The CIBC Costco Mastercard: Review
Natasha Macmillan, Business Unit Director - Everyday Banking
After Capital One parted ways with the mega-retailer last year, an announcement was made in September that CIBC would be stepping in to partner with Costco on a brand new Mastercard. In this article, we will cover the details of the no-fee Costco Mastercard, the upgrades that were added in as well as some other credit card alternatives.
Details of the CIBC Costco Mastercard
- Annual Fee: $0
- Earn Rate: 3% cash back at restaurants and Costco gas, 2% at other gas stations and at costco.ca, 1% cash back on all other purchases including at Costco
- Interest rates: purchase 19.75%, cash back 21.49%
- Annual income requirements: $15,000 personal income
While there was a small improvement in the card’s cash back value when transitioning from the Capital One Costco Mastercard to the CIBC Costco Mastercard, there is no special earn rate when shopping at Costco Warehouses. That being said, if you frequently shop at Costco Warehouses, there are other credit cards that will provide you with better rewards.
Furthermore, the CIBC Costco Mastercard only offering the following insurance:
- Purchase security (up to 90 days)
- Extended warranty insurance (up to one additional year)
- Mobile device insurance (up to $1,000 per person, per occurrence)
While this definitely seems like a step back from the more thorough coverage offered previously, one thing to take note of here is the new inclusion of mobile device insurance, which will protect any cell phone, smart phone, or tablet purchased with your card up to $1,000. For those looking to purchase a new device, it’s a great reason to do so with your CIBC Costco Mastercard.
Alternative credit cards to the CIBC Costco Mastercard
These are great alternative credit cards that will earn you more rewards than the Costco credit card.
BMO CashBack World Elite Mastercard
Best for Everyday spending
based on spending $2,200/mo after $120 annual fee
- Earn rewards
1% – 10% / dollar spent
- Annual fee
$120
Perks of the BMO CashBack® World Elite®* MasterCard®*
Perks | Details | |
---|---|---|
Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
Waived foreign transaction fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
Travel accident insurance | Included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
Travel emergency medical | Up to $5,000,000 per person (under 65) | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
Car rental insurance | MSRP up to $65,000 for 48 days | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
Flight delay insurance | Up to $500 per occurrence | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
Baggage loss insurance | Up to $1,000 per occurrence | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
Baggage delay insurance | Up to $1,000 per occurrence | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
Hotel/motel burglary | Included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
Purchase assurance | 90 days | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
Extended warranty | One additional year | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Welcome offer: Get up to 10% cash back in your first 3 months and the $120 annual fee waived in your first anniversary*
- Earn more cash back on the categories that mean the most:
– 5% on groceries*
– 4% on transit including ride sharing, taxis and public transportation*
– 3% on gas and electric vehicle charging*
– 2% on recurring bill payments like your monthly phone bill or favourite streaming service*
– 1% unlimited cashback on all other purchases* - Get the highest cash back earn rate on groceries in Canada.*
- Get valuable benefits and offers for digital everyday services from a variety of on-demand apps and subscription services
- Extended Warranty Plus*
- Purchase ProtectionPlus*
- Complimentary membership in Mastercard Airport Experiences provided by LoungeKey*
- Access over 1 million Wi-Fi hotspots around the world – all at no added cost, and no added fees or roaming charges*
- Complimentary Roadside Assistance Program*
- BMO CashBack World Elite Travel and Medical Protection*
- Unlock Mastercard Travel Rewards cashback offers when you travel and shop outside of Canada
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information
- Cash Advance Interest 23.99% (21.99% for Quebec residents)
- The offer may vary in Quebec
Ratehub’s take
The BMO Cashback World Elite Mastercard is a great pick if you want easily accessible and unlimited cash back rewards. The card does come with some extra features, too, which are not usually typical for cash back credit cards, although they are not the most competitive perks on the market.
Pros
- Access cash back at any time: Unlike some other cards which require you to redeem only once per year or set a higher minimum redemption, this card allows you to redeem cashback rewards at any time at a minimum of $1
- Strong earn rates: The 5% cash back on groceries is one of the highest in the market
- Unlimited cash back: 1% cash back on all purchases is not subject to any limits or maximums like with other cards
Cons
- Bonus rewards are limited: For bonus categories including groceries, transit and bill payments, you can only earn rewards on the first $300-$500 spent each month, then you’ll earn at the base rate (1%)
- Insurance package: The travel medical coverage only applies for the first 8 days of your trip, which isn’t the most competitive package on the market, plus, the card doesn’t include mobile device insurance
Eligibility requirements
Minimum credit score: 760
Minimum income: $80,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 23.99%
Balance transfer: 23.99%
The bottom line
While the CIBC Costco Mastercard might not be the giant leap forward customers were hoping for in comparison to the Capital One Costco Mastercard, there are still some improvements which loyal Costco shoppers can take advantage of. While the CIBC Costco Mastercard has some benefits to Costco members, there are certainly other Mastercard products - all of which can be used at Costco - that will better meet your needs. What do you think of the new card? Let us know in the comments below.