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Perhaps we are credit card nerds, but when CheckRate.ca first heard that Capital One and Costco were teaming up on a credit card offering we could not sleep the entire night from excitement. What exceptional value would come from the joining of forces between Capital One, cardsmith of market-slaying Aspire Travel World Elite, and Costco, those savvy retailers able to convince even the most frugal of shoppers to buy in lifetime supply?
In this review, the Costco card goes head to head with the Rogers Platinum Mastercard. Spoiler alert – we prefer the Rogers.
There are two Costco-Specific Offerings on This Card:
- There is Costco branding on the card
- It doubles as your membership card
A bit underwhelming we must say, with apologies to those ecstatic at the prospect of saving a wallet slot by combining your Costco membership card and a credit card into one. There is no Costco-specific advantage to using this card – any mastercard can be used at Costco, with cashback offered on purchases, as usual. They don’t even provide a Costco membership fee waiver! Thus, perhaps it is best to judge this card against other, no-annual fee cashback Mastercards to determine actual value.
The Costco card has no welcome bonus whilst the Rogers card gives you 25 bucks. Nothing to write home about here, edge obviously to Rogers but who cares.
|Restaurants||Gas||Everything else (First $3,000 in spend)||Everything else (After $3,000)|
|Costco Capital One||3%||2%||0.5%||1%|
Ok, so if you eat out for every meal, go for Costco. If you spend like a regular person, Rogers is easily the better card from a cashback perspective. Paradoxically, you earn more cash back at Costco from Rogers than from the Costco Capital One by a goodly margin.
Not only that, the Rogers card offers a number of different ways to get your hands on your cash throughout the year – with Costco, you can get it once a year, in January, in store.
The Costco card offers excellent Price protections which make the card more usable on large purchases. Check it out:
|Price Protection||If a purchased item goes on sale within 60 days, you get the difference back up to $100. $500 total per year.||No|
|Price Assurance||120 day insurance against theft, damage or lost items||No|
|Extended Warranty||Double the manufacturer’s warranty up to 24 months||No|
Pretty big check mark for the Costco card here. Yes, you will be receiving between 1.25 and .25% less cashback on your purchases when using the Costco card against the Rogers, but if any of these insurances are actually needed on a purchase the value will most likely exceed the marginal loss on cash back.
Travel Insurance – Sort of a Waste
Costco offers travel accident insurance, car rental collision and loss waiver and baggage delay insurance. These are nice to have – particularly the car rental but, to be honest, if this is an important consideration, you should be going for a different credit card in any event. Every Canadian should have travel medical insurance included on one card – and if there is a card that has travel medical, it will have everything offered from the Costco card with additional coverages like Trip Cancellation, Trip Interruption, Baggage Loss, etc. And most likely these cards will also be offering greater than 1% back.
Long way of saying – probably not best to use either card on travel purchases, and so these benefits are somewhat wasted.
Foreign Exchange Fee Waiver
Rogers offers 3% cashback on purchases in non-Canadian currency, which covers the 2.5% standard fee with an additional 1% cashback. This makes the card top in the market for non-CAD purchases. With the Costco card you are getting 0.5% net cash back in the best case – when eating at a restaurant, and losing 2% in the worst case.
The Rogers card is superior in earn rate, ease of redemption, welcome bonus (slightly), with the foreign exchange fee waiver as a massive incentive to those who spend from time to time in non-CAD. The purchase protections are what prevents the Rogers card from sweeping the field. Some will consider it important to ensure such protections on large items, and you get those only with the Costco card.
|1||Up to 3% Cashback||Apply Now|
|2||No Annual Fee, Why not Apply Today?||Apply Now|
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