We had to update our feature on the Top Mastercard cards to use at Costco again due to the recent changes to the MBNA World Elite Mastercard. Overall that card got better for lots of spending on it except at Costco.
The MBNA card saw its earn rate at Costco drop from 2 points per dollar to 1 point which
meant it dropped off this list of the best five cards to use at Costco
Canada stores. That card used to hold top spot but that now goes to the Brim World Elite Mastercard and the entire list shifts up meaning that the RBC Preferred Cash Back World
Elite Mastercard now cracks the list in fifth position.
1. Brim World Elite Mastercard 
– 2% return on Costco purchases*
The Brim World Elite Mastercard has one of the
highest returns for purchases at 2% but there is a reason we have that
asterisk above. The 2% on the Brim World Elite Mastercard is limited to
$25,000 in annual spending – not just at Costco. So if you spend more
than this your rate of return drops to 1% on any spending over and above
$25K so it will dilute your return over time. Add in a $199 annual fee
and you get the picture as to why we don’t actually place this card as
the best one to use at Costco. Note this card does have the first year annual fee waived right now
2. HSBC World Elite Mastercard – 1.5% return on Costco purchases
The card itself will earn 3 HSBC Rewards
points per dollar spent at Costco. Those 3 points equate to a 1.5%
return towards any travel. On top of that the card has excellent
benefits and insurance coverage plus right now it offers a welcome of up
to 70,000 points and your first year annual fee rebated!
3. WestJet RBC World Elite Mastercard – 1.5% return on Costco purchases
This card has a base earn rate of 1.5%
back in WestJet dollars which is equal to the HSBC World Elite
Mastercard and the Rogers World Elite Mastercard. The reason why it
falls in between the two is that the HSBC’s card 1.5% can be used on
WestJet flights but also on any other travel so it is more valuable in
that regard. You could almost say the same thing about the Rogers card
as it’s 1.5% is more flexible but the Rogers card itself doesn’t have as
valuable of a welcome bonus like the WestJet nor the benefits that are
afforded to the WestJet card like first checked bag free and an annual
companion voucher.
4. Rogers World Elite Mastercard – 1.5% return on Costco purchases
This card used to be the number one card to use
at Costco but it was devlaued on June 2, 2020. The old 1.75% earn rate
at Costco has now dropped to 1.5% The Rogers card is a cash back card
and you can redeem for cash back against a purchase once your rewards
balance hits $20. The card doesn’t have a huge sign up bonus but does
provide a decent insurance package and best of all – it has no annual
fee.
5. RBC Cash Back Preferred World Elite MasterCard – 1.5% return on Costco purchases*
A card that barely seems to get noticed in our
market may just do so now. RBC’s Cash Back Preferred World Elite
Mastercard earns 1.5% cash back on Costco purchases however like the
Brim Card we have an asterisk. And that asterisk is there for the same
reason as Brim, the 1.5% cash back on this card is limited to $25,000 in
spending annually and then drops to 1% after that.
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Honorable Mention: MBNA Alaska Airlines World Elite Mastercard – variable return on Costco purchases
This
card fits more of a niche market in the Canadian loyalty rewards
landscape as its rewards are specific to Alaska Airline’s Mileage Plan
program. Points and miles aficionados know this card and this loyalty
program well as it can provide some huge outsized value when utilized
right for business or first class flights on airlines like Cathay
Pacific and Japan Airlines. That outsized value can blow any of the
above cards out of the water (think a 3, 5, or even 10% return) but like
we said it’s kind of a niche card that many Canadians just won’t find
the right value out of if they can’t earn enough miles with the card.
Remember all of the above cards come with the latest Mastercard World Elite benefits
What about the Capital
One® Platinum Mastercard® – Exclusively for Costco members
Although it isn’t travel rewards related, the 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. On top of that Capital One ending its relationship with Costco and Hudson’s Bay so we can expect this card to be nerfed sometime this year.
You also have the option of shopping with Costco online which opens it up to using a Visa card as Costco.ca takes both Mastercard and Visa or you can use a delivery service like Instacart and thus use a high earning American Express card like the Cobalt™ Card to earn big time points on those deliveries.
Recommended reading: You can now use Instacart to circumvent Costco’s non-acceptance of Amex and to earn 5x points with the Cobalt Card
Wrapping it up
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.
There are two other cards that are decent to use at Costco –
the Capital One Aspire Travel World Elite Mastercard which provides a
1.5% return and the Diners Club Club Rewards Mastercard which provides a
1.5% return. The only issue with these two cards is that they aren’t
available for new applications. Only those people who currently have
them can use them at Costco.
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?
Image via Costco