The CIBC Costco Mastercard is a no-fee, co-branded card tailored to Canadian Costco members who spend a lot on fuel, groceries, dining and bulk purchases, offering 3% cash back at restaurants and Costco gas, 2% at other gas/EV/Costco.ca and 1% everywhere else. With rewards paid annually as a Costco cash back certificate and extras like mobile device insurance and purchase protection, it can deliver strong value if you keep your Costco membership and always pay your balance in full.
CIBC Costco Mastercard in 2025: Value, Trade-Offs and Who It Suits
- Strong Rewards on Dining and Fuel: Earning 3% cash back at restaurants and Costco gas bars benefits families, commuters and frequent drivers whose budgets lean heavily on these categories.
- Elevated Cash Back at Costco.ca and EV Charging: A 2% rate at non-Costco gas stations, EV charging locations and Costco.ca suits Canadians who mix warehouse visits, online orders and diverse fueling options.
- No Annual Fee for Primary and Additional Cards: No annual fee on the primary card and up to three authorized users helps households consolidate spending and accelerate rewards without added card costs.
- Annual Costco Cash Back Certificate Aligned with Membership: Receiving rewards once a year as a Costco certificate lets you apply them to membership renewal or a major bulk shop, turning past spending into future savings.
- Included Mobile Device and Purchase Insurance: Mobile device coverage, purchase protection and extended warranty add security for phones, electronics and appliances, offsetting potential repair or replacement costs.
Main Disadvantages
- Costco Membership Is Mandatory: You must hold a paid Costco membership to qualify for and fully benefit from the card, adding an extra ongoing cost.
- Cash Back Is Paid Only Once per Year: Rewards are issued annually as a single Costco gift certificate, limiting flexibility for those who prefer monthly or on-demand redemptions.
- Standard Rewards-Card Interest Rates: Typical rewards-card interest rates mean carrying a balance or using cash advances can quickly erode any cash back earned.
- Foreign Transaction Fee on Non-Canadian Purchases: A 2.5% foreign currency conversion fee makes the card less competitive for frequent travellers or cross-border online shoppers.
- Rewards Redeemable Only Through Costco: Cash back is redeemable only at Canadian Costco warehouses, with no option for statement credits or direct cash deposits, reducing flexibility if you stop shopping at Costco.
Step-by-Step Application Guide
- Confirm Membership and Eligibility: Ensure you have an active Canadian Costco membership, meet age-of-majority rules and satisfy CIBC’s income and credit criteria.
- Review the Latest Offer and Key Terms: Check CIBC’s official page for current welcome offers, interest rates, fees, and details on how the annual Costco cash back certificate is calculated and redeemed.
- Gather Personal and Financial Information: Collect your full legal name, contact details, address history, employment status, gross income and housing costs, plus basic details for any authorized users.
- Submit Your Application Online or In Person: Complete the digital form through CIBC, by phone, or at a participating branch or Costco location, ensuring accuracy and consenting to a credit check.
- Activate the Card and Link Your Accounts: Once approved and the card arrives, activate it via CIBC Online Banking, the mobile app or by phone, and confirm your Costco membership number is properly linked.
- Set Up Digital Tools and Start Spending Strategically: Enroll in eStatements, enable spending and fraud alerts, and prioritize restaurant, fuel, EV charging, Costco.ca and warehouse purchases while paying balances in full.
The CIBC Costco Mastercard is a no-fee option that rewards Canadian Costco members on fuel, dining, groceries and bulk purchases, paying out as an annual Costco cash back certificate. If a big share of your spending falls into these bonus categories and you like built-in purchase and mobile protections, it can be a very efficient way to turn everyday Costco-focused spending into tangible value.
