Costco Boosts Gas Cash Back to 5% and Adds $1,000 Member Savings
Costco raised its credit card cash back on fuel purchases at its gas stations from 4% to 5%, capped at $7,000 annually before dropping to 1%. This enhancement could save members up to $1,000 annually compared with Sam’s Club’s card offering 5% cash back on fuel up to $6,000.
1. Credit Card Benefit Enhancement
Costco increased its cashback rate on fuel purchases at its warehouses’ gas stations from 4% to 5% for Citi Anywhere cardholders. The change applies only to purchases at Costco-branded stations and is effective immediately.
2. Membership Value and Cash Back Cap
The upgraded benefit features an annual cash back cap of $7,000 on fuel spending, after which the rate falls to 1%. Costco CFO Gary Millerchip stated this move aims to boost perceived membership value and drive engagement.
3. Competitive Comparison with Sam’s Club
Sam’s Club’s card offers 5% cash back on gas purchases anywhere up to a $6,000 limit. Costco’s new structure could allow members to earn an additional $1,000 annually under the higher cap at its own stations.