Costco is a popular name in many Canadian households as customers look to save money on their monthly grocery costs. As we have previously mentioned in our articles on the best credit cards for dining out for Canadians and the best credit cards for grocery purchases in Canada, consumers should always look to optimize their credit card usage based on where the majority of their monthly spending is done.
Selecting the right credit card to use at Costco becomes even more important when you realize that Costco only accepts Mastercards (although there are roundabout ways to use Visa and American Express cards at Costco). The CIBC Costco World Mastercard may be an obvious choice for the family that spends a lot at Costco, however, it might not be the best choice depending on your personal finance needs.
Let’s take a look at everything you need to know about the CIBC Costco World Mastercard to see if this card is worth adding to your wallet.
Overview
Welcome Bonus
The CIBC Costco World Mastercard currently does not have a welcome bonus.
The CIBC Costco World Mastercard earns cash back and gives cardholders the opportunity to earn 3% cash back at restaurants and Costco gas stations.
Check out our CIBC Costco World Mastercard review for more details.
$0 cash back
$0
$0+
$0
Yes
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In order to apply for the CIBC Costco World Mastercard, the applicant must already have an active Costco Wholesale membership.
The CIBC Costco World Mastercard has an annual personal income requirement of $60,000 or an annual household income requirement of $100,000. If you don’t meet either of these requirements, the alternative CIBC Costco Mastercard only requires an annual personal income of $15,000.
Earning Rates
The CIBC Costco World Mastercard earns cash back for all eligible purchases made on the card at the following rates:
- Earn 3% cash back on purchases at restaurants and Costco gas stations.
- Earn 2% cash back on purchases at other gas stations (non-Costco) and Costco.ca.
- Earn 1% cash back on all other purchases (including at Costco).
Annual Fee
The CIBC Costco World Mastercard has no annual fee.
Benefits
The CIBC Costco World Mastercard offers a couple of benefits including a free Boingo WiFi membership and various insurance coverages.
Complimentary Boingo WiFi Membership
CIBC Costco World Mastercard cardholders receive a membership to Boingo WiFi which can be used to connect to over one million hotspots worldwide at no cost. For those who don’t have access to a complimentary membership, Boingo membership is typically sold as a subscription-based model at a cost of $14.99 per month.
Boingo membership can also be used to access in-flight WiFi for free on WestJet flights, for up to twelve sessions (90 minutes per session) per calendar year.
Insurance Coverage
The CIBC Costco World Mastercard offers the following insurance coverages:
- Mobile device insurance
- Purchase security
- Extended warranty insurance
Ensure you read the insurance certificate to understand eligibility and how the insurance coverage is applied.
Redeeming Cash Back
Every year in January, CIBC Costco World Mastercard cardholders will receive a cash back gift certificate for the cash back that was earned during the previous calendar year. This gift certificate can be redeemed as a credit toward purchases at Costco warehouses in Canada.
The cardholder’s account must be open and in good standing as of December 31st to receive the Costco cash back gift certificate in January.
Comparable Credit Cards
If you are looking for a comparable Mastercard with no annual fee to use at Costco that will earn cash back, consider one of the following options as an alternative.
Tangerine World Mastercard
The Tangerine World Mastercard is a great option if you would prefer a credit card with no annual fee that allows you to select what bonus spending categories you would prefer to earn more cash back on.
The Tangerine World Mastercard earns cash back and allows cardholders to choose three accelerated spending categories to increase their cash back earnings. In 2024, we awarded this card as the Best No Annual Fee Cash Back Credit Card.
Check out our Tangerine World Mastercard review for more details.
$100 cash back
$1,000
$100+
$0
Yes
Oct 31, 2024
The Tangerine World Mastercard earns 2% cash back on all purchases in up to three categories of your choice and 0.5% cash back on all other purchases. These categories include grocery, furniture, restaurants, hotel/motel, gas, recurring bill payments, drug store, home improvement, entertainment, and public transport/parking.
The cash back on the Tangerine World Mastercard is paid monthly, as opposed to the once-a-year schedule on the CIBC Costco World Mastercard. This may be preferable for those individuals who want to access their cash back sooner, or those who don’t want their cash back tied to a Costco gift certificate.
Rogers Mastercard
The Rogers Mastercard also has no annual fee and has a consistent earning rate on all purchase categories for those cardholders who are Rogers, Fido, and Shaw postpaid customers.
With the Rogers Mastercard, Rogers, Fido and Shaw postpaid customers can earn 2% cash back on all eligible purchases and get a 1.5x redemption bonus on Rogers, Fido and Shaw purchases – a 3% cash back value.
Check out our Rogers Mastercard review for more details.
$100 cash back
$1,000
$100+
$0
Yes
–
Cardholders who are Rogers, Fido, and Shaw postpaid customers will earn 2% cash back on all purchases regardless of merchant category. They will also earn 1% cash back on all other purchases.
Cash back earned on the Rogers Mastercard can be redeemed at any time provided there is a minimum balance of $10 earned. Rogers, Fido, and Shaw postpaid customers can get a 1.5x redemption bonus on Rogers, Fido, and Shaw purchases – a 3% cash back value.
The Rogers Mastercard also offers one benefit which includes receiving up to five free “Roam Like Home” days every calendar year to be used when traveling outside of Canada.
Conclusion
While the CIBC Costco World Mastercard can be a good fit for a family who spends a large amount of money at Costco, it is worth considering other credit cards that may provide a more robust earning rate or bonus category options to ensure you are getting the most from your spending.
Either way, always thinking about where the majority of your spending is done will give you the opportunity to further optimize your personal finance situation by choosing the right credit card for your needs.
Josh Bandura
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