MBNA Rewards World Elite Mastercard vs Costco Mastercard: the best partner for the Costco card?

The MBNA Rewards World Elite Mastercard earns 5 points per $1 on restaurants, groceries and household bills, about 4.2% back as cash, but only 1 point per $1 (about 0.8%) in a Costco warehouse, where the CIBC Costco Mastercard pays 1%. At the Costco gas bar the CIBC card pays 3% against MBNA's 0.8%. MBNA costs $120 a year; the Costco card is free. For people who qualify, the two make one of the strongest pairings for a Costco household. Compare every option on our best cards for Costco page.

How do the MBNA Rewards World Elite and Costco Mastercard compare?

From MBNA's card page, rewards terms and insurance summary, and CIBC's documents, checked October 4, 2026. MBNA rates are shown as cash value (120 points per $1):

MBNA's current welcome offer is 20,000 points for $2,000 of purchases in the first 90 days and 10,000 more for switching to paperless statements: up to 30,000 points, which MBNA values at about $245 as cash.

What does the MBNA card earn at Costco?

1 point per $1, about 0.8% as cash. MBNA decides categories by merchant code: groceries are 5411, 5462 and 5499, restaurants 5812 and 5814, memberships 7997 and 8699. Costco warehouses are coded as wholesale clubs, which isn't on the list, so a Costco run earns the base rate, and so does the gas bar. Costco's membership fee is charged by Costco, so don't expect it to land in MBNA's membership category either. See Costco's merchant code.

It is a Mastercard, so Canadian Costcos accept it, but there's no reason to use it there if you carry the Costco card.

What are MBNA Rewards points worth?

It depends on how you redeem. MBNA's terms value points at $1 per 120 as cash (a statement credit, a deposit or a donation, from 6,000 points) and $1 per 100 toward travel booked through MBNA. Gift cards and merchandise are priced in its catalogue.

Each year MBNA adds a birthday bonus of 10% of the points you earned in the previous 12 months, up to 15,000 points. The 5x rate stops after $50,000 a year in each category, a limit few households reach.

How much does each earn for a Costco household?

Sample data: our two-card guide's household, spending $500 a month in the warehouse, $200 on Costco gas, $250 on restaurants, $400 on supermarket groceries, $300 on bills such as phone, internet and utilities, and $600 on everything else. MBNA points at cash value, birthday bonus included.

Restaurants move to MBNA in the pair: about 4.2% beats the Costco card's 3%. The Costco card keeps what MBNA pays least on: the warehouse, the gas bar and everyday purchases. Even after the $120 fee, this household ends up about $133 ahead of the best no-fee pairing, and more if it redeems for travel.

Is it worth the $120 fee?

For most households that qualify, yes, if you pair it with the Costco card. The fee is covered once groceries and bills (which the Costco card pays 1% on) reach about $316 a month, before the birthday bonus. The catch is the income requirement, and the value depends on redeeming points rather than leaving them: they don't expire while the account is open, but you need 6,000 points for cash. If you don't qualify, the CIBC Dividend Visa Infinite ($60,000 income) or a no-fee card such as BMO CashBack is the next best partner.

Which has better insurance?

MBNA, by a distance. Its insurance summary lists travel medical (up to $2 million for the first 21 days of a trip, under 65), rental car collision damage (rentals up to 31 days), common carrier accident coverage up to $1 million, delayed and lost baggage ($1,000), flight delay ($500 after 4 hours), unexpected return home, mobile device insurance up to $1,000, purchase assurance (90 days) with extended warranty, and price protection (up to $500 an item within 60 days). The CIBC Costco Mastercard has the device, purchase and warranty coverage, but nothing for travel; see when a travel card beats the Costco card.

Which should you get?

• You qualify and spend at restaurants, supermarkets and on bills: both. MBNA for those, the Costco card for the warehouse, Costco gas and everything else.
• Only one card: MBNA if restaurants, groceries and bills outweigh your Costco spending (it nets $546 against $378 for this household); the Costco card if Costco is most of what you buy, since MBNA earns less on every Costco purchase.
• You travel and want insurance without paying more than $120: MBNA covers far more than the Costco card.
• Under the income requirement: pair the Costco card with a no-fee grocery card; see the best two-card setups.