CIBC Costco Mastercard

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The CIBC Costco Mastercard has made a splash since its recent launch, especially among frequent Costco shoppers. With the backing of a new partnership between CIBC and Costco, this card promises a range of cash back benefits that could appeal to many. However, is it genuinely beneficial or just another flashy offering? Let’s dive into the details to find out.

Understanding the Annual Fee

Technically, the CIBC Costco Mastercard comes with no annual fee, but there’s a catch. To qualify for this card, you must be a Costco member, which will set you back either $60 or $120 annually, depending on your membership tier. For those who are already Costco members, this card won’t add any extra cost. However, if you’re not, this membership fee is something you need to consider as part of the card’s cost.

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Exploring the 3% Cash Back Categories

The card offers a 3% cash back on purchases at Costco gas stations and restaurants. This is particularly enticing for those who live near a Costco gas station, as these stations are known for lower gas prices. The additional 3% cash back makes it an even sweeter deal. However, Costco gas stations aren’t ubiquitous, so the value of this benefit depends largely on your location.

When it comes to restaurants, the 3% cash back might not be as competitive. Other no-fee cards, like the Simplii Financial Visa, offer 4% cash back on similar purchases, making the Costco card less appealing in this aspect.

2% Cash Back Categories

With the CIBC Costco Mastercard, you also get 2% cash back on purchases from Costco.ca and on gas from other stations. The online shopping experience with Costco.ca can be limiting compared to giants like Amazon. The Amazon Credit Card, for instance, offers 2.5% cash back on Amazon.ca purchases, providing a slightly better return.

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However, the 2% cash back from other gas stations is a standout feature, making it one of the best no-fee cards for gas purchases in Canada, only rivaled by the Tangerine Money-back card.

1% Cash Back Categories

For all other purchases, including those made in Costco stores, the card offers a 1% cash back rate. This is perhaps the card’s weakest point, especially considering it’s branded as a Costco card. Other cards, like the American Express SimplyCash, offer 1.25% cash back on all purchases, including those at Costco, without requiring a Costco membership.

Pros and Cons of the CIBC Costco Mastercard

Pros

  • 3% cash back at Costco gas stations and restaurants.
  • 2% cash back on Costco.ca purchases and other gas stations.
  • No annual fee (Costco membership required).

Cons

  • 1% cash back on in-store Costco purchases is lower than some other cards.
  • Limited availability of Costco gas stations.
  • Requires Costco membership, adding to the overall cost if not already a member.
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