Just when we thought we couldn't love Costco any more, the warehouse store adds an exciting new perk
I have a large family, which makes my Costco membership a nonnegotiable. I’m there at least once a week to stock up on things like pantry staples, paper goods and even ready-to-eat dinners on busy weeknights. And I almost never leave without filling my tank with Costco gas. It’s a no-brainer: Costco’s prices are cheaper than other retail gas stations, and the quality of Kirkland Signature gas is just as good.
That’s why I was especially pumped to learn that Costco just announced an exciting new money-saving perk at the pump. Yep! You read that right: There’s a way to save even more on gas.
Read on to learn how you can get more bang for your buck at Costco.
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How can you get cash back on gas?
Cash back on Costco gas isn’t new. Members who have a Costco Anywhere Visa Card by Citi have been able to earn 4% cash back on eligible Costco gas purchases for the first $7,000 they spend per year. In other words, they could earn up to $280 in a year by using their Costco credit card to fill up on Kirkland Signature gas.
Now, Costco has increased that to 5% cash back for the first $7,000. That means cardholders can now earn up to $350 cash back on Costco gas purchases, and 1% thereafter. That’s an extra $70! For perspective, a Gold Star Costco membership is $65.
The 5% cash back is available only at Costco gas stations, but that doesn’t mean you can’t earn cash back elsewhere. Cardholders will earn 4% cash back on other eligible gas and electric vehicle (EV) charging when they use their Costco Anywhere Visa. The 5% and 4% earnings are on a combined $7,000 per year. Once you reach that threshold, you’ll earn 1% cash back.
Cash back earnings are provided as an annual credit card reward certificate once your February billing statement closes. This certificate is redeemable for cash or merchandise at U.S. Costco Warehouses.
Who can take advantage of this perk?
This perk is exclusively available to Costco members with a Costco Anywhere Visa Card by Citi. While there are ways to shop at Costco without a membership, you must have a current Costco membership in your name in order to apply for the Costco Anywhere Visa Card by Citi.
Keep in mind that you can’t get 5% cash back on Costco gas purchases with a Costco membership alone. You’ll need a Costco Anywhere Visa to get the cash-back perk.
Are there any other perks to the Costco credit card?
In addition to earning 5% cash back on Costco gas and 4% on other eligible gas and EV charging, cardholders can earn money back on just about everything. A Costco credit card offers:
- 3% cash back on restaurants and eligible travel, including Costco travel packages
- 2% cash back on Costco and Costco.com purchases
- 1% cash back on everything else.
You can earn cash back rewards anywhere Visa is accepted.
Can you still earn cash back without a Costco credit card?
You need a Costco credit card to earn 5% cash back on Costco gas, but there’s a way to earn cash back on other items without the Costco Anywhere Visa.
Costco Executive members earn 2% cash back on qualifying Costco, Costco.com and Costco travel purchases. However, they do not earn 2% cash back on Costco gas, Costco Shop Cards or postage stamps. They won’t get that 5% cash back on Costco gas either. And depending on their state, they may not earn rewards for purchases made at Costco liquor stores and pharmacies.
At this time, an Executive membership has an annual cost of $130.
Is the Costco credit card worth it?
If you’re a frequent flier at Costco and happen to be in the market for a new credit card, then the Costco Anywhere Visa Card by Citi is a great choice. There are no annual fees or foreign transaction fees, and your credit card doubles as your Costco membership card. Just note that Citi may cancel your card account and participation in the Cash Back Rewards Program if you do not maintain your Costco membership.
Speaking of your Costco membership: Auto-renewal fees are conveniently charged directly to your Costco credit card. There’s no discount on your membership when you open a Costco credit card, but if you’re an Executive member, you’ll earn rewards on your Costco credit card as well as your Executive membership rewards. Cha-ching!
Before you rush to sign up, however, you’ll want to make sure there’s a Costco gas station near you. While most Costco warehouses do sell gas, it’s not a universal offering. If you don’t have a Costco gas station nearby, then this credit card may not make sense. Step 1: Check Costco’s website to see if there’s a Costco gas station near you.
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