Credit Cards

Best cashback card for Costco?

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  • Aug 9th, 2019 11:40 pm
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Sr. Member
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Mar 9, 2012
747 posts
338 upvotes

Best cashback card for Costco?

For heavy Costco user, would you guys say that the Rogers WE MC is the best option for cashback credit card with their 1.75% on all purchases?

I understand Costco doesn't accept Visa in Canada. I understand Costco doesn't fall under the same MCC all the time and unfortunately it doesn't fall into groceries category so it's pretty much impossible to make it work for the Tangerine categories. What is the best Mastercard for cashback with an annual fee or not?

Currently going with an easy duo: Scotia Momentum Visa Infinite (FYF) and Rogers WE MC but I'm always open for suggestions and feedbacks.
Current credit card set up:
CIBC Dividend Platinum Visa: 3% food, 3% gas, 2% transit, 2% restaurants, 2% recurring bills
Tangerine World MC: 2% drugstore, 2% home improvement, 2% hotel-motel
MBNA Amazon.ca Rewards MC: 2,5% on Amazon.ca purchases
9 replies
Deal Guru
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May 8, 2009
14613 posts
12652 upvotes
Going to the Moon
On cashback earn alone, break even with annual fee at $48k annual spend on Collabria MC World. But, gain 48 day travel medical, price protection and all that jazz.

Churn MBNA and/or BMO MC's for more rewards.
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Sr. Member
May 26, 2009
564 posts
748 upvotes
Calgary
With the current WestJet WE FYF promo, that will be my Costco card for the next year.

You get 1.5% back in WestJet Dollars. Yes, this is less than 1.75%. However, if you use the WSD on member exclusive fares, you can squeeze out more than 1.75% back. It's possible to get double the value of WSD or even higher, but I'm not banking on that.
Sr. Member
Jul 3, 2019
733 posts
328 upvotes
I haven’t tried it yet, but apparently, you can get some kind of bonus if you make purchases at the same store with Brim. Maybe it’s worth looking at. 🤷🏻‍♂️
Member
Jul 8, 2013
304 posts
69 upvotes
Montreal
jtfrogger wrote: You get 1.5% back in WestJet Dollars. Yes, this is less than 1.75%. However, if you use the WSD on member exclusive fares, you can squeeze out more than 1.75% back. It's possible to get double the value of WSD
Where are seeing and reading this?
Sr. Member
May 26, 2009
564 posts
748 upvotes
Calgary
dbzkid777 wrote: Where are seeing and reading this?
Are you asking where I have read about getting double value out of WSD? I've seen a few references in other threads on RFD and elsewhere. When I search for member exclusive fares on my own for flights that I would likely use, it's easy to find good deals. I just did a quick search for YYC->YHZ on October 18 (random date). It is 125 WSD + $45.23-$49.75 in fees. The cheapest cash fair on that day is $324.58. That is well over $2 value per WSD for that flight on that day. Given that the cap on the base fair within Canada is 125 WSD, you would likely get even more value if you are starting or going to a less popular airport or travelling further.

I personally would value a WSD at about $1.50. I'll likely always use the points for higher value than that, but when comparing to other cards I prefer actual cash over potential value of points. At that 1.5x valuation, I would value the spend on the Westjet card at about 2.25% back. Others value it at 2x, which would push it to 3% back. I would value it higher if I flew within Canada more frequently.

Here's an article from POT on the topic if you want another opinion on it.
Jr. Member
Oct 21, 2011
121 posts
78 upvotes
Another thing you could do is to use the Momentum card to buy the PayPower card and use it for the Costco shopping or general master card charges. You will pay $6.95 for $500 (lose of 1.39%) but will gain 4% back on the Momentum card. In the end, you will be at 2.69% cash back if my calculation is correct. It will beat the Rogers 1.75%. However, if the annual fee is applied, then Rogers card is the clear winner.
Newbie
Aug 4, 2018
59 posts
194 upvotes
ligene15 wrote: Another thing you could do is to use the Momentum card to buy the PayPower card and use it for the Costco shopping or general master card charges. You will pay $6.95 for $500 (lose of 1.39%) but will gain 4% back on the Momentum card. In the end, you will be at 2.69% cash back if my calculation is correct. It will beat the Rogers 1.75%. However, if the annual fee is applied, then Rogers card is the clear winner.
Or if you have $100K minimum of CIBC savings and investment(s) (or idle $6K) eligible to tie into the CIBC Smart™ Plus Account then you could get annual fees waived for the CIBC Dividend Visa Infinite. Use this Dividend Infinite to get the same 4% cash back in purchasing those said PayPower MC instead of that Momentum Infinite and its new $120 annual fee.
Deal Guru
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May 8, 2009
14613 posts
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Going to the Moon
U08052018 wrote: Or if you have $100K minimum of CIBC savings and investment(s) (or idle $6K) eligible to tie into the CIBC Smart™ Plus Account then you could get annual fees waived for the CIBC Dividend Visa Infinite. Use this Dividend Infinite to get the same 4% cash back in purchasing those said PayPower MC instead of that Momentum Infinite and its new $120 annual fee.
Many factors involved...
  1. frequency of churning - WB's can bump cashback to 10% for the first stretch
  2. CIBC Dividend Inf has $20k annual accelerator cap on 4%, BNS and Meridian it's $25k (note that TD CBI it's $15k and 3% accelerators...but this summer we're double-dipping the 10%/$2k + 6%/3cat)
  3. Cobalt is 5x and no FYF, but that 5x could be worth more via FFP transfer. Higher volume PayPower reloads might trigger AmEx to clawback pts
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