By Adam Jusko, ProudMoney.com, firstname.lastname@example.org
The Costco Anywhere Visa is a cash back credit card only offered to Costco members. It is issued in partnership with Citibank.
Cash Back Formula Explained
You’ll earn cash back with the Costco credit card in the following ways:
- 4% cash back on gas purchases at Costco and gas stations on up to $7000 per year of gas (1% beyond that)
- 3% cash back on restaurant and travel purchases
- 2% cash back on Costco purchases
- 1% cash back on all other purchases
There is no opportunity for a signup bonus with this card, so you don’t have the opportunity to earn a quick $100 or $200 upfront like you do with many other cash back cards.
Redemption Procedure Gets A Thumbs Down
You only get your accumulated cash back once per year, in February, based upon your earnings in the prior calendar year. In addition, you get a rewards certificate sent to you that you must bring to a Costco store to get your cash back or to use toward your Costco purchases that day.
We don’t like this. First, most people like to have the flexibility to redeem their rewards more than once per year, even if those rewards are fairly small. Second, by forcing you to redeem at a Costco store location, Costco seems to be subtly trying to get you to use your rewards on more Costco purchases. They could just as easily give you those rewards as a statement credit, thus allowing you to put them toward any of your card purchases.
For the most part, this is a small quibble. Most people don’t redeem more than once per year, and the procedure that forces you into a Costco store is probably more about making you “feel” the reward (and feel good about it) than it is about forcing you to buy more from Costco. (The truth is you will probably buy plenty more from Costco than the amount of your rewards anyway, or you wouldn’t have paid for a Costco membership in the first place, amiright?)