Capital One Costco Platinum MasterCard Review

Capital One Costco Platinum Mastercard reviewThe Capital One Costco Platinum MasterCard is a strong no annual fee cash back credit card that is geared towards Costco members who eat at restaurants regularly and spend a significant amount each month on fuel.

Its main strengths are that it is one of the few credit cards that gives significantly higher rewards on restaurant purchases and that it integrates your Costco membership and credit card into a single card so you can lighten your wallet. It’s also among the few cards that offers price protection/matching if you find a lower price on any product you’ve purchased using the card.

Quick Facts

Annual Fee $0
Interest Rate 19.75%
Min. Income No minimum
Reward Type Cash Back
Reward 3% restaurants, 2% gas, 1% everything else
Reward Return 0.5%-3% of spending
Sign Up Bonus Double cash back for the first 3 months
Apply Click here

Positives:

  • No annual fee for both primary and secondary cards.
  • 3% cash back on restaurants, 2% on gas, and up to 1% on everything else.
  • No limit to the amount of cash back you can earn.
  • Doubles as your Costco card with your picture on the back.
  • Price protection for items purchased using the card that decrease in price within 60 days (up to $100 per item and $500 per year).
  • Extended warranty coverage on purchases (up to two years) and purchase protection against theft or damage (up to 120 days).

Negatives:

  • Have to be a Costco member to qualify for this card, which costs $55 annually.
  • Although this is a Costco-branded card, there is no additional incentive to shop at Costco.
  • The ‘everything else’ spending category is tiered – you receive 0.50% on the first $3,000 and 1% on everything beyond that. This essentially works out to a hidden annual fee of $15 when compared to other no-fee 1% cash back cards.
  • The ‘cash back’ comes once per year by snail mail as a rebate. The rebate must be redeemed at a Costco store where it can be converted to either actual cash or Costco store credit.
  • There are much better no fee cash back credit cards out there.

Insurance Package:

  • Extended warranty - up to two years.
  • Purchase protection - 120 days.
  • Travel accident insurance - up to $250,000.
  • Car rental coverage - collision / loss damage waiver (LDW).
  • Baggage delay insurance - $300.

Cash Back Analysis

Here is a breakdown of how much cash back you can earn over a span of 5 years using this card. Note that the first year amounts are slightly higher because of the 3 month bonus period (double the cash back on all purchases).

‘Light spend’ – $50 per month at restaurants, $100 per month on fuel, $500 per month on everything else.

‘Medium spend’ – $100 per month at restaurants, $200 per month on fuel, $1,000 per month on everything else.

‘Heavy spend’ – $200 per month at restaurants, $300 per month on fuel, $2,000 per month on everything else.

Category

Year 1

Year 3

Year 5

Light spend

$128

$302

$476

Medium spend

$255

$633

$1,011

Heavy spend

$480

$1,218

$1,956

How To Maximize Cash Back

Since the Capital One Costco Platinum MasterCard offers a bonus of double the cash back amounts for the first 3 months, it would make sense to spend more heavily during the first 3 months in order to maximize your cash back.

Also, since Costco now accepts MasterCard this means you can put all Costco purchases on this card. Costco fuel should also be purchased using the card since it offers 2% cash back and Costco tends to have the lowest fuel prices compared to other retailers.

Capital One's Response To Reader Comments Below

This review generated a lot of negative feedback from disgruntled Costco members who took to the comments below to vent their frustrations. I had the opportunity when I was in Toronto for the Canadian Personal Finance Bloggers Conference to speak with Laurel Ostfield, Director of Communications for Capital One Canada, about all the complaints being posted in this review.

She agreed to set up an interview for me with Simon Maycock, who is in charge of the Costco rollout of this card. You can read the resulting article here with their official response those complaints.

Conclusion

The Capital One Costco Platinum MasterCard is best for Costco members who fall into the light/medium spend category, eat at restaurants often, and buy fuel at Costco.

The card offers convenience because it can double as your membership card (picture on the back) and is accepted at all Costco locations.

For anyone who spends more than $700 per month on their credit card, the MBNA Rewards World Elite MasterCard is going to earn you more cash back net AFTER paying the annual fee AND give you much better rewards, flexibility, insurance, and perks.

With the MBNA card, which is owned by TD, you get 2% cash back on ALL your purchases, your first year free, a $100 cash sign up bonus (10,000 points), and you can redeem your cash whenever and however you want. Choose between statement credit, direct deposit, cheque, travel, charity donation, or merchandise.

If you still want the Costco card you can:

Apply Here

Disclosure: Some links in this article may be affiliate links. We're letting you know because it's the right thing to do. Here’s a more detailed disclosure on how HTS makes money.

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Comments

Darren
Darren's picture

I was very open to this new Capital One card that Costco told me it was much better than American Express. After one month I had over $ 5000.00 of fraudulently charged charges put on my mastercard chip all within 20 min. After four months I still have not got all my money back. After calling and going to see Costco all I get is the run around saying the credit will come but I never see it.

American Express has always looked after their clients and customers same day. My advice to anybody applying for the card don’t apply.

April 04, 2015 @ 7:34 pm
Stephen Weyman
Stephen Weyman's picture

Interesting story Darren. I've had Capital One credit cards in the past and never had any trouble with fraudulent charges or poor customer service. Hopefully you will receive your credit soon. Please come back and let us know if they eventually rectify the situation or never do.

April 06, 2015 @ 3:20 pm
Darren
Darren's picture

Capital One has not been in the Canadian market very long so when you say past you must work for Capital One.
Most Canadian Banks look after their customers with in two or three days of the fraudulent charges. My advice
if you do work for Capital One is stay in the US.

April 14, 2015 @ 6:44 am
Stephen Weyman
Stephen Weyman's picture

I should have responded to this a long time ago, but someone I completely missed this comment.

Neither myself nor Dan work for Capital One and have never worked for them. I am also not a member of their affiliate program either, whereas I am a member of a few other credit card affiliate programs. Affiliate member or not, I try to remain as unbiased as I can when doing reviews. I have even gone to the length of creating an unbiased rating system and complex spreadsheets for comparing credit cards to take my personal bias out of it.

I don't know why saying I had a Capital One card in the past makes it seem like I work for them. Around 2010 or 2011 I had the Capital One Travel World MasterCard and never had any trouble with the card whatsoever, except when trying to reduce my credit limit. They gave me a very high credit limit and would not reduce it because they said it was the minimum for this card because it was a World card. No other problems, only good things.

As all the comments below yours show, there are definitely some unhappy customers with this card and some real problems. My experience with them has been positive, but that is clearly not the case for everybody. You get more complainers on the internet in general whereas the happy customers remain silent, but still this does amount to a lot of negative reviews.

I just came back from the Canadian Personal Finance Bloggers conference and representatives from Capital One happened to be there. I decided to bring up all the negative comments in this review to them (that's when I rediscovered your comment). They took extensive notes about the complaints and are already aware of and working to fix some of them. I'm hoping to be able to secure an interview with them over the next month to get some official responses from them on these issues.

October 19, 2015 @ 2:36 pm
Nancy
Nancy's picture

I totally agree with this. American Express has the best customer service around. They also do help clients with issues such as fraud. I went through it as well where I had "suspicious" activity on my card and they took care of the problem ASAP. They took the charges off my account, then proceeded with an investigation, once confirmed that the charges were fraudulent, they were completely removed. But they didn't make me pay first and then wait for a refund. They just have common sense and are run so professionally and efficiently. I loved their easy to read statements and the total spend per account holder shown on the statement. Everything they do is top notch. I'm sorry to say this, but I have been in contact with Capital One's customer service and I noticed a huge difference compared to AMEX.

May 30, 2016 @ 11:30 am
Simon
Simon's picture

Yes, I totally agree the customer service provided by AE Card. I got a double charge to my card when I rented a car in England, I reported this double charge to the customer service and the charge was immediately frozen and it was waived no sooner, I had no worry about it.

August 15, 2017 @ 11:58 pm
Diana
Diana's picture

This card it for people who are desperate. They make sure you go over the limit with their high interest then charge you 29.00. When you call they offer to remove the fee as if their doing YOU a favor. Then they don't remove it and charge you another 29.00 fee because you use the card trusting they removed the fee. I hate this fucking company with a passion. You tell the to shove the card up their ass and they think your so stupid that you'll use the card again, they send you a letter telling you not to use the card it will be declined..lololol. I advise anyone who can to stay away from this card. They are loan sharks to put it nicely. They prey on desperate people. I won't give them a penny of interest. They will also take what I offer to settle or they will get ZERO. I'd rather have no credit than be continuously ripped off by these scoundrels. Other credit card companies know about Capitol Ones rip off policy. Don't think their giving you a card or a secured card to help you..lol. They could care less. Their objective is to ruin your credit so you come back to get screwed twice over. Screw me once shame on you, screw me twice shame on me. They'll never get the chance. If more people would listen they could go into bankruptcy which they truly deserve.

July 05, 2016 @ 12:00 pm
Nancy
Nancy's picture

I totally agree with you and your observations about the customer service differences between Capital One and American Express. American Express always takes care of its customers and quickly. I once went to an all you can eat restaurant in Brampton and I used my American Express credit card there. Within a few days there were a bunch of fraudulent charges on my statement. Not sure what they totalled but probably around 1,000. 1 phone call to AmericanExpress is all it took - all those fraudulent charges were reversed and I never had to do anything else. I could go on. What about Capital One's "unorganized/confusing" statements. I found American Express statements easy to read. I found with American Express the customer is always right and with Capital One you're only right when they can prove it.

August 15, 2017 @ 5:15 pm
iqbal
iqbal's picture

CAPITAL ONE CARD IS NOTHING BUT A PROBLEM.
HARD TO LOG ON
HARD TO SOLVE ANY PROBLEM
I PREFER AMERICAN EXPRESS BACK

April 09, 2015 @ 9:03 pm
Stephen Weyman
Stephen Weyman's picture

Interesting, I wonder if they're still working out the kinks with these new cards. You'd think their system would be rock solid after all these years. Again, I've never had a problem logging into their system or solving problems with them. I do love my American Express though :)

April 10, 2015 @ 1:36 pm
Srimanta Banerjee
Srimanta Banerjee's picture

Capital one Master Card for Costco is nothing but a trouble. I had no problem with American Express card with Costco. I was using AMEX Card at Costco for last 15 years and had no problem.
Since Last December 2015, Costco stopped to accept AMEX and I had not other option but to go for Capital One Master Card. Since then I paid my bill in full week before due date. In my recent statement, I found they have charged me $82.57.interest.
I called their customer service and complained. Her ID was MOB224 was not able to explain how it happened, but agree to issue credit. However, she insisted to pay now full bill including the wrongly posted amount and will give credit in next statement which is ridiculous. If it was AMEX, would advise to pay the bill after deducting the wrongly posted amount.
I WILL WARN ALL COSTCO MEMBER TO VARIFY THEIR BILLS BEFORE THEY PAY.
Also COSTCO should allow to accept other credit cards otherwise loose customers.

April 23, 2015 @ 9:48 pm
Stephen Weyman
Stephen Weyman's picture

The reason she probably advised you to pay the full bill is to avoid more unwanted interest charges arising from not paying the full bill. They should be able to circumvent this, but over paying it to be safe is a good idea.

Now if they don't come through for you with the credit they owe you, that's a different story.

Good thing you caught it though, it definitely sucks for those people who don't scrutinize their bills closely to be over charged.

April 29, 2015 @ 1:03 pm
marc
marc's picture

I'm not sure if anyone knows this but you could use any MasterCard to purchase your goods at Costco without using there credit card, you just need your member card with you of course.

April 27, 2015 @ 10:01 pm
Stephen Weyman
Stephen Weyman's picture

Good point, this is what I do myself in fact. The perks of this card are decent, but I prefer my existing MBNA Rewards MasterCard over this one.

April 29, 2015 @ 1:04 pm
Ryan
Ryan's picture

We were also forced to switch from AMEX to Mastercard for Costco, and it's been a negative experience for sure.

There is no option to pay immediately online, and payments can take 4-5 days to reflect on the card.
When frequenting the US, they do not accept the Candadian Mastercard, only AMEX which we had to cancel.
There are other minor issues we never had with AMEX.

We are quite disappointed and will be cancelling it soon, so that means no rewards.

April 29, 2015 @ 1:11 am
Stephen Weyman
Stephen Weyman's picture

Wow, that's quite a few people complaining so they definitely must be having some issues. Hope they get that all straightened out soon.

I believe Costco in the USA is moving away from American Express soon as well. I personally love American Express and their cards, so I was really disappointed to hear their relationship with Costco was ending.

If you need a new card, be sure to check my list of great cards here.

April 29, 2015 @ 1:07 pm
Linda
Linda's picture

I have been a Costco member since it opened in Ontario, Canada about 22 years ago. On April 15, 2015, someone fraudulently charged about $10,700 to my card. Not one call from Capital One. My balance had a credit of about $75 and this was totally out of character for my purchases. I had to call Capital One and alert them repeatedly. It has been a nightmare since for me. I pride myself on having a credit rating in the 800s in Ontario, Canada. Capital One said they have 45 days to make this right. They keep telling me that I am not responsible for any costs. Their fraud department is so busy that you cannot even leave a message for anyone to call you back--outgoing calls only. I have escalated this to the point of exhaustion. Capital One does not look after its customers. I was sad but pleased to see in the earlier post here the same thing happened to another new Capital One customer with Costco. We need to alert Costco Canada that this is happening a lot. By the way, I asked what happened to the $10,700 that was charged to my Capital One Costco card. Capital One staff said the individual(s) are likely sipping pina coladas by the ocean enjoying a trip on the monies they charged to my account. Again--not one person called to ask if this was me or not charging these amounts over six transactions. As much as I love shopping at Costco, I am petrified to use the replacement Capital One card that was sent in the mail to me.

May 08, 2015 @ 7:54 am
Stephen Weyman
Stephen Weyman's picture

Well, as long as they make good on covering those charges for you, you don't really have a lot to worry about. However, the hassle involved with replacing your card and monitoring your account closely for fraud and essentially doing their job for them may not be worth it.

I've never had any other card I've written about on the site receive this volume of complaints. It could be because they've managed to sign up a lot of people and with a lot of people complaints also rise and the level of service can go down if they weren't prepared. However, this is starting to sound like a card to avoid until Capital One gets their act together.

May 13, 2015 @ 12:28 pm
Fortresspainting
Fortresspainting's picture

I have had several problems with this Mastercard.

I pay my card off in full every month. I missed my March payment and in the confusion of trying to understand their statements online and working over the phone with a customer service rep, I ended up missing my May payment.

My fault, in part but I find the statement very confusing.

Never had any of this sort of issue with American Express. Other cards, pretty straight forward.

Interest just keeps calculating.

I paid it in full and will put in away for now.

I wish we had Amex back.

May 14, 2015 @ 6:03 pm
Stephen Weyman
Stephen Weyman's picture

Sorry to hear that. Hopefully they'll catch wind of the comments on this article and start taking action to correct some of these things, including the poor statements.

May 23, 2015 @ 8:52 pm
Fred
Fred's picture

I have always enjoyed that Costco tries to pick out the best things to compliment the Costco name.
I have been a loyal member since 2003.
Capital One does not do this.
I have never had my card compromised till I signed up with Capital One.
This has affected my CREDIT RATING.
Got a sorry about your LUCK letter.
WOW didn’t need that over AMERICAN EXPRESS.
In January 2015 I was to get a REBATE back from CAPITAL ONE for 2014.
Like the loyal customer I was I used it for everything, trips, shopping, gas, etc.
They charge an extra 2.5% USD exchange rate.
WOW didn’t need that over AMERICAN EXPRESS.
NEVER ever received my January REBATE from CAPITAL ONE for over $130.00.
Called 3 times still NO REBATE this is JUNE 2015.
WOW AMERICAN EXPRESS GAVE ME MY FINAL COSTCO REBATE.
Sorry for the rant but CAPITAL ONE does not compliment the COSTCO name.
Thought somebody should know.

May 31, 2015 @ 7:59 am
Unhappy
Unhappy's picture

Amex has an automatic monthly balance payment service. For this reason I was a heavy user of my Amex Card at Costco and elsewhere. I asked about this service in December 2014 and at first the folks at the sign up tables in Costco knew nothing about it. A few days later they told me CapitalOne would offer the same service. So far they have yet to offer the service and offer the "technical difficulties" excuse. After missing one less than $2 overage I missed the following month and am being billed 25.9% interest. This after I found the application for automatic monthly payment on their web filled it out with voided cheque and sent it in. They responded with a non committal negative response and I am expected to pay their whopping interest cost.

STAY AWAY from CapitalOne

June 17, 2015 @ 4:41 pm
Stephen Weyman
Stephen Weyman's picture

That's very poor customer service if they won't refund your interest charge if you had already applied for automatic payments. Doesn't sound like they know how to keep customers happy. Have you tried contacting them on social media to see if you can get another person who is more PR focused to look at it?

June 17, 2015 @ 8:22 pm
Unhappy
Unhappy's picture

I have been in touch with CapitalOne and the rep did his best but by then I was so frustrated at trying to make sense of their confusing statements it was an abrupt call. He did agree to refund the interest charges but I have to first pay them to get the credit. I could not just pay the difference. Since I will not use the card until they offer the automatic payments it is a bit of a moot point.

CapitalOne does not seem to have much of a reputation in the United States.

June 18, 2015 @ 2:22 pm
AMANDA
AMANDA's picture

I've had my Costco card since it launched in fall 2014, and I do enjoy it! My cash back coupon came with my January statement (downside: It expires in July). I got a friendly reminder that I hadn't used it and if I needed a reprint of it, simply call. I haven't had to deal with anyone from the company really, but I haven't had any troubles online or using the card.

June 23, 2015 @ 1:23 pm
Stephen Weyman
Stephen Weyman's picture

Well, it's nice to hear from somebody who has had a positive experience with the card at least. Thanks for telling us about it :)

June 23, 2015 @ 3:23 pm
pissed
pissed's picture

Didn't know that they charge $2.75 as cash advance fee for lottery purchase of even $5.00 bucks. Ridiculous as I normally don't buy lottery tickets so I wouldn't have known. As a matter of fact even the employee didn't know that any lottery ticket purchase in Canada is considered a cash advance! Her response was she talked to her manager and he said it is written in "terms and conditions." Unbelievable customer service!!

July 29, 2015 @ 7:01 pm
Unhappytoo
Unhappytoo's picture

I believe that COSTCO should consider termination of their contract with Capital One credit card and look for another credit card provider. COSTCO customers deserve better service.

After many years as a loyal customer at COSTCO, I was surprised to hear from Capital One that they rejected the extension of my spending limit. I had to advance more than one payment every month before the deadline to avoid reaching the limit. But even when I advanced these payments electronically, Capital One appears to intentionally delay the receipt of payments by a few days at the time other banking systems such as interac transfer money immediately. The reason is obvious which is to acquire interest/late payment penalties.

The rejection of Capital One to extend the limit on accounts is also obvious as they want to limit their cash awards or points on the card. If you call customer service they will try deter you from requesting a limit increase by warning you that your credit will be affected if the request is declined.

What I am planning to do now and also recommend to my fellows COSTCO customers is to gradually minimize the use of Capital One card using other means or other cards, hopefully Capital One gets the message.

August 18, 2015 @ 12:38 pm
Stephen Weyman
Stephen Weyman's picture

That is frustrating that you aren't able to up your limit and they try and discourage you from doing so but ultimately it is any lenders prerogative to decide how much credit to extend to their customers. If they are too stingy though they will definitely take a hit in customers because having to make multiple payments a month just to have enough available credit for your everyday purchases is pretty inexcusable.

August 22, 2015 @ 1:18 am
Musky
Musky's picture

You are so right. I totally agree with you. A few months after I have got my card I have called to extend my limit. I have been told by Capital one to wait 6 months before. After 8 months I have called back they refused it. They told me it has nothing with my credit but to call them back in 6 months again. They refused to tell me why saying it is an interne policy. Every month I pay the total amount. My credit ratio is A 1. I have ever had any problems in the past with any credit cards to increase my limits.

So now I will only use my card for purchases at Costco nothing else. I have just apply for the American Express simple which gives me up to 5% cash back for the next 6 months and then 1.25% cash back on any purchases WITHOUT a credit limit.

March 11, 2016 @ 1:16 pm
Bobby
Bobby's picture

I switched to the Costco Capital One after they switched from Amex. I have had two issues with poor customer service. Long hold times and they didn't fix my issue.

I got a $29 fee for being over the limit. After calling them and asking WTF I was told I could ask for a increase credit limit to prevent this from happening. I always pay my full balance every month and have a good credit rating. After talking with two other Capital one reps and waiting on hold for what seemed to be 20 mins they told me I was declined. When I asked why they said it was nothing to do with my credit rating but with their internal policies. Thanks for wasting my time and putting a hit on my credit score for nothing! It was their suggestion to have my limited increased. Thanks for letting me vent. I tried to find a review or comment section on the Costco.ca website but couldn't find anything. I will talk to the local warehouse the next time I am in there. As seen from other comments on this site looks like Capital one does suck and I am not alone with crappy customer service from them.

I wish Costco kept Amex I guess we know why Capital One could under bid Amex for the rights to be Costco credit provider.

August 25, 2015 @ 9:51 pm
Stephen Weyman
Stephen Weyman's picture

One thing I can say is that Capital One is known for their strange internal policies like this. They run things in a very specific way. It's unfortunate that they are denying people credit limit increases who legitimately deserve them.

August 27, 2015 @ 11:00 pm
MK
MK's picture

If you read other consumer reviews /complaint sites,you will discover one of Capital One's purpose.To rebuild/build credit for those who have none,or very poor. Where these card holders actually pay a deposit in order to use their Capital One card! It appears Capital One treats many users in a similar manner,in spite of their credit worthiness.Costco members generally have a higher income based on a Feb 12, 2015 market place.org article. Where the U.S. Costco member has an average income of about $100k. Additionally,other articles describe Costco members as having better credit ,assets,and are brand loyal. Thus,why did Costco Canada partner with Capital One, its members don't seem to fit their demographics.

January 05, 2016 @ 1:52 pm
Eric
Eric's picture

I've been a Costco member since 1995. I am not at all impressed with how Costco shoved an inferior card like the Capital One MasterCard down our throats. What a mickey mouse operation. They still are not set up for auto-payment despite telling customers for months that they are almost ready to allow it. Talked to a Capital 1 MasterCard customer service rep this morning who told me they have had a lot of complaints about this and they have no idea when it will be allowed. He was quite apologetic. Thanks Costco. You were so determined to dump American Express that you were willing to screw over your customers by giving us a second rate credit card provider. Costco US was smart enough to avoid them and is switching to Visa next year.

September 30, 2015 @ 2:11 pm
Stephen Weyman
Stephen Weyman's picture

That is a pretty big shortcoming. Thanks for pointing it out.

October 02, 2015 @ 2:47 pm
Don't worry
Don't worry's picture

I'm glad I read these posts before going to sign up for this card tomorrow. Looks like that won't be happening.

October 07, 2015 @ 9:46 pm
Curious
Curious's picture

First I am really appreciated for all comments. I was considering switching to Capital One Master card with Costco. After reading all these comments I’ll definitely wouldn’t.

I am also curious why all people were dealing with Capital One’s customer service and not with Master Card one. I have Visa for 11 years with TD bank. Any issues like: increase limit, incorrect payment, incorrect fees etc. we were dealing directly with Visa and not with TD bank. At least it is my impression. Is it different for Master card? Does Capital One handle all issues related to Master Card by itself?

October 11, 2015 @ 11:35 pm
Stephen Weyman
Stephen Weyman's picture

You're always dealing with the issuer when you call customer service (Capital One, Scotiabank, TD, MBNA, etc) because they are the ones loaning you the money. Visa and MasterCard just provide the backend systems and network for processing the transactions.

October 12, 2015 @ 1:22 pm
Barry
Barry's picture

My father obtained a Capital One Master card after being encouraged to do so by Costco.

Several months in a row he has been charged interest by Capital One even though he has paid his monthly balance, in full, on time. Disgraceful.

It may be time for a formal investigation into Capital One.

October 12, 2015 @ 3:38 am
Stephen Weyman
Stephen Weyman's picture

What payment method does your father use to pay his bill?

October 12, 2015 @ 1:25 pm
S. Ricci
S. Ricci's picture

Without a doubt the worst experience I have ever had with a company bar none! The person handling my application spelled my name wrong - it was caught right away but somehow the correction caused the card not to be generated. Two months and numerous phone calls later, each time with promises to have the card to me within 3 to 5 days, I received the card - name still spelled incorrectly! I cancelled my account without ever using it. Total incompetence from everyone that I dealt with.

October 13, 2015 @ 3:14 pm
Matthew
Matthew's picture

Well like most other people i got the card with AMEX and Costco parted ways. The card and its perks sound good, but the customer service and fraud parts are hard to overlook. since having the card for a year i have been contacted by the fraud dept and had the cards replaced for suspicious activity. they picked up on it and stopped the transaction, so that is good. but then having to change numbers was a pain.

Second it that i travel to a different province fairly regular and when i first went i could not charge my hotel, and when i called they would only let one night go through untill the next day when i could get in touch with the correct people to put a proper travel advisory in place as i wanted to tell them i travel here a lot and don't want to have tot do this every time. they said you have to, any transaction outside your home province will be declined in there is not travel advisory, good as a precaution but bad from travelers.

third and most annoying, i was as well confused by the online statement and what was owing and ended up over paying my card by 2500. when i got my statement i could see that there was a credit there and just thought a simple call to there adn they could maybe reverse the transaction or simply issue me a cheque. i have done this with other cards and if i had credit they can issue a chequeright away and get it in a couple of days. not with capitol one, first they would not issue on anything over 1000. i said its my money, and i want and need it. They said, after many calls and people, they needed me to go to my bank where i issued the payment from and get them to request the reversal, my bank didn't know what they were talking about and called them while i was there, they just wanted a statement showing the funds coming from my account faxed to them, so we did, and still nothing.

Weeks into months and basically the only way i am able to get my money back has been to just continue to put charges on the card and decrease the balance. i am below the 1000 mark now and decided to try and get them to issue a cheque, that has been request over 2 weeks ago, account still shows an 750 credit and no cheque. i have talked to multiple people and they assure it is done and in processing. its in the notes...poor customer service!

October 28, 2015 @ 3:49 pm
Costco Memeber Richmond BC
Costco Memeber Richmond BC's picture

Costco Capital One card is VERY INFERIOR relative to AMEX and other cards. There is NO AUTO WITHDRAWAL from bank account to pay the full amount..They keep saying we are working it and its been months. If you miss payment while on vacation etc they will charge to interest and send a very nasty and aggressive letter. In my case the interest was $2. I plan to cancel unless they set yp auto with drawl within the next month or so and I suggest we all do the same and complain to Costco and use another Master Card.

October 31, 2015 @ 6:48 pm
Stephen Weyman
Stephen Weyman's picture

When I was at the Canadian Personal Finance Bloggers Conference a few weeks ago, Capital One actually had a representative there. I pulled her aside and spoke to her directly about the complaints I have been receiving here about the card. She was aware of some of them and they are in fact working to correct them, but others I don't think she was aware.

I asked her if I could interview her about the problems with this card specifically to have a response for all you commenters. She agreed and has just contacted me today about setting up that interview. I'm busy, but will try and do the interview later this week and then publish it as a separate blog post (will link to it from here) in the next couple of weeks.

November 02, 2015 @ 2:43 pm
james
james's picture

I am a big costo customer for a retail business. Amex gave me a $20,000.00 limit which I would use up 6 or 7 times a year. Capital One will NOT increase the initial $2500.00 limit even though I have maxed it out. They have charged me an OVER LIMIT fee ....... so I rarely use it. I use my credit union elite mastercard which also has a $20,000.00 limit. It gives 2 reward points for every dollar spent BUT it cost $150.00 a year.
I had a fraudulent charge on the Capital One from an online advertisement misrepresenting a product promoted by Dr. Oz so be careful with those. Capital One said it would take 3 months to investigate and I had to cancel that card and wait for another one. I will give them some BONUS points as the new card showed up in 3 days and the fraud charges were credited on my next statement. (which they can improve on). Capital One is also promoting a $10 for 10 with a /costco website BUT it is impossible to find on google. SO if they read this ........... you need to go back to customer service school.

November 18, 2015 @ 9:41 pm
Stephen Weyman
Stephen Weyman's picture

I am conducting the interview this Friday, so I will add your comments into the interview somehow.

November 18, 2015 @ 10:41 pm
notHappyCustomer
notHappyCustomer's picture

I wish I came across this page earlier. I switched to the Costco Capital One a few months after they switched from Amex. I missed one payment and I was seeing interest charges on every statement after that even though I had paid all my subsequent statements in full amount, on time. Last time, I got angry at the customer service rep. and asked for cancellation. They immediately canceled the card without even getting my final confirmation and as a result I lost all my cash back rewards ($250). Please stay as far from Capital One as you can! After reading all these comments, I think we need to make an online petition to encourage Costco to consider another business partner! Stephen, please start this job!

November 24, 2015 @ 11:22 pm
Stephen Weyman
Stephen Weyman's picture

I'm sorry to hear about your negative experience. I did conduct the interview last Friday (a week later than originally planned) with Capital One. I relayed all of the concerns to them people have brought up here and they have been monitoring this thread closely and are trying really hard to listen to customer complaints and take actions to correct the problems.

They probably won't get it perfect, but the good news is that they are actively listening and trying to make things better.

November 25, 2015 @ 8:56 am
Christina
Christina's picture

I got a CapitalOne Platinum card years ago at an extremely low interest rate and loved it the entire time I had it. So when I heard Costco was switching to CapitalOne I was pretty happy. I of course got one. I would rather have a Capital One card than any other card I've had in the past or have now. Their online application is easy to use, they call me right away if they suspect suspicious transactions and anytime I've had an issue their call centre staff was on it right away. So sure they halt transactions when I travel but so do the other cards I have. Plus, I know better to call before I travel even if frequent.

I read through the comments above and don't have any of these problems. I wonder what the ratio of happy to disgruntled customers is. I know I've always been happy with them and the same goes for my husband and sister who have used them over the years too.

December 17, 2015 @ 12:55 pm
Stephen Weyman
Stephen Weyman's picture

It's always hard to tell Christina because the voices of the unhappy always tend to ring out louder than those who are content and continue to use a product or service in silence.

I know this is the case, but since this review garnered so many negative responses with so few positives ones it signaled to me that something out of the ordinary might be going on.

December 17, 2015 @ 1:07 pm
Paul from Halifax
Paul from Halifax's picture

I switched to the Costco Capital One card when they switched from Amex. We use the card for everything and are happy with the cash back. We were given a $10k limit which is probably lower than any other credit cards we have had in the past. We have never carried a balance or missed a payment and have excellent credit rating.

In August, we we close to our credit limit and we paid our bill in full online as we always do. While using it for gas while we were out of province, it was declined. I called and they told me that we were over our limit. Our payment was still in cyber space but they can't see that. Of course when I called them on the next business day, the payment was made and we were good.

We don't hit our limit too often, so I suggested that a raise in the credit limit was he only way to ensure this wouldn't happen again. The person I was speaking with said he seen something on my account but couldn't tell me what it was but suggested I wait a few months and keep paying my bills and check back with them then. He could see I've paid my bill in full every month. Also knows I have a secure job with the federal government making 100k per year. Still could not increase my limit because of whatever he saw on my account. Why I didn't shred the card then I don't know...

This week, we were approaching our limit and we paid the card in full online. The next day, I was at a conference for work and used the card for a hotel ($100.00). Declined... I didn't have another credit card. When I called...same thing. I was over the limit. Nothing they could do. I spoke with Supervisor. She could see I pay my bill every month. Never missed a payment. Seen my experience from August on my file. Seen that I charged $66k on the card since we had it. Made them lots of money. Could not increase my limit, nor would they give me a temporary increase due to my circumstances. I had to pay in cash... Embarassing on check out when they have to inspect your too before they give you the deposit back.

They called me that night to explain that they were not giving me a credit increase. They were sure quick to point out that the fine print says that the card is for household personal use only and that I couldn't use it for business. (I had told her that I was at a conference for work).

Anyway. Their customer service sucks. As soon as I research other options for a better card, Capital one is history!!!

December 19, 2015 @ 1:00 am
Stephen Weyman
Stephen Weyman's picture

With $66K in spending you should definitely be a high value client. That's too bad that they weren't able to accommodate you better than that. I highly recommend carrying 3 credit cards so you always have a backup if something goes wrong with one of them.

January 03, 2016 @ 7:26 pm
Brijesh
Brijesh's picture

Its one of the worst experience, as I was one of the loyal Costco customer for past 7 years.
Never missed even one payment , with excellent credit history but had a hard time to increase credit limit.

Wished Costco would have either stayed with Amex or shifted to TD visa as Capital one staff is not well trained to meet the expectations of clients. Very Sad Indeed !!!!!!!!

January 03, 2016 @ 3:27 pm
Stephen Weyman
Stephen Weyman's picture

Sorry to hear that Brijesh. No reason you can't use another MasterCard at Costco if it suits your needs better.

January 03, 2016 @ 7:30 pm
Gabriel
Gabriel's picture

I've been a COSTCO member for the quite some time now (perhaps 5-6 years, can't remember). I am a frequent flyer with Air Canada (Elite 50K or 75K). I loved shopping at COSTCO with my Amex card so when they switched to Master Card I was disappointed. I did not get the Capital One MC right away but after careful consideration I got it. I only use for shopping at COSTCO and at restaurants. That gives me 3% cash back on COSTCO (1% MC + 2% Exec Membership) and 3% cash back on restaurants (mostly business meals but also personal ones). I don't use the card for anything else, I prefer to collect Aeroplan miles (I've got my Amex and TD Visa for that). Surprisingly my credit limit is not that high and when I tried to get an increase I was declined (I have higher limits with other cards but not this one). The other issue I have is that they only provide 1 additional card. I wanted to get one for my daughter but no luck. I have never had any fraudulent charges on the card and paying my monthly balance in full has avoided me interest charges. I think I've called their 1-800 number twice and they have solved my issues promptly (though they were simple issues). The only regret I have is I did not use my card heavily during the first 3 months and as such did not reap the benefits of the double cash back promotion. Overall I am satisfied but again, this is not my primary card. Remember, Capital One is not a major bank in Canada so don't expect great service. If this card does not work for you, use another MC from any other bank, problem solved.

January 04, 2016 @ 9:00 am
MK's picture

Like other Canadian Costco members, I too am VERY unhappy with Capital One. For all the notes taken by Laurel Ostfield, Director of Communications for Capital One Canada,or interviewing with Simon Maycock in 2015 did.It's now 2016,and I have just spent an inordinate amount of time over my holidays and upon return, asking to have customer service SIMPLY confirm via email a charge that isn't on my statement. Capital One response, we don't email,it's not ONLY an accessibility issue,but one of accountability to have companies email if a customer requests it. For ANY business to insist they will MAIL you something that can easily be emailed,or provided via their intranet as an option adds unnecessary operational costs.What a confusing reply from customer service,a supervisor ,and an executive response member because I receive my Capital One statement alerts via email.

Stephen Weymen's remark on December 17: " voices of the unhappy always tend to ring out louder than those who are content. " I'm inclined to think those who are voicing their negative concerns are doing so as a last resort because Capital One is NOT resolving what appears to be issues brought on by inferior customer service and ineffective processes [CRM]. Capital One clearly needs to be managing customer expectations much better,beyond the Costco branded card given the other online complaints. After all,consumers risk being sued for defamation and pecuniary damages by well financed corporations if their venting's baseless.

Due to my confidence in Costco for providing good products, I didn't vet Capital One before signing up for their Mastercard. Major caution to myself in the future because it's not good for ones credit to just suddenly dump a card shortly after its issuance.I am NOT a fan of carrying more than two personal credit cards,in case one isn't accepted at a business. As of April 2016, Costco U.S.is going with Visa.WHY didn't Canada join them in a North American bid with a single issuer ,or at least the same payment provider.

Amex, I never liked,and historically only had the corporate card with employers who gave it to me for business use. Ironically, Amex is the lesser of the two evils now.Didn't realize I had an Amex for 15 years! Cancelling it didn't harm my credit because there was such stable history.

THANKS for sites like How To Save Money for giving a voice to the consumer, and providing useful information.

January 05, 2016 @ 1:54 am
Stephen Weyman
Stephen Weyman's picture

Thanks for the well written comment MK!

January 05, 2016 @ 9:15 am
Liz
Liz's picture

I've just read all of these reviews and they concern me. I recently had my card compromised to the tune of a $2900 purchase online at Costco.ca. However, Costco has no online purchase affiliated with my or my husband's Costco membership. In speaking with Capital One, they said there is a 1-2 month investigation process. In the meantime, I will be sent a new card and I'm not to pay that amount. This is all ok. But what concerns me is that we purposely put an 'alert' on our account for any spending over $200. Yet no one called my husband or me to advise us of this $2900 (fraudulent) purchase. What is the point of adding an alert when it is not acted upon?

January 17, 2016 @ 8:26 pm
Stephen Weyman
Stephen Weyman's picture

That's interesting that you didn't receive an alert Liz. How did you go about setting up the alert? Did you do it through customer service or is that now something they offer through their website?

January 20, 2016 @ 4:41 pm
Harjeet
Harjeet's picture

DO NOT USE THIS CARD FOR YOUR TRAVELS. They charge ridiculously high exchange rate. Don't even try to contact them with your displeasure, you get sent from one customer service department to another. BEWARE.

January 20, 2016 @ 3:44 pm
Stephen Weyman
Stephen Weyman's picture

Harjeet, I am very familiar with basically EVERY credit card offered on the Canadian marketplace. 95% or more of them charge 2.5% on top of basically the best exchange rate you can possibly get (i.e. the rate that MasterCard and Visa get themselves). There are 3-4 cards that offer less than 2.5% but that is the exception and not the rule.

I think you were probably just shocked because the actual CDN to USD exchange rate is horrific right now so it looks like your credit card company is gouging you when they're not really. Honestly, 2.5% is high, but it is also the norm in Canada. If you walk into any big Canadian bank, you can expect to pay in the range of 3%+ to exchange money over the counter so credit card exchange rates are actually cheaper than that.

January 20, 2016 @ 4:45 pm
Cathy
Cathy's picture

Switched to Capital One (Costco) since Costco stopped the contract with AMEX. Earlier requested credit line increase, but Capital One (Costco) required a credit check. I was surprised, so refused.

I think this is a bit ridiculous to check your existing customer's credit history. Why not look at their past payment history, isn't that enough?

Also, the customer services were very plain, I thought I was talking to a robot. I really wish Costco would consider all posters' suggestion and comments, and do something with the Capital One.

February 06, 2016 @ 2:21 pm
Stephen Weyman
Stephen Weyman's picture

Although what you are proposing sounds reasonable, it is pretty standard practice for any credit card company to pull your credit score when they are determining if you are eligible for a credit increase that you are requesting. If they offer you a credit increase on their own accord, then I believe they don't do a new credit check and just go on your history as a customer with them.

February 09, 2016 @ 4:47 pm
Mel
Mel's picture

We missed the 2014 rebate cash backs July 2015 expiry date. Contacted Capital one CS and it was not a peasant conversation. We still DID NOT receive the cash back. They basically repeat themselves; it has to be used until July expiry date of cash back rebate coupons and no further action. Advised them this is not a fair business practice and I'm like talking to a wall. The amount was not much but their CS attitude and inefficiency beyond my understanding. I know how competitive CC business, how costly losing a customer or getting a new one. As a frugal consumer, it looks we will cancel Capital one MC and I'm really thinking to do the same for Costco membership if they work with such a CC company.

February 22, 2016 @ 12:46 pm
Stephen Weyman
Stephen Weyman's picture

I agree, there is nothing worse than talking to a repetitive customer service agent that refuses even to acknowledge what you are saying any further.

As consumers, we do need to be aware of expiry dates for sure, but in this case you earned the cash reward fair and square and I agree that they should come good on it somehow, even if you are a little late trying to redeem it.

February 23, 2016 @ 10:22 pm
Mandy Ardelli
Mandy Ardelli's picture

Well, this is just awesome. I've had a Capital One card (started secured) since about 2007 or 2008, with a better interest rate than I started with. Last weekend I went to get a Costco Membership and was signed up for this, and it just arrived. I haven't activated it yet.

I'm a bit concerned, but I am heartened to see that they are trying to address the issues in the other article. I hope I'm allowed to have more than one card, I have to call and find out about that.

I usually pay my credit card through my online bank (and pay it off as often as possible when I can), and it sometimes takes a couple of days, but I always try to pay it early, often on a middle of the month pay day. So maybe I can avoid some of this. But fraudulent charges make me nervous.

March 09, 2016 @ 7:56 pm
Stephen Weyman
Stephen Weyman's picture

Even though they have had issues Mandy, I think that it will still work out fine for you. Especially since you've read this review and you know what potential issues to be aware of, you're less likely to experience those same problems. If do have any problems though, please come and let us know back here.

March 10, 2016 @ 9:53 am
Rick
Rick's picture

Hi Stephen:

Throughout this entire issue you've tried to maintain a positive attitude towards Costco (specifically Capital One) Mastercard. But having read through all these "horror stories" that cover a date range of almost a YEAR.... (April 4, 2015 to March 28, 2016) I would like to humbly suggest you give up defending this company.

I've been a Costco member for over 10 years and had thought about getting their Mastercard. But, NOT after reading this string of complaints. The Fraud stories are the most troubling. Not just because they occurred in the first place but because of the horrendous lengths of time Capital One is holding the fraudulent charges on the accounts while they "Investigate" the complaints. As some of the writers have claimed, cards issued by Chartered Banks (eg: TD, CIBC, Royal, Scotia, etc.) take action within days. Not MONTHS.

The time for payments to show up is another issue that seems common to "Private" or "Store" cards. When I make online payments on my BANK Visa cards, the payments show up within 24 hours. With EVERY "Private" card I've had - most of them based on Capital One but others being PC Financial, Canadian Tire, etc. - online payments generally took 10 to 21 days to show up. This frequently resulted in the payment arriving "late" and me being charged interest on the months purchases.

The interest charges MORE than ate up the "rewards" earned for the month.

My advise.... unless you have a trashed credit score, go to your BANK for a card. Not only will you get fast action on problems with the card, the interest rates are generally better than private (Capital One, etc.) cards. And if you carry a balance as most people seem to do, most banks offer a card with a $20-$25 annual fee, that cuts the interest rate to around 12% at this time. If you have a $1000 balance on your card, that's $10 interest for the month instead of $16.66 interest at 19.99% annual rates. If you carry a balance, the interest charges alone can take every speck of your rewards away from you. (And frankly, I think that's what the issuers are hoping for.)

April 11, 2016 @ 10:54 am
Stephen Weyman
Stephen Weyman's picture

Thanks for the advice Rick - they certainly deserve a brow beating for all the problems people are complaining about here. But one thing I do realize is that negative comments on the internet tend to be a lot more prevalent than positive ones so I'm trying to take it all in stride. I've also been a Capital One customer before and everything always went fine with my payments, fraud management, etc.

In any case, they do have a lot of lessons to learn from this and these negative reviews are definitely impacting their business because a lot of people are reading them. I'm not suggesting people turn a blind eye - but if the right product came along (this Costco card isn't it) - I'd be willing to give them another shot myself.

April 11, 2016 @ 10:48 pm
DZMITRY
DZMITRY's picture

Just copy & past my message from your other artice about Capital One MC.
Last Monday when I checked my online Capital One MasterCard, I've noticed two fraud transactions-somebody used it in Germany and France.At the same day I was using my card here, in Canada. I immediately contacted MC to report fraud and get a card replacement. After several days and numerous phone call I learned, that investigation will takes up to 60 days and unless it's finished, MC will keep all amount of fraud transactions on my account. Other credit cards company use about one week to solve similar issues. And my case is very clear-it's impossible to be at the same time in Canada, Germany and France). Also, MC did not stop that transactions and did not notified me. Security department rep was rude on the phone and refused to pass my call to his supervisor.
On other hand, my wife has her MC cancelled during our trip in Las Vegas-no phone calls-just cancellation of transaction and credit card.
So, cashback is not so great....I am planning not to use my card and cancel it after they finish fraud investigation.

March 18, 2016 @ 4:42 am
Stephen Weyman
Stephen Weyman's picture

You're saying they just cancelled your wife's card and didn't give her another one?

March 18, 2016 @ 3:26 pm
DZMITRY
DZMITRY's picture

When we came back home, she called Cap1 MC and after that she's got replacement card.

March 18, 2016 @ 6:49 pm
Stephen Weyman
Stephen Weyman's picture

Ok, that makes a little more sense - thanks.

March 18, 2016 @ 11:06 pm
jazz
jazz's picture

How is this interest worked out? last month my balance was 4100 interest was 37 this month my balance is 3200 & interest is 98. Which one is wrong?

March 28, 2016 @ 12:45 am
Stephen Weyman
Stephen Weyman's picture

You'd have to call into customer service to get a breakdown of how they calculated your interest jazz.

March 28, 2016 @ 10:26 pm
John
John's picture

I've been trying to get my credit limit increase for about a year now. Twice I tried and when the CSR check my credit [supposedly] it was declined. It took her about 3 seconds to get an answer. This is impossible to get a answer that quick. I asked for the manager, and she said it is not my credit score, its the fact that no one will get a credit limit increase. The CSR never mentioned this. The CSR just went through the motions. I asked the manager that if it was a hard hit on my credit file, she said no. So the last 6 months i thought my credit rating was not as good as I thought it was, my score is around 800. Not happy with this card.

May 19, 2016 @ 7:44 pm
Brenda
Brenda's picture

Wow ! After reading all these comments, I am afraid to activate my master card I signed up for at costco 2 weeks ago.
I asked at the local Costco if there were any complaints, etc. Was told no and that people just LOVE it and there is rarely any problems ~~ Of course they are told to say this .
I am wondering if we cancel the card before activating if, will it affect our credit rating at all ?

May 31, 2016 @ 6:34 pm
Stephen Weyman
Stephen Weyman's picture

If you applied, a credit inquiry has already been made. That will have a small short term effect on your credit score - no big deal at all. It will bounce back quickly (a few months at most). Nothing to worry about if you want to cancel the card.

May 31, 2016 @ 9:56 pm
DM
DM's picture

I am considering cancelling my card. For the last three months the Capital One Costco web page regularly takes up to five or more minutes to open . Similarly to open a statement will take minutes. Today I am getting this message.
This site can’t be reached
www.capitalonecardservice.ca took too long to respond.

Costco is a first class company. It is unfortunate Capital One is tarnishing their image.

June 15, 2016 @ 12:30 pm
Phil
Phil's picture

I've been a Cap1 Costco card holder since October 2014 when they rolled it out as a remplacement for AMEX. I was very happy with AMEX.

Overall, the card has been easy to use at Costco, and I really like the recent tap-to-pay feature addition.

Thier website is not user-friendly.

What got my ears up today, there was no credit limit increase request feature on thier website...so I called the 1-800 number to ask. I've been using the card at Costco exclusively, but the recent news that WalMart was no longer going to take Visa...I was thinking of using my Cap1 at W-M.

I've had a $10K limit on the card since day one. That limit is substantially lower than my other cards...like mid 5 figures lower. We spend quite a bit every week at W-M since we do our grocery shopping there.

The Cap1 agent said I wasn't eligible... What ? Why ? No explanation given. He just said try again in 6 months. Hence the google search...and I am glad I found this article... Now if W-M decides to open a Sam's Club near me in the near future...

Toodles !

June 17, 2016 @ 1:14 pm
Andrew
Andrew's picture

Do you still have to renew your membership if you own a Costco mastercard. Or is does it act as your membership forever without having to renew? I appreciate any help!

July 04, 2016 @ 4:19 am
Stephen Weyman
Stephen Weyman's picture

I'm not sure on this Andrew, maybe someone else will chime in.

July 05, 2016 @ 12:44 pm
Ingrid
Ingrid's picture

There is a place when you renew your Costco membership where you can select "renew and bill automatically using the MasterCard", but the first time you'll have to log in and renew manually.

July 24, 2017 @ 11:25 pm
Jeff Proulx
Jeff Proulx's picture

Hi All,

I just want to share my story which is recent (July 2016) as this might help others in making their decision. My wife and I travel a lot separately as I work all over the world and we own a place in Asia where she goes to visit while I slave away (LOL!). We had been happy Costco AMEX customers ever since Costco had introduced the executive and AMEX program. That this card was not the most rewarding in dollars or that it was not the most universally-accepted did not matter much as it could be used at Costco's in the US and Mexico - where we go regularly.

Everything worked fine for many years as we never have a monthly balance on our card. We kept AMEX happy. AMEX kept us happy...but then Costco Canada went to the Capital One’s Mastercard last year (2015).
Since then, what a mess!

When I first got the card, the $40,000 credit limit had been reduced to $20,000. This may sound inane but it is a problem when you put multiple airplane tickets on your credit card during a month and, as it happened in 2015, when trying to furnish a house in Asia! Solving this issue was a nightmare: I had to call Capital One to increase my limit which they declined to do even if they could clearly see that airplane tickets were the reason. Stuck in Asia, I started using my other credit cards (AMEX!) and the worst part was that it was not resolved until I got back to Canada and enlisted the help of Costco customer service to restore my credit limit to $40,000.

After that it worked OK until this last week (July 2016) when we went to see friends in California. For some reason, my Capital One Costco did not work. I called customer service and I was told that my card was locked because of security: it had been used in California and that I needed to call them to tell them I was traveling! I explained that I travel all the time and that my credit card needs to work when I travel otherwise why would I bring it with me? I explained that AMEX would call when they suspected something – not just lock the card out! They stated that this was for MY protection and that is how they work.

After I came back last week, I called them again and complained to Costco but to no avail. After hours on the phone, I finally decided to jump to MBNA’s credit card – which I got 10 days later - and have already changed all my accounts to charge that credit card.

So far, everything has gone smoothly with MBNA and you’d think that I’d just forget Capital One? Well, no. It turns out that Capital One considered my card compromised in California and is now sending me a new one. During this time, I have no access to my online account to pay my last bill and the card no longer works (which does not matter anymore but still…).
When I called, Capital One told me again that this was for my “safety” and to add insult to injury: they said that they had canceled my card on July 14th after they had tried to contact me. When I checked my detailed phone records, I explained that there was a 2-second phone call on the date given but nothing else. Capital One started saying that they were used to having their customers hang up because they do not want to pay their bill. I asked him to take a look at my credit limit and see if this was a limit given to a person who does not pay their bills. He apologized profusely but it was too late: you don’t insult clients as an explanation for not contacting them to advise them their credit card was locked.

My recommendation: if you never have problems with credit cards and don’t want any hassles from them either, then stay away from Capital One as this company will not treat you with respect.

Hopefully, MBNA will be more respectful and this review will help others,
Jeff
P.S.: great website by the way.

July 23, 2016 @ 3:32 pm
Stephen Weyman
Stephen Weyman's picture

Thanks for sharing all those details Jeff and for the kind words about the site. Their security system seems like a real pain for travellers. I wish when you told them "I travel all the time" they could just make the system expect that and be much less likely to trigger a security alert but that never seems to be the case.

With MBNA and other cards, I have been able to get them to put a note on my account to that effect and that seems to fix the problem. Doesn't sound like that would work with Capital One though.

July 23, 2016 @ 10:44 pm
Jeff Proulx
Jeff Proulx's picture

Hi Stephen,

I asked Capital One repeatedly to disable this function but to no avail: they stated that this is not their way of doing things and that I would need to call them back every 6 months to say which countries we are traveling to...

FYI,
Jeff

July 24, 2016 @ 12:29 pm
Hassan
Hassan's picture

OMG
I have just applied for Capital one MC yesterday, and received my temporary card from Costco right away, I wish I have seen your comments earlier, now I am thinking of not activating the card and cancel it ...
Costco name always comes with quality, I don't know why they accept such cooperation with a very bad reputation credit card company.

July 24, 2016 @ 5:40 pm
Stephen Weyman
Stephen Weyman's picture

No harm done really. You can either cancel it, keep it active but use it as a backup, or try it and see if you experience any problems yourself and switch to another card if you do.

September 02, 2016 @ 3:15 pm
Jo Ann
Jo Ann's picture

Sure wish I had found this site before...

I just phoned Capital One and requested an increase in my credit limit as we are purchasing a new heating system from a dealer in the Costco Installation Services Program. As someone who always pays their accounts in full and on time, I was not expecting any problems. However the person I spoke to would only say she could not increase the limit due to an "internal policy". She would not offer any explanation, just kept repeating it was an internal policy. I was shocked as we carry a MUCH higher limit on all our other cards. I was also surprised to read on this site about problems using the card while out of the country. All of the other credit card companies we deal with no longer require advance notice that you will be travelling - their fraud systems are so good that it isn't required. I can only hope that when Costco's contract with Capital One expires, they will seriously consider using ANY other card in the future.

September 02, 2016 @ 2:52 pm
Stephen Weyman
Stephen Weyman's picture

That "internal policy" parroting is very annoying to the customer indeed. If they are going to do this, they should at least come up with a better reason like "we are trying to limit our risk exposure" or something.

September 05, 2016 @ 1:11 pm
Adam
Adam's picture

I've had the Capital One card for over a year and haven't really had any major issues. However I recently tried to set up a pre-authorized payment from my Tangerine bank account. The Capital One online system only accepts bank account numbers that are 7 to 9 digits in length and the Tangerine accounts are 10 digits in length. I called Capital One, figuring that surely they must be able to set it up if I give them my info, but to no avail. The rep couldn't do anything and I asked for a supervisor who told me that they are aware of the problem and there is nothing they can do at the moment.

Another minor annoyance is that when looking at their statements, they don't seem to actually tell you which transactions you are making cash back on. So if there is a vendor for which you are not sure if they are a restaurant, there is no way to really tell.

With silly things like this, it makes me wonder whether they are equipped to properly handle more serious issues should they come up. After seeing these reviews, I am seriously considering cancelling the card.

September 14, 2016 @ 9:31 pm
Stephen Weyman
Stephen Weyman's picture

The Tangerine issue is very frustrating. Not being able to see how cash back is accumulated would also be very frustrating.

October 14, 2016 @ 1:03 pm
Vlad
Vlad's picture

I've had the Capital 1 MC since last December, and was really forced into getting it because I bought a large screen TV at Costco, and that was over my Debit card limit. I too was happy with the Amex card being accepted at Costco and I've had and Amex card for over 25 years. So I was not too happy having to be forced into a new credit card and this was my foray into a Mastercard. I also have a TD Visa cash back card that gives 1% back.

I must say though that I have not had any problems with the C1 MC to date, and on a recent trip this summer to eastern Europe, the C1 MC appeared to provide the best exchange rate when charging purchases to it, even with the 2.5% fee built in. The Amex was close but the Visa seemed to give a worse rate, even though it is also advertised to have a 2.5% charge on the exchange rate.

What I find interesting is that my wife and I switched to using the C1 MC most of the time, although I like to spread my purchases across my three CC's. But all gas and restaurant meals are charged to the C1 MC, and I am checking my "cash-back" balance and it appears to make no sense. Even though this card is supposed to provide 3% back on restaurant and 2% on gas purchases, on my last months balance on $4000, my "cashback" credit was $55. The statement does not disseminate what amount was split between restaurant/gas/other so it almost appears that they are not holding up to their promise. I have not yet gone trough every transaction because there is a lot of them. I just wonder if anyone else has had the same experience.

October 01, 2016 @ 3:47 pm
Stephen Weyman
Stephen Weyman's picture

I feel your frustration. Not knowing if you've gotten a bonus you are supposed to be getting really eats at you. Spending the time to figure it out is almost never worth it either. I think they need to make it a top priority to implement a system for showing their customers which purchases have had the bonus applied.

October 14, 2016 @ 1:06 pm
Gail
Gail's picture

I had one of the worst experiences with a credit card ever and I have been using various credit cards for a very long time. As I have often done in the past, I save my annual rebates to be used towards Christmas purchases in December when money is tight and purchasing is high! I went to Costco to use my rebate coupon to discover that it EXPIRED in July. How can money that I have earned expire and in 6 months? I was told by a Costco supervisor that MasterCard would honor it. I called MasterCard Capital; One and was told by them that Costco could choose to honor it but there was nothing they could do about it! I'm assuming the Costco supervisor just told me to call MC to put me off so I wouldn't 'make a scene' at Costco because I can't believe I was the first person to have ever done that and she was uniformed! MasterCard did offer to credit my account with less than half of the amount that I earned. They would just take the rest for themselves or perhaps it is Costco reaping the benefits. I didn't receive any notification from MasterCard reminding me of the expiry nor were there any reminders at Costco. Perhaps they should offer users the opportunity to automatically credit their accounts with the rebate amount (like so many other credit cards) instead of hoping to cash in on the coupons not validated! MERRY CHRISTMAS to me!

December 14, 2016 @ 1:34 pm
Don
Don's picture

Hate this Capital One card.Make sure you pay monthly bill in full and on time.If not, interest will be calculated from the total amount as if you never paid 1 cent.
I used the card for everything.
I owed $3059.00 due on the 12th.Paid $2000.00 on the 9th and paid $1100.00 on the 15th.Was charged $68.82 in interest.
Called customer service,they said its in writing. Made it sound like they were doing me a favor and they are the only credit company on earth. He would not stop asking me questions so had to pull a Judge Judy quote and said I ask the questions not you. My fault,I quess I should have read everything before accepting the card.
Lost a couple months rebait dollars here.
Did like the AMEX card more.I will be cancelling the card after I get my $348.00 Costco rebait.

January 10, 2017 @ 12:31 pm
Nottoohappyeither
Nottoohappyeither's picture

Problems with this card:
- Very very poor website
- Confusing statements
- Weird policies
- Unfriendly customer service.

Long story short, card information was stolen and had $3000 charged to the account in 2 separate charges. Thankfully I use Mint and was notified that this had taken place, otherwise I wouldn't have known. Called them within minutes of receiving the notification and was able to block the second expense, although it took me 5 months to get the money credited back into my account (which by now had changed numbers due to how Capital One deals with situations like this. This also caused me to have to change everything that was being automatically charged to that account).

Eventually received the $1700 from the first transaction on my account, now it's sitting there since I've stopped using the card and switched to a more reliable one. Capital One keeps giving me the run around when trying to cancel the card since they won't want to write a check for the rebate + existing credit. Have stopped the auto-renewal though, so it is what it is..

My only gripe about it is that when the card is gone, I'll have to carry 2 cards in my wallet...

January 24, 2017 @ 10:54 am
Bob
Bob's picture

I was also a Costco member since 2000. Never had any issues with American Express Costco. Still retain Amex Simply Cash. Always good service.
Capital One Costco card holder now only because it was recommended as the replacement for Amex.
I also find their statements somewhat confusing.
They do not provide good service should you have a breach or fraudulent activity on your card. If you have to cancel your card you lose all your cash back dollar accumulation to that point. In my opinion that is bad business practice.
Furthermore they will not protect or reimburse clients from known fraudulent vendors.
I was caught up in what I call the Costco Caper. I may have been vulnerable and targeted because of the Costco Photo Center breach of data.
Bottom Line the fraudsters place ads usually on facebook with the Costco logo. They suggest they are huge suppliers to Costco and are authorised to provide samples to Costco members only to promote new products. They have a lot of info about you.(likely from the breach)
I was able to track down the owner of the that company I have the owners name address phone # , date of birth etc. This was provided to the RCMP.
Capital One Fraud people seemed disinterested. They did not feel any obligation to refund all the fraudulent money nor flag the company as fraudulent. Maybe the lost client rebate money is enough incentive for them.
Now that I have my cash rebate cheque in hand I will not renew their credit card. Took your advise for Tangerine Mastercard .

For would be Capital One Costco MasterCard holders Your first loss is your least loss.

January 25, 2017 @ 10:13 pm
Dave
Dave's picture

Similar to above re charges.....Was on holiday Jan 10 until Feb. 22 got mail and statement due date feb. 20 called Feb. 24, asked for balance which they confirmed and i paid in full. Received yesterday bill for interest $4.27 balance called reexplained and was told new balance $4.05 due to calling in and paying Feb. 24th......concillation i guess they felt, however first time ever happened with me and them and it was take it no leave it.............i cancelled my card and then was told the rebated i had not used from last year would be also forfited .......i cancelled card mainly because of poor customer service not because i did not get my way and paid interest.
In my years of sales there was a proven factor as what it costs to get a customer verses loose one.

March 08, 2017 @ 12:48 pm
Eissa
Eissa's picture

I have been a Costco member for a long time both in the US and in Canada. I had very good experience with American Express. I used it both in US and Canada. Then in the US, it's substituted by Citi Visa, which is great! The best credit card I ever had. So, Costoc did a great job in the US. However, it did a very poor job in Canada because the Capital One card is really worse than the American Express! I rarely used it!

March 21, 2017 @ 2:13 pm
Bert
Bert's picture

Received card in January -cut them up in April. Takes this company 3 weeks to process payment -then charges you interest on unpaid balance. Pretty good scam!! Customer service told me they would knock 50% of interest charge!! Like saying we are only half pregnant! 68 years old -had credit cards for 50 years, never had a late payment or interest charge.
Stay away from this card!!!

May 14, 2017 @ 10:06 am
NotImpressed
NotImpressed's picture

This card is a landmine. Avoid at all costs!!!

It has it's own rules of 'Cash Advance' that entirely different from other credit cards.

Purchased a $5 lottery ticket and it shown on their statement as an 'Cash Advance' which entitled Capital One to charge Cash Advance Fee $2.75 plus daily interest on it.

By the way, I have just received a new notice that they will increase Cash Advance Fee to $5 starting September 15, 2017. There are also many other changes including a newly added 'New Credit balance inactivity fee'. If your account has been inactive for 6 consecutive billing periods and has a credit balance, a fee equal to the lesser of $5 or the amount of your credit balance will be charged at the end of the 6th billing period.

I don't do 'Cash Advance' defined by all other credit cards and I always pay off my monthly statements.

This is the worst credit card with the worst customer service that I ever encountered.

Costco Canada is partnering with absolutely the worst credit card on earth!

Good thing I hold on to my Amex. Just love Amex and their customer services!!!

May 16, 2017 @ 10:17 pm
robert
robert's picture

don't bother with this card.
they charge heavy fees if you spend past your limit even if you
don't carry a balance
there cx service is terrible too.

June 24, 2017 @ 2:51 pm
vikas garg
vikas garg's picture

Very poor customer service, Can't believe customer care girl just hung up on me.
Unhappy to have capital one card.

July 06, 2017 @ 12:48 pm
Martin
Martin's picture

I had misunderstood an info on their website. It cost me 50$. Talked to a superviser and got a refund:)
The card works just fine for me.

July 26, 2017 @ 11:59 pm
Eddy
Eddy's picture

I have read some of the reviews and decided to add my voice to these. This Capital One card has to be the worst thing that ever happened to me. I bought samples from a company and had the charge of approximately $12.00 brought to my account because Capital One owed me approx. $14.00. To my surprise I get a charge on my credit card for over 200.00. Immediately I called them and disputed the amount I was told by the security department to call "the company" I don't know who, to ask for a credit. Being irritated with that response I cancelled my card. To my surprise a month later and another charge from that company was added to my cancelled credit card account.
Again trying to reason with these people is useless A WASTE OF TIME ENERGY AND BREATH!!!
Oh and by the way they have since sent me 3 new cards to activate, which I am not. And to all who read this CHEC WITH THE CREDIT BOARDS. CAPITAL ONE WILL TRY TO DESTROY YOUR CREDIT SO STAY ON TOP OF IT

TY FOR YOUR TIMT

August 16, 2017 @ 7:38 pm