Costco’s Co-Branded Credit Card Now Pays 5% on In-Store Gas Purchases

Costco has quietly raised gas rewards for members who use its co-branded credit card, giving shoppers a new way to save at the pump.

Holders of the Costco Anywhere Visa Card by Citi now earn 5% cash back on gas purchased at Costco gas stations, up from the previous 4%.

The higher rate applies only to gas bought at Costco locations. Gas purchases made elsewhere and electric vehicle (EV) charging still earn 4% cash back.

The change makes Costco’s in-store gas one of the most rewarding fuel options for cardholders.

Both the 5% and 4% gas rewards apply to the first $7,000 spent each year. That means members can earn up to $350 annually on gas, compared with the old maximum of $280, NY Post reported.

After reaching the cap, gas purchases earn 1% cash back for the rest of the year.

“If you’re a Costco member, you may be able to earn Costco Cash Back Rewards on gas purchases with the Costco Anywhere Visa Card,” Citi said. “It offers great cash back rewards on fuel as well as other purchases, allowing you to save money.”

Costco Encourages Card Upgrades

The move appears designed to strengthen loyalty among Costco’s more than 80 million paid members.

By boosting rewards at its own gas stations, Costco gives shoppers another reason to visit its warehouses more often and consider upgrading to the credit card.

The company has long said that keeping a strong renewal rate is a top goal, and that rate has stayed near 90% for years.

According to FoxBusiness, other rewards on the card remain the same. Cardholders still earn 3% cash back on restaurants and eligible travel, including Costco Travel. Purchases made inside Costco earn 2% cash back, while all other purchases earn 1%.

The card includes added benefits such as no foreign transaction fees and travel protections, which can be helpful for members who travel.

There is no annual fee for the card itself, but users must maintain an active Costco membership to keep it.

Cash back rewards are not paid monthly. Instead, members receive a reward certificate once a year, usually after the February billing cycle.

The certificate can be redeemed for cash or merchandise at Costco warehouses.

Originally published on vcpost.com