from March 2022 is at least one per cent in cash back on every purchase they make.
According to CIBC, customers can enjoy up to three per cent in cash-back on purchases made at Costco Gas locations and restaurants. This is a significant improvement from 0.5 per cent cash back on the first $3,000 spent and one cent on spending above that threshold, which is currently being offered by the Capital One version of the Costco Mastercard.
As one of the largest retail companies in the world, Costco has more than 10 million members across Canada, according to its website, although there is no public record on the exact number of Costco Mastercard cardholders. Nevertheless, analysts are of the view that in acquiring the company’s Mastercard portfolio, CIBC’s main aim was to bring the holders deeper into the series of financial service products that are being offered by the bank.
“The real prize here for CIBC will be the cross-selling opportunities to millions of affluent card holders, only a small portion of which are current CIBC customers,” Scotiabank analyst Meny Grauman told clients when the deal was announced nearly three months ago.
