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What Credit Card Does Costco Take in Canada
Kevin Shahnazari
Author6 min read
Costco, one of the biggest wholesale retailers in Canada, has a unique payment acceptance policy.
Especially that you can buy things in their warehouse, you can buy things at their gas station (Costco Gas), or their website (Costco.ca) too, and each accepts different payment types!
So in this post, we will thoroughly answer the question What Credit Card Does Costco Take in Canada, so the next time you are going there, you don't worry if your payment method is accepted or not.
Acceptable Payment Methods
Almost any place in Canada accepts both Visa and Mastercard credit cards. Many of them accept American Express too!
But Costco might be one of those rare exceptions! The only credit card you can use is a Mastercard to buy anything at their warehouse or their gas stations. On their website, costco.ca, you can still use a Visa card to purchase things, but American Express is not accepted anywhere Costco-related.
In addition to Mastercard-branded cards, Costco in Canada accepts all Canadian debit cards, cash, and Costco Cash Cards. The Costco Cash Card is a prepaid card offered by Costco that can be loaded with any amount between $25 and $2,000. It allows you to shop at Costco without requiring a credit or debit card and can be used by non-members.
Why Does Costco Only Accept Mastercard?
Costco only accepts Mastercard due to an exclusive payment processing agreement between the two companies. Credit card networks charge merchants a percentage of the transaction fee, and with this agreement, Costco has lowered the fee they pay.
How Good is the CIBC Costco Mastercard?
When you become a Costco member, you can apply to the CIBC Costco Mastercard. But given that this card is a Costco Credit card, is it a good option to use at Costco? Please note that we are not considering the rewards in other categories.
Well, yes and no!
CIBC Costco Mastercard
2.8
Finly Rating
Welcome Bonus
N/A
Annual Fee
$0
Interest Rates
20.75% / 22.49%
Why we like it
Why we like it
The CIBC Costco Mastercard offers one of the highest cashback rates on restaurant purchases in Canada, making it an excellent choice for optimizing rewards in this specific category, especially since it has no annual fees. If you use Costco Gas or shop on Costco Online, there is a decent cashback rate as well. However, for other categories, the cashback rate is average. Notably, you will be better off using other credit cards for warehouse Costco purchases, as you will only earn 1% cashback. If you are looking for no annual fee credit cards only, this is a good card to go for.
Pros & Cons
Pros & Cons
Pros
- Decent reward rate for a no annual fee credit card
- One of the highest cashback rates for restaurant purchases in Canada
- Has Mobile insurance
Cons
- Doesn't come with a lot of benefits
- Doesn't earn much on Costco Warehouse purchases!
Product Details
Product Details
Rewards
- 3% cash back on Restaurants and Costco Gas
- 2% cash back on Costco.ca purchases (Max $160 yearly)
- 2% cash back on Gas (Max $100 yearly)
- 1% on everything else
Insurance
Coverage
Mobile Device Insurance
$1000
Purchase Protection
Up to 90 days
Extended Warranty
Up to a year
Eligibility
Credit Score
GoodAnnual Income
$15,000 personal
The CIBC Costco card gives you 3% on Costco gas, 2% on Costco.ca and 1% on Costco purchases.
Given that it's a free card, if you purchase a lot of gas at Costco gas or Costco.ca, this card is a good option because there are not that many free cards that give 3% on gas and 2% on online purchases.
But most of your purchases probably happen at the warehouse, and you only get 1% cashback. Many other cards could give you more than 1% on your purchases, meaning that it would be better to go with those options instead.
In terms of benefits, this card has the standard purchase protection and extended warranty almost all credit cards have and additional mobile device insurance meaning that it's a sound card in terms of benefits.
What Are Some Better Credit Card Options for Costco Purchases?
One very important note is that Costco is not considered a grocery store and they are considered as discount clubs! Meaning that if you have a card that you use and gives extra rewards on grocery store purchases you are not getting it!
So you need to aim for a credit card that gives high rewards on purchases on any category and also is a Mastercard.
Here are a few Mastercard credit cards that earn more rewards for Costco warehouse purchases compared to the CIBC Costco Mastercard!
Cards that beat the CIBC Costco Mastercard in terms of rewards
1. Rogers World Elite Mastercard
I currently have or may soon have an eligible Rogers, Fido or Shaw service as the primary or level 1 authorized user
Rogers Red World Elite® Mastercard®
4.8
Finly Rating
Welcome Bonus
N/A
I currently have or may soon have an eligible Rogers, Fido or Shaw service as the primary or level 1 authorized user
Annual Fee
$0
Interest Rates
19.99% / 22.99%
Why we like it
Why we like it
This card is one of the best in Canada, especially if you are a Rogers, Fido, or Shaw customer. With those services, you can effectively get a 3% cashback rate, which is higher than what almost any other card offers, even those with annual fees! Additionally, for a no-fee card, you gain access to an extensive list of travel benefits, many of which are typically offered only with cards that have annual fees. Therefore, we recommend this card to anyone who meets the income requirements, even if you are not a Rogers customer!
Pros & Cons
Pros & Cons
Pros
- Voted the Best Cash Back Card in Canada for Rogers, Fido and Shaw customers by FinlyWealth.
- Voted the Best No Annual Fee Credit Card in Canada by FinlyWealth.
- There is no annual fee which is a notable benefit for a card with such high rewards. Most cards with slightly lower reward rates typically include yearly fees.
- Many favorable benefits for travelers.
- Many benefits, such as trip cancellation insurance, are only available on credit cards with an annual fee. It is rare to see these benefits on a no-annual-fee card!
- Offers the flexibility to redeem cash towards Rogers, Shaw, or Fido services, potentially increasing your rewards.
- The roam-like benefit is a benefit unique only to this card.
- It is accepted at nearly all locations as it's a Mastercard.
Cons
- Harder to qualify due to the high credit score and income requirements.
- Out of all possible travel insurances, this card is missing Baggage delay and Hotel Burglary insurance. If these two insurances are essential to someone, this card needs to be paired with another travel card to cover them.
Product Details
Product Details
Rewards
- 3% cash back on all U.S dollar purchases
- 2% cash back on all regular purchases if you have 1 qualifying Rogers, Fido or Shaw service as the account owner
- 1.5% cash back on all purchases if you do not have 1 qualifying service
- 1.5x redemption bonus on your earned cash back value when used on Rogers, Fido and Shaw purchases – that’s a 3% cash back value
Insurance
Coverage
Emergency Out of province Medical
$1M, Up to 10 daysEmergency Medical Over 65
$1M, Up to 3 days
Trip Cancellation
$1,000/person, $5,000 maximum
Trip Interruption
$1,000/person, $5,000 maximum.svg)
Car Rental Damage & Theft
31 days, $65,000 car MSRPPurchase Protection
90 daysExtended Warranty
1 year
Benefits
Details
Airport Lounge - Dragon Pass
Pass only, complimentary visits not included
No Cost roaming
5 days
Eligibility
Credit Score
Very GoodAnnual Income
$80,000 personal or $150,000 household
The Rogers Red World Elite Mastercard is not only a great credit card for Costco but also the best Mastercard in Canada, as voted by FinlyWealth. Its massive rewards and great benefits make this card shine.
2. Rogers World Elite Mastercard
I currently have or may soon have an eligible Rogers, Fido or Shaw service as the primary or level 1 authorized user
Rogers Red Mastercard®
4.4
Finly Rating
Welcome Bonus
Up to $60 cash back ($90 if redeemed for Rogers, Fido or Shaw purchases)
I currently have or may soon have an eligible Rogers, Fido or Shaw service as the primary or level 1 authorized user
Annual Fee
$0
Interest Rates
19.99% / 22.99%
Why we like it
Why we like it
This card is one of our top-ranked options in terms of rewards, especially if you are a Rogers, Fido, or Shaw customer. With those services, you can effectively get a 3% cashback rate, which is a higher rate than almost any other card offers, even those with annual fees! If you have a high income of $80K or a household income of $150K, you can apply for the World Elite version of this card, which comes with additional insurance and benefits like a lounge pass.
Pros & Cons
Pros & Cons
Pros
- Voted as the Best Cash Back Card in Canada for Rogers, Fido and Shaw Customers by FinlyWealth.
- There is no annual fee, a notable perk for a card with such high reward multipliers. Most cards with slightly lower reward rates typically have annual fees.
- Offers the flexibility to redeem cash towards Rogers, Shaw, or Fido services, potentially increasing the value of your earned rewards.
- The roam-like benefit is a benefit unique only to this card.
- It is accepted at nearly all locations as it's a Mastercard.
Cons
- No real insurance coverage (only balance protection), not even purchase protection or extended warranty which are pretty standard benefits for almost all credit cards.
- Low rewards multiplier if you don't have an eligible Rogers, Shaw, or Fido service.
Product Details
Product Details
Rewards
- 2% cashback on all purchases if you have 1 qualifying Rogers, Fido or Shaw service as the account owner
- 2% cashback on all U.S dollar purchases and 1% on all other eligible purchases if you do not have a qualifying Rogers, Fido or Shaw service
- 1.5x redemption bonus on your earned cash back value when used on Rogers, Fido and Shaw purchases – that’s a 3% cash back value
Insurance
Coverage
Balance Protection
Minimum payments
Benefits
Details
No Cost roaming
5 days
Eligibility
Credit Score
Very GoodAnnual Income
N/A
If you don't meet the income requirements for the Rogers World Elite Mastercard but have a qualifying Rogers, Fido, or Shaw service, you can apply for the non-World Elite version of this card. While it has fewer benefits, it still offers an extremely great rewards program that beats almost all other credit cards in Canada.
Cards with the same reward rate but much better benefits
1. Triangle World Elite Mastercard
Triangle World Elite Mastercard
3.5
Finly Rating
Welcome Bonus
N/A
Annual Fee
$0
Interest Rates
21.99% / 22.99%
Why we like it
Why we like it
This card is the only one with no annual fee that provides a roadside assistance benefit, which can be a lifesaver for people who travel on the road a lot. The main reason to apply for this card is to have free access to this benefit, given that the rewards are not great in most categories (except for Canadian Tire and grocery purchases).
Pros & Cons
Pros & Cons
Pros
- The only credit card in Canada that offers the highly valuable benefit of roadside assistance!
Cons
- This card has a very low acceptance rate based on prior user applications.
It's not a great option to have as your primary credit card, either in terms of rewards or benefits. However, it's a good card to complement your other credit cards.
Product Details
Product Details
Rewards
- 4% back in CanadianTire dollars on almost everything at Canadian Tire, Sport Chek, Mark’s, L’Équipeur, Party City, Pro Hockey Life, Atmosphere, Sports Rousseau, Hockey Experts, L’Entrepôt du Hockey, and participating Sports Experts stores
- 3% back in CanadianTire dollars on Groceries (Max 360) Except Costco and Walmart
- 1% back in CanadianTire on all other purchases
Insurance
Coverage
Purchase Protection
Up to 90 daysCar Rental Damage & Theft
31 days
Benefits
Details
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Gas Discount
Save 7¢/L on premium fuel and 5¢/L on all other fuel types at Gas+ and Petro-Canada locations on gas.svg)
Concierge Services
Roadside Assistance
Roadside Assistance Gold Plan: With the Triangle World Elite Mastercard Roadside Assistance Gold Plan, you get towing distance of up to 250 km per service call to the destination of your choice (within Canada or the US)
Eligibility
Credit Score
ExcellentAnnual Income
$80,000 personal or $150,000 household
If you travel on the road a lot, the free roadside assistance benefit of this card, which is not offered by any other credit cards in Canada, is not something to pass up.
2. WestJet RBC World Elite Mastercard
WestJet RBC World Elite Mastercard
4
Finly Rating
Welcome Bonus
Up to $450 WestJet Dollars
Annual Fee
$119
Interest Rates
20.99% / 22.99%
Why we like it
Why we like it
If you travel frequently with WestJet, you must get this card because you are missing out on many benefits, even if you don't use this card for rewards. The round-trip companion voucher, status lift, and free checked bag benefits alone more than make up for the annual fee. For WestJet purchases, this card is great for earning rewards, but for all other categories, we recommend pairing it with another card.
Pros & Cons
Pros & Cons
Pros
- A no-brainer if you are a frequent WestJet traveler. The first free checked bag, annual companion pass, and status lift benefits alone make up more than the amount paid for the annual fee.
- A very good list of travel insurance in addition to WestJet-specific benefits.
Cons
- Not the best card for rewards accumulation, so it's better if paired with another card that offers higher rewards on non-WestJet purchases.
- Rewards can only be used on WestJet, making them less flexible.
Product Details
Product Details
Rewards
- 2% back in WestJet dollars on WestJet flights or WestJet Vacations packages
- 1.5% back in WestJet dollars on other purchases
Insurance
Coverage
Emergency Out of province Medical
15 daysEmergency Medical Over 65
3 days
Travel Accident
$500KCar Rental Damage & Theft
$65K up to 48 daysTrip Interruption
$5K/person, $25K/trip
Flight Delay
$250/person, $500/occurrenceBaggage Delay
$500/person, $2500/occurrencePurchase Protection
90 daysExtended Warranty
1 year
Benefits
Details
Airport Lounge - Dragon Pass
Pass only, complimentary visits not included! Companion Voucher can be exchanged for 4 visits.
Companion Voucher
Travel within Canada or to the continental U.S. (excluding Hawaii), from $119 CAD, Travel to Hawaii or Mexico from $399 CAD, Travel to the rest of the WestJet network from $399 CAD.svg)
Status lift
Eern $500 in tier qualifying spend which applies towards achieving the next WestJet Rewards tier for every $15,000 CAD in Eligible Purchases on your WestJet RBC World Elite Mastercard (up to a maximum of $1,500 in tier qualifying spend in a qualifying year).svg)
Free first checked bag
First checked bag is free for primary cardholder on WestJet flight and up to 8 guests
Discount
Member Exclusive fares: Exclusive discounts when you pay the full base fare with WestJet dollars
Boingo Wi-Fi hotspot
Gas Discount
save 3¢/L on fuel and always earn 20% more Petro-Points at Petro-Canada
Extra points
50 Be Well points for every $1 spent on eligible products at Rexall
Eligibility
Credit Score
GoodAnnual Income
$80,000 personal or $150,000 household
If you travel frequently with WestJet, the WestJet World Elite Mastercard offers numerous benefits for your travels that you won't want to miss out on.
FAQ
Can you use Debit at Costco?
Yes, Costco in Canada accepts all Canadian debit cards. This is an option for those who do not have an eligible Mastercard.
Remember that when you use a debit card, it directly comes from your bank account, so make sure you have enough funds before purchasing.
Can you use cash at Costco?
You can use cash to pay for your purchases at Costco Warehouse in Canada but can't use it for Costco Gas. Obviously, it can't be used on their website, either.
Does Costco Accept Visa in Canada?
No, Costco does not accept Visa credit cards at its warehouses. However, you can use it to buy from their website Costco.ca.
It must be noted that Visa Debit can be used in their warehouse and Costco Gas if you have one.
Does Costco Accept American Express in Canada?
Costco no longer accepts American Express credit cards in Canada. In the past, American Express held an exclusive agreement with Costco, but it ended in 2014. Since then, Mastercard has been the only credit card accepted in their Canadian warehouses.
Ways to Benefit from Costco Without Holding a Membership
There are indeed several tactics to explore Costco's offering without having to invest in a membership:
- Leverage the Costco Cash Card: As previously mentioned, a prepaid card known as the Costco Cash Card serves as an excellent tool for non-members. If you're lucky enough to have a friend or family member with a Costco membership, you could ask them to buy this card and load it with money on your behalf. This card gives you the freedom to enjoy Costco's goods and services without a membership.
- Online Shopping: Costco's website provides a selection of items available for purchase by non-members, although a minor surcharge may apply. Bear in mind that the online selection may not be as broad as what's available in-store. It's also important to note that only a portion of the promotions and deals are accessible to non-members.
- Pharmacy Services and More: In Canada, there are provisions allowing non-members to use Costco's pharmacy, optician, and hearing aid services. It's always a good idea to check with your local store to understand the details and restrictions.
- Indulge in Food Court Delights: While some Costco locations limit their food court to members, others welcome non-members to savor their delectable and pocket-friendly food court delights.
However, to fully leverage Costco's value-packed offerings and savings, getting a membership is your best bet. Costco offers an array of membership options tailored to different needs and preferences. If you're a frequent shopper or buy in bulk, it could be a smart move to consider becoming a member.