Costco has quietly increased gas rewards for holders of its branded credit card.
Members with the Costco Anywhere Visa card, issued by Citi, can now expect to earn 5% cash back at Costco gas pumps, up from 4%.
The higher rewards only apply to gas stations located at the warehouse giant and do not extend to gasoline purchases outside the company or electric vehicle (VE).
However, any other eligible gas purchased outside of Costco and electric vehicle charging will receive 4% cash back.
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Customers line up at the membership and customer service counter at Costco in Florida. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
The 5% and 4% cash back rates only apply to a member’s first $7,000 in annual purchases, allowing members to earn up to $350 instead of the previous maximum of $280.
Once this annual spending cap is reached, the cash back rate drops to 1% for the rest of the year.
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Customers wait in line at a Costco gas station in Concord, Calif., Wednesday, June 22, 2022. (David Paul Morris/Bloomberg/Getty Images)
“If you’re a Costco member, you may be able to earn Costco Cash Back on your gas purchases with the Costco Anywhere Visa Card”, said Citi. “It offers great cash back on fuel as well as other purchases, saving you money.”
The move effectively incentivizes Costco’s more than 80 million paying members to switch to the co-branded credit card, thereby increasing profitability while fostering even greater loyalty among its already devoted customer base.
A Costco store in Alhambra, California on Thursday, June 27, 2024. (Eric Thayer/Bloomberg via Getty Images / Getty Images)
Costco has repeatedly emphasized that one of the company’s top priorities is maintaining a high renewal rate, which has hovered around 90% over the years.
Teleprinter Security Last Change Change % COST COSTCO GROSS CORP. 963.61 +6.86 +0.72% Other rewards offered by the card remain unchanged. Cardmembers will continue to earn 3% cash back on eligible dining and travel, including Costco Travel, and 2% on purchases. at Costco and 1% on all other purchases.
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The Costco Anywhere Visa Card, which includes benefits like no foreign transaction fees and strong travel protections, has no annual fee but requires an active Costco membership.
Rewards are issued once a year in certificate form, usually after the February billing cycle, and are redeemable for cash or merchandise at Costco warehouses.
FOX Business has reached out to Costco for more information.
