Money
Costco credit card combo: the best two-card setup for Costco shoppers
The best Costco credit card combo pairs the CIBC Costco Mastercard (Costco gas, restaurants, Costco.ca and the warehouse) with a no-fee card that pays more where it doesn't: supermarket groceries and bills. On our sample household, adding a second card lifts yearly cash back from $378 to about $474.
By Cost Check Editorial · Last reviewed Oct 4, 2026 · 3 min read
The best Costco credit card combo for most members is the CIBC Costco Mastercard for everything Costco (gas, the warehouse, Costco.ca) plus restaurants, and a second no-fee Mastercard for what the Costco card pays only 1% on: supermarket groceries and recurring bills. On our sample household spending $27,000 a year, the Costco card alone earns $378; adding BMO's CashBack Mastercard makes it about $474, and Tangerine's Money-Back Mastercard about $462. Both are Mastercards, so either still works at Costco; compare all the options on our best cards for Costco page.
Calculator
What the Costco card earns on your share
Enter what you spend at Costco, on Costco gas, at restaurants and on Costco.ca each month. Leave supermarket groceries and bills for the second card.
Estimate your yearly cash back
Sample dataEstimated cash back per year
$318.00
Rates are CIBC’s published rates and are editable, as is the spending. Includes CIBC’s yearly category caps (spending above a cap earns 1%); there’s no limit on total cash back. Check current terms before you apply.
Why use two cards for Costco?
Because no single no-fee card is strong everywhere. The CIBC Costco Mastercard is excellent at Costco gas (3%) and restaurants (3%), decent on Costco.ca (2%) and weak almost everywhere else (1%). Grocery cards are the opposite: strong at the supermarket, but they usually pay their base rate at Costco, which is coded as a wholesale club rather than a grocery store (why). Splitting your spending puts each purchase on the card that pays most for it.
What are the best two-card setups?
Three no-fee pairings, from each issuer's published rates (checked October 4, 2026):
| Setup | Card 1 for | Card 2 for | Best if |
|---|---|---|---|
| CIBC Costco + BMO CashBack | Costco, Costco gas, restaurants, Costco.ca | Supermarket groceries (3%, up to $500 a statement period) | Your supermarket bill is under about $500 a month |
| CIBC Costco + Tangerine Money-Back | Costco, Costco gas, restaurants, Costco.ca | Two or three 2% categories you choose, such as Grocery, Recurring Bill Payments or Drug Stores | Your non-Costco spending is spread across bills and groceries |
| CIBC Costco + Tangerine (Gas category) | Costco and Costco gas up to the $5,000 cap, restaurants | Gas after the CIBC cap, plus one more 2% category | You spend more than about $417 a month on gas |
How much does a second card add?
Sample data, a household spending each month: $500 at Costco warehouses, $200 on Costco gas, $250 at restaurants, $400 on supermarket groceries, $300 on recurring bills and $600 on everything else.
| Setup | Cash back a year |
|---|---|
| CIBC Costco Mastercard only | $378 |
| CIBC Costco + BMO CashBack (groceries 3%, bills 1%) | $474 |
| CIBC Costco + Tangerine (Grocery and Recurring Bill Payments at 2%) | $462 |
Your result depends on your mix: run your own numbers in the calculator above for the Costco card's share, then add 2% or 3% on what you'd move to the second card.
Which card should you use for each purchase?
| Purchase | Use | Why |
|---|---|---|
| Costco warehouse | CIBC Costco Mastercard | 1%, where grocery cards usually pay their base rate |
| Costco gas | CIBC Costco Mastercard | 3% up to the $5,000 yearly gas cap |
| Restaurants | CIBC Costco Mastercard | 3%, uncapped on the personal card |
| Costco.ca | CIBC Costco Mastercard | 2% up to $8,000 a year |
| Supermarket groceries | BMO CashBack or Tangerine | 3% or 2% against 1% |
| Recurring bills | Tangerine (category) | 2% against 1% |
| Foreign currency purchases | Tangerine (Foreign Currency Spend category) | 2% back, partly offsetting the 2.5% conversion fee both cards charge |
Are there downsides to carrying two cards?
A few. Each application is a credit check, so space them out. You need to remember which card goes where (a note in your wallet helps). The Costco card's cash back still arrives once a year as a Costco certificate, while BMO lets you redeem any time and Tangerine pays monthly, so the second card is also your flexible cash. And if you carry a balance, rewards matter less than the rate: see what carrying a balance costs.
What about Executive members?
Keep the Costco card for warehouse purchases: they earn the 2% Executive reward plus the card's 1%, about 3% combined. The second card changes nothing at Costco; it only takes over spending outside it. See how the two rewards stack.
Frequently asked questions
- What is the best credit card combo for Costco?
- For most members, the CIBC Costco Mastercard for Costco, plus its 3% at Costco gas and restaurants, plus a no-fee grocery or category card such as BMO CashBack or Tangerine Money-Back for supermarket groceries and bills.
- Should I use a grocery card at Costco?
- No, usually not. Costco is typically coded as a wholesale club, so grocery cards pay their base rate there; the CIBC card pays 1%.
- Is it worth having two credit cards for Costco?
- Yes, if you spend on supermarket groceries or bills. On our sample household it adds about $96 a year at no fee.
- Which second card is better, BMO CashBack or Tangerine?
- BMO pays 3% on supermarket groceries up to $500 a statement period; Tangerine pays 2% in 2 or 3 categories you choose. Pick BMO for groceries alone, Tangerine for groceries plus bills.
- Do both cards work at Costco?
- Yes. All three are Mastercards, which Canadian Costco warehouses accept.
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