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 2% on gas are 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) |
Card terms confirmed as of August 2026. The card fee, cash back rates, and Costco membership prices are set by CIBC and Costco respectively and rarely change, but should be verified on CIBC’s credit cards page and costco.ca before applying.
Cash Back Rates
| Category | Rate |
|---|---|
| Restaurants | 3% |
| Gas | 2% |
| 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 $336/year in cashback with no card fee. After subtracting the $65 Gold Star membership, you’re still at $271 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 | 2% | $48 |
| $300 dining | 3% | $108 |
| $500 other | 1% | $60 |
| Total | $336 |
No annual card fee — after Costco membership ($65), net value is $271/year.
Pros and Cons
| Pros | Cons |
|---|---|
| No annual card fee | Need Costco membership ($65+) |
| 3% dining, 2% 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.