CIBC Costco Mastercard Vs. CIBC Costco World Mastercard: Which Card Should I Choose? 

CIBC Credit Card Comparison: Unveiling the differences between CIBC credit cards, aiding informed decision-making.

    The CIBC Costco Mastercard and the CIBC Costco World Mastercard are two credit cards offered by CIBC in partnership with Costco. They replaced the Costco Capital One card and they can both be used as proof of membership to gain entrance to Costco wholesale warehouses across North America. Both cards are exclusively available to Costco members, and offer cash back rewards on all purchases, with additional bonuses for restaurant and gas spending. 

    Both Costco Mastercards have a simple, nearly identical rewards structure with only a few notable perks. They do not provide a significant welcome bonus unless you sign up for a new Executive membership, and the insurance package is minimal. There is no bonus cashback category for spending at Costco warehouses, which is a missed opportunity given the card’s association with the retail giant. While the card offers convenience and aligns with the Costco brand, the lacklustre rewards may disappoint some users. We’ll cover all the details below and help you determine which card is right for you in our review. 

    CIBC Costco Mastercard and World Mastercard Overview 

    The Costco Credit Cards are no-fee cash back cards meant to be used at Costco Warehouses, online at Costco.ca and at Costco gas stations. With both cards, you’ll earn 3% cash back at restaurants and Costco gas stations. Plus, you can enjoy 2% cash back at other gas stations and 2% when shopping on Costco.ca. You’ll receive 1% cash back for all other purchases, including at physical Costco warehouses.

    If you have a Costco Executive Membership, you’ll receive an additional 2% on all purchases made at Costco stores, effectively increasing your cash back rate to 3%. However, the card only earns 1% cash back in-store with a regular Gold-Star membership.

    Additional Perks

    One of the unique features of these cards is that they offer mobile device insurance, covering up to $1,000 for repair or replacement when you charge or finance a mobile device on the card. Additionally, eligible purchases come with security insurance and extended warranty insurance. If you meet specific requirements, such as an annual income of over $60,000, you will likely qualify for the CIBC Costco World Mastercard, which is effectively the same card with a few extra benefits like travel perks and a free Boingo Wifi membership. 

    Fees & Cash Back Spending Limits

    Keep in mind, while there is no annual fee for the card itself, a Costco membership is necessary, starting at $60 per year, to fully enjoy the benefits of these cards. There’s no earning limit throughout the year, but the cash back earn rate has spending caps. After reaching your annual spend in a category, you’ll continue earning cash back at a reduced rate of 1% for that category until the end of the year. For gas, the 3% cash back rate applies only to the first $5,000. After that, it becomes 1%. Similarly, for Costco.ca purchases, the cap is $8,000 before reverting to the 1% rate.

    Redeeming Cash Back

    One thing to note is that the cash back is provided as gift certificates issued in January, which can be redeemed for anything in the Costco warehouse. Overall, the CIBC Costco Mastercard offers valuable cashback rewards, making it a decent option for Costco shoppers, especially with the added benefits of the World Mastercard version for eligible individuals.

    Comparison of Features  

    FeatureCIBC Costco MastercardCIBC Costco World Mastercard
    Income Requirement$15,000 individual income $60,000 individual or $100,000 household
    Welcome Bonus$60 statement credit if you sign up for an Executive Membership and apply for the CIBC Costco Mastercard at the same time at a Costco warehouse$60 statement credit if you sign up for an Executive Membership and apply for the CIBC Costco Mastercard at the same time at a Costco warehouse
    Fees and Interest RatesIdentical fee structure – no annual fee, 19.75% interest rate on purchases, 21.75% on cash advances and balance transfers Identical fee structure – no annual fee, 19.75% interest rate on purchases, 21.75% on cash advances and balance transfers 
    Rewards– 3% cash back at restaurants and Costco gas
    – 2% cash back at other gas stations and at Costco.ca
    – 1% cash back on all other purchases including at Costco
    – 3% cash back at restaurants and Costco gas
    – 2% cash back at other gas stations and at Costco.ca
    – 1% cash back on all other purchases including at Costco
    Travel BenefitsNone– Boingo Wifi
    – Mastercard Travel Pass
    Insurance Coverage– Purchase Protection 
    – Extended Warranty Insurance
    – Mobile Device Protection
    – Purchase Protection 
    – Extended Warranty Insurance
    – Mobile Device Protection
    Credit LimitGenerally lower, with a lower starting amount Generally higher, with a higher starting amount
    Miscellaneous No additional cardholder fee, up to 3 cardholders No additional cardholder fee, up to 3 cardholders 

    Income Requirement 

    To qualify for the CIBC Costco World Mastercard, you need to have a minimum individual annual income of $60,000 or a household annual income of $100,000. On the other hand, to be eligible for the CIBC Costco Mastercard, a minimum annual income of $15,000 is required. Both the World and the regular card offer similar benefits, and both are great options to use at Costco. 

    Welcome Bonus 

    If you are looking for an incredible welcome offer from these cards, you may be disappointed to know that the welcome offer is a $60 statement credit. You can qualify for this welcome bonus by signing up for the credit card and a Costco Executive membership at the same time through a Costco warehouse location. You will then need to spend at least $60 on your card within 120 days to receive the credit.

    Fees & Interest Rates

    The CIBC Costco Mastercard and CIBC Costco World Mastercard have an identical fee structure. With no annual fee, cardholders can enjoy the benefits without worrying about extra costs. Both cards offer a market-competitive interest rate of 19.75% on all purchases. However, that fee will increase to 20.75% on the first day of your December 2023 billing cycle.

    For cash advances and balance transfers, the interest rate is 21.49%. This rate will also increase to 22.49% on the first day of your December 2023 billing cycle. Quebec residents continue to enjoy a lower rate of 21.99%. This fee structure aligns with its no-fee policy, making the CIBC Costco Mastercard an attractive choice for those seeking a cost-effective and rewarding credit card option.

    Rewards 

    Both the CIBC Costco Mastercard and CIBC Costco World Mastercard offer relatively competitive cashback rewards that make them a decent choice for everyday spending. You’ll receive 3% cash back on purchases at restaurants and Costco gas stations. Both cards also offer 2% cash back on other gas station purchases and when shopping at Costco.ca, making it convenient for fueling up and shopping online. For all other purchases, including those at Costco warehouses, the card still provides a 1% cashback rate. 

    Travel Benefits 

    When it comes to travel benefits, the standard CIBC Costco Mastercard does not offer any notable advantages. However, the CIBC Costco World Mastercard has the Mastercard Travel Pass, giving you discounted access to airport lounges, as well as free Boingo Wi-Fi access at over 1 million hotspots worldwide. We would not recommend the Costco Mastercard or Costco World Mastercard as your primary travel card, as the travel benefits are very limited. 

    Insurance Coverage

    With the CIBC Costco Mastercard and CIBC Costco World Mastercard, you’ll have access to insurance coverage for your purchases. The extended warranty feature extends the manufacturer’s warranty for up to 1 year, providing added protection and peace of mind.

    Additionally, eligible purchases made with the card are covered by purchase security provided by RSA Group. This benefit lasts for 90 days from the date of your purchase, safeguarding you against theft, loss, or damage during that period. Furthermore, when you purchase any mobile devices using either card, you’ll gain insurance coverage of up to $1000, offering protection against damage or theft. 

    Credit Limit 

    Credit limits differ between the two cards, with the regular CIBC Costco Mastercard generally offering lower credit limits, while the CIBC Costco World Mastercard provides higher credit limits, making it suitable for individuals with higher income and spending needs. Your actual credit limit will depend on your credit score, income, and financial profile.

    Miscellaneous Benefits

    Both cards allow up to three additional cardholders at no extra fee, making it convenient for families or shared finances. Overall, the CIBC Costco Mastercard series offers a range of cash back rewards and benefits, catering to different income levels and spending preferences.

    How to Redeem Your CIBC Costco Mastercard Cash Back 

    Every January, CIBC Costco World Mastercard and CIBC Costco Mastercard holders are rewarded with a cash back gift certificate for the total cash back earned in the preceding calendar year. This gift certificate can be used as a credit towards purchases made at Costco warehouses across Canada. To be eligible for the Costco cash back gift certificate in January, your account must remain open and in good standing until December 31st.

    Is The CIBC Costco Mastercard The Best Card to Use at Costco? 

    The Costco credit card shines in its ability to double as a membership card. This feature makes it a uniquely useful item when shopping at the wholesale store. If you exclusively purchase gas from your local Costco, it can be a valuable addition to your wallet, thanks to the 3% cash back at Costco gas stations. If you do most of your shopping at various grocery stores, you may want to consider a different store credit card

    Why You Should Consider an Alternative to the CIBC Costco Mastercard

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    Truth be told, the CIBC Costco Mastercards are kind of terrible for Costco shoppers. They give you the lowest cash back rate for in-store shopping, which is a measly 1%. Like what? C’mon guys. Also, your cash back balance is only paid out once a year with a Costco gift certificate. In my personal opinion, the only benefit these cards offer is the signup bonus, but even that is lacking.

    The $60 Costco membership rebate is only available to new Costco members who sign up for an Executive Membership and apply for a CIBC Costo Mastercard at the same time. Previous Costco members may be eligible for this rebate if their membership has been cancelled for at least 18 months.

    The Executive Membership is expensive, costing $120 a year while the basic membership only costs $60 a year. It does come with more perks though, like an additional membership card for someone in your household, exclusive discounts, and a 2% cash back bonus on most purchases up to a total of $1,000 earned.

    But you only get that annual 2% reward if you remain an Executive Member. So that narrows the benefit of the welcome offer to a much smaller pool of people who shop at Costco frequently enough to make the more expensive membership worth it.

    If it were me, I would gamify the situation by getting the CIBC Costo Card with the Executive Membership in order to snag the $60 rebate. But I would use a better credit card for my actual in-store shopping. The 2% bonus cash back is offered directly by Costco to Executive Members and has nothing to do with spending on the CIBC Costco Mastercard.

    For example, if you took advantage of the welcome offer, kept your Executive Membership, but used the Rogers World Elite Mastercard for in-store shopping, you’d earn 3.5% cash back until you maxed out your 2% cash back bonus for the year. After that, it would drop to 1.5% cash back, which is almost double what you earn with the CIBC card. Let’s take a look:

    Rogers World Elite Mastercard

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    The Rogers World Elite Mastercard is an excellent alternative to the CIBC Costco Mastercard because there is no annual fee, it has a better cash back rate, and offers much better card perks.

    With this card, you get a flat cash back rate of 1.5% on all purchases and there is no limit on the amount of cash back you can earn. This card also gives you 3% cash back on purchases made in USD, which is great if you love to travel or shop in the US (hello American Costco!).

    Plus, it includes the typical stuff like Purchase Protection and Extended Warranty Coverage. But it also includes great travel perks like access to over 1,300 airport lounges with a complimentary DragonPass, and 4 travel-related insurances.

    Eligibility criteria: You must have an annual personal income of at least $80,000 or an annual household income of at least $150,000. You must spend at least $15,000 on the card every year to remain eligible.

    CIBC Costco Mastercard Vs. CIBC Costco World Mastercard: Wrapping Up

    When considering the CIBC Costco Mastercard and CIBC Costco World Mastercard, it’s important to weigh their benefits and limitations. While both cards offer valuable cash back rewards, with 3% on restaurants and Costco gas purchases, they may not be the most rewarding options for those who shop predominantly outside of Costco. However, their unique feature of doubling as Costco membership cards is a great perk for regular Costco shoppers.

    For individuals with higher income and spending needs, the CIBC Costco World Mastercard provides additional perks, such as minor travel benefits and potentially higher credit limits. On the other hand, the regular CIBC Costco Mastercard remains a suitable choice for those meeting the lower income requirement and seeking a straightforward no-fee cash back card.

    Ultimately, both cards are essentially the same and will offer similar benefits and features. What the cards lose in cash back, they gain in convenience thanks to their ability to double as a Costco membership. While they are a decent choice for shopping at Costco, always ensure you compare credit cards to find the best option for everyday use.

    What is the CIBC Costco World Mastercard?

    The CIBC Costco World Mastercard is a premium version of the regular Costco Mastercard. It gives cardholders the opportunity to earn 3% cash back at restaurants and Costco gas stations. It offers additional benefits such as access to the Mastercard Travel Pass and Boingo wifi. 

    Is the CIBC Costco World Mastercard better than the regular Costco Mastercard?

    The CIBC Costco World Mastercard provides a few extra benefits and features compared to the regular Costco Mastercard. The biggest difference is that the World Mastercard has a higher income requirement of $60,000 per individual, or $100,000 per household. It will give you access to the Mastercard Travel Pass, and Boingo wifi, but other than that, the cards are effectively the same. 

    How do I activate my CIBC Costco Mastercard?

    To activate your CIBC Costco Mastercard, follow the instructions provided with your card. You can activate the card by calling the phone number provided or by logging into your CIBC online banking account. Activation ensures that your card is ready for use and helps protect against unauthorized use.

    How do I make payments toward a CIBC Costco Mastercard?

    There are several ways to make payments toward your CIBC Costco Mastercard. You can set up automatic payments through your CIBC online banking account or by contacting CIBC customer service. You can make manual payments by transferring funds from your bank account to your credit card account online, through the CIBC mobile app, or by visiting a CIBC branch.

    Which Costco Mastercard has travel insurance?

    Unfortunately, neither CIBC Costco Mastercard has travel insurance. The CIBC Costco World Mastercard does provide access to the Mastercard Travel Pass, but they do not have travel insurance. 

    What happens if I currently hold a Capital One Costco Mastercard?

    If you currently have a Capital One Costco Mastercard, you have already been automatically transferred to the CIBC Costco Mastercard. You should have received your new card by now, but if not, contact CIBC to request a replacement.

    Fun-loving and adventurous, with a passion for sales and technology, Trevor grew up in Ontario and received an Honours Bachelor of Business Administration (Economics) from Wilfrid Laurier University. He works for a Fortune 500 company and is addicted to personal finance, SEO, and self improvement. His most recent work is centred around personal credit, small-business finance, and international trade.