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Tuesday, January 13, 2015

Top 5 MasterCard Cards to use at Costco

(This feature is a duplicate from the main the Rewards Canada site)

Now that we are in 2015, American Express is gone from Costco Canada stores and MasterCard is in. While Capital One® took the co-branded card away from American Express with essentially the same offering on their Capital One® Platinum MasterCard® it does not mean you have to have that card to shop at Costco. In fact any MasterCard card is accepted at Costco locations across Canada and with so many MasterCard cards to choose from here in the Great White North we thought it would be best to pass along our picks for the five best cards to use at Costco.

1. BMO Rewards World Elite MasterCard

Ranked the #2 Travel Points Credit Card with an annual fee on Rewards Canada for the past two, its no wonder this card is our top pick for travellers who shop a lot at Costco. The card awards two BMO Rewads Points for every dollar spent at Costco and everywhere else. The card also comes with a great insurance package, first year free (no annual fee) and access to airport business class lounges.


2. Diners Club Club Rewards MasterCard

If you have knowledge of the travel rewards credit card industry in Canada you may wonder why we rank this card number two for use at Costco. The simply fact is that even though the card is not available for new applications there are thousands of Canadians who do hold the card and continue to use it. For years BMO has hinted at bringing it back for Canadians and we believe that will be sooner than later since they relaunched the cards south of the border in 2014.

Why does the card rank so high. Pretty simple. It offers the ecquivelant of a 1.7% cashback return on any travel that you book yourself. Called a Tailored Travel credit you can go to any travel provider, book the travel and once the charge shows up on your account you call up Diners Club and redeem your points against the charge. Over and above that you can also convert Club Rewards points to over 20 airline, hotel and rail loyalty programs plus it comes with access to over 450 business class lounges Worldwide. We here at Rewards Canada love this card in our wallet and hopefully those of you who don't have it will have a chance to get it sometime soon!


3. BMO World Air Miles MasterCard

This card ranks pretty high more so for its popularity than its true earning potential. Granted 1 Air Miles Reward Miles for every $15 spent is a great earn ratio for the Air Miles program it somewhat weaker than the other cards in this ranking. However add in the 25% discount on Air Miles reward flights the card offers and you further enhance the earn ratio the card has.

Finally, Air Miles is a mainstay in Canada and because of that this card can makes sense for lots of Costco purchases as you can pool all the Air Miles you earn from so many partners into one account and achieve travel or other rewards quicker.


4. mbna Rewards World Elite MasterCard / CUETS Choice Rewards World Elite MasterCard

These two cards are featured together as they have the same earn rates and very similiar benefits packages. Why are they good for Costco purchases? Both are essentially 2% cash back cards in the form of travel rewards. This is the same earn ratio as the BMO Rewards World Elite MasterCard but they fall a bit short in certain aspects when compared to the number one card. They don't have lounge access and the CUETS card doesn't waive the first year annual fee. That doesn't make them bad cards however! They wouldn't be on this list if they were. For some of you one of these two cards would be the best option of the bunch.

5. WestJet RBC World Elite MasterCard

The earn ratio goes down as we get through this list, the WestJet RBC World Elite MasterCard earns 1.5% WestJet Dollars for every dollar spent which means it is a 1.5% cash back card and that is the return you'll get on your Costco purchases. Add in the $99 annual companion fare, the $250 sign bonus, first bag free on WestJet flights is why this card makes this list. The main drawback of this card is that you are limited in your travel reward redemption options. You can only redeem for WestJet flights or vacation packages which means you won't use these rewards for flights to Australia yet. Nonetheless this is still a great MasterCard option and we know lots of you will choose this card for your Costco purchases to boost up your WestJet Rewards balance.

What about the Capital One® Platinum MasterCard® - Exclusively for Costco members

Although it isn't travel rewards related, the new Capital One® Platinum MasterCard® - Exclusively for Costco members is a essentially a cash back card that replaced the True Earnings Card from Costco and American Express. While it has some great cash back earnings for non Costco purchases, you will in fact only earn 0.5% to 1% back on your actual spending at Costco which is less than other cash back or travel rewards credit cards so that is why this card doesn't factor in as one of the best MasterCard cards to use at Costco.


Even if you have a MasterCard card that is not on this list but it earns rewards you are ahead of the game, it doesn't mean that your card is bad. It could very well be the right card for you or perhaps it is just OK and one of these will work better for you especially if you spend a lot at Costco stores. You should also take into account all your other purchasing and loyalty program miles/points accumulation before applying for a new card or jumping ship from the card you currently have.

What do you think of this list? Are any of these cards in your wallet? If not are you apt to choose one of them or will you go with another MasterCard card?


Care to comment on the Top 5 MasterCard Cards to use at Costco? Which of these cards do you use yourself? Do you have any other tips for our readers? Share you views and experiences below or on Facebook and Twitter!

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“The interest rates, fees, rewards details, benefits and other details of the Capital One product(s) described in the article may have changed since the time of publication. Please consult the product information pages on the Capital One website for accurate product details. In the event of any conflict between the product details in this article and the Capital One website, the details on the Capital One website shall prevail.”

16 comments:

  1. Why did you not list the Capital One Aspire Travel World Mastercard? It offers 2% return, and its effective annual fee is only $20 ($120 minus $100 value of 10,000 poing anniversary bonus).

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  2. We would have loved to list it at #1 but that card is going to be discontinued any day now so that is why we didn't.

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  3. What is the source of the news that this card will be discontinued? It is still possible to apply for it on the company's web site.

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  4. Capital One is the source. You'll notice it is not being promoted on our site, Great Canadian Rebates and other sites anymore.

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  5. Any word on what wil happen with existing cardholders? Will we be grandfathered in or transferred to other cards?

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  6. No word yet, as soon as we know we'll pass along the news

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  7. Unbelievable I am shocked to learn the Capital One Aspire World Master Card is being discontinued. It's been my primary card since it came out because of its straight 2% on all purchases. WTH is going on?

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  8. wow I just started using this card and have accumulated a bunch of points to use this spring! Will be watching your blog to find out more about what is going on - so disappointed!

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  9. Yes this is unfortunate! Perhaps it will be replaced with an even better though in my opinion that seems unlikely as the card was pretty much maxed out on the offerings and the upcoming change to Visa/MasterCard exchange rates does not bode well.

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  10. We can only guess why it is going to change. With such a handsome reward offering perhaps it just wasn't sustainable by Cap One especially with lower interchange rates coming (even though they are only about 10% lower). Or that could be wrong and they'll come out with something better?

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  11. I contacted Capital One both via their website (secure communications) and their Facebook site. I received replies from each, stating that there is no plan to discontinue or change this card. I suspect your source was more senior than those who responded to my queries. Nevertheless, I am wondering whether this decision by Capital One really is finalized.

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  12. It does appear that the card was too expensive to maintain especially with the upcoming interchange rate change from Visa and MasterCard (at least that is what I read on another website where someone spoke to a Cap One representative)

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  13. I'm not convinced this card is really being canceled. I communicated with two different Capital One representatives who said it is not being canceled. My sister spoke with another one who also said it is not being canceled. It is still possible to apply for this card both at the Capital One web site and also at creditwalk.ca. Therefore, I think you shoudl likst this card as one of the best cards to used at Costco, which it is.

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  14. How about National Bank World MasterCard with its points programme, as well as very generous travel insurance plan?

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  15. It is a decent card however in terms of earning, it earn 1.5 Points per dollar at Costco (2 Points if you are spending at the $20,001 - $30,000 level on your card) and if you redeem points at a lower level ie 11,000 points for a $100 credit then chances are your return is below 1.5%. You'll see that most of the cards above are 1.5% or higher. If I grew the charge beyond the top 5 the NBC card would likely be ranked #6.

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  16. As of today (Feb 2, 2015) the card is not discontinued, contrary to your statement 17 days ago that it would be discontinued within a few days.

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