May 30, 2020

Costco Credit Card by Capital One Explained

During your visits to Costco, you have probably heard of the Costco credit card valid all across Canada. Store employees offer it from time to time. There might also be a sales person standing at the entry and inviting to sign up for such a credit card. If you have one, you know how the card works. If you are wondering if the Costco credit card is a good option or not, we explain all the details below.

First, it must be said that such the Costco credit card is 100% legit. But the card is not managed by Costco. The credit card's management is done by Capital One, an American financial institution, which also manages the credit cards by The Bay, Saks, etc. Costco is part of this group of large stores within Capital One's credit card management system.

What does it mean? It means that you are applying to have this credit card at your local Costco, but the credit is granted to you by the Capital One bank.

Second, this collaboration between Costco and Capital One offers discounts for Costco members. Here are the three main advantages:

This allows you to have access to cash back:

  • 3% discount at the restaurant
  • 2% on gasoline
  • 0.5% on the first $ 3,000 you spend during the year on any other purchase, then 1% on purchases beyond that range.

You should also know that the Costco credit card from Capital One is a Mastercard. This card has no annual fee.


Like we said, it's a Mastercard credit card in its essence. Treat this card like any other credit card!

This credit card has an annual interest rate of 19.75%. In other words, if you spend $ 5,000 per year and do not pay the full amount before the end of the interest-free period (the grace period), you will have to dish out $ 5,987 ($ 5,000 + $ 987 in interest).


The grace period on a credit card like this one is the interest-free period that stretches from the time you make your purchases to the date your period expires. The right strategy is to pay the amount owed before the end of the grace period.

Useful calculations for the Costco credit card:

Cashback applies to your total net purchases. In other words, it's any purchase made with your credit card, minus credits or returns.

In addition, cash advances, balance transfers, fees and interest charges do not qualify for cashback.

You should also know that each credit card has insurance included. The Costco credit card is no exception. The card has purchase insurance, extended warranty, collision damage insurance for rental vehicles and luggage delay insurance. The problem is that you would have to work with an insurer in the United States (not Capital One bank).
In other words:
1) Costco promotes and accepts the card
2) the credit is granted by Capital One
3) the card is operated by Mastercard
4) insurance is covered by an insurer in Florida.

Yes, there are several companies in your little plastic card.

Our advice:

As Costco accepts some payment methods in their stores:

  • Cash
  • Debit card (Interac)
  • Mastercard credit cards (any Mastercard, not just Capital One)
  • Costco does not accept Visa or American Express in Canada in 2019-2020. But you can use your Visa when shopping on

you would like to treat the Capital One credit card like any other credit card.

Track your expenses and pay the amounts owed on time.

If you already have a Mastercard with a good credit limit and similar discounts, the Capital One card won't be too useful.

If you don't have one, you can request it at your Costco store, Costco's website or at Capital One's website in Canada.
If you still want to apply for a Costco credit card, read these questions and answers before making your final decision.

Frequently Asked Questions about the Costco Credit Card:

Is the Capital One credit card exclusively for Costco members?
It is a co-branded credit card offering cash back, exclusively for Costco members. It also serves as a Costco membership card.

Does the Capital One credit card cover Costco membership fees?
You will still have to pay your annual fee. Payment can be made with the credit card.

If you are not a Costco member ...
As the card is exclusively for Costco members, you must be a Costco member to request it. You can become a member on

How Do Cash Backs Work?
You can earn cash back almost anywhere. You get discounts of 3% at restaurants, 2% on gas purchases and 0.5% for the first $ 3,000 spent each year on all other purchases and 1% thereafter.

Where can you use the card to get cash back?
Get cash back virtually anywhere MasterCard is accepted, at over 43 million locations worldwide, including all Costco Wholesale stores across Canada.

How can you receive and redeem my cash back?
You will receive your cash back voucher with your January statement, provided you are eligible when calculating the annual cash back. Once you receive your cash back voucher, you can redeem it at any Costco warehouse in Canada.

Are there other benefits associated with the card?
The card is also associated with very practical advantages. See the benefits section for full details.

How to pay the amounts due?
Online payment is the most convenient way to make payments to your account. You can make a payment using your financial institution's online banking site.

Payment using your financial institution's online banking site:

  • Log on to your bank's online banking site.
  • Add "Capital One Mastercard" to your list of beneficiaries.
  • Pay the payment to "Capital One Mastercard".
  • Please allow 2-3 business days for your online payment to be posted.

What is an authorized user?
An authorized user is an additional user who may charge fees on your account, but who is not financially responsible for the account. You can add an authorized user at no additional cost when you apply for the card or follow an account approval. Please note that the authorized user must also be a member of Costco.

Finally, here are all the details about the map in this document in PDF format.

Make your decision based on your needs and the information above.