Costco rewards in Canada: stacking Executive's 2% with the Costco Mastercard

Costco rewards in Canada come from two separate programs that stack on the same purchase: Executive membership pays 2% on eligible warehouse purchases, up to $1,250 a year, and the CIBC Costco Mastercard pays 1% cash back on top, about 3% combined. The upgrade costs $65 a year over Gold Star, so the pair only pays off above about $3,250 of eligible spending a year. Below that, Gold Star plus the CIBC Costco Mastercard earns more.

How do Costco's two rewards programs work?

CIBC confirms the two are separate: its cash back "is calculated separately" from the Executive reward, which is only for Executive members. You can hold both, and each pays out on its own schedule.

How much do you earn when you stack them?

On eligible warehouse purchases, about 3%: 2% from Costco and 1% from CIBC. Example only, warehouse spending alone, with every dollar eligible for Executive:

At $250 a month the upgrade loses money; from about $271 a month it starts to pay. Our Executive guide has the full break-even table.

Which purchases miss out on the stack?

The card pays on almost everything, but the Executive reward has exclusions. Costco's membership conditions leave out gas stations, pharmacies, food courts, optical centres in Quebec, tobacco, services (including auto services), membership fees, deposits and taxes. So:

• Costco gas: no Executive reward, but 3% on the card, its best rate. See Costco gas.
• Pharmacy and the food court: card cash back only.
• Costco.ca orders: the card pays 2%; Costco ties the Executive reward to warehouse purchases, so we don't count it online.
• Costco Travel: Executive members earn the reward on purchases made directly from Costco Travel, plus the card's 1%; see booking travel on the card.

When do you get each reward?

Executive: once a year, as a reward coupon mailed with your renewal notice, to spend in the warehouse (not at the gas station or on Costco.ca); details in our Executive guide. CIBC: once a year, as a gift certificate with your January statement, covering January to December. The CIBC certificate doesn't expire, but you lose the year's cash back if the card isn't open and in good standing on December 31; see when you lose your cash back.

Can you use the rewards to pay for each other?

You can spend both at the warehouse. CIBC says its certificate can be redeemed even if you pay the rest of your bill another way, so you can combine it with an Executive reward and the card in one shop. A useful detail from CIBC's insurance certificate: a purchase paid partly with CIBC cash back or the Executive reward still counts as charged to the card for purchase security, extended warranty and mobile device insurance.

Should you upgrade to Executive if you have the card?

• Under about $271 a month of eligible warehouse spending: stay on Gold Star; the card alone earns more.
• Over it: upgrade, and keep using the card for the extra 1%.
• Not sure: try it. Costco's conditions promise a membership fee refund if you're dissatisfied, and you can return to Gold Star at renewal; ask at the membership counter how that applies to an upgrade (details). Our cash back calculator shows the net effect on 5 sample budgets.