I'd only point someone to the CIBC Costco Mastercard if they already pay for a Costco membership, because you can't hold it otherwise and the rewards come back as a Costco gift certificate. For members, it is a free card that doubles as the membership card and pays 3% at restaurants and on Costco gas.
What surprised me is how little it pays at Costco itself: warehouse purchases earn 1%, the same as everything else. Gas is capped at $5,000 a year and Costco.ca at $8,000, so this works best as a dining and fuel card that happens to live in your Costco wallet.
Welcome offer
There is no welcome bonus on the CIBC Costco Mastercard at the moment. CIBC's product page lists the earn rates, the $0 fee and the Pace It installment rates, but no sign-up offer, as of October 13, 2026.
Co-branded cards sometimes run short promotions through the partner, so check CIBC's page and Costco's member offers before applying in case one has appeared.
With no bonus to chase, the value is all in ongoing earning. Restaurants at 3% with no stated limit is the category that adds up over a year, so route dining here even if another card handles groceries.
Fees & eligibility
The card has no annual fee ($0) for the primary cardholder or for up to 3 authorized users. The catch is the membership: the primary cardholder and every authorized user need an active Costco membership, which is a separate cost.
Approval needs a minimum annual income of $15,000, one of the lowest bars around, and the card has a minimum credit limit. Interest is 21.75% on purchases and 22.49% on cash advances and balance transfers (21.99% for Quebec residents). Foreign currency purchases carry a 2.5% conversion fee. The CIBC Costco World Mastercard has the same fees and rates, with a $50,000 individual or $80,000 household income requirement and World Mastercard extras.
Earning rewards
The best rate is 3% at restaurants, and the card's terms set no annual limit on it. Costco gas stations also earn 3%, and other gas stations and EV chargers earn 2%, but those two share a $5,000 yearly limit; after that, all fuel earns 1%.
Online orders on Costco.ca earn 2% on the first $8,000 a year. Everything else earns 1%, and that includes purchases made inside Costco warehouses, which is the card's biggest weakness for a Costco card. Both limits reset on January 1.
Redeeming rewards
This is where the card differs from most cash back cards. Cash back is not a statement credit: it is paid once a year as a Costco cash back gift certificate, issued to the primary cardholder with the January statement for everything earned the previous calendar year.
The certificate can be used once, at the front-end registers of Canadian Costco warehouses, and has no expiry date. It cannot be used at Costco gas stations, on Costco.ca, at the food court or pharmacy, or for alcohol, tobacco or travel. Two rules matter most: the account must be in good standing and the Costco membership active on December 31, or that year's cash back is lost, and closing the account forfeits any cash back earned so far.
Perks & benefits
The most practical perk is that the card is your Costco membership card, with the membership details printed on the back, so there is one less card to carry. For larger warehouse purchases, CIBC Pace It installment plans on eligible Costco purchases run at 5.99% for 6 months, 6.99% for 12 months or 7.99% for 24 months, with no installment fee.
Linking the card to Skip gets a free Skip+ membership, and CIBC Global Money Transfer sends money to 120+ countries with a $0 transfer fee. There is no lounge access, no travel credit and no travel insurance of any kind.
Insurance
Coverage is limited to purchases and phones. Mobile Device Insurance covers a phone or tablet bought on the card for up to $1,000 per claim for 2 years, after depreciation of 2% a month and a 10% deductible. Purchase Security covers new items for 90 days, and Extended Warranty doubles the manufacturer's warranty by up to one extra year.
There is no travel insurance: no emergency medical, no trip cancellation or delay, no rental car coverage and no travel accident insurance. Pair it with another card for anything travel-related.
My take
I'd get this card if you're a Costco member who eats out a lot and wants a free card for dining and fuel; I'd skip it if you want flexible cash back or travel insurance.
For a $0 card, 3% at restaurants with no stated limit is a good rate, and having the membership and credit card in one is a small daily convenience. The low income bar also makes it reachable for students and newcomers who already shop at Costco.
The gift certificate is what holds me back. Your cash back sits for up to a year, can only be spent at a Costco register, and disappears if you close the card or let the membership lapse at the wrong time. And at 1% inside the warehouse, I'd still look at whether another Mastercard pays more on your Costco runs.
The good
- No annual fee, for you or up to 3 authorized users
- 3% at restaurants with no stated limit, and 3% on Costco gas
- Doubles as your Costco membership card
The catch
- Cash back paid once a year as a Costco-only gift certificate
- Only 1% on purchases inside Costco warehouses
- No travel insurance and a 2.5% FX fee