CIBC Costco Mastercard, Launching March 2022

CIBC Canada recently made a big announcement that they will be acquiring the Capital One Costco Mastercard portfolio as of March 4, 2022. This means that all current Capital One Costco credit card accounts will now be transferred to CIBC, complete with new rewards and benefits. This also means that the CIBC Costco family of cards are some of the newest credit cards in Canada.

Costco & Mastercards

Currently, Costco warehouses in Canada only accept Mastercards as their credit cards of choice when paying in-store (although there are other ways to pay with Visa or American Express if you get creative). This means that any serious Costco shopper will want to have a Mastercard on hand for their in-store purchases, and the CIBC Costco Mastercard or CIBC Costco World Mastercard both fit that bill perfectly.

With this acquisition, CIBC is taking advantage of Costco’s significant membership base to reach a new audience of consumers who want a daily driver credit card that will reward them with easy-to-understand and redeem bonuses.

The new CIBC Costco credit card offers cashback on various categories (including different types of spending at Costco), insurance-related benefits, and a $0 annual fee.

It is important to note that in order to hold this credit card, the cardholder will need to have an existing and active Costco membership.

CIBC Costco Mastercard Rewards

The new CIBC Costco Mastercard earns cashback rewards for all purchases made on the credit card.

The cashback earning rates are split into three categories, depending on where the purchase is made:

• 3% cash back on restaurant and Costco gas station purchases.
• 2% cash back on purchases at non Costco gas stations and on Costco.ca.
• 1% cash back on all other purchases including any in-store Costco warehouse purchases.

While these earning rates seem pretty standard, the most interesting component is the 2% cashback on Costco.ca purchases whereas purchasing in-store only earns 1%. This means that if you hold the CIBC Costco card, it would always be worth it to see if you can make your purchase online as opposed to in-store for the additional cashback.

For example, costco.ca does offer warehouse pickup for certain categories of products, so if your purchase falls within one of these areas it might be worth ordering online and picking up to earn 2% cashback instead of 1%.

Costco also offers grocery delivery through CostcoGrocery online but there may be additional fees/shipping costs, so do the math to see if this makes more sense than just earning the typical 1% cashback in-store.

Any cashback that is earned on the CIBC Costco Mastercard during a calendar year will be paid in the following January. For example, all cash back earned on purchases during 2022 will be paid out via a cashback gift certificate in January 2023. 

The approach that CIBC has taken for the Costco Mastercard rewards makes sense as cashback is easy to understand for the majority of users who just want a good credit card as a daily driver for their consistent gas and grocery purchases. There are no complexities when it comes to redeeming cashback, making it a great option for many consumers, especially if your family does a lot of Costco shopping.

CIBC Costco Mastercard Benefits

Through having a CIBC Costco Mastercard account, you have access to a few insurance coverages:

• Mobile Device Insurance: Provides coverage for mobile devices that are lost, stolen, or damaged
• Purchase Security: Provides coverage for certain items charged to your card in the case of said items being lost, stolen, or damaged
• Extended Warranty: Automatically doubles the manufacturer’s warranty on any covered item charged to your card, up to one additional year

These benefits are good for a card that costs zero out of pocket for annual fees. As always, ensure that you read the terms and conditions to understand how to properly ensure you are covered in case you need to file a claim. For example, typically with benefits like these, you would need to charge the full purchase price of the items to your CIBC Costco Mastercard.

Additionally, a small perk of the CIBC Costco credit card is that it doubles as your Costco membership card which means you can free up some additional space in your wallet.

How Can I Apply for the New CIBC Costco Mastercard?

As the Capital One Costco card portfolio is being transitioned over to CIBC, applications are not open through CIBC until the transition takes effect on March 4, 2022. As a result of the upcoming transition, Capital One is no longer taking applications on their current Costco credit card.

When March 2022 rolls around, it would not surprise me if CIBC has a promotional sign-up offer as part of the launch of this new Costco credit card. It would be worth keeping an eye on CIBC’s website closer to the launch date of the card if you are interested in applying.

Update: The CIBC Costco Mastercard is now available and can be applied for through the page below.

Apply Now Learn More

CIBC Costco Mastercard

The CIBC Costco Mastercard earns cash back and gives cardholders the opportunity to earn 3% cash back at restaurants and Costco gas stations.

BONUS
$0 cash back

MINSPEND
$0

NET VALUE
$0+

ANNUAL FEE
$0

FOREX FEES
Yes

EXPIRY
–

What Happens If I Already Hold the Capital One Costco Mastercard?

As the Costco Mastercard portfolio is transitioning from Capital One to CIBC, there are a few changes that you need to be aware of if you are currently holding the Capital One Costco Mastercard.

First of all, the actual transition date is March 4, 2022. This means that up until and including March 3, 2022, you can pay off your bill and view your statement the same using the same process as before.

If you are an existing Capital One cardholder, you will not receive the new physical credit card in advance of March 4th. You will be able to use your existing Costco MasterCard while you wait to receive the new CIBC-issued card in the mail by August 31, 2022. Any charges made on your Capital One credit card after March 4th will be reflected in your CIBC online banking account.

As of March 4th, you will need to switch your online bill payment in your financial institution portal from your Capital One card to now be paid to CIBC, with the same card number. Additionally, you will be able to register for CIBC eStatements through CIBC mobile banking as of March 7, 2022, to ensure you can access your statements online through CIBC once the transition occurs.

Finally, the transition means that you will receive cashback in January 2023 for any spending on the Capital One Costco Mastercard from January 1, 2022, to March 3, 2022. After that date, you will accrue cashback on the CIBC Costco Mastercard on a go-forward basis as long as you hold the card.

Is the New CIBC Costco Credit Card Right for Me?

Similar to the PC Optimum Mastercard for Loblaws, if a large percentage of your monthly grocery and gas purchases are at Costco, this card may be a great fit for you and your family. With the $0 annual fee on this card, there is no need to worry about if you will spend enough to make a profit on the card – any cashback is all profit right from the start.

If Costco is not your main gas and grocery retailer, it might be better to consider other credit cards that offer non-retailer-specific category spend bonuses (such as the Amex Cobalt at 5% back on groceries).

Conclusion

The CIBC Costco Mastercard acquisition from Capital One is a strong move for CIBC and will no doubt assist them in bolstering their credit card portfolio in making it more attractive to the typical Canadian. If you are a Costco member, this card may be worth adding to your wallet. Keep an eye out to see if CIBC offers any promotional welcome offers when the card officially becomes available as of March 4, 2022.