Best Credit Cards for Costco

Costco, with its vast offerings of groceries, household essentials, and so much more, is a popular place to shop for many Canadians.

For the cost of an annual membership, members gain access to good prices on bulk quantities of popular brands, including Costco's own Kirkland brand, to help them stock up for less.

Given that the average trip to Costco ends with an overflowing grocery cart, it's no surprise that shoppers have often asked us about which credit card is best for this notable spending category.

In this article, we provide details on the four best credit cards for maximizing the rewards you earn on your Costco spend, plus we include a few honourable mentions to round out the list.

Earning Points at Costco

Costco warehouses can be a great place to shop for groceries, cleaning supplies, pharmacy items, and more.

It can be particularly beneficial if you're buying for a larger household since its offerings often focus on bulk quantities at a competitive price.

Plus, Costco generally has similar product offerings to those offered by other large Canadian grocery stores (e.g., Metro, Loblaws, Sobeys), though they typically focus on only a couple of brands rather than a wide array of brand options.

Costco also has some cool bigger ticket items like kitchen appliances, TVs/electronics, and garden/yard supplies which can add a considerable amount of money to your Costco bill.

Given how easy it is to spend a lot at a Costco warehouse, you certainly don't want to be wasting the opportunity to earn points to help fuel your travel dreams or to offset the cost of life.

That said, earning points at Costco comes with a couple of hurdles.

First, the warehouses exclusively accept Mastercard (plus debit and cash), which (mostly) leaves your Visa and American Express credit cards out of the picture.

The reason for this single card-type monopoly is that Costco and Mastercard have an exclusive contract that lets Costco negotiate lower credit card fees which in turn helps them keep their costs down.

Comparatively, Costco US warehouses have an exclusive contract with Visa and do not accept Mastercard.

The second hurdle to keep in mind when choosing the best credit card for Costco is that the Costco warehouse doesn't code as "grocery" spending on your statement.

Costco purchases typically code as "wholesale club" or the equivalent, meaning that cardholders can't take advantage of a credit card's elevated earning rates within the grocery category.

Instead, Costco spending usually falls into the "all other eligible purchases" category within a credit card's earning rate structure.

Now, with the goal of helping you maximize the rewards value you get on your Costco spend and with the Mastercard requirement and the earning rate limitation in mind, here are our top credit card picks.

Best Credit Cards for Costco Warehouses

In this section, you'll find our top four credit cards that offer the opportunity to earn different types of rewards on your Costco spend.

We've included one cash back card, two cards that earn brand-specific travel currencies, and one card that earns a flexible travel currency.

We've also called out a few honourable mentions at the end that we think are also worth considering.

In the end, the best credit card for you depends on your preferences, your day-to-day spending habits, and your travel/rewards goals.

Rogers Red World Elite® Mastercard®

The Rogers Red World Elite® Mastercard® is our pick for the best cash back card to use at Costco.

With the Rogers Red World Elite® Mastercard®, you can enjoy 2% cash back at Costco if you're a Rogers, Fido, Shaw, or Comwave customer. Cardholders who are not customers of Rogers, Fido, Shaw, or Comwave get the lower rate of 1.5% cash back (though this rate is still in line with most other cash back Mastercard products).

Additionally, as a Rogers, Fido, Shaw, or Comwave customer, if you use your accumulated cash back to pay your Rogers, Fido, Shaw, or Comwave account or associated purchases (like a new phone), you'll get an additional 50% in value. This essentially means you get 3% back.

The cash back that you accumulate can also be used against purchases made on the card, allowing for flexible redemption options.

Cash back can be redeemed for any purchase made on the card in the last 90 days, and you must redeem a minimum of $10 (all figures in CAD) at a time.

The Rogers Red World Elite® Mastercard® has no annual fee, but it does require a minimum income of $80,000 personal income or $150,000 household income to qualify.

If you don't meet the eligibility requirements for this card, the Rogers Mastercard® is a great alternative. It offers a slightly lower cash back earning rate at 2% for Rogers, Fido, Shaw, and Comwave customers or 1% cash back for individuals who are not customers.

Notably, this card also enjoys the 50% bonus value for redemption made against your Rogers, Fido, Shaw, or Comwave bill, and both cards offer 5 Roam Like Home days, which have a value of around $75.

The Rogers Red World Elite® Mastercard® is a great choice for a Costco shopper looking for a straightforward cash back option with no annual fee.

BMO VIPorter World Elite®* Mastercard®*

The BMO VIPorter World Elite®* Mastercard®* is one of the newest Mastercard products on the Canadian market, and it's a strong option for Costco shoppers who also fly with Porter Airlines.

The card earns 3x VIPorter points per dollar spent on Porter purchases, 2x points on dining, groceries, gas, transportation, and hotels, and 1 point per dollar on everything else, including at Costco.

VIPorter points can be redeemed through the BMO Rewards travel portal at a rate of 1 cent per point, giving you an effective return of 1% on your Costco purchases. However, when redeemed towards Porter flights, you can often extract more value.

The card comes with an annual fee of $199, which is rebated in the first year, and it offers a tiered welcome bonus of up to 70,000 VIPorter points.

Where this card really shines is in its perks. Cardholders automatically receive Porter Avid Traveller status, which includes priority check-in, security screening, and boarding. You also get a free checked bag and carry-on for yourself and up to eight guests on the same booking, as well as a round-trip companion pass.

If you're a frequent Porter flyer who also does a lot of shopping at Costco, the BMO VIPorter World Elite®* Mastercard®* offers a compelling combination of everyday earning and premium travel benefits.

WestJet RBC® World Elite Mastercardǂ

If you're looking for a Mastercard that helps you earn travel rewards at Costco, we recommend looking into the WestJet RBC® World Elite Mastercardǂ.

The WestJet RBC® World Elite Mastercardǂ earns 2% back in WestJet points on travel, gas, grocery, and transit purchases, and 1.5% back on all other purchases, including at Costco.

Through WestJet Rewards, 1 WestJet point is equivalent to $1 off the base fare of a WestJet flight, so the usage is limited exclusively to WestJet redemptions. But if you fly with WestJet often, this can prove a good option.

The card has an annual fee of $139 and generally comes with a strong welcome bonus.

With this card, cardholders also enjoy a number of perks and benefits including an annual companion voucher, a free first checked bag (for primary cardholder plus up to eight companions), and decent travel and car rental insurance.

Given the strong welcome bonus of WestJet points, the 1.5% back on Costco purchases, the companion voucher, and the free first checked bag, this card is a great choice for someone who flies with WestJet and who can take advantage of the travel perks.

MBNA Rewards World Elite® Mastercard®

If you prefer to earn a more flexible travel currency that you can use for multiple different travel redemptions, consider the MBNA Rewards World Elite® Mastercard® – our pick for the best flexible rewards currency Mastercard for Costco.

Both the MBNA Rewards World Elite® Mastercard® and its mid-tier counterpart, the MBNA Rewards Platinum Plus® Mastercard®, earn 1 MBNA point per dollar spent at Costco.

MBNA's in-house loyalty program, MBNA Rewards, can be used to book travel through the MBNA Rewards Redemption Centre at a rate of 1 cent per point, giving you an effective return of 1% on your Costco purchases.

These points can be particularly useful for booking things like car rentals, independent hotels, and cruises, which are otherwise difficult to book with points.

The MBNA Rewards World Elite® Mastercard® comes with an annual fee of $120, which is typically accompanied by the opportunity to earn a healthy welcome bonus.

Cardholders also earn a birthday bonus equivalent to 10% of the total number of points earned over the course of the year, up to a maximum of 15,000 points. The birthday bonus is calculated and added after the card membership anniversary.

In addition to the 1 point per dollar spent at Costco, the MBNA Rewards World Elite® Mastercard® also earns 5 points per dollar spent on eligible restaurant, grocery, digital media, membership, and household utility purchases to a maximum annual spend of $50,000 in each applicable category.

With a flexible rewards currency and the potential to earn a healthy welcome bonus, this card is excellent for someone who's looking to earn towards travel redemptions but who wants to enjoy the flexibility of the MBNA Rewards currency.

Honourable Mentions

There are three additional Mastercards that we think deserve honourable mentions when it comes to their value and utility for people shopping at Costco.

These cards are the Air France KLM World Elite Mastercard®, the Cathay Pacific World Elite Mastercard – powered by Neo, and the BMO AIR MILES World Elite Mastercard.

Air France KLM World Elite Mastercard®

The Air France KLM World Elite Mastercard® offers cardholders the opportunity to earn Flying Blue miles at Costco at a rate of 1 Flying Blue mile per dollar spent. The card also offers elevated earning rates on spending with restaurants, bars, Air France/KLM flights, and Brim Financial merchant partners.

Flying Blue miles can be redeemed for flights with Air France, KLM, and other SkyTeam airlines.

The Flying Blue program is great for flights between North America and Europe due to its wide coverage on both continents. It's also worth watching out for the program's Promo Rewards, which offer reduced costs for redemptions on specific routes, sometimes including business class.

The Air France KLM World Elite Mastercard® has an annual fee of $132, and it comes with a tiered welcome bonus, some travel perks, and strong insurance.

This is a great card for someone who flies with Air France, KLM, or other SkyTeam airlines, or someone who is looking for a Europe-focused loyalty program.

It's also worth noting that this is the only Air France KLM co-branded credit card available in Canada.

Cathay Pacific World Elite® Mastercard® – Powered by Neo

The Cathay Pacific World Elite® Mastercard® – Powered by Neo earns Asia Miles with Cathay Pacific's loyalty program. Through the program, you can book flights with Cathay Pacific, as well as other oneworld airlines and partner airlines.

The card earns 1 Asia Mile per dollar spent at Costco, 2 Asia Miles per dollar spent in foreign currencies, and 4 Asia Miles per dollar spent on Cathay Pacific flights.

As a notable perk, cardholders enjoy a 15% discount on Cathay Pacific flights.

The Cathay Pacific World Elite® Mastercard® – Powered by Neo has an annual fee of $180 and generally offers a nice welcome bonus after the first purchase and after meeting a minimum spend threshold.

This is a great card for individuals who often travel to or around Asia or for those who are looking to enjoy an aspirational flight in Cathay Pacific First Class.

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

In April 2024, it was announced that the BMO AIR MILES®^† World Elite®* Mastercard®* would now earn 2x the AIR MILES when spending at warehouses and at alcohol retailers.

This means that with the BMO AIR MILES®^† World Elite®* Mastercard®*, you now earn 2 AIR MILES for every $12 spent at Costco.

We value AIR MILES at 10.5 cents per mile, so this new earning rate is equivalent to a 1.75% return.

The BMO AIR MILES®^† World Elite®* Mastercard®* comes with an annual fee of $120, though this is often waived for the first year.

This is a great card for dedicated AIR MILES collectors who are looking to further build their account balance.

Using Visa and American Express at Costco

Although Costco warehouses only accept Mastercard for payment, if you're really inclined to use your Visa or American Express card for your Costco spending, there is a way.

By buying a prepaid Mastercard using a credit card that earns a 5x multiplier on the purchase, you can enjoy some significant rewards.

The most common place to purchase a prepaid Mastercard and earn 5x the rewards is at a grocery store.

If you do choose to go this route, keep in mind that prepaid Mastercards (and other prepaid cards) require a fee to activate. This fee is taken off the card's balance when you purchase it.

This means that a $100 prepaid Mastercard will actually have a starting balance of less than $100, with the exact balance depending on the specific fee levied by the card.

Once you've purchased the prepaid Mastercard, you can use it at Costco like a normal Mastercard.

However, you do want to be cautious of ongoing scams that occur with prepaid credit cards and gift cards. Make sure you make your purchase with a reputable vendor and ensure that the cards are kept secure.

One to Watch: Neo Financial X United Airlines MileagePlus Mastercard

Neo Financial and United Airlines have announced a partnership to launch a co-branded MileagePlus Mastercard in Canada. While the card hasn't launched yet and full details are still to come, it could become a strong contender for Costco shoppers – especially those who fly United or value Star Alliance award redemptions.

We'll revisit this article once the card is officially available and we can evaluate its earning rates, perks, and overall value at Costco.

Conclusion

Costco is an incredibly popular retailer for Canadians looking to stock up on groceries, household essentials, and more.

By choosing the right Mastercard product to use on Costco purchases, shoppers can take advantage of a rewards program that best suits their style.

If you don't already hold one (or more) of the above credit cards and you shop at Costco, consider exploring our recommendations to learn how you can get the most out of your spending.

^†Terms and conditions apply. Refer to the card issuer's website for complete, up-to-date information.