The Best Credit Cards To Use At Costco Canada
Costco is the second biggest retail chain in the world, with 100 outlets throughout Canada. As a credit card user, what are the best credit cards to use at Costco Canada?
Costco has its own official Mastercard for use in store. The Capital One Platinum Mastercard might not necessarily be the best card for Canadians to use at Costco. However, the store also accepts other Mastercards. Here are some of the card options and information about shopping on credit at Costco.
Capital One Costco Mastercard
- 3% cash back on restaurant purchases
- 2% cash back on gas purchases
- 1% cash back on all other purchases
- Extended warranty up to 2 years instead of 1
- Purchase protection 120 days instead of 90
- Price protection coverage
- Travel accident (up to $250,000).
- Baggage delay (up to $300).
- Rental car theft & damage
The downsides: Only 0.5% on the first $3,000 in regular spending every year instead of the usual 1%.
Offers cash rewards in the form of a rebate coupon that can only be redeemed once a year at their warehouses.
Best Travel Credit Card for Costco:
BMO Air Miles World Elite Mastercard
- $120 Annual Fee (1st year free}
- $1,212 Welcome Bonus 6,000 points
- $485 Annual Rewards
- 3,000 bonus miles
- Comprehensive insurance
- Companion flight rebate + first year free
- 15% discount on miles required to book an economy class flight
- 1 mile per $10 spent on every purchase you make, including Costco.
- Combines Canada’s most popular rewards program with Costco acceptance.
Alaska Airlines Platinum Plus Mastercard
- Generous 20,000 mile sign-up bonus worth about $500 when redeemed for flights
- Amazing annual Companion Fare voucher for 2nd reduced cost ticket when traveling starting at $99 USD
- Standard earn rate of 1 mile on every $1 (increases to 3 miles for Alaska Airlines purchases)
- $35,000 minimum income instead of the typical $60,000 – $80,000.
- Lots of partner airlines for free miles redemption
- Lower than typical annual fee of $75
Downsides: Alaska Airlines is an American airline that mostly flies on the west coast of North America. You cannot take a flight that both takes off and lands in Canada.
There are also no Canadian airline partners that accept Alaska Airlines Mileage Plan miles.
Best Cash Back Credit Cards for Costco:
BMO CashBack World Elite MasterCard
- $120 Annual Fee
- $156 Welcome Bonus
- $360 Annual Rewards
- 4% cash back on purchases for first four months
- Up to $250 in cash back earned
- After that, 1.5% cash back earned on all purchases
- Best overall credit card for cash back benefits
Downsides: Annual fee of $120, and requires either a personal income of $80,000 or a household income of $150,000 to qualify.
Best No Fee Credit Card for Costco:
MBNA Rewards Platinum Plus Mastercard
- $0 Annual Fee
- $50 Welcome Bonus 5,000 points
- $324 Annual Rewards
- 2 points for every dollar spent on gas, groceries, and at restaurants (up to $5,000 spent annually in each category)
- 1 point for every other $1 spent
- Complete reward flexibility and great insurance
- You can redeem rewards for any type of cash (direct deposit, cheque, or statement credit) or travel where you want without restrictions or blackout dates
Downsides: a once-a-year coupon you need to take to the store to redeem.
General information about the best credit cards to use at Costco in Canada:
Costco only accepts Mastercard credit cards at their warehouses in Canada. In the USA, they only accept Visa credit cards, and Mastercards are not accepted.
Shopping online at Costco.ca is not the same as shopping in the store. For online shopping, Costco accepts both Mastercard and Visa credit cards. They longer accept Amex – even online.
The Capital One Platinum Mastercard exclusively for Costco members gives you decent rewards for a no fee credit card and doubles as your Costco membership card reducing the clutter in your wallet.
The downside is that you’ll only earn 1% on your purchases actually made at Costco with the card. Other fee-based and no fee credit cards can earn you between 1-2% cash back on all your purchases at Costco and anywhere else. With the Costco Mastercard, you’re also forced to redeem your cash rewards in-store, whereas other cards let you get your cash as a statement credit or even a cheque or direct deposit.
You can use your Costco credit card anywhere Mastercard is accepted, worldwide. You earn the same rewards (or more) as you would at Costco itself.
Many credit cards offer more rewards that the Costco card on grocery store purchases. A large number of Canadians consider Costco to be a grocery store, but it’s not categorized as a grocery store by the Mastercard network. Therefore purchases made at Costco are not eligible for grocery bonuses. In fact, Costco does not qualify for any credit card bonus category that Costco qualifies for at all.
Costco does not take Visa in their Canadian warehouse stores. However, they do take Visa online (Costco.ca). All of their stores in the United States also accept Visa. One way to use Visa at Costco is by buying Costco Cash Cards online with your Visa credit card. You can get points and rewards ‒ and then use your cash cards in the actual store to make your purchases.
Costco also accepts debit cards at all their warehouses, as well as Mastercard credit cards.