Money
BMO CashBack Mastercard vs Costco Mastercard: which earns more for Costco shoppers?
The BMO CashBack Mastercard pays 3% on supermarket groceries but only 0.5% at Costco, which isn't coded as a grocery store; the CIBC Costco Mastercard pays 1% at Costco and 3% at Costco gas. On a sample household, the Costco card earns $378 a year, BMO CashBack $273, and the two together about $474.
By Flatcart Editorial · Last reviewed Oct 15, 2026 · 3 min read
The BMO CashBack Mastercard and the CIBC Costco Mastercard are built for different shops: BMO pays 3% on supermarket groceries, but it excludes general merchandise stores, so at Costco it typically pays just 0.5%. The Costco card pays 1% in the warehouse and 3% at Costco gas and restaurants. On our sample household the Costco card earns $378 a year, BMO CashBack $273, and both together about $474, which is why we'd rather you carry both. See every option on our best cards for Costco page.
Calculator
What the Costco card earns on your Costco spending
Enter what you spend at Costco, on Costco gas and at restaurants each month; leave supermarket groceries for a BMO card.
Estimate your yearly cash back
Sample dataEstimated cash back per year
$318.00
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.
How do BMO CashBack and the Costco Mastercard compare?
From each issuer's page and documents, checked October 4, 2026:
| CIBC Costco Mastercard | BMO CashBack Mastercard | BMO CashBack World Elite | |
|---|---|---|---|
| Annual fee | $0 | $0 | $139 (rebated in year 1 under the current welcome offer) |
| Costco warehouse | 1% | Typically 0.5% | Typically 1% |
| Costco gas | 3% (first $5,000 of gas a year) | 0.5% | 3% (first $300 of gas a statement period) |
| Supermarket groceries | 1% | 3% (first $500 a statement period) | 5% (first $500 a statement period) |
| Restaurants | 3% | 0.5% | 1% |
| Recurring bills | 1% | 1% (first $500 a statement period) | 2% (first $500 a statement period) |
| Transit | 1% | 0.5% | 4% (first $300 a statement period) |
| Everything else | 1% | 0.5% | 1% |
| Cash back paid | Costco certificate, once a year | Any time, from $1 | Any time, from $1 |
| Minimum income | $15,000 | Not stated on its page | $80,000 personal or $150,000 household |
Why does BMO pay so little at Costco?
Because Costco isn't a grocery store to the card networks. BMO's grocery rate applies at "a grocery store or supermarket that sells a complete line of food products", and its FAQ excludes "general merchandise stores". Costco warehouses are typically coded as wholesale clubs, so they earn BMO's base rate; see what merchant code Costco uses.
Which earns more for a typical Costco household?
Sample data: the household from our two-card guide, spending each month $500 at Costco, $200 on Costco gas, $250 at restaurants, $400 on supermarket groceries, $300 on bills and $600 on everything else.
| Setup | Cash back a year |
|---|---|
| CIBC Costco Mastercard only | $378 |
| BMO CashBack Mastercard only | $273 |
| BMO CashBack World Elite only, after the $139 fee | $407 ($546 in year 1 if the welcome offer rebates the fee) |
| CIBC Costco + BMO CashBack (groceries and bills on BMO) | $474 |
The no-fee pair beats either card alone, and beats the World Elite after its fee for this household. The World Elite pulls ahead for households with big grocery, transit and bill spending and the income to qualify.
What else separates them?
- Payout: BMO lets you redeem any time from $1, as a statement credit or a deposit to a BMO account; CIBC pays one Costco gift certificate a year, spendable only at Costco.
- Insurance: both cover purchase security and extended warranty, but BMO requires the full price on its card while CIBC needs only part; only CIBC lists mobile device insurance. The World Elite adds out-of-province emergency medical coverage (8 days, up to $5 million, for cardholders 64 and under) and roadside assistance.
- Costco gas: the CIBC card's 3% applies to the first $5,000 of gas a year; the World Elite's 3% to the first $300 a statement period (about $3,600 a year).
Which should you get?
- You shop at Costco and buy groceries at a supermarket too: both no-fee cards. Costco, Costco gas and restaurants on CIBC; supermarket groceries and bills on BMO. See which card to use for each purchase.
- Only one card, mostly Costco: the CIBC Costco Mastercard.
- Only one card, mostly supermarkets: BMO CashBack.
- High income, big grocery and commuting bills: consider the World Elite, and still use the Costco card at Costco.
If you have Rogers, Fido or Shaw service, the Rogers Red World Elite pays 2% even in the warehouse.
Frequently asked questions
- Does the BMO CashBack Mastercard earn 3% at Costco?
- No, usually not. BMO's grocery rate excludes general merchandise stores, and Costco is typically coded as a wholesale club, so it earns 0.5%.
- Is BMO CashBack better than the Costco Mastercard?
- For supermarket groceries, yes (3% against 1%). At Costco, Costco gas and restaurants, no: the Costco card pays 1%, 3% and 3%.
- Can I use the BMO CashBack Mastercard at Costco?
- Yes. It's a Mastercard, which Canadian Costco warehouses accept; it just earns its 0.5% base rate there.
- What is the BMO CashBack World Elite annual fee?
- $139 (BMO's current welcome offer rebates it in the first year), and it needs $80,000 personal or $150,000 household income.
- Should I have both the BMO and Costco cards?
- Yes, for most Costco shoppers. On our sample household the pair earns about $474 a year, against $378 on the Costco card alone.
Money
Keep reading
Money
Rogers Red World Elite Mastercard vs Costco Mastercard: the better card inside Costco?
Flatcart Editorial · 4 min read · Updated Oct 15
Money
CIBC Dividend Visa Infinite vs Costco Mastercard: the 4% card Costco won’t take
Flatcart Editorial · 5 min read · Updated Oct 15
Money
Tangerine Money-Back Credit Card vs Costco Mastercard: which 2% categories to pick around Costco
Flatcart Editorial · 5 min read · Updated Oct 15