Costco has discreetly increased gas rewards for holders of its branded credit card.<\/p>\n\n\n\n
Members with the Costco Anywhere Visa Card, issued by Citi, can now expect to earn 5% cash back at Costco gas pumps, up from the previous 4%. <\/p>\n\n\n\n
The higher rewards apply only to gas stations located at the warehouse giant and do not extend to any gas purchases outside the company or electric vehicle<\/a> (EV) charging. <\/p>\n\n\n\n However, all other eligible gas purchased outside of Costco and EV charging will earn 4% cash back. <\/p>\n\n\n\n Customers line up at the Costco membership and customer service counter in Florida. (Lindsey Nicholson\/UCG\/Universal Images Group via Getty Images \/ Getty Images)<\/p>\n\n\n\n Both the 5% and 4% cash back rates apply only to the first $7,000 in a member\u2019s annual purchases, allowing members to earn up to $350 instead of the previous maximum of $280.<\/p>\n\n\n\n After hitting that annual spending cap, the cash back rate drops to 1% for the rest of the year.<\/p>\n\n\n\n Customers line up at a Costco gas station in Concord, California, on Wednesday, June 22, 2022. (David Paul Morris\/Bloomberg \/ Getty Images)<\/p>\n\n\n\n “If you\u2019re a Costco member, you may be able to earn Costco Cash Back Rewards on gas purchases with the Costco Anywhere Visa Card<\/a>,” Citi said. “It offers great cash back rewards on fuel as well as other purchases, allowing you to save money.”<\/p>\n\n\n\n The move effectively incentivizes Costco\u2019s more than 80 million paid members to upgrade to the co-branded credit card, boosting profitability while fostering even greater loyalty among its already devoted customer base.<\/p>\n\n\n\n A Costco store in Alhambra, California, on Thursday, June 27, 2024. (Eric Thayer\/Bloomberg via Getty Images \/ Getty Images)<\/p>\n\n\n\n Costco has repeatedly emphasized that a top company priority is maintaining a high renewal rate, which has been hovering roughly 90% over the years. <\/p>\n\n\n\n Other rewards offered by the card remain unchanged. Cardholders will continue to earn 3% cash back on restaurants and eligible travel, including Costco Travel, 2% on purchases at Costco<\/a> and 1% on all other purchases. <\/p>\n\n\n\n The Costco Anywhere Visa Card, which includes perks such as no foreign transaction fees and robust travel protections, carries no annual fee but requires an active Costco membership. <\/p>\n\n\n\n Rewards are issued once a year as a certificate, typically after the February billing cycle, and are redeemable for cash or merchandise at Costco warehouses. <\/p>\n\n\n\n FOX Business reached out to Costco for more information.<\/p>\n\n\n\n