CIBC · Personal

CIBC Costco Mastercard

The standard Costco credit card in Canada: no annual fee, cash back paid once a year as a Costco gift certificate.

Our verdict: Get it for Costco gas and dining, where it’s the best no-fee card we know of; pair it with a better card for everything else.

Apply at CIBC Compare Costco cards

Guides:Cash back review Is Executive worth it?Costco gas: 3% back

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Key facts

Cash back: Restaurants: 3%
Cash back: Gas at CostcoOn the first $5,000 a year (shared cap), then 1%: 3%
Cash back: Costco.caOn the first $8,000 a year, then 1%: 2%
Cash back: Other gas stations and EV chargingOn the first $5,000 a year (shared cap), then 1%: 2%
Cash back: Everything else, including Costco warehouses: 1%
Annual fee: $0
Additional cardholders: $0, up to 3
Costco membership required: Yes
Rewards paid as: A yearly Costco cash back gift certificate, with your January statement
Category caps: 3% and 2% gas: first $5,000 a year; Costco.ca: first $8,000 a year. No limit on total cash back
Minimum income: $15,000 a year
Foreign transaction fee: 2.5%
Insurance: Mobile device insurance (up to $1,000), purchase security and extended warranty (up to 1 extra year)

Checked against CIBC’s card page on Oct 4, 2026. Card terms change; confirm before you apply.

Pros

$0 annual fee, with up to 3 additional cards at $0
3% at Costco gas and restaurants, among the best no-fee rates for both
Mobile device insurance up to $1,000, plus purchase security and extended warranty
Low-rate Pace It plans (5.99% to 7.99%) on eligible Costco purchases
Works as your Costco membership card

Cons

Cash back is paid once a year, as a Costco-only gift certificate
You forfeit the year’s cash back if the card isn’t in good standing on December 31
Only 1% on warehouse purchases
Gas rates drop to 1% after $5,000 a year; Costco.ca after $8,000
2.5% foreign transaction fee and no travel insurance

Our review

Is the CIBC Costco Mastercard worth it?

The CIBC Costco Mastercard is the default card for Costco members in Canada: no annual fee, 3% at Costco gas and restaurants, 2% at Costco.ca and other gas stations, and 1% everywhere else, including in the warehouse. It also doubles as your membership card.

The catches are in the fine print. The 3% and 2% gas rates apply to the first $5,000 of gas and EV charging a year and Costco.ca’s 2% to the first $8,000, then 1%. Cash back arrives once a year as a Costco gift certificate, so it’s only as good as cash if you shop at Costco anyway. And 1% in the warehouse is modest: Executive members get most of their Costco return from the 2% Executive reward, which stacks on top.

Get it if you fill up at Costco and eat out regularly. Pair it with a card that pays more outside Costco if most of your spending happens elsewhere.

Rewards

What it earns

Where you spend	Cash back	Yearly cap
Restaurants	3%	No cap
Gas at Costco	3%	On the first $5,000 a year (shared cap), then 1%
Costco.ca	2%	On the first $8,000 a year, then 1%
Other gas stations and EV charging	2%	On the first $5,000 a year (shared cap), then 1%
Everything else, including Costco warehouses	1%	No cap

Caps are on net purchases (less returns) and reset every January 1. There’s no limit on total cash back.

Estimate your yearly cash back

Sample data

CategoryMonthly spendEarn rate

Restaurants$%

Gas at Costco$%

Costco.ca$%

Other gas stations and EV charging$%

Everything else, including Costco warehouses$%

Estimated cash back per year

$258.00

Rates are CIBC’s published rates and are editable, as is the spending. Includes CIBC’s yearly category caps (spending above a cap earns 1%); there’s no limit on total cash back. Check current terms before you apply.

Compare Costco credit cards

Redeeming

How the cash back is paid

When: Once a year, with your January statement, for January 1 to December 31
Form: A Costco cash back gift certificate (paper or in the CIBC app), not cash
Where: In person at Canadian Costco warehouses, by the primary cardholder
Expiry: None, according to CIBC
Forfeited if: The account is closed, switched to another CIBC card or not in good standing on December 31

Protection

Insurance included

Purchase security: Loss, theft or damage for 90 days after purchase
Extended warranty: Doubles the manufacturer’s warranty, up to 1 extra year
Mobile device insurance: Up to $1,000 per claim for loss, theft or accidental damage, for 2 years, after depreciation (2% a month) and a 10% deductible
Travel medical, trip cancellation, rental car: Not included

Interest

Interest rates

Purchases: 21.75%
Cash advances, balance transfers, convenience cheques: 22.49% (21.99% in Quebec)
After 2 missed payments in 12 months: 25.99% purchases / 27.99% cash, for at least 12 months
Interest-free grace period: At least 21 days on purchases, if you pay the full amount due

Fees

Annual fee: $0 (primary and up to 3 additional cards)
Foreign currency conversion: 2.5% of the converted amount
Cash advance: $5 in Canada, $7.50 outside Canada
Over the credit limit: $29 per statement period
Mailed paper statement: $2.25 a month (eStatements free)
Installment plan fee: Up to 3% (none on Pace It plans for eligible Costco purchases)
Dishonoured payment: $42.50
Minimum credit limit: $1,000

Eligibility

Who can apply

Costco membership: Required
Income: $15,000 a year
Residency and age: Canadian citizen or resident, age of majority in your province
Credit: A good credit score; no bankruptcy in the past 7 years
Application: About 5 minutes online, with a response in as little as 60 seconds

Features

More features

CIBC Pace It on Costco purchases: 5.99% for 6 months, 6.99% for 12 months or 7.99% for 24 months, no installment fee
Membership card: Your Costco membership details are on the back of the card
Sending money abroad: To over 120 countries with a $0 transfer fee

CIBC documents we checked

Good fit if

Members who buy gas at Costco and eat out regularly
Anyone who wants one card for Costco and a no-fuss cash back return

Skip it if

Most of your spending is outside Costco, gas and restaurants: a flat-rate card may earn more
You want cash back as cash, not a gift certificate that can only be spent at Costco

Ready to apply for the CIBC Costco Mastercard?

You’ll finish the application on CIBC’s site. Check the current terms there first.

Apply at CIBC

Compare

How it compares with the other Costco cards

Personal (higher income)

CIBC Costco World Mastercard

The same no-fee Costco card and cash back, with World Mastercard benefits for members who meet the income requirement.

Business

CIBC Costco Business Mastercard

The no-fee Costco card for businesses, with 2% on Costco online orders, shipping and insurance services.

Head to head

How it compares with other cards

MBNA Rewards World EliteThe strongest pairing we modelled, if you meet the income requirement.
Triangle (Canadian Tire)World Elite is a top free partner; it excludes Costco from groceries.
BMO CashBack3% on supermarket groceries, but a weak 0.5% at Costco.
Tangerine Money-BackFree 2% categories you pick around Costco.
CIBC Dividend Visa Infinite4% on groceries and gas, but a Visa Costco won’t take.
PC World EliteBest at Loblaw stores and Shoppers, 1% at Costco.
Rogers Red World Elite1.5% to 2% in the warehouse, but not at U.S. Costcos.
Amazon.ca Rewards2.5% at Amazon.ca with Prime; use it there only.
Walmart Rewards World3% at Walmart; Walmart Reward Dollars only.
No foreign transaction fee cardsFor U.S. Costco runs and travel.
The U.S. Costco Visa (Citi)Why Canadians can’t use it, and what to carry instead.
Costco World vs standard MastercardSame cash back; the World card adds a few perks.

FAQ

CIBC Costco Mastercard: common questions

Who issues the Costco Mastercard in Canada?

CIBC. It replaced the Capital One Costco Mastercard in 2022.

How is the cash back paid?

Once a year, as a Costco cash back gift certificate with your January statement, covering what you earned January to December. You can redeem it in Canadian warehouses through the CIBC Mobile Banking App or print it from CIBC Online Banking.

Do I need a Costco membership?

Yes. The card is for Costco members.

Is there a limit on the cash back?

No limit on the total, but the 3% and 2% gas rates apply to the first $5,000 of gas and EV charging a year, and Costco.ca’s 2% to the first $8,000; after that those purchases earn 1% until January 1.

Is it the only credit card Costco accepts?

No. Costco warehouses in Canada accept any Mastercard, plus debit. This one simply earns more at Costco gas.

Costco card updates

Hear when Costco card terms or offers change.

CIBC, Costco and Mastercard are trademarks of their respective owners. Flatcart is independent and not affiliated with CIBC or Costco. We may earn a commission when you apply through our links; it never changes our assessment.