If you shop at Costco, this card is a no-brainer. The CIBC Costco Mastercard is the only credit card accepted at Costco warehouses in Canada (they don’t take Visa or Amex in-store), and it has no annual fee beyond your Costco membership. The 3% on dining and gas is genuinely competitive with paid cards, and the 2% at Costco itself adds up fast for families spending $500+/month on bulk groceries and household essentials. The only downside is that cashback is paid as an annual cheque rather than monthly, so you’re essentially lending Costco your rewards for a year.
Card at a Glance
| Feature | Details |
|---|---|
| Card name | CIBC Costco Mastercard |
| Annual fee | $0 (Costco membership required) |
| Network | Mastercard |
| Rewards type | Cash back (via annual cheque) |
| Income requirement | None |
| Costco membership | Required ($65 Gold Star / $130 Executive) |
Cash Back Rates
| Category | Rate |
|---|---|
| Restaurants | 3% |
| Gas | 3% |
| Costco & Costco.ca | 2% |
| Everything else | 1% |
Annual Cash Back Estimate
At typical family spending levels ($500/month at Costco, $200 on gas, $300 dining, $500 elsewhere), this card earns about $360/year in cashback with no card fee. After subtracting the $65 Gold Star membership, you’re still at $295 net — competitive with most $120/year cashback cards. If you upgrade to the $130 Executive membership (which earns its own 2% reward), the combined Costco + card cashback on a $15,000/year Costco spend is substantial. The card is weakest for online shopping and general spending at 1%.
| Monthly Spend | Category | Annual Cash Back |
|---|---|---|
| $500 Costco | 2% | $120 |
| $200 gas | 3% | $72 |
| $300 dining | 3% | $108 |
| $500 other | 1% | $60 |
| Total | $360 |
No annual card fee — after Costco membership ($65), net value is $295/year.
Pros and Cons
| Pros | Cons |
|---|---|
| No annual card fee | Need Costco membership ($65+) |
| 3% dining and gas is strong | Cash back paid once/year (cheque) |
| Only card accepted in-store at Costco | Must be CIBC Mastercard |
| 2% at Costco itself | No travel insurance |
| Good for families | Can’t use at competitors |
Who Should Get This Card
| Profile | Recommendation |
|---|---|
| Regular Costco shopper | ✅ Must-have |
| High gas and dining spend | ✅ 3% is competitive |
| Want no annual fee | ✅ Yes (just membership) |
| Non-Costco shopper | ❌ No reason to get it |
| Want monthly cash back | ⚠️ Paid as annual cheque |
The Bottom Line
Every Costco member should carry this card for in-store purchases — it’s the only credit card Costco accepts and it earns 2–3% with no annual fee. Pair it with a no-fee Visa or Amex for everywhere else, and you’ll have solid cashback coverage across all your spending.
Frequently asked questions
Is the CIBC Costco Mastercard worth it without a Costco membership? The CIBC Costco Mastercard is co-branded with Costco and requires a Costco membership (basic: $65/year; Executive: $130/year). Non-Costco members cannot apply. For Costco shoppers, the card earns 3% on restaurant and eligible food delivery, 2% on Costco.ca, and 1% everywhere else — making it a solid everyday card for members.
How do you redeem CIBC Costco Mastercard rewards? Rewards are accumulated as a Costco Cash Card, redeemable in-store at Costco Canada locations. Unlike traditional cash back, you can’’t redeem for statement credit or bank transfer — the reward is specifically a Costco store card. This limits flexibility vs pure cash-back cards but is ideal for Costco regular shoppers.
What is the income requirement for the CIBC Costco Mastercard? The CIBC Costco Mastercard does not have a published minimum income requirement, making it more accessible than Visa Infinite or World Elite Mastercard products. CIBC assesses eligibility based on creditworthiness and income on a case-by-case basis. Good credit (650+) is generally required.
CIBC Costco Mastercard earn rates summary
| Category | Earn rate |
|---|---|
| Restaurants & food delivery | 3% in Costco Cash |
| Costco.ca purchases | 2% in Costco Cash |
| Gas (including Costco gas) | 2% in Costco Cash |
| All other purchases | 1% in Costco Cash |
Annual reward redemption: Rewards accumulate throughout the year and are issued as a Costco Cash Card once per year. You cannot redeem mid-year — the full year’’s rewards arrive in February, redeemable at Costco warehouse.
Example $25,000/year spending ($700 dining, $1,500 gas, $5,000 Costco, $17,800 other):
- Dining: $700 × 3% = $21
- Gas: $1,500 × 2% = $30
- Costco: $5,000 × 2% = $100
- Other: $17,800 × 1% = $178
- Total: $329/year cash back, no annual fee
CIBC Costco Mastercard: travel and purchase benefits
Despite being a no-fee card, the CIBC Costco Mastercard includes some protection benefits:
| Benefit | Coverage |
|---|---|
| Purchase security | Covers theft/damage on new purchases for 90 days |
| Extended warranty | Doubles manufacturer warranty up to 1 additional year |
| Common carrier accident | Up to $500,000 for accidental death/dismemberment when using card for fare |
The card does not include comprehensive travel insurance (medical, trip cancellation), which is standard on premium annual-fee cards. Costco members who travel frequently should supplement with standalone travel insurance or a secondary travel card.