Details on the new CIBC Costco Mastercard are here – it will launch in March 2022

Details were revealed today on the new CIBC Costco Mastercard that will be launching in March of 2022. The new partnership between CIBC and Costco Canada was first announced in September 2021 ending months of speculation as to which bank would takeover the warehouse giant’s credit card portfolio from Capital One. At that time very little detail was provided as to what the new card would offer but now as of today we know.

The new CIBC Costco Mastercard will continue to be a no annual fee cash back rewards card and will earn cash back as follows:

  • 2% cash back earned on on purchases up to $8,000 (1% thereafter)
  • Earn 3% at Costco Gas and 2% at non-Costco gas stations on the first $5,000 spent on gas (1% thereafter)
  • 1% cash back on every purchase everywhere Mastercard is accepted, including at Costco warehouses..
  • 3% cash back at restaurants 

The 2% back for online Costco purchases is a new earn rate the old Capital One card did not have as is the 3% back at Costco Gas. The 2% for non-Costco gas stations is the same as the current Capital One card however now you’ll note that CIBC has a put an annul cap on the gas category, something the Capital One card did not have. The 3% back for restaurants is the same across the old and new cards and CIBC’s 1% back on all other purchases is better than the Capital One’s 0.5% up to the $3,000.

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On the benefits side the new CIBC Costco card sees those thinned out. CIBC is adding mobile device insurance to the card however it will not have price protection, common carrier travel insurance, car rental CDW coverage, and baggage delay coverage like the Capital One card provided.

Members who currently have the Capital One Mastercard for Costco members will be automatically switched over to the new card:

In early March, 2022, existing eligible Costco Mastercard co-brand credit card accounts will automatically be moved to CIBC, and cardholders will start earning the new cash back benefits and receiving the other features from CIBC at this time. Cardholders can continue to use their existing Costco co-brand credit cards until their new card from CIBC arrives (before August 31, 2022). Existing credit limits and merchant pre-authorized payments will also remain the same.

Wrapping it up

The new CIBC Costco Mastercard comes with a better cash back earn rate than its predecessor but only if you shop online at If you do you can realize up to an extra $160 a year in cash back, that’s big. Also the additional 1% for Costco gas station purchases is a nice little boost and can add up to an extra $50 cash back annually based on the $5,000 cap and if you spend that all at Costco gas. Where the card comes up short now is on the benefits section, it provides mobile device insurance, purchase protection and extended warranty. Gone are the rest of the insurance coverage seen on the Capital One cards – it doesn’t even provide car rental CDW coverage which is surprising. I think for most people who have the Costco card right now they’ll be happy with the new one as they can potentially earn more cash back but some will not be happy with the pull back on the benefits side. What do you think? Let us know in the comments section below!

Click here to learn more about the new CIBC Costco Mastercard 

Image via CIBC