What the Card Offers
CIBC markets the Costco Mastercard to Costco members: 3% cash back at restaurants and Costco gas, 2% at other gas stations and Costco.ca, 1% everywhere else including Costco, no annual fee and "no limit" on total cash back.
- 3%
Restaurants and Costco gas1
3% cash back at restaurants and Costco gas stations.
- 2%
Other gas, EV charging and Costco.ca1
2% on the first $5,000 of gas and EV charging and the first $8,000 at Costco.ca each year.
- 1%
Everything else, including Costco2
1% on all other purchases, including in Costco warehouses.
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- $0
No annual fee2
No annual fee for you or additional cardholders.
- $1,000
Mobile device insurance3
Loss, theft or accidental damage to a phone or tablet, up to $1,000.
Benefits as advertised by the issuer. The conditions attached to them are in the Fine Print Report below.
Sources (3)
- CIBC Costco Mastercard product page, footnote "costco-multipliers" (retrieved 2026-10-18)
- CIBC Costco Mastercard product page (retrieved 2026-10-18)
- CIBC Costco Mastercard Insurance Product Summary (Belair Insurance)
Points & Redemption
Rates: CIBC Costco Mastercard product page, footnote "costco-multipliers" (retrieved 2026-10-18); CIBC Costco Mastercard Benefits Guide, Rewards Program Terms and Conditions. Cash back is credited to your account balance at face value.
The Fine Print Report
Moderate fine print. Good rates, but rewards are locked to Costco and paid yearly.
Cash back: yearly, Costco certificate onlyImpact level: High
Cash back is paid once a year as a Costco-only gift certificate, and is lost if you close the card
Cash back is issued in January, as a Cash Back Gift Certificate that can only be redeemed at Canadian Costco warehouses, for what you earned the previous calendar year. Your account must be in good standing and your Costco membership active on December 31 to receive it. If you close the account or change products, all unissued cash back is forfeited.
Why it matters: You can't use the cash back elsewhere or get it sooner, and cancelling your Costco membership or the card before year-end can cost you a year of rewards.
Gas bonus ends at $5,000; Costco.ca at $8,000Impact level: Medium
"No limit" on cash back, but the gas and Costco.ca rates stop at $5,000 and $8,000 a year
The 3% Costco gas and 2% other gas and EV rates apply to the first $5,000 of gas purchases a year, and the 2% Costco.ca rate to the first $8,000. After that, those purchases earn 1% until January 1. Restaurants stay at 3%.
Why it matters: At $5,000 of gas, the bonus is worth at most $50 to $100 a year over the base rate.
Costco membership required, incl. usersImpact level: Medium
You need a Costco membership to hold the card, and so do your authorized users
The primary cardholder and every authorized user must hold a valid Costco membership. Purchases inside Costco warehouses earn only 1%.
Why it matters: Factor the membership fee into the card's cost. Your biggest Costco spending earns the lowest rate.
No travel insurance at allImpact level: Medium
No travel insurance; purchase protection and phone coverage only
The card covers purchase security, extended warranty and mobile devices. There's no travel medical, trip, baggage or rental car coverage.
Why it matters: Buy separate travel insurance for any trip.
2.5% FX fee, also charged on refundsImpact level: Medium
Foreign currency purchases cost 2.5% extra, and refunds are converted at a new rate
Purchases in a foreign currency are converted to Canadian dollars at the rate CIBC pays, plus a fee of 2.5% of the converted amount. The fee applies to both debits and credits, and a refund is converted at the rate on the day it's applied, which may differ from the original purchase.
Why it matters: Every $1,000 spent in a foreign currency costs about $25 in fees, and a refunded foreign purchase can still leave you out of pocket.
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2 missed payments: 25.99% for a yearImpact level: Medium
Two missed payments in 12 months raise your rates to 25.99% and 27.99% for at least a year
If CIBC doesn't receive your Required Payment on time twice in any 12-month period, your rates rise to 25.99% on purchases and 27.99% on cash advances, balance transfers and convenience cheques, for at least 12 months.
Why it matters: If you ever carry a balance, two late payments make it far more expensive. Automatic minimum payments avoid this.
Default: CIBC can debit your depositsImpact level: Medium
If your account isn't in good standing, CIBC can take the balance from your CIBC deposit accounts and term deposits
When the account isn't in Good Standing, CIBC can demand the full balance and collect it by debiting any deposit account you have with it, or by redeeming fixed-term deposits, whether or not they've matured. It can also suspend or cancel the account without notice, for that or any other reason.
Why it matters: If you bank at CIBC, a missed payment can lead to withdrawals you didn't schedule and to a GIC being cashed early.
Phone cover: 2%/month depreciation, 10% offImpact level: Low
Phone insurance pays the depreciated value, 2% less for every month you've owned the device, minus 10%
Mobile device insurance covers loss, theft or accidental damage up to $1,000, but the payout is capped at the device's depreciated value: the purchase price minus 2% for each completed month since you bought it, then minus a 10% deductible. CIBC's own example: a $900 phone lost after 10 months pays at most $648.
Why it matters: A two-year-old phone is covered for about half its price, less the deductible.
Who This Card Is For
Great fit if you...
- Are a Costco member
- Eat out often
- Fill up at Costco gas
Consider alternatives if you...
- Want cash back you can use anywhere
- Do most spending inside Costco warehouses
- Want travel insurance
- Make foreign-currency purchases
Welcome Bonus History
CIBC Costco Mastercard Welcome Bonus History
The Verdict
The CIBC Costco Mastercard is a strong no-fee choice for restaurants and Costco gas, and it's one of the few cards accepted inside Costco warehouses.
Rewards arrive once a year as a Costco-only certificate, forfeited if you close the card first, warehouse purchases earn 1%, and the gas bonus stops at $5,000 a year.
The Recommendation: Good for Costco members who eat out, as long as you're happy to spend the rewards at Costco.
Before you apply: This teardown is general information, not financial, legal or insurance advice, and reflects the issuer's documents as of October 2026. Terms, rates, fees and offers change, and the issuer's own agreement, disclosure statement, insurance certificates and program terms are what govern your card. Read them in full and confirm details with the issuer before you apply. Full disclaimer