Money
Costco Mastercard cash back: is the CIBC card worth it? A review with real numbers
The CIBC Costco Mastercard has no annual fee and pays 3% at restaurants and Costco gas, 2% at Costco.ca, and 1% on most other spending, including Costco warehouses. On two real budgets it works out to 1.4% to 1.5% overall.
By Cost Check Editorial · Last reviewed Oct 1, 2026 · 3 min read
Costco Mastercard cash back is good if you buy gas at Costco and eat out often: those earn 3%, Costco.ca orders earn 2%, and the card has no annual fee. On most other spending, including in Costco warehouses, the CIBC Costco Mastercard pays 1%, and the money can only be spent at Costco. Our default: get it if Costco gas and restaurants are a big share of your budget; otherwise a card with a higher flat rate will earn more.
What matters is the effective rate across everything you spend, not the headline 3%. We worked it out on two budgets below.
How does the CIBC Costco Mastercard earn cash back?
It pays a different rate by category, and the year's total arrives as a Costco gift certificate with your January statement.
| Where you spend | Cash back |
|---|---|
| Restaurants | 3% |
| Gas at Costco | 3% |
| Costco.ca | 2% |
| Other gas stations and EV charging | 2% |
| Everything else, including Costco warehouses | 1% |
Cash back earned from January to December is paid as one gift certificate with your January statement. You redeem it in Canadian warehouses through the CIBC Mobile Banking App, or print it from CIBC Online Banking. CIBC states no limit on the total cash back you can earn. The annual fee is $0, with up to 3 additional cardholders at no cost; full terms are on our card page.
How much cash back will you actually earn?
About $324 a year on a busy household budget and $130.80 on a light one, using the rates above. "Costco" here means in-warehouse spending at 1%; "Other" is everything that isn't Costco, Costco gas or restaurants.
| Budget (monthly) | Costco | Costco gas | Restaurants | Other | Cash back a year | Effective rate |
|---|---|---|---|---|---|---|
| Busy household | $500 | $150 | $250 | $1,000 | $324 | 1.4% |
| Light Costco shopper | $250 | $80 | $100 | $300 | $130.80 | 1.5% |
What is the real cash back rate?
1.4% to 1.5% of total spending on these budgets. The 3% categories lift it; 1% on everything else holds it down. Any Mastercard that pays more than about 1.5% on everything would beat it for these budgets, and it has to be a Mastercard, because that is the credit card Costco's Canadian warehouses take.
Does it stack with Executive membership?
Yes. An eligible warehouse purchase earns the 2% Executive reward from Costco plus 1% from the card, about 3% combined. Costco's terms tie the Executive reward to purchases at the warehouse registers, so we don't count it on Costco.ca orders, which earn the card's 2%. For heavy Costco shoppers that pairing is hard to beat.
Who should get the CIBC Costco Mastercard?
Get it if you fill up at Costco gas stations, eat out a lot, and shop at Costco often enough to spend a yearly gift certificate without thinking about it. With a $0 fee and a $15,000 minimum income, most members qualify. Skip it if you want cash back as cash, rarely shop at Costco, or can get a higher flat rate on another Mastercard. That is the trade: strong category rates in exchange for a reward locked to one store.
What should you ask before you apply?
- Does the gift certificate expire, and can you split it across trips?
- What happens to cash back earned this year if you close the card before January?
- What is the foreign transaction fee if you shop outside Canada?
- Do you qualify for the World version ($50,000 individual or $80,000 household income), and will you use its World Mastercard benefits?
- Would a Mastercard with a higher flat rate earn more on your actual spending?
Which other Costco cards should you compare?
The CIBC Costco World Mastercard has the same fee and rates plus World Mastercard benefits for higher incomes, the Business version adds 2% on shipping and insurance services, and our best credit cards for Costco covers the alternatives.
Frequently asked questions
- How is Costco Mastercard cash back paid?
- Once a year, as a Costco gift certificate with your January statement, worth 1% to 3% of what you charged from January to December. It is not paid as cash.
- How much cash back does the Costco Mastercard give at Costco?
- 1% in Costco warehouses, 2% at Costco.ca and 3% on Costco gas.
- Does the CIBC Costco Mastercard have an annual fee?
- No. The annual fee is $0, and up to 3 additional cardholders are also $0.
- Is the Costco Mastercard worth it with Executive membership?
- Often, yes: eligible warehouse purchases earn about 3% combined (2% from Executive and 1% from the card).
- Can I use a Visa at Costco in Canada?
- No, not as a credit card in the warehouses. They take Mastercard, debit and cash.