The Best Costco Cards in Canada

Costco is an excellent place to stock up on everything from groceries to clothing to electronics, but when it comes to how you pay, the options are limited. Keep reading to learn about which credit cards the warehouse chain accepts and how to choose a Costco credit card that helps you earn back rewards on your everday purchases.

By now we’ve all seen or heard of the long lines at Costco where shoppers jostle past each other to frantically scoop up bulk packages of toilet paper, paper towels, and canned goods. While major shortages aren’t on the horizon, shopping at Costco can be useful for stocking up on the basics, and much more. Even though you have to pay an annual fee, a Costco membership can help you save on everyday items, and, when you use a carefully chosen Costco credit card, you have the option to get cash back or other rewards with your purchases.

Best Credit Cards for Shopping at Costco

Credit Card	Annual Fee	Welcome Offer	Earn Rate
The BMO CashBack® World Elite®* Mastercard®*	$120 (first year waived)*	Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year*.	Earn 5% on groceries, 4% on transit including ride sharing, taxis and public transportation, 3% on gas and electric vehicle charging, 2% on recurring bill payments like your monthly phone bill or favourite streaming service, and 1% unlimited cashback on all other purchases*.
BMO CashBack® Business Mastercard®*	$0	Get 10% cash back on gas, office supplies, and recurring cell phone/internet bill payments for 3 months*.	Get 1.5% cash back on eligible gas stations, office supplies purchases and on your cell phone and internet recurring payments, 1.75% cash back at Shell®, and 0.75% cash back on all other card purchases*
BMO AIR MILES®† World Elite®* Mastercard®*	$120 (first year free)*	Get 2,000 AIR MILES Bonus Miles and the $120 annual fee waived for the first year*.	Get 3x the Miles for every $12 spent at participating AIR MILES Reward Partners* and 2x the Miles for every $12 spent at any eligible grocery store. Earn 1 reward mile for every $12 in credit card purchases, everywhere you spend.
HSBC World Elite® Mastercard®	$149	Get up to $649 in total value* for the first year! Must apply by May 31, 2023. Conditions apply.	Earn 3% in travel rewards on all eligible travel purchases* (6 points per $1); 2% in travel rewards on all eligible gas, grocery, and drugstore purchases* (4 points per $1); and 1% in travel rewards on all other eligible purchases* (2 points per $1).
MBNA Rewards Platinum Plus® Mastercard®	$0	Earn 4 points†† for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases during the first 90 days and up to 10,000 bonus points††. Terms and conditions apply.	After the Welcome Bonus ends earn 2 points‡ for every $1 spent on eligible purchases on eligible restaurant, grocery, digital media, membership and household utility purchases – these earn rates apply until $10,000 is spent annually in the applicable category. 1 point‡ for every $1 spent on all other eligible purchases.
*Terms and conditions apply.

The BMO CashBack® World Elite®* Mastercard®*

New cardholders can get an annual fee rebate for the primary cardholder* ($120 value), plus 10% cash back for their first three months*.

The BMO CashBack® World Elite®* Mastercard®* is a useful card that lets you earn cash back rewards on your spending. The way it works is pretty straightforward: Earn 5% on groceries*, 4% on transit including ride sharing, taxis and public transportation*, 3% on gas and electric vehicle charging*, 2% on recurring bill payments like your monthly phone bill or favourite streaming service*, and 1% unlimited cashback on all other purchases*. That rate on groceries is the highest cash back earn rate in Canada.† The welcome bonus lets you amp up those earnings-- Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year*..

This card may not have the highest cash back return, but it stands out from other cash back cards because of its cool travel perks, such as complimentary membership in Mastercard Airport Experiences provided by LoungeKey and access to Boingo Wi-Fi hotspots around the world*. You’ll also get roadside assistance and emergency medical travel insurance coverage, too*.

The Details:

Annual Fee: $120 (first year waived)*
Income Eligibility: Minimum $80,000 (individual) or $150,000 (household)
Credit Score Required: Excellent
Welcome Offer: Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year*.
Additional Benefits: Access to Boingo wi-fi hotspots*; Complimentary membership in Mastercard Travel Pass provided by DragonPass*, roadside assistance*, travel insurance*
Interest on Purchases: 20.99% | Interest on Cash Advances: 23.99% (21.99% for Quebec residents)

*Terms and conditions apply.

†Statement based on a comparison of the non-promotional grocery rewards earn rate on Canadian cash back credit cards as of January 4, 2023.

BMO CashBack® Business Mastercard®*

Get 10% cash back on gas, office supplies, and recurring cell phone/internet bill payments for 3 months (up to a maximum of $150 cash back)* and a 0.00% introductory interest rate on Balance Transfers for 9 months with a 3% transfer fee.*

Businesses have different sets of needs, so it’s useful to have a card that earns more cash back on business expenses. The BMO CashBack® Business Mastercard®* offers 1.5% cash back on gas, office supplies and cell phone/internet bills.

Fill up at Costco to take advantage of the welcome offer-- Get 10% cash back on gas, office supplies, and recurring cell phone/internet bill payments for 3 months*. After the welcome period ends, you will still have a solid earn rate at the pumps. Get 1.5% cash back on eligible gas stations, office supplies purchases and on your cell phone and internet recurring payments*, 1.75% cash back at Shell®*, and 0.75% cash back on all other card purchases*.

The Details:

Annual Fee: $0
Income Eligibility: N/A
Credit Score Required: N/A
Welcome Offer: Get 10% cash back on gas, office supplies, and recurring cell phone/internet bill payments for 3 months*.
Additional Benefits: Earn cash back on every dollar you spend, purchase protection and extended warranty*
Interest on Purchases: 19.99%| Cash Advance APR: 22.99%

*Terms and conditions apply.

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

Sign up for the BMO AIR MILES®† World Elite®* Mastercard® and get 2,000 AIR MILES as a welcome bonus when you charge a minimum of $3,000 to your card in the first three months of card membership*. Plus, the annual fee of $120 is waived for the first year*.

For some people, travel rewards are their top priority. If you’re an AIR MILES collector, then consider the BMO AIR MILES®† World Elite®* Mastercard®*, which allows you to accrue AIR MILES as you spend.

If you shop at an AIR MILES partner, don’t forget to flash your AIR MILES card as well—you’ll be awarded double the points!* Get 3x the Miles for every $12 spent at participating AIR MILES Reward Partners* and 2x the Miles for every $12 spent at any eligible grocery store*. Earn 1 reward mile for every $12 in credit card purchases, everywhere you spend*.

If you do your shopping at Costco, using this card can help you rack up the Miles. Plus your annual fee is waived for the first year*, keeping more money in your pocket as you earn rewards.

The Details:

Annual Fee: $120 (first year free)*
Income Eligibility: Minimum $80,000 (individual) or $150,000 (household)
Credit Score Required: Excellent
Welcome Offer: Get 2,000 AIR MILES Bonus Miles and the $120 annual fee waived for the first year*.
Additional Perks: Travel insurance, Mastercard Airport Experiences provided by LoungeKey*
Purchase APR: 20.99% | Cash Advance APR: 23.99% (21.99% for Quebec residents)

*Terms and conditions apply.

HSBC World Elite® Mastercard®

Get up to $649 in total value* for the first year! Must apply by May 31, 2023. Conditions apply.

The HSBC World Elite® Mastercard® offers another excellent option if you want to collect travel rewards while you shop at Costco. First, let’s start with the very attractive welcome offer.

Special offer: Earn up to 80,000 points* ($400 travel value) PLUS a full annual fee rebate for the primary cardholder for the first year* ($149 value) and receive a $100 annual travel enhancement credit*. Must apply by May 31, 2023. Conditions apply.

Welcome bonus of 20,000 points* ($100 travel value)
Earn 10,000 points* each month when you spend at least $1,000 each month for the first 6 months of account opening (up to $300 travel value)
First year annual fee rebate for the primary cardholder* ($149)
Receive a $100 annual travel enhancement credit*

An HSBC Rewards point is worth $0.005 when redeemed for travel, so that adds up to $649 in total value* in the first year. Conditions apply.

After the welcome offer, it is easy to keep collecting rewards points. Earn 3% in travel rewards on all eligible travel purchases* (6 points per $1); 2% in travel rewards on all eligible gas, grocery, and drugstore purchases* (4 points per $1); and 1% in travel rewards on all other eligible purchases* (2 points per $1). You don’t necessarily have to redeem these points for travel—there are gift cards, merchandise, financial rewards, and more—but you’ll get the best return on your points if you do.

This card comes with a lot of perks. Every year, you’ll get a $100 annual travel enhancement credit* which you can use for seat upgrades, baggage fees and airport lounge passes. Other benefits include Wi-Fi access through Boingo, a suite of travel insurance coverage and complimentary membership to Mastercard Travel Pass provided by DragonPass.

The Details

Annual Fee: $149
Minimum Income Requirement: Annual individual income of $80,000 or $150,000 household income, or minimum of $400,000 in assets under management (based on liquid, investable assets with a financial institutions in Canada)
Credit Score Required: N/A
Welcome Offer: Get up to $649 in total value* for the first year! Must apply by May 31, 2023. Conditions apply.
Other Perks: Comprehensive travel insurance; redeem points for travel, financial rewards, gift cards, merchandise, and more; shopping protection
Purchase APR: 20.99% | Cash Advance APR: 22.99% | Balance Transfer APR: 22.99%

This offer is only available to residents of Canada other than the province of Quebec (Quebec residents eligible for separate offer).

*Terms and Conditions apply.

®/TM Mastercard and World Elite are registered trademarks, and the circles design is a trademark of Mastercard International Incorporated. Used pursuant to license.

MBNA Rewards Platinum Plus® Mastercard®

Earn 4 points†† for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases during the first 90 days (until $10,000 is spent annually in the applicable category). Plus, get up to 10,000 MBNA Rewards points as an introductory bonus: 5,000 bonus points†† ($25 in cash back value) after you make $500 or more in eligible purchases within the first 90 days of your account opening and 5,000 bonus points†† ($25 in cash back value) once enrolled for paperless e-statements within the first 90 days of account opening.

The MBNA Rewards Platinum Plus® Mastercard® is a workhorse of a credit card that gives you its biggest initial returns across the grocery, digital media, memberships, household utility and restaurant categories. Rewards come in the form of MBNA points, which you can redeem for travel, gift cards, and merchandise or use against your credit card statement. You can even donate your points to charity at a value of 200 points/dollar.

Currently, there is a generous welcome offer available. Earn 4 points†† for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases during the first 90 days and up to 10,000 bonus points††. Terms and conditions apply.

After the Welcome Bonus ends earn 2 points‡ for every $1 spent on eligible purchases on eligible restaurant, grocery, digital media, membership and household utility purchases – these earn rates apply until $10,000 is spent annually in the applicable category. 1 point‡ for every $1 spent on all other eligible purchases. Furthermore, additional benefits include a discounted rate at Avis Rent A Car and Budget Rent A Car and purchase assurance and extended warranty.

The Details

Annual Fee: $0
Income Eligibility: N/A
Credit Score Required: Fair;Good
Welcome Bonus: Earn 4 points†† for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases during the first 90 days and up to 10,000 bonus points††. Terms and conditions apply.
Other Perks: Purchase assurance and extended warranty.
Interest Rate on Purchases: 19.99% | Interest on Cash Advances: 24.99% | Interest on Balance Transfers & Access Cheques: 22.99%✪

‡, ††, ✪, ***, Terms and Conditions apply.

This offer is not available for residents of Quebec. For residents of Quebec, please click here.

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The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.

Frequently Asked Questions

Which credit cards does Costco accept in Canada?

Costco only accepts Mastercard. While American Express used to be the credit card vendor of choice for Costco, that all changed a few years ago. Costco, and Costco gas stations, now accept only Mastercard (as well as debit cards and Costco Shop Cards).

Visa credit cards are accepted online. One exception to the Mastercard-only rule is online shopping. Depending on where you are located within Canada, you can order your groceries, appliances, flowers and more through Costco.ca, and you can use your Visa credit card to pay for it.

Is Costco considered a grocery store?

You buy you lettuce, chicken and milk at Costco, but that doesn’t mean it’s technically a grocery store. If you look at the fine print, it isn’t considered a grocery store merchant by Mastercard. This means, for example, that if you’d used the Tangerine Money-Back Credit Card at Costco (and you had selected “groceries” as one of your 2% cash back categories) your purchases would still only earn at 0.5%. So, if you are a frequent Costco shopper, you need to be strategic about which card you use in order to maximize your cash back or rewards.

The Final Word

While the Costco-branded Capital One® Mastercard® is recommended to Costco members, it’s not actually the best way to reap rewards at the popular warehouse chain. The biggest return with this card is 3% cash back on restaurants, which obviously doesn’t cover Costco purchases. There is a handy 2% back on gas (which you can buy at Costco), but all of your other purchases, including groceries, come in at 0.5% (on the first $3,000 you spend per year) and 1% after that. Many of the cards in this article offer a better return on Costco purchases, as well as perks such as travel rewards.

This post was not sponsored. The views and opinions expressed in this review are purely my own.

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