Store-specific credit cards have a special appeal to them that regular credit cards simply can’t match. If you’re a frequent customer at certain retailers, these cards can provide benefits that reward you for simply spending money at their stores – what could be better than that? So, the fact that the Capital One Costco Mastercard has been discontinued could be an inconvenience for Costco devotees. If you’re one of those card holders, this news might leave you wondering what that means for the card and what to do in the future.
We’ll be going over why this particular Mastercard was so popular and why the card was abandoned, and give you some sound next steps so that you aren’t left in the dark.
What Was the Capital One Costco Mastercard All About?
The Capital One Costco Mastercard was so popular because it gave Costco shoppers a chance to earn cash back and reap other benefits from their visits. The card came with the following benefits:
- A 1% cash back rate after a $3000 annual spend and a 0.5% rate before that minimum
- 2% on Costco Gas as well as other gas stations
- A variety of free coverage, such as travel accident insurance of up to $250,000, purchase protection of 120 days, and extended warranty of two additional years
- 2% cash back rate for Costco purchases
With these attractive benefits on the line and no annual fee, it’s no wonder customers were flocking to sign up for the card.
Why Did Capital One and Costco End Their Partnership?
Along with Capital One’s end-of-partnership with Costco, the company also announced the end of their partnership with Hudson’s Bay. Capital One used to emphasize their partner relationships, but because they’re looking to create their own credit card dynasty, they have chosen to redirect their focus. And because their products also haven’t generated enough profit in the Canadian market, they’ve gone ahead and reduced their Canadian footprint altogether.
Is There an Alternative Costco Mastercard?
Source: Unsplash
The multi-billion dollar retailer wasn’t going to stay without a partner for long, as they weren’t going to let the over five million Canadian members down. In September 2021, it was announced that CIBC would become the exclusive Costco Mastercard issuer in the country starting in 2022. With Capital One looking to reel back their presence in Canada and CIBC seeking to grow its franchise, it was a strategic choice to help diversify CIBC’s already robust credit card portfolio.
Switching from the Capital One Costco Mastercard to the CIBC Costco Mastercard
Switching to a new credit card is just like any other transition in banking – it can feel confusing and intimidating. Luckily, plenty of plans and stipulations were put in place to make that transition seamless.
Since replacement cards have already been distributed since early 2022, those who still have the original Capital One Mastercards won’t have to wait for a rollout. If you haven’t automatically received a new CIBC card, all you have to do is contact Capital One or CIBC.
Although your existing card might still work, it’s better to activate the new card and start using it as soon as possible. The good news is that the CIBC Costco Mastercard can also double as your Costco membership card, and you won’t be subjected to another credit check. If you want to access your statements and pay your credit card bills, you can simply register for CIBC Online Banking for that extra convenience.
With the new CIBC card, you can get:
- No annual fee
- 3% cash back on Costco gas and restaurants
- 2% cash back at other gas stations and at Costco.ca
- 1% cash back on all other purchases, including those at Costco
Time to Switch Credit Cards: What Are Your Options?
Source: Unsplash
The downside of the new Costco Mastercard is the modest earn rates at Costco warehouses. At just 1%, there are alternative Mastercard options out there for Costco shoppers that could seem like a better fit. Even if you’re traditionally loyal to Visa or American Express, Costco unfortunately only accepts Mastercard because of the exclusive agreements with the company.
There is one thing to note, though, and that’s that Costco isn’t considered a grocery store according to the code system; it actually counts as “merchandise” – so don’t expect to get the cash back rate for grocery purchases there.
Here are a couple of other Canadian Mastercard alternatives to consider:
RBC Cash Back Mastercard
RBC’s Cash Back Mastercard offers unlimited cash back and up to 1% cash back on qualifying purchases, as well as fuel savings of 3¢/L at Petro-Canada and 20% more Petro-Points. There is also a 3-month complimentary DashPass subscription to DoorDash and extra Be Well points to be earned at Rexall. Although there isn’t an increase in cash back compared to the CIBC Mastercard, it’s certainly nice to receive other bonuses from other brands.
Annual Fee: $0
Purchase Rate: 20.99%
Cash Advance Rate: 22.99%
National Bank Platinum Mastercard
The National Bank Platinum Mastercard isn’t a cash back card but rather earns you points that allow you to pay off your card balance or redeem your points for travel discounts, gift cards, products, and other rewards. Costco purchases would count as “Other purchases,” which rewards you with 1 point for every $1.50 spent. Along with points from other regular purchases like groceries, restaurant visits, gas, bill payments, and more, you can rack up the points and take advantage of useful perks.
Annual Fee: $70
Purchase Rate: 20.99%
Cash Advance Rate: 22.49%
Rogers Red Mastercard
If you’re a Rogers, Fido, or Shaw user, the Rogers Red Mastercard could be a smart alternative, considering you can get 1.5x cash back every time you redeem for related purchases. As long as you have a qualifying service, you can earn 2% unlimited cash back on all purchases and even get the same bonuses on U.S. dollar purchases.
Annual Fee: $0
Purchase Rate: 20.99%
Cash Advance Rate: 22.99%
Walmart Rewards Mastercard
Those who frequently shop at Walmart too should consider the Walmart Rewards Mastercard, as you can still get those 1% cash back benefits from shopping at Costco while earning cash back percentages at Walmart, on transit, and for gas. At the same time, you can also earn Walmart Reward Dollars that you can redeem for savings on future Walmart purchases.
Annual Fee: $0
Preferred Interest Rate: 20.89%
Preferred Cash Rate: 22.97%
Get a Bad Credit Loan to Improve Your Credit Score
Whenever you apply for a new credit card, poor credit scores are the number one obstacle to getting approved. Traditional lenders are known to decline customers with low scores below 649 or amp up the interest rates. At Lend For All, we don’t turn people with bad credit away – we work to help them accomplish their financial goals and work on rebuilding their credit. If you’re looking to take out a loan, whether it’s to improve your credit score or manage debt, we can match you up with a qualified lending partner in no time.
- What Counts as Bad Credit in Saskatchewan? (Score Ranges Lenders Use) - September 23, 2026
- Bad Credit Loans in Manitoba: A Provincial Guide - September 23, 2026
- Same-Day Loans in Canada: When Same-Day Actually Means Same-Day - September 23, 2026