As of March 4, 2022, the Capital One Costco Mastercard will become the CIBC Costco Mastercard.
What does that mean for Costco Canada members who own a Costco credit card?
At the moment, two things that your Capital One Costco Mastercard will no longer allow you access to the mobile app or online website.
If you own a CIBC Costco Mastercard, you will be getting a new credit card in the mail by August.
You can use your credit card until then, as nothing has changed. The new credit card also doubles up as your Costco membership card as it does with the Capital One Mastercard.
CIBC expects the roll-out to be completed by August 31, 2022, when all cardholders receive their new credit card.
Once your card arrives and you activate it, the Capital One Mastercard will no longer work.
You will find the information at the bottom of your February 2022 Mastercard statement.
I’ve also put many links into this post where you can find updated information about the switch Costo has made with their credit card.
Today, I want to review changes to the new CIBC Costco MasterCard since my first review of the Capital One MasterCard for Costco Canada.
Read The Fine Print- CIBC Costco Mastercard
Below is what you will find online or on your credit card statement about the CIBC Costco MasterCard in Canada.
The fine print is the part of any credit card that cardholders often skip because they don’t care or don’t think to read the credit card provisions.
Capital One Costco Mastercard vs. CIBC Costco Mastercard
Now, I’d like to compare each credit card to see if the agreement terms are the same.
You can read my full review of the Capital One Costco Mastercard from Sept 2020.
Capital One Costco Mastercard
You’ll earn Costco Credit Card Rewards in the form of cashback on everyday purchases.
- 3% on restaurant purchases
- Gas purchases 2%
- Earn 0.5% on the first $3,000 you spend annually on all other purchases, and 1% after that.
- Annual Fee $0
Annual Rates Capital One Costco Membership
- Standard Rate for Purchases 19.75%
- Balance Transfers Standard Rate 19.75%
- Standard Rate for Cash Advances 19.75%
- Cash Back Up to 3%
Benefits Of The Capital One Costco Mastercard
- Price Protection Service
- Purchase Assurance
- Extended Warranty
Send Money Abroad
“Get 0.25% cashback for every $1 spent on a CIBC Global Money Transfer™,†, 6. There are no transaction fees, and you won’t be charged interest, as long as you pay your balance by the payment due date.7.“
I have a bank account in the UK, so it’s nice to read that CIBC gives cash back for every one dollar spent on a Global Money Transfer with no fees.
Below I will highlight the important part of this message found on the CIBC website.
What You Get With The CIBC Costco Mastercard
With this new Costco Mastercard, there are thresholds that the percentage you earn back reduces if and when you meet them.
For example, once you spend $5000 fewer returns at the gas station or purchases, the 3% cashback reduces to 1% cashback.
When using Costco.ca online, the first $8000 in purchases fewer returns earns the cardholder 2% and reduces to 1% after that.
At the end of the year, when the primary cardholder receives a cheque from Costco, the money can only be used by the primary cardholder at Costco. Smart, aren’t they. 🙂
Annual Fee and Interest Rates – CIBC Costco Mastercard
- Annual Fee $0
- Purchase Interest Rate 19.75%
- Cash Back Interest Rate 21.49%
Fine Print Reading For The CIBC Costco Credit Card
Earn 3% on purchases (less returns) at merchants classified in the credit card network as Costco gas stations within Canada and 2% on purchases (less returns) at merchants classified in the credit card network as gas merchants on the first $5,000 net annual card purchases in this category on your account.
After that, net card purchases at all gas merchants, including Costco, will earn 1% in Cash Back Rewards.
Earn 2% on purchases (less returns) classified in the credit card network as Costco.ca purchases on the first $8,000 net annual card purchases in this category on your account.
After that, net card purchases at Costco.ca will earn 1% in Cash Back Rewards.
Purchases at merchants classified in the credit card network as restaurants will earn 3% and all other qualifying purchases will earn 1% in Cash Back Rewards.
The $5,000 and $8,000 limit will reset to zero annually on January 1.
Cash Back Rewards will be provided in the form of a Cash Back Gift Certificate issued in Canadian dollars to an eligible Primary Cardholder once per calendar year in January for the cash back earned in the prior calendar year.
Cash Back Gift Certificate can only be redeemed for purchases at any Canadian Costco Wholesale warehouse location.
Authorized Users on the Account are not issued and cannot redeem Cash Back Gift Certificates.
For the full Rewards Program terms and conditions, please see the Benefits Guide (PDF, 1.2 MB).
You’ll find the 16 page pdf about the credit card to be long however it’s tells you exactly everything you need to know about owning one.Source: CIBC Costco Mastercard
Welcome Bonus From CIBC For Costco Mastercard
Get a $20 Welcome Bonus with your new card. Hey, I like free money!
You’ll receive your new CIBC Costco Mastercard by August 31, 2022.
What you need to do when your new credit card arrives is listed below.
Steps To Take When You Activate Your New CIBC Credit Card
1. Purchase with your newly activated card.
2. Register with the CIBC Mobile Banking App or CIBC Online Banking.
Complete these two easy steps in any order before December 31, 2022, and you’ll enjoy a $20 statement credit in an upcoming statement.
Source: CIBC online
How To Apply For The CIBC Costco Mastercard
You can apply for the CIBC Costco Mastercard if you own a Costco warehouse membership.
Costco Membership Fees and Interest Rates 2022
Currently, the cost for an executive membership and Gold Star membership is as follows.
Organizational Membership: Limited time use the discount code Costco40 and save $40 off the total cost of $120 each year (plus applicable taxes) includes a FREE Household† card.
Gold Star Membership: Limited time offer. Use the discount code Costco20 and save $20 off the total cost of $60 per year (plus applicable taxes), including a FREE Household† card.
If you plan to add someone to the credit card account, they have a Costco membership in good standing before applying and adding to the credit card account.
The primary cardholder must be in good standing and have a Costco membership on December 31 to be eligible for the cashback cheque.
We just received our cashback cheque, which will purchase a new executive member for Costco.
The more you spend, the more you earn, which the cardholder can apply to their yearly Costco membership.
Interest rates with most credit cards will increase, and the same goes for the CIBC Costco Mastercard.
If there is an interest rate increase, they will let the primary cardholder know 30 days in advance.
CIBC MasterCard Pace It Installment Plan
The CIBC Costco Mastercard also has a Pace It Installment Plan for those who might have a large purchase they want to pay in installments.
We bought a fireproof safe in our shopping cart, which was the most significant purchase we had made at Costco.
You can get a low-interest fixed-term repayment plan with the CIBC Costco Mastercard Pace It Installment Plan.
- 4.99% for 6 months
- 5.99% for 12 months
- 6.99% for 24 months
CIBC Pace It Installment Plans are only available: (a) on Accounts in good standing; and (b) for certain eligible Accounts and eligible Transactions.
For complete Terms and Conditions, visit cibc.com/paceit.Source: CIBC Online
CIBC Costco Mastercard Insurance Coverage
CIBC Costco Mastercard holders can find the available insurance coverage online at the CIBC Insurance centre.
See page 5 of the pdf linked above for more information or the CIBC insurance centre.
I found this insurance perk that I’ve never read before; See below.
Mobile Device Insurance
Repair or replacement coverage up to $1,000 for your mobile devices such as your cell phone, smartphone or tablet in the event of loss, theft or accidental damage (drops, cracks or spills) for up to two years following purchase.
It would be best to qualify for the provisions I linked above in the pdf.
At the CIBC insurance centre, you will learn to submit, track and manage your claim.
When you receive your new CIBC Costco Mastercard with all other claims and availability, read the insurance certificate that comes with your card.
Again, statements like those above may be found in small print and are essential to understand.
Never assume you are covered or eligible for something unless you know for sure.
CIBC Payment Protector Plan
This is a plan that you pay for, which provides you with insurance that will cover your credit card in the event of illness or job loss.
Up to $50,000 paid towards your credit card balance.
You can read more about the insurance that comes with your new credit card.
Purchase Security and Extended Warranty
“Enjoy added security and protection on your purchases. Your CIBC Costco credit card comes with Purchase Security at no additional cost to you.
This means that most new items of personal property purchased with your card can be replaced, repaired, or reimbursed if they are lost, stolen or damaged within90 days of purchase.
Plus, with Extended Warranty Insurance, you can extend the period of the original manufacturer’s warranty up to one additional year on most purchases.”
You will find this purchase security on almost all credit cards. The extended one-year warranty is excellent, and many people don’t know about it.
How To Contact CIBC
For questions about your new CIBC Costco Mastercard, call us at 1-866-346-2999
Capital One will also be giving your personal information to CIBC to transfer and maintain your account.
You can read the full pdf for complete information about your new CIBC Costco Membership card linked above in the post.
Discussion: Would you sign up for the new CIBC Costco Mastercard? If you already own the Capital One Costco Mastercard, what are your thoughts? Have I missed anything important about the new CIBC Costco Mastercard?
Please, if you could share your thoughts below, I’d love to hear what you think.
Overall Thoughts Of The New CIBC Costco Mastercard
We will stick with the CIBC Costco Mastercard for now as it pays for our yearly membership and the perks aren’t so bad.
I suppose the other reason is that we’ve never paid a cent in interest rates before, so it has never been a problem.
Going to work is easy to drive through and grab petrol for my truck which is always the lowest price in town.
For those who can use the Pace It Program, I think it’s great to have but also to consider saving the cash first if you NEED to make a purchase,
Thanks for reading,
CIBC Costco Credit Card Disclaimer
There are no affiliate links in this post about the switch, as it’s merely just helping get the word out.
Just a quick disclaimer that the bank may have updated the CIBC Costco Credit card rates and provisions since the writing of this blog post.
There also may be a misunderstanding of information, at which time It’s wise to visit the CIBC Costco Credit Card website or mobile app for up-to-date information.
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