You are currently viewing Costco Capital One credit card: Everything you need to know about credit cards from this big box in Canada

Costco Capital One credit card: Everything you need to know about credit cards from this big box in Canada

You’ve probably been offered the Costco Cash Back Mastercard. But is it worth it?

To answer this question, this article presents the features and benefits of this card offered by Capital One. Since Costco and Capital One’s partnership will end in September 2021, we also compare it to other credit cards that offer cashback or rewards points.

I invite you to consult this article to find out how to choose a credit card. 

Prefer to do your research? Use our credit card comparator to filter through hundreds of options based on your needs and financial situation. 

Capital One Mastercard

The Capital One Mastercard is free and exclusively available to Costco members. Know that it can also be used as a membership card, which is always useful for those who tend to misplace it.

This card allows you to earn cashback (up to 3%) wherever Mastercard is accepted. You can apply at a Costco store or by following the link displayed on our credit card comparator.

The Rewards: Capital One Mastercard

You get 3% rebates for restaurant expenses and 2% for refueling, regardless of the type of gasoline. For all other types of purchases, you earn 0.5%. The discount increases to 1% after $3000 of purchases during the same billing cycle and there is no limit on the accumulated amount. The previous year’s rebate is paid to you in the form of check-in in January of the following year. This can be used for all types of purchases at Costco.

Benefits: Capital One Mastercard

This card gives you access to “Everyday Benefits”, “Travel Benefits” and “Mastercard Benefits”.

Everyday Benefits: Price Protection Service can save you money. For example, if you pay $60 for an item whose price drops to $40 a few days later, this service allows you to get a refund of the $20 difference. The price reduction must be within 60 days of the purchase date. The maximum price difference is $100 per item and you have a recoverable maximum of $500 per calendar year. You also have 120-day Purchase Assurance on all items paid for with Capital One that are stolen, lost, or damaged, anywhere in the world. Items will be replaced, repaired, or refunded. Finally, an extended warranty is also available. The initial manufacturer’s protection is doubled, up to a maximum of 2 years on the article.

Travel benefits: When you pay for your ticket with the Capital One Mastercard, you and your family will be insured and n case of accidental death or dismemberment. This coverage can be up to $250,000 on all trips on a bus, cruise ship, plane, or train. You can also receive up to $100 per day for 3 days if your baggage is delayed for more than 4 hours and you are entitled to 24/7 travel assistance. Capital One Auto Rental Collision/Loss Damage Insurance provides the same coverages as Collision Damage Waiver offered by rental agencies. This is a potential saving of around twenty dollars per day, for a maximum duration of one month. You need to put the cost of the car rental on the card.

Mastercard Benefits: These are benefits found on virtually all Mastercard cards. If your card is lost or stolen, Mastercard World Services offers you an emergency replacement, cash advances, telephone service, and ATM referral. With Zero Liability, you are protected when an unauthorized transaction is posted to your account.

Now that you know more about the Mastercard from Capital One, let’s compare it with other great cards.

 

BMO CashBack World Elite Mastercard

If you’re looking for a credit card that can earn a lot of cashback at Costco, the BMO CashBack World Elite Mastercard is a great option. The annual fees are $120, but they are waived for the first year. Each additional card costs $50 per year. To be eligible, the holder must have an annual income of $80,000 (or $150,000 per household).

The Rewards: BMO CashBack World Elite Mastercard

This card offers discounts charged directly to the account of 1.5% on all purchases, at Costco or elsewhere. For the first 3 months, the discount is 10%.

Benefits: BMO CashBack World Elite Mastercard

This card entitles you to free membership of the Mastercard Airport Experiences program provided by LoungeKey. This program improves the long delays in airports thanks to relaxation lounges and promotions in restaurants, shops, and spas. Download the app on your iPhone or Android to find trade shows and special offers.  

If you have a BMO Performance Program checking account, you get $40 off a year on the BMO CashBack World Elite Mastercard. To learn more about BMO checking accounts or other financial institutions in Canada, you can consult this checking account comparator.

When you have this card, you are automatically a member of the Dominion Automobile Association (DAA) free of charge for roadside assistance.

You are also entitled to 15% off all Circle du Soleil shows in Canada and 20% off shows in Las Vegas in residence.

As an advantage, you have the “BMO CashBack World Elite Travel Insurance” protection package. It includes protection on the rental of a vehicle while traveling (damage, theft, accident, mutilation, death). If an unforeseen event forces you to cut short your trip, a death in the family, for example, you have coverage of up to $2,000 per person for all expenses incurred. You also have insurance against flight delays of more than 6 hours and protection against loss or delay of the baggage of $750 per person. For those 65 and under, you have insurance on all medical expenses in hospitals for stays of one week outside the province or the country.

This card also offers Purchase Protection Plus which protects against theft and damage to a product purchased with the BMO CashBack World Elite Mastercard credit card. Extended Warranty Plus insurance extends the product and retailer warranty to a maximum of 2 years. The maximum reimbursement is $60,000 for each of these insurances.

The Differences: BMO CashBack World Elite Mastercard

The Capital One Mastercard does not require any minimum income to qualify. That BMO requires an income of $80,000 per person or $150,000 per family annually. There’s also the $120 annual fee for the BMO CashBack World Elite Mastercard, while Costco’s card has no annual fee.

For discounts, the Capital One card offers a higher reward rate for gas and dining out. For all other types of purchases, it is lower than the BMO card which gives 1.5% back. In addition, the welcome offer of the World Elite Cashback Mastercard is very high, even though it is only available for 3 months. It’s up to you to see which is best suited to your clothes.

Also, note that the cashback with the Costco card can only be used in its Costco stores.

BMO AIR MILES World Elite Mastercard

The BMO AIR MILES World Elite Mastercard has a $120 annual fee (waived the first year of ownership) and offers huge rewards when you shop with it at Costco or elsewhere. However, these rewards are in AIR MILES, redeemable for products. To be eligible, the minimum annual income required is $80,000 per person ($150,000 per household).

Rewards: BMO AIR MILES World Elite Mastercard

For every $10 spent with your credit card, you collect 1 AIR MILES. You have the opportunity to double your miles when you shop at AIR MILES partners. An offer in effect until December 31, 2020, allows you to earn 5x the miles at Shell, whether in gas or store purchases. You also get a 2,000 AIR MILES Bonus, Miles, when you spend at least $3,000 with your BMO AIR MILES World Elite Mastercard in the first 3 months.

You also get 15% off all AIR MILES flights in North America when you buy your ticket with the BMO AIR MILES World Elite Mastercard.

Benefits: BMO AIR MILES World Elite Mastercard

Like the previous World Elite card, this card offers more insurance, including car rental insurance. This insurance covers you against collision damage, accidental death, or dismemberment onboard a rental vehicle and against theft of personal effects during the rental.

You have trip cancellation or interruption insurance and flight delay insurance. You are protected on your luggage and personal effects in case of loss. You have out-of-province emergency medical coverage if you are under age 65. When you are on public transport, you are covered in the event of death or dismemberment. You have the same insurance as the previous card on purchases.

You too are admitted free to the ” Mastercard Airport Experiences program provided by LoungeKey ” and you get two free passes to the VIP airport lounge each year.

The card entitles you to 15% off all Cirque du Soleil shows in Canada and 20% off shows in Las Vegas, like the BMO CashBack World Elite Mastercard.

The Differences: BMO AIR MILES World Elite Mastercard

The accessibility of the AIR MILES card is reduced due to the minimum income required, while no income is required for the Capital One Mastercard and its annual fee of $120 ($80 if you have a Performance Checking Account with BMO). Remember that the Costco card is free. Regarding the rewards, they are very similar. However, the reward flexibility is greater with AIR MILES. Indeed, the Costco card is a cashback card at Costco, while the AIR MILES allow you to redeem the miles in several ways. Finally, the BMO card has a few more advantages than the Capital One credit card.

MBNA Rewards Platinum Plus Mastercard

The MBNA Rewards Platinum Plus Mastercard is free for the main card and 9 additional cards. It is also generous in MBNA rewards points, especially for gas and grocery purchases. No annual income is required to be eligible.

Rewards: MBNA Rewards Platinum Plus Mastercard

For some credit cards, there may be a time limit for redeeming points. However, for this card, you can keep them as long as you want, as long as your account is open and in good standing.

You get 2 points per dollar spent on all grocery, gas, and restaurant purchases, with a limit of $5,000 in annual spending for each of these categories. For all other types of purchases, you earn 1 point per dollar. Activation of the card allows you to acquire 10,000 bonus MBNA rewards points under certain conditions. When you sign up for eStatements, you get 5,000 MBNA rewards points. For the remaining 5,000 MBNA Rewards points, a purchase with the MBNA Rewards Platinum Plus Mastercard must be made within 90 days of account opening.

You can redeem your points for gift cards, travel, and items from this catalog or through a discount on your account statement. Travel redemption value is 100 MBNA Rewards points for $1 and 200 points for $1 in cash back or charitable donations. For items and gift cards, I invite you to consult the MBNA rewards program catalog to learn more about the different products offered.

Benefits: MBNA Rewards Platinum Plus Mastercard

The card offers purchase insurance, and an extended warranty and you save when you rent a vehicle from Avis and Budget.

Purchase Assurance protects an item for 90 days if it’s damaged or stolen and applies to any purchases made with the MBNA Rewards Platinum Plus Mastercard. The maximum total reimbursement for life is $60,000. The extended warranty doubles the length of the warranty offered by the retailer, up to a maximum of one year.

By renting a vehicle from Avis and Budget in Canada and the United States, you get 10% off by making the transaction with a credit card.

The Differences: MBNA Rewards Platinum Plus Mastercard

Unlike the MBNA Platinum Plus Rewards Mastercard, the Capital One Mastercard has no limit on how much you can spend per year for each category. The rewards are quite similar. Indeed, the Costco card is not as flexible as the MBNA card for redeeming points since the cashback is only available in its stores. Both cards allow you to purchase multiple items or gift cards, but with the Costco card, travel cannot be purchased. Also, note that the benefits of the Capital One Mastercard are much greater than those of the MBNA Rewards Platinum Plus Mastercard.

HSBC Mastercard + Rewards

The HSBC+ Rewards Mastercard is great if you’re looking to earn a lower interest rate on purchases, cash advances, and balance transfers while earning rewards. Indeed, the rates are at 11.90%. and the credit card costs $25 per year. Each additional card costs $10 per year.

Rewards: HSBC Mastercard + Rewards

This low-rate card offers 2 points per dollar spent on dining and entertainment. For all other types of purchases, it’s 1 point per dollar of purchase. This card offers 20,000 points if you spend $2,000 with the card during the first 3 months. This equals $100 in travel rewards. Annual fees will be waived for the first year.

You can redeem your points for merchandise, gift cards, financial rewards, and travel. See the reward choices by accessing their catalog.

Benefits: HSBC Mastercard + Rewards

The benefits of this card are similar to those of the previous card. There is insurance that doubles the retailer’s warranty for up to one year. If the product is damaged or stolen, you have 90 days of purchase insurance.

If the price of an item has been reduced within 60 days of purchase, a protection service allows you to obtain a refund of the difference, for a maximum of $500 per item and $1,000 per calendar year.

The Differences: HSBC Mastercard + Rewards

The HSBC card offers a fairly high welcome bonus, while the Capital One card offers nothing. Like the MBNA card, it differs from the Costco card by the wide variety of redeemable rewards for travel. Capital One’s Mastercard offers many benefits, while HSBC’s offers very few in comparison.

The Costco credit card is free, while the HSBC one costs $25 per year. Interest rates are better with this card, which offers more flexibility if you can’t pay your full balance each month.

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