TwitterFacebookYouTubeInstagramRSS FeedPodcastNewsletter
Top 5 Mastercard Cards to use at Costco Posted on January 13, 2015
Last Updated: June 29, 2021

 

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. 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.

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 some Canadians just won't find the right value out of.

Remember all of the above cards come with the latest Mastercard World Elite benefits

Feature continues below

Advertisement

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

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 and the Diners Club Club Rewards Mastercard, both of which provide 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?



Continued reading and related articles:

Talk to us!

What card do you use at Costco? Do you think there are other cards that should be considered on this list? Tell us in the comments section below or join the conversation on Facebook and Twitter!

LATEST TOPICS & NEWS

REWARDS CANADA'S TOP FEATURES

SHARE THIS FEATURE


 



Rewards Canada can be found on the following social media channels:
Facebook Twitter YouTube Instagram Blogger RSS Feed

Disclaimers:
Our goal at RewardsCanada.ca is to present readers with reliable financial advice and product choices that will help you achieve your financial goals.
Rewards Canada receives compensation from some companies issuing financial products, like credit cards and bank accounts, that appear on this site.
Unless a post is clearly marked “Sponsored”, however, products mentioned in editorial articles and reviews are based on the author’s subjective assessment of their value to readers, not compensation. For full details and current product information click the Apply now link / learn more link.

Sponsored advertising. The Toronto-Dominion Bank (TD) is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this TD credit card, please click on the Apply Now button.



 

FacebookTwitterYouTubeInstagramBloggerRSS Feed
About Us  Media  Consulting  Advertise  Contact Us  Terms of Use / Privacy Policy
Terms of Use / Privacy Policy ©2001 - 2021 Rewards Canada. Part of FFB Group Inc. All rights reserved.