Costco Canada only accepts Mastercard for in-warehouse purchases — no Visa, no American Express, no debit at the checkout (though debit works for certain transactions). This policy, combined with Costco's massive membership base, makes the Capital One Costco Mastercard one of the most widely held co-branded credit cards in Canada.
But is it actually a good credit card? And does it make sense to get it just to shop at Costco? Here is everything Canadians need to know about the Costco Mastercard in 2025.
The Costco Mastercard is issued by Capital One and is available exclusively to Costco members. There is no annual credit card fee — instead, the annual cost is wrapped into your Costco membership ($65 for Individual/Gold Star, $130 for Executive). You must maintain an active Costco membership to keep the card.
The card earns cash back in the following categories:
Cash back is paid out annually as a Costco Cash Card — not as a statement credit or bank deposit. The Costco Cash Card can be used at any Costco warehouse in Canada for purchases. This is an important distinction from cards that deposit cash back to your bank account.
The 3% on restaurants and eligible travel is the card's most competitive feature relative to general Canadian credit cards. The "eligible travel" category is broad — airlines, hotels, car rentals, and cruise lines typically qualify. For Canadians who travel regularly and dine out frequently, this earn rate is competitive with many paid travel cards.
There is no cap on the 3% earn rate, meaning heavy restaurant spenders or frequent travellers earn the full rate on all qualifying purchases without hitting a ceiling that many category-based cards impose.
Earning 2% back at Costco is decent, but it is worth contextualizing: Costco's pricing model means their prices are already discounted relative to most retailers. The 2% on top of already-competitive prices is a genuine bonus, but someone who does not shop regularly at Costco would not benefit from this feature at all.
For Costco Executive members who already pay $130 annually for their membership, the Costco card effectively earns cash back on purchases that go toward offsetting that membership cost.
The annual cash back payout structure is the most common complaint about the Costco Mastercard. Rather than monthly or quarterly deposits, all accumulated cash back is issued once per year as a Costco Cash Card at your membership renewal anniversary. You receive it as a paper certificate or digital card that can only be used at Costco warehouses.
This means your 2025 spending cash back might not be available until late 2026, depending on your membership anniversary date. Many Canadians prefer cards that deposit monthly or at least allow on-demand redemptions. The annual Costco Cash Card structure also means you lose access to redemption flexibility — you cannot use your cash back for a trip, a grocery run at Loblaws, or anything outside Costco.
Since any Mastercard works at Costco in-warehouse, you could use a superior Mastercard (like the PC World Elite or Scotiabank Momentum Visa Infinite — wait, that is a Visa) instead of the co-branded Costco card. If you already have a Mastercard with better earn rates for general spending, you can use it inside Costco without getting the co-branded card at all.
The co-branded Costco Mastercard makes the most sense for members who: spend heavily at restaurants and travel, want a single integrated card for Costco, and are comfortable with the annual cash back payout structure.
The Costco Mastercard is a solid card for existing Costco members who dine out frequently and travel. The 3% on restaurants and travel is competitive, the 2% at Costco adds modest value, and the no-fee structure (within the membership cost) is appealing. The annual cash back limitation and Costco-only redemption are real drawbacks.
For Canadians who do not yet have a Mastercard and need one to shop at Costco, the co-branded card is a convenient starting point. For existing Mastercard holders with strong general cards, a separate premium Mastercard used at Costco alongside a better general spending card is often more rewarding.
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