CIBC Costco Mastercard

Pros

• $0 annual fee for the card itself, for the primary cardholder and up to 3 authorized users
• 3% cash back on restaurants and Costco gas stations in Canada, with no dollar cap identified on that rate
• No overall annual cash back earning cap — only individual bonus categories are capped
• Purchase Security & Extended Warranty Insurance, plus Mobile Device Insurance up to $1,000 per occurrence
• Mastercard Zero Liability Protection and card lock/unlock via the CIBC Mobile Banking App

Cons

• Requires an active, paid Costco membership just to apply — and to keep the account open
• Cash back pays out only once a year, in January, as a single certificate usable only at Costco warehouse registers
• No welcome bonus currently offered on the personal card
• Base 1% rate applies to in-warehouse Costco purchases — typically a cardholder’s single biggest spend category
• No travel medical, car rental, or premium travel insurance on either tier

Purchase & device coverage

• Purchase Security & Extended Warranty Insurance — covers items lost, stolen, or damaged within 90 days of purchase, and can extend the manufacturer’s warranty by up to one additional year, up to a $60,000 aggregate maximum combined across all CIBC cards you hold
• Mobile Device Insurance — up to $1,000 per occurrence, per insured person, for loss, theft, or accidental damage on eligible devices bought on or after July 1, 2021 (subject to 2%/month depreciation and a 10% deductible)
• Mastercard Zero Liability Protection (standard network benefit)

Account & Costco perks

• CIBC Pace It installment plans let you convert eligible purchases into fixed-fee installments (one source suggested roughly 5.99%–7.99% for 6–24 month terms — unconfirmed by a second source, verify current terms before relying on it)
• Card lock/unlock via the CIBC Mobile Banking App; contactless and mobile wallet support
• Up to 3 additional authorized cardholders (each must also hold a valid Costco membership)

Worth knowing

• No travel medical, car rental, or premium travel insurance on either tier
• World Mastercard tier’s extra “experiences” and World-tier benefits aren’t itemized in CIBC’s official materials we reviewed
• An emergency cash advance of up to $5,000 if the card is lost or stolen was mentioned in only one official source and isn’t independently corroborated — treat as provisional

Best for

• Existing paid Costco members who already shop at warehouses regularly and want a no-fee way to earn cash back on top
• Spenders who eat out often or fill up at Costco gas stations, where the 3% rate applies
• Households comfortable waiting until January for a lump-sum payout instead of monthly statement credits

Not ideal for

• Anyone without an active, paid Costco membership, or unwilling to maintain one indefinitely to keep the account open
• Shoppers who want their cash back available immediately, or usable somewhere other than in-warehouse
• Anyone whose spending is mostly outside restaurants, Costco gas, and Costco.ca — general purchases, including in-warehouse Costco shopping, earn only the base 1% rate