Costco has quietly sweetened the deal for its most loyal shoppers, rolling out an understated but meaningful upgrade to gas rewards for holders of its co-branded credit card.
Members using the Costco Anywhere Visa Card issued by Citi will now earn 5 percent cash back on gasoline purchased at Costco gas stations, up from the previous 4 percent, a change that adds up quickly for households that regularly fill up at the warehouse giant’s pumps.
The higher reward rate is narrowly targeted. The 5 percent cash back applies only to gasoline purchased at Costco-branded stations and does not extend to fuel bought elsewhere or to electric vehicle charging. Gas purchases made outside of Costco, along with EV charging, will continue to earn 4 percent cash back, maintaining the card’s competitive position among rewards cards for everyday transportation expenses.
Both the 5 percent and 4 percent gas rewards are capped at the first $7,000 in annual spending, but that cap now carries more value. Under the new structure, members can earn up to $350 per year in gas rewards, compared to the previous maximum of $280. Once that spending threshold is reached, the cash back rate drops to 1 percent for the remainder of the year, consistent with the card’s existing terms.
Citi framed the enhancement as another way for Costco members to stretch their budgets, highlighting the card’s ability to generate meaningful cash back on fuel and other routine purchases.
While the announcement was subdued, the strategy behind it is clear. With more than 80 million paid members, Costco is leveraging one of its most heavily used services—gasoline—to encourage adoption of its branded credit card and deepen customer loyalty.
That focus aligns with Costco’s long-standing emphasis on retention. The company routinely reports renewal rates hovering around 90 percent, a figure that underpins its business model and profitability. Incremental perks like enhanced gas rewards reinforce the value of membership without materially altering Costco’s low-margin approach to retail.
Other card benefits remain unchanged. Cardholders still earn 3 percent cash back on restaurants and eligible travel purchases, including Costco Travel, 2 percent on purchases made at Costco warehouses and online, and 1 percent on all other spending.
The card carries no annual fee but does require an active Costco membership, and it includes additional features such as no foreign transaction fees and travel protections.
