What Credit Card Does Costco Take in Canada

Kevin Shahnazari

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6 min read

Costco, one of the biggest wholesale retailers in Canada, has a unique payment acceptance policy.

Especially that you can buy things in their warehouse, you can buy things at their gas station (Costco Gas), or their website (Costco.ca) too, and each accepts different payment types!

So in this post, we will thoroughly answer the question What Credit Card Does Costco Take in Canada, so the next time you are going there, you don't worry if your payment method is accepted or not.

Acceptable Payment Methods

Almost any place in Canada accepts both Visa and Mastercard credit cards. Many of them accept American Express too!

But Costco might be one of those rare exceptions! The only credit card you can use is a Mastercard to buy anything at their warehouse or their gas stations. On their website, costco.ca, you can still use a Visa card to purchase things, but American Express is not accepted anywhere Costco-related.

In addition to Mastercard-branded cards, Costco in Canada accepts all Canadian debit cards, cash, and Costco Cash Cards. The Costco Cash Card is a prepaid card offered by Costco that can be loaded with any amount between $25 and $2,000. It allows you to shop at Costco without requiring a credit or debit card and can be used by non-members.

Why Does Costco Only Accept Mastercard?

Costco only accepts Mastercard due to an exclusive payment processing agreement between the two companies. Credit card networks charge merchants a percentage of the transaction fee, and with this agreement, Costco has lowered the fee they pay.

How Good is the CIBC Costco Mastercard?

When you become a Costco member, you can apply to the CIBC Costco Mastercard. But given that this card is a Costco Credit card, is it a good option to use at Costco? Please note that we are not considering the rewards in other categories.

Well, yes and no!

More Details

CIBC Costco Mastercard

3.4

Finly Rating

Welcome Bonus

Net Annual Rewards

$347.33

Based on $2,000/mo spending. Calculate your rewards.

Annual Fee

Interest Rates

20.75% / 22.49%

RECOMMENDED CREDIT SCORE

300

Poor

560

Fair

660

Good

725

Very Good

760

Excellent

Why we like it

The CIBC Costco Mastercard offers one of the highest cashback rates on restaurant purchases in Canada, making it an excellent choice for optimizing rewards in this specific category, especially since it has no annual fees. If you use Costco Gas or shop on Costco Online, there is a decent cashback rate as well. However, for other categories, the cashback rate is average. Notably, you will be better off using other credit cards for warehouse Costco purchases, as you will only earn 1% cashback. If you are looking for no annual fee credit cards only, this is a good card to go for.

Pros & Cons

Pros

Decent reward rate for a no annual fee credit card
One of the highest cashback rates for restaurant purchases in Canada
Has Mobile insurance

Cons

Doesn't come with a lot of benefits
Doesn't earn much on Costco Warehouse purchases!

Product Details

Rewards

3% cashback on Restaurants and CostcoGas
2% cashback on Costco.ca purchases (Max $160 yearly)
2% cashback on Gas (Max $100 yearly)
1% on everything else

Insurance

Coverage

Mobile Device Insurance
$1000
Purchase Protection
Up to 90 days
Extended Warranty
Up to a year

Eligibility

Credit Score
Good
Annual Income
$15,000 personal

The CIBC Costco card gives you 3% on Costco gas, 2% on Costco.ca and 1% on Costco purchases.

Given that it's a free card, if you purchase a lot of gas at Costco gas or Costco.ca, this card is a good option because there are not that many free cards that give 3% on gas and 2% on online purchases.

But most of your purchases probably happen at the warehouse, and you only get 1% cashback. Many other cards could give you more than 1% on your purchases, meaning that it would be better to go with those options instead.

In terms of benefits, this card has the standard purchase protection and extended warranty almost all credit cards have and additional mobile device insurance meaning that it's a sound card in terms of benefits.

What Are Some Better Credit Card Options for Costco Purchases?

One very important note is that Costco is not considered a grocery store and they are considered as discount clubs! Meaning that if you have a card that you use and gives extra rewards on grocery store purchases you are not getting it!

So you need to aim for a credit card that gives high rewards on purchases on any category and also is a Mastercard.

Here are a few Mastercard credit cards that earn more rewards for Costco warehouse purchases compared to the CIBC Costco Mastercard!

Cards that beat the CIBC Costco Mastercard in terms of rewards

1. Rogers World Elite Mastercard