Graham Christian, Content Strategist
Costco shoppers, take note: there’s a new no-fee Costco Mastercard arriving soon, and it’s bringing some upgrades along with it.
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 early 2022. With the new card’s March 4th debut mere weeks away, we’ve got some more details on what improvements are in store for customers, so let’s dive in:
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For customers getting (or transitioning into) a CIBC Costco Mastercard, there are plenty of new features to enjoy. First of all, there’s been a small improvement in the card’s cash back value: while the old Capital One Costco Mastercard offered 0.5% on all other purchases (with an opportunity to bump up to 1% after spending $3,000 in a year), the new CIBC Costco Mastercard is offering that same 1% right out of the gate. Not the most significant upgrade, but an improvement nonetheless.
The card’s earn rate on gas has also improved (albeit with a slight catch). While the Capital One card offered 2% on gas across the board, the CIBC Costco Mastercard gives you a slight bump to 3% if you fill up at any Costco gas station. The only hitch is that this rate is only good for the first $5,000 spent on gas every year. After that, you’ll be paying a flat rate of 1% on gas everywhere. Given that most of us aren’t spending over $5,000 on gas per year, however, it’s still a good deal for drivers who fill up at Costco.
And, finally, the new CIBC Costco Mastercard is the first to offer an accelerated cash back value for online Costco purchases. Unlike the Capital One Mastercard (which offered 1% on all Costco purchases), customers who visit Costco.ca to do their shopping can now enjoy 2% cash back. While the rate does max out at $8,000, it’s still a marked improvement.
One thing the Capital One Costco Mastercard had going for it was its extensive insurance coverage, including travel protection. The CIBC Costco Mastercard, however, is a little lacking in comparison by 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.
If you’re planning on using the card for large purchases, Costco’s new partnership with CIBC means you can take advantage of CIBC’s Pace It™ payment option. With Pace It™, you’ll be able to pay off your in-store and online Costco purchases of $100 or more on a low-interest installment plan of 6, 12, or 24 months.
The bottom line
While the new CIBC Costco Mastercard might not be the giant leap forward customers were hoping for, there are still big improvements which loyal Costco shoppers can take advantage of. What do you think of the new card? Let us know in the comments below.