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By Amanda Greenwood
Associate News Editor
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Costco has increased the gas cash back rate on its co-branded “Costco Anywhere Visa Card,” by Citi, to 5 percent at Costco gas stations, up from 4 percent, according to reports by Fox Business.
Newsweek has reached out to Costco via email for comment.
What Does This Change Mean for Costco Customers?
Fox Business states that the change has the potential to increase the annual earning potential on gas to as much as $350—up from a previous maximum of $280, when the top cash back rate was 4 percent.
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In its most recent earnings call—according to reporting by Yahoo Finance—Costco CFO, Gary Millerchip, said: “We're committed to continuing to improve the value of the membership. We've made some major changes recently with the extended opening hours and the Instacart benefits and 5 percent gas on the credit card, but we'll continue to look for ways to add greater membership value.”
The move could encourage more Costco customers to upgrade to the co-branded card, which already has more than 80 million paid members—a base the company has said it aims to retain at renewal rates around 90 percent.
Costco CEO, Ron Vachris, told Fortune magazine in 2024 that “the most important item we sell is the membership card. Everything we do supports that transaction.”
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Costco’s 5 Percent Cashback Rate Increase: The Details
Fox Business states that the new 5 percent cashback rate only applies to gas purchased at Costco fuel stations, while gas bought outside Costco—and electric-vehicle charging—will continue to earn the old 4 percent cashback rate.
Both the 5 percent and 4 percent rates will only apply to the first $7,000 in a member’s annual combined gas and EV charging purchases. After this cap is reached, the cashback rate will drop to 1 percent for the remainder of the year.
Fox Business says that other card cashback rewards remain unchanged, meaning Costco members will get 3 percent cash back for eligible restaurants and travel, 2 percent in Costco stores, and 1 percent on all other purchases.
The Costco Anywhere Visa Card carries no annual fee, but requires an active Costco membership, and has no foreign transaction fees and travel protections.
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.
Although Costco has not publicly announced these changes, Citi told Fox Business, "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. It offers great cash back rewards on fuel as well as other purchases, allowing you to save money."
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