Costco Credit Card Options in Canada: What Works at the Warehouse, Gas Bar and Costco.ca
Costco Canada warehouses take Mastercard but not Visa or Amex. Here's how payment works at each Costco channel, how the CIBC Costco Mastercard pays out, and how to think about other options.
By Andrew Updated How we review cards
At Costco warehouses in Canada, the only credit card network accepted is Mastercard. Costco gas stations also take Mastercard, while Costco.ca accepts both Mastercard and Visa. American Express isn’t accepted at Costco Canada. Within those limits, the CIBC Costco Mastercard is Costco’s own co-branded card, but any Mastercard works, and the right choice depends on how much of your spending happens at Costco.
This guide explains what you can pay with in each Costco channel, how the CIBC Costco Mastercard’s rewards and gift certificate work, how it fits alongside an Executive Membership, and what to compare it with.
What Costco Canada accepts
According to Costco Canada’s customer service answer on payment methods:
| Where | Accepted |
|---|---|
| Warehouses | Mastercard, Canadian debit cards, cash, Costco Shop Cards, personal cheques, Apple Pay |
| Gas stations | Mastercard (credit or debit), Canadian debit cards, physical Costco Shop Cards |
| Costco.ca | Mastercard, Visa, most PIN-based debit cards, Costco Shop Cards |
Practical takeaways:
- A Visa card works only on Costco.ca, not in the warehouse.
- American Express isn’t accepted anywhere on the list. If Amex is your main card, you need a Mastercard (or debit) for Costco. Our Amex acceptance guide covers workarounds in general.
- Gas stations don’t take cash or digital Shop Cards.
The CIBC Costco Mastercard
The CIBC Costco Mastercard is issued by CIBC and is available only to Costco members. CIBC’s card page lists:
- No annual fee (you still need a paid Costco membership).
- 3% cash back at restaurants and at Costco gas stations.
- 2% cash back at other gas stations, electric vehicle charging stations, and on Costco.ca.
- 1% cash back on all other purchases, including in Costco warehouses.
- No cap on total cash back.
- Income requirement of $15,000 a year. Applicants with $50,000 individual or $80,000 household income may qualify for the CIBC Costco World Mastercard, which has the same fees and rates plus World Mastercard experiences.
A detail many people miss: the card also serves as your Costco membership card, with your membership details on the back.
How the cash back is paid
Unlike most cash back cards, you don’t get statement credits whenever you like. The cash back earned from January to December is paid once a year as a Costco cash back gift certificate, which arrives with your January statement. CIBC says you can redeem it digitally at Canadian Costco warehouses through the CIBC Mobile Banking app, or print it through online banking.
That has two consequences:
- Your rewards are only useful at Costco. If you stop shopping there, the value is limited.
- You wait up to a year for your rewards. Keep your membership active until you’ve used the certificate.
Instalment plans on big purchases
CIBC offers Pace It instalment plans on eligible Costco purchases in Canada and on Costco.ca, at rates CIBC lists as 5.99% for 6 months, 6.99% for 12 months and 7.99% for 24 months, with no instalment fees. That can be cheaper than the regular purchase rate for a large appliance or TV, but it’s still borrowing. If you can pay in full, you’ll pay no interest at all.
Other benefits
CIBC lists mobile device insurance when you charge the full price of an eligible device to the card, purchase security, and extended warranty coverage. Insurance terms are in CIBC’s certificate. Our mobile device insurance guide explains how this type of coverage works.
Executive Membership: a separate 2%
Costco’s own Executive Membership is separate from any credit card. It costs $130 a year, compared with $65 for Gold Star, and earns an annual 2% reward on eligible Costco purchases, up to a maximum of $1,250 per 12-month period. Gas, tobacco and some other categories are excluded; Costco publishes the full list.
The upgrade pays for itself once your eligible spending is high enough that 2% covers the $65 difference, about $3,250 a year. It stacks with your credit card rewards, because one comes from Costco and the other from the card issuer. A household on an Executive Membership paying with the CIBC Costco Mastercard earns 2% from Costco plus 1% from the card on eligible warehouse purchases.
How Costco purchases are usually classified
Credit cards decide bonus rates using the merchant category code (MCC) the store uses. Costco warehouses are generally coded as wholesale clubs, not grocery stores. So a card advertising 3%, 4% or 5% on “groceries” may earn only its base rate at Costco, even if you’re buying food. Check your card’s terms for how wholesale clubs are treated before you assume a bonus applies.
Costco gas stations may be coded differently from the warehouse, which is why the CIBC Costco Mastercard can pay 3% at Costco gas but 1% inside the store.
How to compare other Mastercards
If you shop at Costco now and then, any Mastercard you already own will work. If Costco is a big part of your spending, compare:
- Flat-rate cash back Mastercards. A card that earns a flat rate everywhere, such as the Rogers Red World Elite Mastercard, pays the same at Costco as anywhere else, and pays it in cash or statement credit rather than a Costco certificate. Check its current earn rate and income requirement.
- Category cards. The Tangerine Money-Back World Mastercard lets you choose bonus categories. Check whether Costco purchases fall into one of them on your account.
- Loyalty program cards. The PC World Elite Mastercard earns PC Optimum points everywhere, including at Costco at its base rate. If you also shop at Loblaw stores, see our PC Optimum guide.
When comparing, think about the whole year:
- Estimate your annual spending at the Costco warehouse, Costco gas, Costco.ca, restaurants, other gas and everything else.
- Multiply each by the card’s rate for that category.
- Subtract any annual fee.
- Ask whether you prefer cash back you can spend anywhere or a Costco-only certificate.
For many households, the CIBC Costco card’s 3% at Costco gas and restaurants is where most of its value comes from, while the 1% in-warehouse rate is ordinary.
Our Costco family card stack shows one way to pair a Costco-friendly Mastercard with other cards for categories where Costco cards are weaker.
Shopping at Costco in the United States
If you visit U.S. Costco warehouses, payment rules differ by country, so check before you go. Remember that a Canadian card charging in U.S. dollars usually adds a foreign transaction fee of about 2.5%. Our foreign transaction fees guide explains how to avoid it.
FAQ
Can I use Visa at Costco in Canada? Only on Costco.ca. Warehouses and gas stations take Mastercard, not Visa.
Does Costco Canada take American Express? No. Amex isn’t among the payment methods Costco Canada lists.
Do I need a Costco membership for the CIBC Costco Mastercard? Yes. The card is available only to Costco members, and its cash back is paid as a Costco gift certificate.
Does the CIBC Costco Mastercard have an annual fee? CIBC lists no annual fee for the card. Costco membership fees are separate.
Can I earn both the Executive 2% reward and credit card cash back? Yes. The Executive reward comes from Costco based on eligible purchases, and card rewards come from your issuer. They’re independent.
When do I get my CIBC Costco cash back? Once a year, as a gift certificate with your January statement.
What to do next
If Costco is a regular stop, compare Mastercards on the grocery hub and cash back hub, keeping in mind that grocery bonuses often don’t apply at Costco. Then look at the Costco family stack for a ready-made combination.
