Why the Costco Anywhere Visa Business Card is a no-brainer for business owners
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Costco Anywhere Visa® Business Card by Citi Overview
The Costco Anywhere Visa® Business Card by Citi is a reasonable option for small businesses that prefer cash-back rewards and have a Costco membership. Despite its name, the card doesn’t only earn bonus rewards on Costco purchases, so it can be a useful card for many types of small businesses that already shop at Costco. Card Rating*: ⭐⭐⭐
*Card Rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.
My parents own a small business that provides accounting and computer consulting services. To save money, they purchase most of their office supplies at a local warehouse club similar to Costco. If you or your small business has a Costco membership — or is considering a Costco membership — this review can help you determine whether your business could benefit from the Costco Anywhere Visa Business Card by Citi.
Who is this card for?
The Costco Anywhere Visa Business Card is a reasonable choice for small businesses that already have a Costco membership or could save enough shopping at Costco to justify a membership. Especially if your business spends a lot on gas, travel or dining, you may come out ahead. However, since this card earns cash-back rewards, it’s best for companies that prefer the simplicity of cash back over the potential to maximize points or miles.
The Costco Anywhere Visa Business Card doesn’t charge an annual fee, but you and any authorized users on your account must each have a Costco membership. For reference, a Costco membership is $60 per year plus taxes for Gold Star and Business members (you can upgrade to an Executive membership for an additional $60 per year plus taxes). Affiliate Business members that are added to a Business membership must pay $60 per year plus taxes each. So, Costco membership fees will add up quickly if you have more than a few employees that you want to add as authorized users on your card.
The Costco Anywhere Visa Business Card doesn’t advertise a sign-up bonus. However, you may be targeted for a special offer at a Costco warehouse or when you sign up for a Costco membership.
Main benefits and perks
The Costco Anywhere Visa Business Card provides modest perks. First off, your card can double as your Costco membership ID. And, unlike many store cards, you can use your card anywhere worldwide that accepts Visa. Plus, you won’t be charged any foreign transaction fees on purchases you make outside the U.S.
As mentioned, you can also add employees as authorized users, although each employee you add will need to have their own Costco membership.
How to earn rewards
With the Costco Anywhere Visa Business Card, you’ll earn rewards based on the purchases you make with your card. Interestingly, despite the card being a co-branded Costco credit card, purchases with Costco do not earn at the highest rate on this card. So, let’s take a closer look at the card’s bonus categories.
4%: Eligible gas purchases
You’ll earn 4% cash back on eligible gas worldwide (including gas at Costco) for the first $7,000 per year in eligible gas purchases (then 1%). Gas purchased at superstores, supermarkets, convenience stores, and warehouse clubs other than Costco or for fuel used for non-automobile purposes is not eligible and will only earn 1%.
3%: Restaurants and eligible travel
You’ll earn 3% cash back at restaurants and on eligible travel purchases worldwide. To earn 3% cash back, restaurants include cafes, bars, lounges and fast-food restaurants. Purchases made at bakeries and certain restaurants/cafes inside department stores, grocery stores or warehouse clubs are excluded and will only earn 1%. Eligible travel purchases include airfare, hotels, car rentals, travel agencies, cruise lines, and Costco Travel, but excludes train travel, commuter travel, and purchases made at timeshares, campgrounds, and bed and breakfasts.
You’ll earn 2% cash back on all other purchases from Costco and Costco.com.
1%: Everything else
You’ll earn 1% cash back on all other purchases, including the non-qualifying purchases listed above.
How does this stack with a Costco Executive membership?
If you have a $120-per-year Executive membership with Costco, you’ll get an annual 2% reward (up to $1,000 back per year) on qualified Costco purchases. Although the Executive membership usually won’t be worthwhile unless you spend at least $250 each month on qualifying purchases at Costco, this additional 2% reward is stackable with the Costco Anywhere Visa Business Card. So, between the Costco Everyday Visa Business Card and an Executive membership, you could earn 5% on eligible Costco Travel purchases and 4% on other eligible Costco purchases.
Unfortunately, the terms and conditions of the Executive membership exclude various purchases, including purchases of cigarettes or tobacco-related products, gasoline, Costco Shop Cards, postage stamps, alcoholic beverages in certain states, prescription purchases in certain states, purchases at food courts, and select travel purchases (including surcharges, gratuities, trip protection, travel purchased through a third party, upgrades, rental car equipment, resort charges, and port charges).
Related: The best store credit cards
How to redeem rewards
The Costco Anywhere Visa Business Card earns cash-back rewards, but these rewards are only distributed once each year. Once your February billing statement closes, you’ll get a credit card reward certificate for your Costco Cash Rewards balance based on purchases appearing on the previous year’s January through December billing statements. Note that if your annual reward amount is greater than $10,000, your reward may be provided in an alternative form such as a check or electronic transfer.
You must then redeem your credit card reward certificate in person at any U.S. Costco warehouse (including in Puerto Rico) by Dec. 31 of the year the certificate was issued. You can redeem the certificate for merchandise or cash back. If you redeem for merchandise and your purchase is less than the value of the certificate, you’ll receive the remaining balance in cash upon checkout.
You won’t receive a credit card reward certificate if your reward is less than one dollar or you close your account before your credit card reward certificate is mailed. You must maintain your Costco Membership to redeem your credit card reward certificate. Also, some warehouses may not permit the credit card reward certificate to be redeemed for alcohol purchases.
What cards compete with the Costco Anywhere Visa Business Card?
If you’re looking for a cash-back business credit card, there are a few cards that can compete with the Costco Anywhere Visa Business Card. The best card(s) for your business will primarily depend on the categories in which your business spends the most money. Here are a few other cards to consider:
|Cash back earning rates||Welcome offer||Annual fee|
|Ink Business Cash Credit Card||5% on the first $25,000 spent at office supply stores and on internet, cable, and phone services each account anniversary year
2% on the first $25,000 spent at gas stations and restaurants each account anniversary year
1% on everything else
|$750 bonus cash back after you spend $7,500 on purchases in the first three months after account opening
0% intro APR on purchases for the first 12 months, after that, a variable APR of 13.24% – 19.24% applies
|Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card||3-5.25% in the category of your choice: gas stations, office supply stores, travel, TV/telecom and wireless, computer services or business consulting services*
2-3.5% on dining*
1-1.75% on all other purchases*
|$300 statement credit when you make at least $3,000 in net purchases within 90 days of your account opening||None|
|American Express Blue Business Cash™ Card||2% on all eligible purchases on up to $50,000 per calendar year, then 1% cash back earned is automatically credited to your statement.
|Earn a $250 statement credit after you make $3,000 in purchases within the first three months of card membership||None (see rates and fees)|
*3% and 2% earning is only for the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter. Get up to 75% more cash back on every purchase, depending on your Preferred Rewards for Business status.
Depending on what type of purchases your business usually makes, one or more of these cards may provide stronger earnings for your business than the Costco Anywhere Visa Business Card. Alternatively, you may want to add the American Express Blue Business Cash™ Card to your wallet for use on the expenses that would otherwise only earn 1% cash-back rewards on the Costco Anywhere Visa Business Card.
The Costco Anywhere Visa Business Card by Citi is a cash-back rewards business credit card available to Costco members. The cash-back rewards are only distributed once each year, and you must visit a U.S. warehouse location (including locations in Puerto Rico) to obtain your rewards — which may be frustrating to some businesses that want to be able to access their rewards more frequently.
However, if your business can get value from a Costco membership and prefers earning cash-back rewards, it may be worth adding the Costco Anywhere Visa Business Card to your wallet. This card can be handy if you’re already a Costco member and your business commonly incurs notable expenses related to gas, restaurants, travel or Costco purchases.
Apply here for the Costco Anywhere Visa Business Card by Citi.
Additional reporting by Stella Shon.
For rates and fees of the Amex Blue Business Cash Card, please click here
Featured image by Eric Helgas for The Points Guy.
Welcome to The Points Guy!
- Discover the only business credit card designed exclusively for Costco members
- 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter
- 3% cash back on restaurants and eligible travel purchases
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
- No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- Whether you're traveling for business or pleasure, enjoy no foreign transaction fees on purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico