CIBC Costco Mastercard

HEADLINE vs SUBSTANCE: this is the Costco Canada card, but shopping INSIDE a Costco warehouse earns only 1%. The lowest rate on the card. The elevated rates are: 3% at restaurants and at merchants coded as Costco gas stations in Canada; 2% at other gas merchants and EV charging (MCC 5552) and at Costco.ca; 1% on everything else including in-warehouse Costco purchases, groceries, drugstore, travel and recurring bills. CAPS (from the CIBC benefit guide, verbatim structure): the 2% gas/EV rate applies to the first $5,000 net annual card purchases in that category; once $5,000 is reached, ALL gas purchases including Costco gas drop to 1% for the rest of the year, i.e. Hitting the $5,000 gas cap also kills the 3% Costco-gas rate. The 2% Costco.ca rate applies to the first $8,000 net annual card purchases in that category, then drops to 1%. Both limits reset to zero on 1 January. CIBC states no annual cap on the 3% restaurant category and no overall cap on total cash back. Conservative cap recorded above is the $5,000 gas/EV limit (the lower of the two published caps).

No welcome bonus is published for the personal CIBC Costco Mastercard. (CIBC publishes a $100 welcome bonus only on the separate CIBC Costco Business Mastercard.)

Zero-insurance travel card: the CIBC benefit guide covering this card enumerates only Mobile Device Insurance (up to $1,000 CAD per occurrence, for loss/theft/damage within 2 years of purchase), Purchase Security (90 days) and Extended Warranty (manufacturer's warranty doubled up to one extra year). No travel medical, trip cancellation/interruption, flight or baggage delay, or rental car CDW is offered. Up to 3 additional cardholders at $0. A valid, active Costco membership is required to hold the card. Cash advance fee $5.00 in Canada / $7.50 outside Canada; over-limit $29 (not charged in Quebec); dishonoured payment $42.50; instalment-plan conversion fee up to 3% (not in Quebec); $2.25 per mailed paper statement (not in Quebec, not for seniors 65+). The card most people buy for Costco pays its WORST rate (1%) on in-warehouse Costco purchases. The 3%/2% rates are for restaurants, gas and Costco.ca only. Rewards are NOT cash. They are paid once a year, in January, as a Costco gift certificate that is redeemable ONLY at Costco warehouses in Canada, at front-end registers, once, by the primary cardholder. The gift certificate cannot be used for alcohol, tobacco, gas stations, tire centres, food courts, pharmacy, optical, Costco.ca, or designated travel/auto services. Several of which are the very categories the card pays 3%/2% on. You must still be an active Costco member and in good standing on 31 December to receive the certificate at all. Once you spend $5,000 in the gas/EV category, Costco gas also drops from 3% to 1% for the remainder of the calendar year. No travel insurance of any kind, despite the 2.5% FX fee making it a poor foreign-spend card too.