Costco has quietly boosted the cash back rate for its Costco Anywhere Visa Card issued by Citi, raising gas rewards at in-warehouse Costco pumps from 4% to 5%. This enhanced rate applies to the first $7,000 of annual fuel purchases at Costco locations, up from the previous maximum cash-back cap of $280 to $350. Cardholders still earn 4% back on gas and EV charging outside Costco and 1% on all other purchases after the cap is reached.

The move is designed to drive greater credit-card adoption among Costco’s more than 80 million paid members, offering an incremental incentive to upgrade to the co-branded card. By increasing the rewards ceiling, Costco expects to boost card-led fuel spend, which carries higher interchange revenue for Citi and incremental shopping trips at warehouse locations, potentially lifting ancillary sales and membership renewals.

Costco’s membership renewal rate has consistently hovered around 90%, a key performance metric for the retailer’s recurring revenue model. The enhanced gas rewards reinforce the company’s strategy of deepening engagement through value-added perks, while maintaining its no-annual-fee card policy. Executives view this as part of a broader effort to sustain high retention, drive average spend per member, and support long-term profitability.