Overview

The CIBC Costco Mastercard is a co-branded credit card that is exclusively available to Costco members in Canada. Here are some of the key features and benefits of this card:

Rewards:

• Earn 3% cash back on eligible restaurant purchases and eligible travel purchases
• Earn 2% cash back on purchases made at Costco and Costco.ca
• Earn 1% cash back on all other purchases

Additional Benefits:

• No annual fee
• Purchase protection and extended warranty coverage
• Rental car collision/loss damage insurance
• Zero liability coverage for unauthorized purchases

One of the standout features of this card is the high cash back rate on restaurant and travel purchases, which can help cardholders earn rewards quickly. Additionally, the fact that there is no annual fee means that cardholders can maximize their rewards without having to worry about paying for the privilege of using the card.

However, it’s worth noting that this card does have some limitations. For example, the rewards can only be redeemed once per year, and they can only be redeemed for Costco Cash certificates that can be used at Costco warehouses in Canada. Additionally, the rewards cannot be transferred to other loyalty programs, such as Aeroplan or Air Miles.

Overall, the CIBC Costco Mastercard can be a good choice for Costco members who frequently dine out or travel, and who want to earn rewards on their purchases without having to pay an annual fee.

Card details

CIBC Costco Mastercard Pros

Here are some of the pros of the CIBC Costco Mastercard:

1. High Cash Back Rewards: The card offers a generous cash back rewards program with 3% cash back on eligible restaurant and travel purchases, 2% cash back on purchases made at Costco and Costco.ca, and 1% cash back on all other purchases. This makes it easy for cardholders to earn rewards quickly, especially if they frequently dine out or travel.
2. No Annual Fee: One of the biggest advantages of this card is that there is no annual fee, making it a cost-effective option for those looking to earn cash back rewards.
3. Purchase Protection and Extended Warranty Coverage: The card offers valuable additional benefits, such as purchase protection and extended warranty coverage, which can provide peace of mind when making purchases.
4. Rental Car Collision/Loss Damage Insurance: The card also offers rental car collision/loss damage insurance, which can save cardholders money on expensive rental car insurance fees.
5. Zero Liability Coverage: The card provides zero liability coverage for unauthorized purchases, which can protect cardholders from fraudulent activity on their account.
6. Exclusive to Costco Members: The card is exclusively available to Costco members, making it a great option for those who already shop at Costco frequently.

CIBC Costco Mastercard Cons

Here are some of the cons of the CIBC Costco Mastercard:

1. Limited Redemption Options: The rewards can only be redeemed once per year for Costco Cash certificates that can be used at Costco warehouses in Canada. This limits the flexibility of the rewards program and may not be suitable for those who prefer more redemption options.
2. High Interest Rates: The card comes with high interest rates of 19.99% on purchases and cash advances, and 22.99% on balance transfers and convenience cheques. This can make carrying a balance on the card expensive if not paid off in full each month.
3. Foreign Transaction Fee: The card charges a foreign transaction fee of 2.5% on purchases made outside of Canada, which can add up quickly for frequent international travelers.
4. Limited Travel Insurance: While the card offers some travel insurance benefits, such as out of province/country emergency medical insurance, trip interruption and cancellation insurance, and rental car collision/loss damage insurance, it may not provide sufficient coverage for some travelers.
5. Must be a Costco Member: To apply for the card, one must be a Costco member, which requires an annual membership fee. This may not be suitable for those who do not shop at Costco frequently or do not want to pay for a membership.

Is CIBC Costco Mastercard worth it?

Whether or not the CIBC Costco Mastercard is worth it depends on your individual needs and spending habits. Here are some factors to consider when determining if this card is a good fit for you:

1. Rewards: The card offers a solid cash back rewards program, particularly for restaurant and travel purchases. If you frequently dine out or travel, this card could help you earn rewards quickly.
2. Annual Fee: The fact that there is no annual fee for this card makes it an attractive option for those looking to earn rewards without paying for the privilege.
3. Redemption Options: The rewards can only be redeemed once per year for Costco Cash certificates that can be used at Costco warehouses in Canada. If you do not shop at Costco frequently, this may not be a useful redemption option for you.
4. Interest Rates: The card comes with high interest rates and fees, which can make carrying a balance on the card expensive if not paid off in full each month. If you plan to carry a balance, you may want to consider a card with lower interest rates.
5. Travel Benefits: The card offers some valuable travel benefits, such as rental car collision/loss damage insurance, but the travel insurance coverage may not be sufficient for all travelers.
6. Customer Service: Some cardholders have reported issues with customer service, such as long wait times on the phone or unresponsive support for issues with the card.
7. Costco Membership: To apply for the card, you must be a Costco member, which requires an annual membership fee. If you do not shop at Costco frequently or do not want to pay for a membership, this may be a barrier.

CIBC Costco Mastercard Reviews

Here are some reviews of the CIBC Costco Mastercard from across the internet:

1. CreditcardGenius gave the card a rating of 85/100, citing its generous cash back rewards program and lack of annual fee as strengths, but noting the limited redemption options and high interest rates as potential drawbacks.
2. Ratehub users gave the card an average rating of 3.9/5 stars, with positive comments on the rewards program and travel benefits, but negative comments on the customer service and difficulty redeeming rewards.
3. The Simple Dollar included the CIBC Costco Mastercard on its list of the best credit cards for Costco shoppers, citing its high cash back rewards rate and lack of annual fee as strengths.
4. A review on GreedyRates noted the generous cash back rewards program and the fact that the card is exclusive to Costco members, but also mentioned the high interest rates and limited redemption options.
5. A review on Finder Canada cited the high cash back rewards rate and valuable additional benefits, such as purchase protection and extended warranty coverage, as strengths, but also noted the limited redemption options and high interest rates.