Costco in the U.S.
Every year, thousands of snowbirds migrate to the warm climate of Florida to escape the rigors of the Canadian winter. During these winter months, one of the essential shopping stops is Costco.
Costco membership allows you to enter any Costco warehouse worldwide. So you might as well take advantage of this US$1.50 hot dog and US$4.99 cooked chicken!
Costco in the U.S. and Visa
The other side of the border is different. Only Visa cards are accepted at Costco warehouses in the United States.
When using a Canadian credit card outside the country, a foreign currency conversion fee of 2.5% applies to all transactions.
For example, this means that a purchase of $100 USD made in the U.S. and charged to a Canadian credit card costs you $139.40:
- Approximately $136 in Canadian dollars (based on the current exchange rate, established by Visa or Mastercard)
- CA$3.40 conversion fee ($136 X 2.5%)
A few rare Canadian credit cards allow you to avoid this sneaky conversion fee:
- HSBC World Elite® Mastercard®
- Scotiabank Gold American Express® Card
- Scotiabank Passport™ Visa Infinite* Card
- Scotiabank Platinum American Express® Card
Only one Visa is on this list for our use at Costco: the Scotiabank Visa Infinite* Passport® card.
With the Scotiabank Passport™ Visa Infinite* Card, you earn 25,000 points after just $1,000 in purchases, representing a $250 value. And each year, if you make at least $40,000 in Card purchases, you’ll earn 10,000 additional points ($100 value).
With the Scotiabank Passport™ Visa Infinite* Card, you earn 3 points per dollar spent at Sobeys, IGA, Safeway, Foodland, FreshCo, Voilà by Sobeys, Voilà by IGA, Voilà by Safeway, Chalo! FreshCo, Thrifty Foods, IGA West, Les Marchés Tradition, Rachelle Béry and Co-Op.
Also, you earn 2 points per dollar for:
- grocery purchases
- dining purchases
The Scotiabank Passport™ Visa Infinite* Card is an excellent Visa credit card for this type of purchase.
You can redeem your points for any travel purchases (flights, hotels, all-inclusive and even Airbnb). You can also use your points as cash back rewards with Scene+.
The Scotiabank Passport™ Visa Infinite* Card also offers:
- no foreign transaction fee
- 6 complimentary passes to airport VIP lounges
- Premium insurance for your travels or purchases
- Concierge services
Scene+ points from this credit card can be used to deduct your Florida travel expenses! In fact, 1,000 Scene+ points gives you $10 less on your Scotiabank Visa Infinite* Passport® card balance. This way, you can :
- Earn Scene+ points on your Costco warehouse purchases
- Redeem your Scene+ points for credits on your Florida travel expenses
- Avoid the usual 2.5% conversion fee
Do you have a Social Security Number (SSN), an Individual Taxpayer Identification Number (ITIN) or a U.S. address? If so, you may be eligible for an American credit card.
This could earn you the Chase Aeroplan® World Elite Mastercard. This way, your seasonal flights south of the border can be financed with your accumulated Aeroplan points!
In addition, it gives its holder :
- First bag free of charge
- No foreign currency conversion charges
- $ 100 credit towards NEXUS membership or renewal
- A preferential rate for tickets paid for with Aeroplan points.
- Aeroplan 25K Status
Its only drawback is that it cannot be used in Costco warehouses. But it can be a good combination to have with the Scotiabank Visa Infinite* Passport® card all year round.
These tips are available to make life easier and less costly during the annual migration south.
Don’t forget to pay your credit card balance in full every month! Otherwise, the savings will be wiped out by interest charges.