Costco credit cards

What Credit Cards Can Be Used at Costco in Canada in 2018?

Last updated on August 26, 2018 Views: 652 Comments: 0
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Costco is an exceedingly popular destination for budget-conscious Canadian shoppers. The warehouse-style retailer offers variety, convenience, and low prices in its bulk-sized shopping experience, and its popular retail model has resulted in several new Canadian stores being opened in the past year. Costco Canada has also begun to offer online grocery shopping and home delivery to Ontarians, with plans to expand this service into Quebec soon.

A Costco membership costs $60 per year for those who want a basic plan for themselves and their spouse, but shopping with a smart, Costco-compatible credit card can make up for that membership fee via cash back and/or rewards.

What Credit Cards Does Costco Accept in Canada?

Until 2014, the retailer had a 15-year, exclusive relationship with American Express, offering co-branded Amex cards for Costco shoppers to use as both their proof of membership and their payment method. However, a rift developed between the two companies and they parted ways suddenly, with Mastercard taking over the role in 2015.

Amex cards are still incompatible at Costco registers, as are Visa cards. Mastercard’s exclusive partnership with Costco is no detriment to shoppers, however. All Mastercards are legitimate methods of payment in these stores, and there are excellent choices available to Canadians—including Costco’s own in-house Mastercard. And given that Amex is accepted by far less vendors than Mastercard overall, Costco’s decision to switch to Mastercard credit cards was also convenient for its customers.

Best Costco Mastercards for Canada in 2018

Because all Mastercards are accepted at Costco, shoppers can afford to be discriminating in their choice and pick a card that not only suits their Costco membership but also their general spending habits and lifestyle. We’ve organized each Costco-friendly Mastercard in Canada into relevant categories. Readers may be surprised to learn that the official Costco Mastercard is not necessarily ranked among the cards that we feel are best for getting great Costco deals.

Cashback Credit Cards You Can Use at Costco

Credit cards that earn cash back help give cardholders the most direct path toward saving money. Unfortunately, many of the top cashback cards award their highest earn rates for grocery and gas purchases. Mastercard’s merchant codes (the system by which stores are sorted into purchase categories) do not recognize Costco as a grocery store, so we’ve generally chosen cashback cards that offer favourable flat cashback rates to customers on all their purchases—Costco included.


Rogers World Elite MastercardRogers World Elite Mastercard

Eligibility Criteria:
– Credit score required: poor_fair
– Min personal income required: $80000
– Annual fee: $0

A Rogers card catering to both Costco fans and travel junkies is the Rogers World Elite Mastercard. It grants 1.75% cash back for all purchases made in Canadian dollars. That’s almost double Costco’s own Mastercard, plus cardholders will also earn 4% cash back on foreign currency expenses (net 1.50% after the foreign transaction fee). As a World Elite card, it also provides insurance for out-of-province medical needs, car rentals, trip interruption and cancellation, and protection for new items bought with the card. There’s $0 annual fee, but you’ll have to demonstrate $80000 in annual personal income to be eligible.

  • 1.75% cash back on all purchases in CAD
  • 4% cash back on all purchases in foreign currency
  • 4% cash back on Rogers/Fido/Chatr bills
  • $0 annual fee
  • Get a $25 welcome bonus after your first purchase
  • Travel medical, trip interruption and cancellation, and rental car insurance
  • Extended warranty and purchase protection perks
  • Redeem cash back flexibly with Mastercard Pay with Rewards

Click here to apply for the Rogers World Elite Mastercard


La Carte Fido MasterCardRogers Fido Mastercard

Eligibility Criteria:
– Credit score required: fair_good
– Min personal income required: $15000
– Annual fees: $0

The Fido Mastercard offers an attractive 1.25% flat cash back rate on purchases in CAD. In terms of straight cash savings on Costco bills, this is superior to Costco’s in-house card. What’s more, purchases made in a foreign currency earn 3% cash back—enough to cover the 2.5% foreign transaction fee and then some (net 0.50%). Don’t try to use it at a Costco in the USA, however, because unlike our Mastercard-exclusive situation in Canada, our neighbors down south can only use Visa at their local Costco.

  • $0 annual fee
  • 1.25% cash back on all purchases in CAD
  • 3% cash back on all purchases in foreign currency
  • 2.00% cash back on Fido bills and purchases
  • Get a $25 welcome bonus after your first purchase

Click here to apply for the Rogers Fido Mastercard


bmo cash back mastercardBMO Cashback Mastercard

Eligibility Criteria:
– Credit score required: fair_good
– Min personal income required: $15000
– Annual fees: $0

While the official Costco Mastercard starts members off with 0.50% cash back inside the store and forces them to redeem their rewards at Costco exclusively, BMO’s Cashback Mastercard provides 1% cash back on all purchases right out of the gate. A welcome offer from BMO boosts this rate to 4% for the first 4 months, up to a maximum of $125 in cash back earned during that promotional period. Those interested in a good balance transfer promotion will also be a good fit for the card, as BMO charges just 1.99% interest for 9 months on balances transferred. The $0 annual fee is complemented by up to 25.00% off at Alamo, as well as purchase protection and extended warranties.

  • 1% cash back everywhere
  • 4% cash back during the first 4 months
  • Balance transfer promotion of 1.99% interest for 9 months
  • $0 annual fee
  • Purchase protection and extended warranties
  • Up to 25.00% off at Alamo Rent a Car

Click here to apply for the BMO Cash Back Mastercard


BMO World Elite Cash Back CardBMO Cashback World Elite Mastercard

Eligibility Criteria:
– Credit score required: good_excellent
– Min personal income required: $80000
– Annual fees: $120

For those who frequent Costco, can meet a higher annual income requirement ($80000 personal), and who don’t mind paying a $120 annual fee, the BMO Cashback World Elite Mastercard is excellent. With 1.5% cash back at Costco and everywhere else, it’s one of the most straightforward ways to save. An introductory bonus grants cardholders 4% cash back on all their purchases for the first 4 months—up to $250 cash back. The Cashback World Elite also has complimentary LoungeKey membership to thousands of VIP airport lounges worldwide, as well as $2 million worth of coverage for out-of-province medical emergencies, insurance against collisions and damage to rental cars, purchase protection, and more.

  • 1.5% cash back on all purchases
  • 4% cash back during the first 4 months
  • Free LoungeKey airport lounge membership
  • 8 days covered, $2 million out-of-province travel medical insurance
  • Insurance for rental car collisions and damage
  • Purchase protection
  • Extended warranties

Click here to apply for the BMO World Elite Cashback Mastercard

Rewards Credit Cards You Can Use at Costco

BMO Small Business Rewards MastercardBMO Rewards Business Mastercard

Eligibility Criteria:
– Credit score required: null
– Min personal income required: $0
– Annual fees: $120

Business owners who shop at Costco will appreciate that BMO’s business-focused credit card—the Rewards Business Mastercard—accrues rewards points on common business expenses. The card collects 3 BMO Rewards points per $1 spent on gas, office supplies, and internet and phone bills, plus 1.5 points per $1 spent everywhere else (Costco included). A few more business world perks such as optional employee cards (and zero liability), extra payment grace days, and good insurance coverage help strengthen the card’s value proposition. Insurance perks include coverage for car rentals; personal and business property; baggage; baggage delay; trip cancellation interruption, and delay; flight delay; and common carrier insurance. The card also offers 35000 welcome points (conditions apply), and BMO will also waive the first year’s annual fee.

  • 3 BMO Rewards points for every $1 spent on gas, office supplies, internet and phone bills (outside Costco only)
  • 1.5 BMO Rewards points for every $1 spent elsewhere
  • Solid travel insurance benefits
  • 35000-point welcome bonus
  • $120 annual fee, First year free

Click here to apply for the BMO Rewards Business Mastercard


BMO Rewards MasterCardBMO Rewards Mastercard

Eligibility Criteria:
– Credit score required: fair_good
– Min personal income required: $15000
– Annual fees: $0

The BMO Rewards Mastercard offers those who love shopping at Costco a way to earn BMO Rewards from every purchase. Inside and outside Costco, cardholders will collect 1 BMO Rewards point for every $1 they spend—points which are redeemable for an array of rewards that includes travel, merchandise, gift cards, and cash credits as well. A generous bonus of 20000 Rewards points is the icing on the cake, and debt-laden applicants will also appreciate BMO’s 1.99% rate for 9 months on incoming balance transfers. Supplementary perks include purchase protection and extended warranties on new items bought with the Rewards Mastercard, plus the ability to earn 2 BMO Rewards points accrual and get up to 25.00% off when you rent vehicles from Alamo and National. It also doesn’t hurt that there’s no annual fee.

  • 1 BMO Rewards point for every $1 spent
  • $0 annual fee
  • 2 BMO Rewards points and 25.00% discount at Alamo and National
  • Purchase protection and extended warranties
  • Get 20000 BMO Rewards points as a welcome bonus
  • Pay just 1.99% interest for 9 months on transferred balances

Click here to apply for the BMO Rewards Mastercard


bmo world elite mastercardBMO Rewards World Elite Mastercard

Eligibility Criteria:
– Credit score required: good_excellent
– Min personal income required: $80000
– Annual fees: $150

With one of the best flat rewards earning rates on the market, the BMO Rewards World Elite Mastercard generates 2 BMO Rewards points for every $1 spent anywhere. Accounting for the value of one BMO Rewards point—per our Loyalty Program Bible—that means you’re earning the equivalent of at least 1.40% inside and outside Costco. Cardholders also get 3 Rewards points for every $1 spent on eligible travel, dining, and entertainment expenses. The World Elite Mastercard is an effective and flexible way to squeeze savings from your Costco purchases, and it’s made even better with a 35000-point welcome bonus (conditions apply). Though its $150 price tag is a bit steep, the inclusion of free LoungeKey membership and 4 complimentary airport lounge passes, plus an impressive insurance package, makes it more than worthwhile for Costco shoppers who love to travel in style.

  • 3 BMO Rewards points per $1 spent on travel, dining, and entertainment
  • 2 BMO Rewards points for every $1 spent
  • 35000-point welcome bonus (conditions apply)
  • Free LoungeKey airport lounge membership, 4 free passes each year
  • Insurance for rental car damage, emergency medical, and more
  • Purchase protection and extended warranties

Click here to apply for the BMO Rewards World Elite Mastercard


Desjardins Odyssey World EliteDesjardins Odyssey World Elite Mastercard

Eligibility Criteria:
– Credit score required: fair_good
– Min personal income required: $80000
– Annual fees: $130

Desjardins has a unique proposal for Costco shoppers. Use their Odyssey World Elite Mastercard and earn up to 2% in Bonusdollars (a very flexible type of reward point) on your purchases. The card includes numerous travel-centric benefits like 60 days of comprehensive travel insurance coverage and access to the Odyssey Lounge at Montréal-Trudeau Airport. The Bonusdollars you earn at Costco and elsewhere can purchase trips, merchandise, and of course cash credits. The card is accompanied by great protective benefits for oneself and new purchases, plus up to 20.00% discounts when using it to rent vehicles at Hertz locations worldwide.

  • Up to 2% Bonusdollars on all purchases
  • Comprehensive travel insurance including $5 million 60-day medical coverage, trip cancellation, baggage, auto rentals, common carrier accidents, and more
  • Insurance coverage up to $1,000 for mobile devices purchased with the card
  • Purchase protection and extended warranties
  • Access to Odyssey Lounge at Montréal-Trudeau Airport

Low Interest Credit Cards You Can Use at  Costco

BMO Preferred Rate Mastercard (11.9%)BMO Preferred Rate Mastercard

Eligibility Criteria:
– Credit score required: fair_good
– Min personal income required: $15000
– Annual fees: $20

For an annual fee of $20, cardholders with the aptly-named BMO Preferred Rate Mastercard will get access to a balance transfer deal of 3.99% interest for 3 months, and 11.9% on purchases and cash advances. These competitive rates will help cardholders escape from exorbitant interest on balances they already have, as well as on the balances they accumulate on new purchases.

  • $20 annual fee
  • 11.9% interest on purchases and cash advances
  • 3.99% interest on balance transfers for 3 months
  • Extended warranties and purchase protection

Click here to apply for the BMO Preferred Rate Mastercard

Which Costco Credit Cards Can You Use Online?

To compete with other dominant retailers (we’re looking at you, Amazon), Costco is bringing online ordering and home delivery to Canadians. It’s already live in parts of Ontario, but will soon expand to other areas in Canada, leading us to ask: which card is best for ordering online at Costco.ca? While any of the above Mastercards will more than suffice, Costco has also invited Visa cardholders to use their cards as well—but only for online shopping (not useable for shopping in Costco warehouses). Check out our list of the best Visa cards in Canada if you do most of your Costco shopping online and haven’t found a Mastercard in this article to your taste.

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