CIBC Costco Mastercard: cash back with no annual fee
The CIBC Costco Mastercard is built for Costco members who want a simple way to pay for everyday expenses and earn cash back.
It can work well for people who already shop at Costco and want a card with no annual fee and costs that are easy to track.
[boxcard]
With higher cash back at restaurants and on gas, this card can help you earn rewards on routine purchases. There’s no annual credit card fee, but you need an active Costco membership to get and keep the card.
The CIBC Costco Mastercard is offered exclusively to Costco members in Canada. It also works as your Costco membership card.
This guide explains the card’s main pros and cons, app features, issuer, fees and the main points to consider before applying.
Pros and cons of the CIBC Costco Mastercard
Pros:
- Earn 3% cash back at restaurants (including food delivery) and at Costco gas stations, 2% at other gas stations, electric vehicle charging stations and Costco.ca, and 1% on all other purchases, including at Costco. There’s no limit on the total cash back you can earn;
- No annual credit card fee, and up to 3 additional cards at no cost;
- Includes Mobile Device Insurance of up to $1,000, Purchase Security Insurance and Extended Warranty Insurance of up to one additional year;
- Special installment plan rates with no installment fees on eligible Costco purchases through CIBC Pace It: 5.99% for 6 months, 6.99% for 12 months or 7.99% for 24 months;
- Your card is also your Costco membership card, so you carry one less card;
- Accepted at Costco in Canada and anywhere Mastercard is accepted.
Insurance coverage is subject to the terms, limits and exclusions in the Certificate of Insurance provided with the card.
Cons:
- You must have an active Costco membership to apply for and keep the card, and the membership has its own annual fee;
- Cash back is paid only once a year, in January, as a gift certificate that you can only use at Costco warehouses in Canada;
- A minimum annual income of $15,000 is required;
- The purchase interest rate is 21.75%, which is expensive if you carry a balance;
- A 2.5% foreign currency conversion fee applies to purchases in other currencies;
- The card doesn’t include travel insurance.
App features
You can manage your CIBC Costco Mastercard through the CIBC Mobile Banking app and CIBC Online Banking. Key features include:
- Card management: activate a new or replacement card, lock a missing card, or report a lost or stolen card;
- Cash back tracking: follow the cash back you earn from January to December each year;
- Gift certificate: redeem your annual cash back gift certificate digitally at Costco warehouses in Canada using the app, or print it through CIBC Online Banking;
- Spend alerts: get notified by phone, email or online message when you exceed your budget or get close to your credit limit;
- Fraud alerts: get notified about potential unauthorized use of your card, and submit a digital dispute for transactions you don’t recognize.
About the Issuing Bank
Founded in 1867, CIBC (Canadian Imperial Bank of Commerce) is one of Canada’s “Big Five” banks.
CIBC offers chequing and savings accounts, credit cards, loans, mortgages, investments and digital banking tools for personal and business clients.
It provides support through branches, online and mobile banking, and phone services.
Fees of the CIBC Costco Mastercard
Here are the main fees and interest rates of the CIBC Costco Mastercard:
- Annual fee: $0, as long as you maintain a valid Costco membership (membership fees apply);
- Additional cards: $0, up to 3;
- Purchase interest rate: 21.75% annually;
- Cash advance interest rate: 22.49% annually (21.99% for Quebec residents), which also applies to balance transfers and convenience cheques;
- Increased rates: if CIBC doesn’t receive your required payment two or more times in any 12-month period, rates increase to 25.99% on purchases and 27.99% on cash advances for at least 12 months;
- Cash advance fee: $5 within Canada and $7.50 outside Canada (not applicable to Quebec residents);
- Foreign transaction fee: 2.5% of the converted amount, charged on both debits and credits;
- Overlimit fee: $29 (not applicable to Quebec residents);
- Installment fee: up to 3% of each transaction converted to a CIBC Pace It installment plan, except for eligible Costco purchases (not applicable to Quebec residents).
Rates, fees and conditions checked on September 22, 2026, against the CIBC website and the CIBC Credit Card Summary of Annual Interest Rates and Fees (current as of August 1, 2026). Confirm current terms on the CIBC website before applying.
Understanding these fees can help you manage your finances, avoid unnecessary debt and decide whether this card fits your needs.
Why apply for this card?
The CIBC Costco Mastercard can be a good choice for Costco members who want cash back on everyday spending without paying an annual credit card fee.
It can be especially useful if you already buy groceries, household items or gas at Costco and eat out regularly, since restaurants and Costco gas earn 3% cash back.
Keep in mind that your cash back is paid once a year as a Costco gift certificate, so it only makes sense if you shop at Costco regularly. And if you carry a balance, the 21.75% interest rate can quickly outweigh your cash back.
If your income is $50,000 or more (or $80,000 for your household), you may qualify for the CIBC Costco World Mastercard, which has the same fees and rates and includes World Mastercard benefits.
Click the button below to see a full review of the CIBC Costco Mastercard.
You will remain on this website
Disclaimer: This site is independent and strictly informational, and its content does not constitute financial advice. Finvyu is not affiliated with CIBC or Costco. We do not guarantee credit card approval, which is solely subject to a credit check, income verification and risk analysis by the issuing bank (CIBC). Finvyu Editorial Team.