Costco formally converted from the Capital One Costco Mastercard to the CIBC Costco Mastercard on March 4, 2022. Since establishing its first warehouse location in Canada in 1985, Costco has established itself as a go-to retailer for consumers seeking substantial savings on large purchases.
CIBC Costco Mastercard
No annual fee cash backCanadians can now pay for their Costco purchases using any Mastercard in addition to cash and debit. The Capital One Mastercard for Costco members was the only credit card the retailer formerly offered. However, that collaboration came to an end in March 2022, and CIBC acquired the Canadian Capital One Costco Mastercard portfolio to take over as the country’s only issuer of Costco credit cards.
Other card details
Like its Capital One predecessor, the redesigned CIBC Costco Mastercard will continue to offer cash back without any fees. But there are a couple of significant differences. The Capital One card offered 3% back at restaurants but just 2% back on gas, so you’ll first receive 3% cash back at restaurants and Costco gas stations. Additionally, you can get 2% cash back at other gas stations, which comes in handy when you’re on the run, as well as 2% back at Costco.ca when you shop there. You will receive 1% cash back on all of your other spending categories (including at Costco).
Learn more about CIBC Costco Mastercard Credit Card
Although there isn’t a formal annual charge, it’s important to keep in mind that you (obviously) need to have a Costco membership, which costs upwards of $60 annually, to benefit from this card. Another thing to note is that there is no cap on how much you can make in a given year. However, there is a cap on the cashback earn rate you can obtain. When you hit your yearly spend threshold in a given category, you’ll still receive cash back; but, for the balance of the year, it will only be 1%.
Only the first $5,000 of your petrol purchases will be eligible for the 3% cash back rate (and the 2% cash back rate at other gas stations). You will then receive the 1% cash back rate. The cap for Costco.ca purchases is $8,000 before you are charged the 1% base fee again. The method you can use the cash back could also be viewed as a drawback. The CIBC Costco Mastercard offers you cashback in the shape of gift certificates that are distributed in January and may be used to purchase anything at Costco, in contrast to certain cards that pay it out each month directly on your bill or into your bank account.
Other Benefits of the Card
- There is no need to carry two cards since your CIBC Costco Mastercard also serves as your Costco membership card.
- To construct a payment plan with installments for Costco purchases, use the CIBC Pace It function.
- Purchase insurance (up to 90 days)
- Extended warranty protection (up to one additional year)
- Insurance for mobile devices (up to $1,000 per person, per incident)
How to apply for a credit card?
Applying for the CIBC Costco Mastercard Credit Card is a straightforward process, designed for convenience and accessibility. This guide provides a clear, step-by-step approach, ensuring a smooth application experience.
- Step 1: Eligibility Check Firstly, confirm your eligibility. Applicants must be Canadian residents and of the age of majority in their province.
- Step 2: Gather Necessary Information Prepare essential documents: government-issued ID, social insurance number, and proof of income. Having these at hand streamlines the process.
- Step 3: Visit CIBC’s Website Navigate to CIBC’s official website. Look for the Costco Mastercard section. This card is known for its rewards and benefits, especially for Costco members.
- Step 4: Complete the Application Form Fill in the application form with accurate details. This includes personal, financial, and employment information.
- Step 5: Review and Submit Before submitting, review your application for any errors. Once satisfied, submit your application.
- Step 6: Await Approval After submission, CIBC will assess your application. Approval time can vary, but you’ll typically receive a response soon.
Remember, this credit card is a financial commitment. Ensure it aligns with your financial goals and spending habits. For more information, CIBC’s customer service is available to assist.
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