On March 4 of this year, CIBC will officially replace Capital One as Costco’s credit card partner. For those who have a Capital One Costco Mastercard, that might leave you wondering what’s going to happen to your current account as well as any rewards you earn between now and March 4. To help you prepare, here are a few important things you should know.
You don’t have to reapply
First off, if you’re a current Costco Mastercard holder, you don’t have to reapply for the CIBC version. On March 4, you and any authorized users will automatically be rolled into CIBC’s customer base, without any action on your part.
Keep making payments to Capital One
Until March 3, you will continue to pay off your credit card balance to Capital One. Starting on March 4, however, CIBC will send you credit card statements, and you will start making payments to it.
Cash back will be rolled into your 2023 gift certificate
Don’t worry: you will be compensated for the cash back you earn on the Capital One Costco Mastercard. Your 2023 gift certificate will include the rewards you earn between now and March 4, even if they’re earned on your Capital One credit card.
Your card will arrive in August
As of right now, holders of the current Costco Mastercard will continue to use their Capital One version until at least August 31 of this year. You should receive your new CIBC Costco Mastercard before that date.
Your new CIBC card will have the same information as your old rewards card. That is, you’ll have the same 16-digit credit card number, expiration date, CVV, and PIN. This ensures you don’t have to change credit card information on certain pre-authorized transactions, such as using your Costco Mastercard for monthly subscriptions.
Store a copy of past Costco Mastercard statements
After March 3, you won’t have access to your Costco Mastercard statements from previous years. If you want to hold on to your past credit card statements, be sure to download them, or request copies, before your Capital One account closes.
To request copies, simply call the number on the back of your current Costco Mastercard.
Hold off on making large purchases from Costco.ca
Lastly, be strategic with your Costco purchases from now until March 4. Keep in mind that your new CIBC Costco Mastercard will earn you 2% back on most Costco.ca purchases (up to $8,000). Right now, your Capital One card will earn only 1% back (or 0.5%, if you haven’t spent your annual $3,000 yet). So, if you’re planning on making a very large purchase, one that you can buy online, I would hold off until you can earn 2% back.
Should you apply for the Costco Mastercard?
The new CIBC Costco Mastercard is an exciting new retail card that will no doubt benefit frequent Costco shoppers. If you don’t have a Costco Mastercard yet, you can start by applying for the current Capital One card. Any rewards you earn will transfer to CIBC (you’ll receive a gift certificate in January 2023), and your Mastercard will function as your Costco ID.
In fact, I would argue that any person with a Costco ID can benefit from the CIBC Costco Mastercard: it costs nothing to apply, and you might have the opportunity to earn more cash back than you normally would for certain Costco.ca purchases.
