Costco Canada accepts Mastercard only — no Visa, no Amex, no debit except Interac. This means your Amex Cobalt, Scotiabank Gold Amex, or TD Aeroplan Visa Infinite earns nothing at Costco. Choosing the right Mastercard matters.
Why Costco Only Takes Mastercard
Costco Canada has an exclusive credit card partnership with Capital One Canada (Mastercard). This replaced the previous Amex partnership in 2022. In-warehouse, only Mastercard and Interac Debit are accepted.
Note: Costco.ca (the website) now also accepts Visa. This guide focuses on in-warehouse purchases.
Best Mastercards for Costco Canada
| Card | Annual Fee | Costco Earn Rate | Best For |
|---|---|---|---|
| Capital One Costco Mastercard | $0 (requires Costco membership) | 3% on restaurants; 2% travel; 1% everywhere + executive rewards | Dedicated Costco shoppers |
| Tangerine Money-Back Mastercard | $0 | 2% (if grocery category selected) | Treat Costco as grocery; no fee |
| Rogers Red Mastercard | $0 | 1.5% everywhere | Simple flat-rate no-fee |
| BMO CashBack World Elite Mastercard | $120 | 5% on groceries (first $500/month) | Best for Costco grocery spend |
| Scotiabank Scene+ Visa (Mastercard alt) | $0 | — | Not Mastercard |
| MBNA Rewards World Elite Mastercard | $120 | 5x on grocery (if coded as grocery) | Points earn |
| National Bank World Elite Mastercard | $150 | 2x on grocery | Travel credit + lounge |
| Brim World Elite Mastercard | $199 | 2x everywhere; no FX fee | Best for Costco.ca USD items |
Top Pick: BMO CashBack World Elite Mastercard
For most Canadians who do significant grocery and household shopping at Costco, the BMO CashBack World Elite Mastercard delivers the highest earn rate:
- 5% cash back on groceries (first $500/month, then 1%)
- 4% on transit; 3% on gas; 2% on recurring payments; 1% everywhere else
- Annual fee: $120 (first year often waived)
- Costco purchases typically coded as grocery — confirm with your statement
Annual math: $800/month at Costco ($9,600/year) at 5% grocery rate = $480 in cash back (on first $500/month) — well exceeding the annual fee.
The Capital One Costco Mastercard
The official Costco co-branded card from Capital One:
- 3% cash back at restaurants and dining (globally)
- 2% cash back on travel
- 1% cash back at Costco and everywhere else
- No annual fee (but requires an active Costco membership)
- Annual rewards cheque distributed once per year at Costco warehouse
Limitation: Only 1% on Costco purchases — other Mastercards often beat this at Costco specifically.
Best use case: A secondary card for restaurant and travel purchases if you already hold a premium Mastercard for Costco grocery spend.
The Tangerine Strategy: Grocery Category at Costco
If Costco purchases code as grocery on your statement (they do for many Mastercards), the Tangerine Money-Back Card earns 2% at Costco with no annual fee — by selecting grocery as one of your three 2% categories.
Check your first statement after shopping at Costco to confirm the merchant category code (MCC) — Costco typically codes as “Wholesale Clubs” or “Grocery” depending on the issuer.
Gas at Costco
Costco gas is popular — often the lowest price per litre in Canada. The BMO CashBack World Elite earns 3% on gas, which applies to Costco gas purchases where coded as fuel. Some cards with high grocery rates may code Costco gas differently — check your statements.
Related Articles
- What Credit Card Does Costco Take in Canada?
- Best Cash Back Credit Cards in Canada
- Best Grocery Credit Cards in Canada
- BMO CashBack World Elite Mastercard Review
- Tangerine Money-Back Card Review
Merchant category coding at Costco may vary by issuer and card. Always verify your earn rate on your first Costco statement. Costco in-warehouse policy: Mastercard and Interac only. See our Advertiser Disclosure.