Money
CIBC Costco Mastercard interest rate and fees: what carrying a balance really costs
The CIBC Costco Mastercard charges 21.75% on purchases and 22.49% on cash advances, with a 2.5% foreign currency fee and no annual fee. If you carry a balance, interest wipes out the cash back fast; a low-rate Mastercard at 12.99%, or CIBC's 5.99% to 7.99% Pace It plans on Costco purchases, cost far less.
By Flatcart Editorial · Last reviewed Oct 4, 2026 · 3 min read
The CIBC Costco Mastercard interest rate is 21.75% on purchases and 22.49% on cash advances and balance transfers (21.99% in Quebec), from CIBC's rates and fees summary current as of August 1, 2026. That's a typical rate for a cash back card. Pay your full balance every month and it never matters; carry a balance and the interest outweighs the cash back within months. If you often carry one, compare a low-rate Mastercard on our best cards for Costco page.
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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.
What are the CIBC Costco Mastercard interest rates?
The same on the standard and World versions:
| Type | Rate |
|---|---|
| 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 |
| Grace period on purchases | At least 21 days, if you pay the full amount due |
Cash advances have no interest-free period: interest starts the day you take one. Purchases are interest-free only if you pay the whole statement balance by the due date; otherwise interest is charged from each purchase's transaction date.
What fees does the CIBC Costco Mastercard charge?
| Fee | Amount |
|---|---|
| Annual fee (primary and additional cards) | $0 |
| 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 (free eStatements) |
| Installment plan fee | Up to 3% (waived on Pace It plans for eligible Costco purchases) |
| Dishonoured payment | $42.50 |
| Statement copy | $10 |
Several fees don't apply to Quebec residents, and the paper statement fee is waived for clients aged 65 and older.
How much does carrying a balance cost?
Example only, simplified: a $1,000 balance kept on the card for a full year costs about $217.50 in interest at 21.75%. To earn that much back at the card's 1% warehouse rate, you'd have to spend $21,750 at Costco. Our cash back calculator shows a typical member earns about 1.4% to 1.7% overall, so even a small carried balance erases most of a year's cash back.
What is a lower-interest alternative that works at Costco?
It has to be a Mastercard, because Canadian Costco warehouses don't take Visa or Amex. One example: the MBNA True Line Mastercard charges 12.99% on purchases with a $0 annual fee (24.99% on cash advances), per MBNA's page checked October 4, 2026. It earns no rewards. CIBC's own low-rate card, the CIBC Select, is a Visa with a $29 annual fee (first year rebated), so it won't work in Costco warehouses. We compare more low-rate cards, and their yearly cost on a balance, in low interest credit cards.
| $1,000 carried for a year (example only) | Rate | Interest |
|---|---|---|
| CIBC Costco Mastercard | 21.75% | about $217.50 |
| MBNA True Line Mastercard | 12.99% | about $129.90 |
That's about $88 a year less per $1,000 carried. A common setup: use the Costco card for purchases you pay off and keep any balance on a low-rate card.
Can you pay off a big Costco purchase at a lower rate?
Yes, with CIBC Pace It. The CIBC Costco Mastercard offers special installment rates on eligible purchases at Costco in Canada and Costco.ca, with no installment fee: 5.99% for 6 months, 6.99% for 12 months or 7.99% for 24 months. On a $1,500 TV split over 12 months, our estimate is about $57 in interest at 6.99%, against about $183 if you carried it at 21.75% on the same schedule (example only; CIBC shows the exact cost when you set up a plan).
How do you avoid paying interest at all?
- Pay the full statement balance by the due date, at least 21 days after the statement date. Set up automatic full payments if you can.
- Don't use the card for cash advances: interest starts immediately, plus a $5 fee.
- Make at least the minimum payment on time: 2 misses in 12 months trigger the higher rates, and a missed payment near December 31 can cost you the year's cash back certificate.
- Use another card abroad: the 2.5% foreign currency fee is more than the cash back on most purchases.
Frequently asked questions
- What is the interest rate on the CIBC Costco Mastercard?
- 21.75% on purchases and 22.49% on cash advances and balance transfers (21.99% in Quebec), as of August 1, 2026.
- Does the CIBC Costco Mastercard have a foreign transaction fee?
- Yes, 2.5% of the converted amount on foreign currency purchases and refunds.
- Is there an annual fee on the CIBC Costco Mastercard?
- No. The primary card and additional cards are $0 a year.
- What happens if I miss a payment?
- Miss 2 required payments in 12 months and the rates rise to 25.99% on purchases and 27.99% on cash advances for at least 12 months.
- What are the CIBC Pace It rates for Costco purchases?
- 5.99% for 6 months, 6.99% for 12 months or 7.99% for 24 months on eligible Costco purchases, with no installment fee.
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