The Costco Visa Card (aka the ‘Costco Anywhere Visa Card by Citi‘) just launched 2 fairly significant changes to its cash back rewards program. First, gasoline purchased from Costco gas stations now earns 5% (up from 4%). Other gas stations still earn 4%. Second, EV charging – a new addition – now earns 4% cash back. The 5% and 4% earn on all gas station (including Costco) and EV charging is capped at a combined $7,000 spend per year, and then 1% thereafter. These changes, plus a visual makeover to the card, are the full extent of the changes – so this appears to be all upside.
To longtime readers, it’s no secret that I’m a longtime Costco member (I also have zero affiliation to the company). Costco’s “Kirkland Signature” store brand products typically offer significant cost savings over comparable alternatives, in addition to discounted bulk-packaged name brands. I find the Kirkland Signature dog and cat food, appliances (which have an excellent warranty), toilet paper, Kirkland Signature alcohol, pharmacy prescriptions and vaccinations, canned goods, vitamins/supplements, and a variety of nuts to be among the best bargains at Costco.
But, one of the best bargains at Costco has been Costco gasoline (also ‘Kirkland Signature’ brand). Gas price comparison shopping website, gasbuddy.com, frequently shows the Costco gas price to be about 10-15% cheaper than the average gas station in the area. For example, if the local gas station average near me is $3.50, Costco is usually around $3. Your mileage may vary, but I’ve heard this from other Costco members in different locations as well.
Why make this credit card change on what was already a great value? My suspicion is that Costco wanted its credit card to keep up with Sam’s Club’s credit card. I think Costco vs Sam’s Club as a membership choice is fairly simple (if you only are picking one), but the Sam’s Club Mastercard had long been offering 5% in ‘Sam’s Cash’ back on gas station purchases – more than the Costco Visa. The membership store retailers have a long history of trying to match and one-up each other, which is to our benefit, I suppose. It’s probably also to help maintain the Costco Visa’s status as one of the best credit cards to use at Costco as there are others that can potentially earn you even more cash back. In my view, The Costco Visa has no annual fee for Costco members, so it’s a bit of a no-brainer for Costco members to add to their wallets, especially now.
Here’s a before and after list of benefits to the Costco Visa, post this 2025 card upgrade:
While I’m not a big fan of the recent Costco membership fee price increases, I still think that the Costco membership fee is worth the cost. Recently, I’ve been enjoying the discounted Instacart gift cards at Costco, and turning those around to save money on Costco Instacart and Costco Same Day purchases. If you become a member and don’t find the value, you can ask for a Costco membership fee refund at any time.
I’ve highlighted a number of ways to shop at Costco without a membership before, but you do need a Costco membership to buy Costco gas (with one exception: use of a Costco Shop Card, which is not eligible for 5% cash back). Enjoy the cash back upgrade!
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