Costco subtly increases gas rewards for credit card users to 5% cash back.

Costco Boosts Gas Perks for Credit Card Holders

Costco has made a cautious adjustment to its gas rewards for members holding private label credit cards.

If you’re a holder of the Costco Anywhere Visa card from Citi, you’ll now earn 5% cash back at Costco gas stations, an increase from the previous 4%.

This enhanced cash back offer is applicable exclusively at Costco’s on-site gas stations, meaning it won’t apply to fuel purchases made elsewhere or to electric vehicle (EV) charging. However, you can still earn 4% cash back on eligible gas and EV purchases made outside of Costco.

Both the 5% and 4% cash back rates apply to the first $7,000 spent annually, allowing members to earn up to $350, which is a bump from the earlier maximum of $280.

After hitting that annual spending limit, the cash back rate drops to 1% for the remainder of the year.

Citi mentions, “If you’re a Costco member, you could earn Costco Cash Back Rewards when you buy gas using your Costco Anywhere Visa Card.”

This strategy seems aimed at encouraging the over 80 million Costco members to consider co-branded credit cards, which might enhance profitability while deepening customer loyalty.

Costco has consistently underscored that keeping renewal rates high, which have been around 90% for several years, is a key priority for the company.

Moreover, other benefits linked to the card remain unchanged. Cardholders continue to earn 3% cash back on eligible travel—including dining and Costco Travel—2% on purchases made at Costco, and 1% on everything else.

The Costco Anywhere Visa Card also features benefits such as no foreign transaction fees and solid travel protection, with no annual fee, although active Costco membership is required.

Rewards are issued annually as a certificate, typically after February’s billing cycle, which can be redeemed for cash or merchandise at Costco warehouses.