CIBC Costco Mastercard Review (Feb 2023)

January 9, 2023
Reviews
CIBC

The CIBC Costco Mastercard offers up to 3% cash back for every dollar you spend on restaurants, gas, and purchases at Costco. This credit card is best for Costco members who already have a Costco Membership. It has no annual or additional credit card fees, which lets you focus on earning cash back.

This credit card comes with two very unique features: CIBC Pace It Installment Plans and 1% cash back on money transfers. It also offers reasonable coverage and protection for a no-fee credit and uses top-of-the-line security features like an instant lock and spending alerts to prevent unauthorized use. 

What Is The CIBC Costco Mastercard?

CIBC Costco Mastercard is one of the exclusive credit cards offered by CIBC for members of Costco. This credit card caters to people who usually purchase gas and merchandise at any Costco location. It has no annual or additional credit card fees, which is perfect if you prefer to earn cash back rewards without spending too much on credit card fees.

Before applying for this card, you should already have a Costco Membership and a minimum annual income of $15,000. If you do, it would be easier for you to apply.

Similar to other CIBC credit cards, it has insurance but limited coverage, such as Purchase Security and Mobile Device Insurance. Besides that, you can check your account through online banking or mobile banking app, where you will get notifications and alerts on your credit card activities. 

CIBC Costco Mastercard Features

CIBC Costco Mastercard is known as the credit card specializing for Costco members. Apart from that, it’s better to know the features of the credit card you want to apply for. Let us read down below how this card could help you maximize your Costco rewards.  

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#1 No Annual Fee

It’s always better to have cash back credit cards that do not have annual fees. With the CIBC Costco Mastercard, you don’t need to pay any yearly or additional credit card fees. Although it comes with no fees, it still has a minimum income requirement and interest rates to watch out for, including

  • Minimum Annual Income of $15,000
  • Purchase rate of 19.75%
  • A cash interest rate of 21.49%

Before applying for this credit card, you must have a valid Costco Wholesale membership to get approved. This term also applies to authorized users such as your spouse or children to be added to your account.

#2 Get Up To 3% Cash Back On All Purchases

Get up to 3% cash back at any Costco shop using the CIBC Costco Mastercard. There is no limit to how much cash back you can earn, and all your cash back is directly deposited into your account every month. You can earn up to:

  • 3% cash back in restaurants and Costco gas for the first $5,000 spent, and only 1% cash back afterward (only applicable on Costco gas purchases)
  • 2% cash back – Costco.ca merchandise and any grade of gasoline at other gas stations (for the first $8,000 spent and only 1% cash back afterward)
  • 1% cash back – all other purchases, including at Costco

#3 Pay Your Large Purchases In Installments

CIBC Costco Mastercard cardholders can use the CIBC Pace It Installment Plan to break down large purchases into manageable payments. 

There are three fixed terms you can choose, and the interest rates will vary depending on the timelines:

  • 5.99% – 6 months
  • 6.99% – 12 months
  • 7.99% – 24 months

You can customize your Installment Plans using CIBC Online Banking or the CIBC Mobile Banking App. The minimum purchase amount should be $100, with a one-time installation fee of 1.5%.

#4 Get 1% Cash Back On Global Money Transfers

Sending money costs you a lot of money on transaction fees. With the CIBC Costco Mastercard, you will get a 1% cash back for every $1 you spend on money transfers. You don't need to pay transaction fees, and you won't pay interest, making it an excellent option if you want to send money to your loved ones. 

There will be no interest rates as long as you pay in full and settle your payments on time before the due date. However, CIBC foreign exchange fees may apply – 2.5% for foreign transactions.

#5 Costco’s Cash Back Gift Certificates Using Cash Back Rewards

Costco’s Cash Back Gift Certificates are one of the ways to maximize your daily savings. Every year, you will receive a gift certificate along with your January statement containing the total cash-back rewards earned from the previous year.

You can access your gift certificate through CIBC Online Banking or CIBC Mobile Banking App

To redeem your certificate, you have to:

  1. Bring your digital or printed copy of your gift certificate to any Canadian Costco Warehouse
  2. Present it at checkout and let it scan for redemption
  3. Use your certificate to pay your purchases

You can track the amount of cash back through mobile or online banking.

#6 Valuable Insurance Coverage And Credit Card Security Features 

CIBC Costco Mastercard offers insurance coverage to its cardholders to feel protected and ensured at all times. Insured categories include:

  • Mobile Device Insuranceup to $1,000 repair or replacement coverage only when you have fully paid for the device using the credit card
  • Purchase Security Insurance – protection against theft, loss, or damage for 90 days 
  • Extended Warranty Insurance – extends the purchase’s original manufacturer’s warranty for one additional year.
  • CIBC Payment Protector Insurance For Credit Cardsup to $50,000 paid toward your credit card balance

Aside from insurance coverage, this credit card offers security features to prevent fraudulent activities.

  • Online credit card management – lock a stolen or missing card through the CIBC Mobile Banking or CIBC Online Banking
  • Spend Alerts – notifies when you have spent more than your credit card limit by phone, email, or online message
  • Fraud Alerts – notifies when an unauthorized user uses your credit card by email or online message
  • Credit Report Alerts – notifies when a payment is due or when an eStatement is ready 

CIBC Costco Mastercard Pros & Cons

Pros

  • No annual fees or additional credit card fees
  • Earn up to 3% cash back on restaurants, gas, and other purchases bought at Costco
  • Break down your large payments into smaller pieces with the CIBC Pace It Installment Plans
  • Use this card as your Costco Membership card to qualify for the CIBC Costco World Mastercard
  • Pay conveniently using your phone with Apple Pay, Samsung Pay, or Google Pay
  • View your statements anytime and anywhere with your phone or desktop
  • Get protected with insurance for your purchases, mobile devices, and credit card

Cons

  • No welcome bonus 
  • It requires a minimum personal income of $15,000
  • It has a purchase rate of 19.75% and a cash interest rate of 21.49%

Pricing

CIBC Costco Mastercard is exclusively made for Costco members. Here's a quick comparison between the CIBC Costco Mastercard and the MBNA Rewards Platinum Plus Mastercard:

CIBC Costco MastercardMBNA Rewards Platinum Plus Mastercard
Annual Fee$0$0
Additional Credit Card Fee$0$0
Minimum Annual Income$15,000N/A
Purchase Rate19.75%19.99%
Cash Interest Rate21.49%24.99%
Balance TransfersN/A22.99%
Interest-Free Grace PeriodNo28 days
Foreign Currency Conversion Rate2.5%2.95%
Overlimit Fee$29$25

In Summary

The CIBC Costco Mastercard offers up to 3% cash back for every dollar you spend on restaurants, gas, and purchases at Costco. This credit card is best for Costco members who already have a Costco Membership. It has no annual or additional credit card fees, which lets you focus on earning cash back rather than spending on credit card expenses.

It has unique features that its competitors do not have, such as CIBC Pace It Installment Plans and 1% cash back on money transfers. Your safety and protection are also its top priority since it has insurance coverage and security features to prevent unauthorized use. 

CIBC Costco Mastercard FAQs

How much does the CIBC Costco Mastercard cost?

The CIBC Costco Mastercard doesn't have an annual fee and doesn't charge any fee for requesting additional cards.

Is the CIBC Costco Mastercard worth it?

Yes, the CIBC Costco Mastercard is worth it. This credit card could help you more if you already have a Costco Wholesale membership. It has no annual fees. You can earn up to 3% cash back on restaurants and Costco gas purchases. You can also use the CIBC Pace It Installment Plans to break down your large payments into pieces and pay them later.

Is the CIBC Costco Mastercard safe?

Yes, the CIBC Costco Mastercard is safe. This credit card offers 4 insurance covers, including Mobile Device, Purchase Security, Extended Warranty, and CIBC Payment Protector Insurance. Likewise, it has credit card alerts such as Spend, Fraud, and Credit Report Alerts that notify you of any fraudulent activities in your account by phone, email, or online message.

How much is the limit of the CIBC Costco Mastercard?

The limit of the CIBC Costco Mastercard is $5,000 on gas and $8,000 on Costco purchases. Spending more than the limit can only earn you 1% cash back rewards instead of earning up to 3% cash back.    

Is it hard to get approved for the CIBC Costco Mastercard?

No, getting approved for the CIBC Costco Mastercard is not hard as long as you have a good credit score of at least 750. Besides that, you also need to have a minimum annual income of $15,000, so it will be easier for you to get approved on the credit card.

Can I use my CIBC Costco Mastercard anywhere?

Yes, you can use your CIBC Costco Mastercard anywhere as long as the Mastercard is accepted. 

How do I check my CIBC Costco Mastercard credit card balance and statement?

You can check your CIBC Costco Mastercard credit card balance and statement through CIBC Online Banking or CIBC Mobile Banking. 

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