This month, CIBC turned the official card company of the Costco Mastercard. And, boy — what a 7 days it is been.
The transition from Funds A single to CIBC induced a major blackout for current cardholders. From its launch on Friday, March 4, to Monday, March 7, cardholders could not obtain their Costco accounts — not even to shell out bills. Some cardholders claimed waiting on the telephone for around two several hours, while other individuals mentioned they have been “hung up” on.
Even just before these hiccups, which are anticipated for a changeover this huge, I experienced my reservations about this card. Because then, I have extra a couple additional to my checklist. Below are just five issues that disappoint me about the new CIBC Costco Mastercard.
1. Fuel limitations
For a no-rate benefits card, the CIBC Costco Mastercard has a stellar gain rate for gasoline. When you use your card at Costco gasoline stations, you are going to generate 3% again. If you use it at non-Costco fuel stations, you’ll make 2%.
Not bad, right?
But here’s the capture: your gas rate has an earning cap. Each and every yr, you will get paid 3% and 2%, respectively, up to a cumulative $5,000 invested. Just after that, your Costco Mastercard will get paid 1% back at Costco and non-Costco gas stations alike.
At the most, you can generate $150 if you buy $5,000 of fuel at Costco Gasoline. But is that realistic? If you are living in the vicinity of Costco gasoline stations, it could possibly be. Thinking of that Costco gas stations are several and much involving, it is not likely you will acquire gasoline from Costco Gasoline on your own.
2. No vacation coverage
As opposed to the Money Just one variation, the CIBC Costco Mastercard does not have vacation insurance policy.
For some perspective, the Money One particular Costco Mastercard had vacation accident coverage, baggage delay insurance policies, rental car or truck destruction and theft protection, along with price security, extended guarantee, and order protection.
The CIBC card has extended guarantee and purchase protection, alongside with cellular unit insurance policies. But it is missing the journey insurance coverage that gave the Capital Just one card a huge punch.
3. Constrained earnings on Costco.ca purchases
The Costco Mastercard earns 2% again on Costco.ca purchases. For cardholders of the Cash 1 card, which is a large sigh of aid: last but not least, we can receive money on Costco buys, even if it’s on line only.
Of program, this bonus price arrives with a capture: you’ll generate 2% on your very first $8,000, which is all around $160 in hard cash back. Right after that, your reward rate drops to 1%.
In spite of the make price for on the net purchases, the most important disappointment is that you nevertheless simply cannot make extra cash back for purchases built within a Costco warehouse.
If you use your CIBC Mastercard for in-keep purchases, you will get paid 1% again. That’s better than the .5% you would have gained on the Money Just one Costco card. But, when compared with other retail playing cards, it’s not excellent.
1 solution is to get a Costco Executive Gold Star Membership, which charges $120 for every year — only $60 more than the basic membership. With the Executive Gold Star Membership, you are going to generate 2% back on Costco purchases. You can double-dip your Gold Start off Membership with a Costco Mastercard, far too, bumping your make level to a cumulative 3% back.
5. No signal-up bonus
Last but not least, the Costco Mastercard will come with no indicator-up bonus — not even a totally free pizza! Which is a very little disappointing, in particular provided CIBC’s popularity for providing out significant indication-up bonuses on other cards.
Is the CIBC Costco Mastercard proper for you?
If you shop commonly at Costco, this card should really have a area in your wallet. That explained, if you are on the fence about becoming a Costco member, I question this card will change your final decision. You can conveniently make a lot more money back again on Canada’s top rated playing cards — and get a very significant welcome bonus although you’re at it.
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