Credit Cards

CIBC Costco Mastercard

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  • Sep 22nd, 2021 1:21 am
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Deal Fanatic
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Aug 24, 2016
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The Prairies
Thanks for starting a new thread OP.
I definitely support a new thread, while the existing thread should be locked once CIBC fully takes over.
That way all the information on the current offering will be valid and current with the current issuer.
Kudos.
Sr. Member
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Dec 20, 2017
734 posts
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Interesting to see CIBC is opening their mastercard portfolio again. They worked pretty hard on transferring everyone off the old CIBC Dividend WE MC to the Visa, surprising to see they didn't just swap over Costco cards to a Visa.
💳 Collected: RBC VIP for Private Banking, TD VIP, BMO VIP, HSBC Premier WE MC, Amex PP, Amex BP, Amex BG, Amex Cobalt, BMO WE MC, CDC Indigo
Deal Guru
Dec 5, 2006
10673 posts
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Markham
They probably want to earn more money from cross sell and up sell. This is something cap 1 doesn't have
Deal Fanatic
Jan 19, 2017
5610 posts
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As long as it stays MC, that is all matters to me since all prev. partnership issued cards(i.e. AMEX, Capital One MC.) gave very low rewards.
Deal Fanatic
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Sep 7, 2004
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West GTEH!
superkule wrote: This is interesting:

https://financialpost.com/fp-finance/ba ... g-balances

seems capital one existing cardholders will transition over to CIBC. Thoughts?
ml88888888 wrote: As long as it stays MC, that is all matters to me since all prev. partnership issued cards(i.e. AMEX, Capital One MC.) gave very low rewards.
Thank Goodness it's still Mastercard.

Now to see what Benefits will be included.
😎
Deal Addict
May 16, 2017
1836 posts
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Delight wrote: Interesting to see CIBC is opening their mastercard portfolio again. They worked pretty hard on transferring everyone off the old CIBC Dividend WE MC to the Visa, surprising to see they didn't just swap over Costco cards to a Visa.
MC is probably offering a discount off interchange rates already from the CapOne era; that would then require Visa to match or CIBC to subsidize themselves to achieve the same costs. Simpler just to stick with MC.
Deal Fanatic
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Jul 26, 2007
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Toronto
If I have an existing Costco Mastercard, do I need to apply for a new CIBC Costco Mastercard?
  • You won't need to apply for a new card. We'll have more information about the transition to CIBC in the coming months.
Hope that's one less credit check and cibc sending me new card automatically.
Deal Addict
Oct 18, 2007
3383 posts
845 upvotes
I posted this in the other thread...

This is Mastercard interchange rates: https://www.mastercard.ca/en-ca/busines ... hange.html

They no longer offered "preferred high volume rates" to anyone. These used to be called Performance Tier or High Volume Program (Visa had the same but also no longer available). It's now a standard rate for Core, World, WE and Muse cards. No more special treatment if you're Costco or Walmart.

If CIBC is offering just the basic Core cards, these cards cost less than 1% interchange (0.87% on tap and 0.92% for chip). I would guess that Costco would want some revenue split with CIBC.
RFD is bad for your wallet's health 😂
Sr. Member
Feb 28, 2014
673 posts
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Delight wrote: Interesting to see CIBC is opening their mastercard portfolio again. They worked pretty hard on transferring everyone off the old CIBC Dividend WE MC to the Visa, surprising to see they didn't just swap over Costco cards to a Visa.
My understanding is that in 2014, it was both Capital One and MasterCard that won the contract with Costco. Only Capital One pulled out, the agreement with MasterCard is still likely in place right now. I have a feeling if CIBC could issue a Visa they would.
Deal Guru
Dec 5, 2006
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Markham
Question to the people who have both simplii and cibc cards: could you access both simplii and cibc card through same online portal or they are separate? I have simplii online banking ( not credit card, just chequing), just wondering whether i need create another userid/password to access cibc Costco card

Thanks
Deal Addict
Feb 4, 2003
2737 posts
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Cibc needs to make 1.5-2% return on Costco purchases else, it will still drive some to use other MC issuer card.
Deal Addict
Feb 4, 2003
2737 posts
792 upvotes
smartie wrote: Question to the people who have both simplii and cibc cards: could you access both simplii and cibc card through same online portal or they are separate? I have simplii online banking ( not credit card, just chequing), just wondering whether i need create another userid/password to access cibc Costco card

Thanks
Different website.
Deal Guru
Dec 5, 2006
10673 posts
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Markham
zzricezz wrote: Cibc needs to make 1.5-2% return on Costco purchases else, it will still drive some to use other MC issuer card.
I thought same. But now when I saw 3billion balance, I am not sure now actually. 3 billion probably on par if not more than pcf and ctfs portfolio and pcf/ctfs have pretty good offerings in their store purchase
Deal Addict
May 16, 2017
1836 posts
2333 upvotes
CrazyJo82 wrote: I posted this in the other thread...

This is Mastercard interchange rates: https://www.mastercard.ca/en-ca/busines ... hange.html

They no longer offered "preferred high volume rates" to anyone. These used to be called Performance Tier or High Volume Program (Visa had the same but also no longer available). It's now a standard rate for Core, World, WE and Muse cards. No more special treatment if you're Costco or Walmart.

If CIBC is offering just the basic Core cards, these cards cost less than 1% interchange (0.87% on tap and 0.92% for chip). I would guess that Costco would want some revenue split with CIBC.
That doesn't stop CIBC from providing a rebate to Costco for whatever portion of interchange lands in CIBC's pockets. There are also other places in the MC system where $ is changing hands that isn't directly related to interchange rates. Where the accounting takes place may vary - but I suspect that Costco is somehow getting a deal.
Deal Fanatic
Jan 19, 2017
5610 posts
3133 upvotes
zzricezz wrote: Cibc needs to make 1.5-2% return on Costco purchases else, it will still drive some to use other MC issuer card.
That is the reason why Costco is not classified as grocery for most, if not all credit cards so Costco doesn't have to pay higher rewards for grocery category for 3 - 5%.

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