Costco credit card combo: the best two-card setup for Costco shoppers

The best Costco credit card combo for most members is the CIBC Costco Mastercard for everything Costco (gas, the warehouse, Costco.ca) plus restaurants, and a second no-fee Mastercard for what the Costco card pays only 1% on: supermarket groceries and recurring bills. On our sample household spending $27,000 a year, the Costco card alone earns $378; adding BMO's CashBack Mastercard makes it about $474, and Tangerine's Money-Back Mastercard about $462. Both are Mastercards, so either still works at Costco; compare all the options on our best cards for Costco page.

Why use two cards for Costco?

Because no single no-fee card is strong everywhere. The CIBC Costco Mastercard is excellent at Costco gas (3%) and restaurants (3%), decent on Costco.ca (2%) and weak almost everywhere else (1%). Grocery cards are the opposite: strong at the supermarket, but they usually pay their base rate at Costco, which is coded as a wholesale club rather than a grocery store (why). Splitting your spending puts each purchase on the card that pays most for it.

What are the best two-card setups?

Three no-fee pairings, from each issuer's published rates (checked October 4, 2026):

Partners with an income requirement can earn more: Triangle World Elite (3% at grocery stores, 4% at Canadian Tire) and MBNA Rewards World Elite (5x on restaurants, groceries and bills). Store cards suit two-store households: Walmart and Amazon.ca.

How much does a second card add?

Sample data, a household spending each month: $500 at Costco warehouses, $200 on Costco gas, $250 at restaurants, $400 on supermarket groceries, $300 on recurring bills and $600 on everything else.

Your result depends on your mix: run your own numbers in the calculator above for the Costco card's share, then add 2% or 3% on what you'd move to the second card. For how these pairs rank against single cards with fees, see the best cash back credit cards in Canada.

Which card should you use for each purchase?

Buying more than $5,000 of gas a year? See what to do past the gas cap.

Are there downsides to carrying two cards?

A few. Each application is a credit check, so space them out. You need to remember which card goes where (a note in your wallet helps). The Costco card's cash back still arrives once a year as a Costco certificate, while BMO lets you redeem any time and Tangerine pays monthly, so the second card is also your flexible cash. And if you carry a balance, rewards matter less than the rate: see what carrying a balance costs. If you'd rather keep both cards free, see the best no annual fee credit cards; if the balance is the problem, see low interest credit cards.

What about Executive members?

Keep the Costco card for warehouse purchases: they earn the 2% Executive reward plus the card's 1%, about 3% combined. The second card changes nothing at Costco; it only takes over spending outside it. See how the two rewards stack.