5.99%
- 12 monthly payments at 6.99%
- 24 monthly payments at 7.99%
Keep in mind there is a 1.5% one-time installment fee if you're looking to utilize this program. The installment fees will be waived if it is an eligible Costco purchase.
How do I know I'm eligible for the Pace It program?
Pace It program eligibility will be much the same as any other sort of loan or credit application. If you meet the following criteria, you should be approved.
- Primary cardholder with good standing.
- Must be registered for online or mobile banking with CIBC.
- You have not claimed bankruptcy in the last seven years.
How easy is it to get a Costco credit card?
You can sign up online or go to a Costco warehouse near you and sign up for a membership. Costco is not just for business owners. Anyone can sign up.
Once you are a Costco member, you can apply for a Costco credit card.
New members also receive a 60$ credit when they apply for the CIBC Mastercard and the Executive Costco Membership. Both cards can be used at your local Costco or from the comfort of your home online.
Don't want to carry all these cards around? Well, you don't have to. Bring your Mastercard to your next Costco visit; your membership details are on the back.
How do I access my CIBC Costco Mastercard online?
The Costco Mastercard comes with the support of CIBC's website and its mobile app. You can manage payments, set up PINs, and access your balance anywhere.
Forgot your card? Don't worry. You can pay for purchases with your smartphone. CIBC Costco Master card is compatible with Apple Pay, Google Pay and Samsung Pay. You can review your cash reward balance at any time with these three options:
- CIBC mobile banking app.
- On your monthly statement.
- CIBC online banking.
How do I pay my CIBC Costco Mastercard?
Paying your bill is easy. Add your CIBC Costco Master card to your payee profiles on your current financial institutions' payee list. Then sign up for electronic statements and make payments whenever convenient.
If you're using CIBC online banking, there are some perks.
- Get real-time credit card purchase notifications.
- Fraud alerts.
- Set up custom notifications to remind you of your payment due dates.
- Use features for balancing your budget and take advantage of balance notifications.
Costco members can take advantage of the exclusive no-fee, 3% cashback Coscto CIBC Mastercard today. Applying is quick and easy, typically taking 5 minutes or less, or ask for assistance at your local Costco warehouse.