What Credit Cards Can Be Used at Costco in Canada in 2022?

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Last updated on June 30, 2022 Comments: 7

Costco is a popular destination for budget and quality-conscious Canadian shoppers. The warehouse-style retailer offers variety, convenience, and low prices in its bulk-sized shopping experience, and its successful retail model has resulted in several new Canadian stores being opened in the past few years. 

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 easily make up for that membership fee via cash back and/or rewards.

What Credit Cards Does Costco Accept in Canada?

Costco had a 15-year, exclusive relationship with American Express until 2014, offering co-branded Amex cards for Costco shoppers to use as both their proof of membership and their payment method. But a rift developed between the two companies and they ultimately parted ways, with Mastercard taking over as Costco’s new credit card processor in 2015.

Mastercard’s ongoing credit card partnership with Costco’s Canadian warehouses is exclusive; Amex and Visa credit cards are unfortunately not accepted as a means of payment at Costco warehouse registers. Costco.ca still accepts Visa credit cards, but for the purposes of this article we’ll be picking Mastercards only, as they’re universally accepted at every Costco point of sale in Canada—warehouses, online, and at gas stations. 

Best Costco Mastercards for Canadians in 2022

Credit CardAnnual FeeWelcome OfferRegular Cash Back/Rewards Rate at Costco 
Rogers World Elite Mastercard$0$25 cash back bonus (conditions apply)1.5% cash backRead More
Rogers Fido Mastercard$0$25 cash back bonus (conditions apply)1%Read More
BMO Ascend™ World Elite®* Mastercard®*$150Up to 60,000 points* + annual fee waived in the first year*1 point per $1 spent*Read More
BMO AIR MILES®† World Elite®* Mastercard®*$1202,000 Air Miles + $120 first year annual fee waiver*1 mile per $12 spent*Read More
BMO Rewards® Mastercard®*$0Up to 15,000 points* + 1.99% interest on transferred balances for 9 months (1% balance transfer fee)*1 point per $1 spent*Read More

Keep in mind that many of Canada’s top cash back and rewards cards give their highest earn rates for grocery purchases. But 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 credit cards that offer favourable flat cash back or rewards rates to customers on all their purchases—Costco included.

The Rogers World Elite Mastercard

Apply Now
Who’s Eligible?
– Minimum Credit Score: Good-Excellent
– Minimum Income: $80,000 individual or $150,000 household
– Age: Age of majority in your province or territory
– Residency: Canadian Resident
– Other Requirements: No bankruptcy or consumer proposal in the past 7 years

A Rogers card catering to both Costco fans and travel junkies is the Rogers World Elite Mastercard. It grants 1.5% cash back for all purchases made in Canadian dollars. That’s almost double Costco’s own Mastercard, plus cardholders will also earn 3% cash back on all U.S. dollar purchases (net 0.5% 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 no annual fee, but you’ll have to demonstrate $80,000 in annual personal income to be eligible.

  • 1.5% cash back on all purchases in CAD
  • 3% cash back on all purchases in U.S. dollars
  • $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 on gas, groceries, and everyday purchases

Click here to apply or learn more by reading our complete Rogers World Elite Mastercard review.

Rogers Fido Mastercard

Apply Now
Who’s Eligible?
– Minimum Credit Score: Fair-Good
– Minimum Income: N/A
– Age: Age of majority in your province or territory
– Residency: Canadian Resident
– Other Requirements: No bankruptcy or consumer proposal in the past 7 years

The Rogers Fido Mastercard offers an attractive 1% 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.  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% cash back on all purchases in CAD
  • 1.5% cash back on all your eligible Recurring Payments and subscriptions, including: your Fido or Rogers bill, utilities, streaming services.
  • Get a $25 welcome bonus after your first purchase

Click here to apply or learn more by reading our complete Rogers Fido Mastercard review.

The BMO Ascend™ World Elite®* Mastercard®*

Apply Now
Who’s Eligible?
– Minimum Credit Score: Excellent
– Minimum Income: $80,000 individual or $150,000 household
– Age: Age of majority in your province or territory.
– Other Requirements: No bankruptcies in the last seven years

With one of the best flat rewards earning rates on the market, you can now get the highest rewards points for travel of any premium flexible travel card in Canada! with the BMO World Elite™* Mastercard®*. Cardholders get 5x the points for every $1 spent on eligible travel purchases,* 3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments,* and 1 point for every $1 spent everywhere else.* The BMO World Elite™* Mastercard®* is an effective and flexible way to squeeze savings from your Costco purchases, and it’s made even better with a welcome bonus of up to 60,000* points. Though its $150 price tag is a bit steep, the inclusion of complimentary membership in Mastercard Travel Pass provided by DragonPass,* with four annual complimentary passes., plus an impressive insurance package*, makes it more than worthwhile for Costco shoppers who love to travel in style.

  • $150 annual fee
  • 5x the points for every $1 spent on eligible travel purchases,* 3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments,* 1 point for every $1 spent everywhere else.*
  • Up to 60,000 point welcome bonus and first year fee waiver*
  • Complimentary membership in Mastercard Travel Pass provided by DragonPass,* with four annual complimentary passes.
  • Insurance for rental car damage, emergency medical, and more*
  • Purchase protection and extended warranties*

Click here to apply or learn more by reading our complete BMO Ascend™ World Elite®* Mastercard®* review.

*Terms and conditions apply.

†Statement based on a comparison of the redeemable value of the non-promotional travel rewards points earned on premium flexible Canadian credit cards as of May 3, 2022. “Flexible” is defined as points earned when you purchase travel anywhere and “premium” refers to cards with an annual fee of ≤ $150 or has an income requirement of ≤ $150,000 annual individual income.

BMO AIR MILES®† World Elite®* Mastercard®*

Apply Now
Who’s Eligible?
– Minimum Credit Score: Good/Excellent
– Minimum Income: $80,000 individual or $150,000 household
– Age: Age of majority in your province or territory.
– Other Requirements: No bankruptcies in the last seven years

Costco shoppers who are also fans of the AIR MILES program can rack up extra miles with the BMO AIR MILES®† World Elite®* Mastercard®*. At a rate of 1 mile earned per $12 spent*, those who spend $2,400 annually at Costco will get about 200 miles from their Costco purchases, which is one of the ways to earn back the cost of an annual Costco membership. Extra miles can be garnered by supplementing Costco purchases with purchases at Air Miles partner brands, like Shell gas stations, which earn at 3 miles per $12 spent*. New cardholders who make at least $3,000 in purchases within the first 3 months of opening their card will get 2,000 bonus miles and their first year’s $120 annual fee waived*.

  • $120 annual fee
  • 1 mile per $12 spent anywhere*; 3 miles per $12 spent at AIR MILES partner brands*
  • 2,000-mile welcome bonus and first year annual fee waiver*
  • Exclusive 25% discount on one worldwide AIR MILES flight redemption during the calendar year.*
  • Complimentary membership in Mastercard Travel Pass provided by DragonPass*
  • Free access to over 1 million Wi-Fi hotspots around the world via Boingo Wi-Fi*
  • Travel medical insurance for trips up to 15 days (unlimited yearly trips), as well as car rental insurance; trip cancellation/interruption insurance; lost luggage insurance; flight delay insurance; etc.*
*Terms and conditions apply

BMO Rewards® Mastercard®*

Apply Now
Who’s Eligible?
– Minimum Credit Score: Fair/Good
– Minimum Income: $15,000
– Age: Age of majority in your province or territory.
– Other Requirements: No bankruptcies in the last seven years

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 15000 Rewards points* is the icing on the cake (offer exclusively available via our link), and debt-laden applicants will also appreciate BMO’s 1.99% rate for 9 months on incoming balance transfers, 1% balance tranfer fee applies*. 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 National Car Rental®† and Alamo Rent a Car®†† locations*
  • Purchase protection and extended warranties
  • Get 15000 BMO Rewards points as a welcome bonus (when you spend $1,000 within first three months)*
  • Pay just 1.99% interest for 9 months on transferred balances, 1% fee applies*

Click here to apply for the BMO Rewards® Mastercard®*

*Terms and conditions apply

Which Costco Credit Cards Can You Use Online?

To compete with other dominant retailers (we’re looking at you, Amazon), Costco has brought online ordering and home delivery to Canadians. It’s already available in most of 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.

What About the Capital One Costco Mastercard?

Though Capital One does have a co-branded credit card with Costco, it’s an oddly underwhelming and uncompetitive card. Furthermore, Cap One has announced that its partnership with Costco will be ending sometime in late 2021, so the Capital One Costco Mastercard will soon go the way of the dodo. For now we advise against applying for the Capital One Costco Mastercard given that it will soon be discontinued, and Cap One might then arbitrarily migrate cardholders to some other Capital One card, which may be unsuited for Costco shopping. Fortunately there’s a wide range of other Mastercard credit cards in Canada for us to choose from, so you can afford to be discriminating in your choice and pick a card that not only suits your Costco membership but also your general spending habits and lifestyle.

 

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Article comments

7 comments
John says:

Any comments on buying Costco gift cards online with VISA and use them in Costco warehouse with membership? Without membership there are differences in returning and warranty, but with membership, will the return and refund be the same?

Daniel from GreedyRates says:

Hi John,
If you’re a member, the return and warranty conditions should be the same whether you pay using a credit card or a cash card. For the final word, please call 1-800-463-3783 or shoot them an email.

lem says:

Capone and MBNA are the worst card issuers in Canada. Sorry for people sucked into sign-up for these cards. There are plenty of better cards gives you better return on purchases like HSBC low rate MC, Desjardins MC, National Bank echo MC. These cards gives you much better cash back / rewards with little or no annual fee. Don’t pay too much attention to recommendations from greedy rates, moneysense and other sites recommended cards. These sites makes money when you click on applying for cards they recommend. They are not looking after your best interest.

Samn says:

I agree. That’s why I cancelled my MBNA CC. Thankfully, Costco is not renewing its partnership with Capital One. I’ll be glad to get rid of that card too.

Aaron Broverman says:

I agree as well. As the former owner of an MBNA card, i was paying very high interest for no rewards and very little actual return beyond the fact that the design of the card had my university on it. As for Capital One, I don’t really know if that is on Capital One or on you because I would say even though Capital One is well established in the U.S. and has some great cards there, to pick a company that has such a small footprint in the credit card market in your country is a risky move on your end when there are so many other cards out there that are more well established. I’m glad they gave you a fresh start. Store cards always have some of the highest interest and are limited in their perks by their very nature. Now, you can go for something with more upside than just perks at Costco.

J Heimer says:

I had been a Costco member for years mostly for cheaper fuel. Got the Amx card for this reason. Then Costco dumped AMX I was forced to get the Costco MC. Today there is no value on Costco fuel, I did not rejoin Costco. Costco MC said my card will be revoked along with the cash back I accumulated. Costco/MasterCard should be held accountable. Cdns should file CLASS ACTION Immediately in my opinion.

The GreedyRates Team says:

Hi J,

Thanks for your comment! The value of fuel as it pertains to your cash back rewards has definitely changed for the Costco Capital One card, largely due to the swap between American Express and Capital One that occurred in 2015. The card’s 2.00% on gas is fine, and the 3.00% on restaurants above average, but the fact that it takes a spending goal just to hit 1.00% on other purchases is a shame. This alone puts other non-Costco-branded cards above Costco’s own card easily.

Your choice not to renew the Costco Membership will also result in the closure of your card account, since it’s an exclusive card (and with the annual fee was representative of a Costco membership itself). Likely Capital One will let you keep the cash back that you earned if you switch your balance and credit limit over to a different Capital One card, but we’d check with them or with whatever documentation they gave you during the process to confirm. Best of luck.

GreedyRates