Costco quietly lifts rewards on its branded card to 5% at Costco gas pumps, boosting annual earnings cap
Costco and Citi raised the cash-back rate on the Costco Anywhere Visa Card at Costco fuel pumps from 4% to 5%, increasing the combined gas and EV charging cap to $7,000 and the annual reward potential to $350.
Key takeaways
- Costco gas pumps pay 5% cash back at Costco fuel locations worldwide (up from 4%) — see the Citi FAQ.
- Gas and EV charging outside Costco earn 4% (still limited to the $7,000 combined annual cap) — reported by Fox Business and the Citi FAQ.
- The $7,000 combined cap raises max annual gas rewards to $350 (previous cap yielded $280); after $7,000 the rate drops to 1% for the remainder of the year.
- Other card tiers are unchanged: 3% on restaurants/travel, 2% at Costco/Costco.com, 1% on other purchases — overview from NerdWallet and Fox Business.
Main content
Key information
The core change is straightforward: the Costco Anywhere Visa Card, issued by Citi for Costco members, now pays 5% cash back at Costco gas stations globally on fuel purchases. The upgraded rate applies to purchases processed as Costco fuel and is documented in the Citi FAQ. Purchases for gas and EV charging made outside Costco locations continue to earn 4% cash back (subject to the same annual cap), as reported by Fox Business.
Why the change matters
For frequent drivers, this quiet boost is a meaningful increase in value. At the full $7,000 combined gas and EV charging cap, the 5% rate yields up to $350 annually versus the previous $280. That additional $70 can be notable for households and small businesses that regularly purchase fuel.
“The upgrade appears to apply globally at Costco fuel locations, but Citi’s document does not expand the higher rate to fuel purchases made elsewhere.”
How the change was rolled out
Costco and Citi made this adjustment without a major press release; coverage describes it as a discreet update communicated through partner materials. Industry reporting suggests the quiet approach may have been chosen for operational testing or to limit attention to a benefits tweak (Fox Business).
Because the change was low-key, some members remain unsure whether it applies in every market or to online transactions; Citi’s FAQ is the authoritative reference.
What the fine print says
- 5% applies only to gas purchased at Costco stations — see the Citi FAQ.
- Gas and EV charging outside Costco earn 4%, with the same $7,000 combined annual limit (Fox Business; Citi FAQ).
- After $7,000 the cash back rate falls to 1% for the rest of the calendar year (Fox Business).
- Rewards are paid annually as a certificate after the February billing cycle and expire on December 31 of the year issued; members earning $500+ may request direct deposit (Citi FAQ; NerdWallet).
Other card features remain intact
Earning tiers otherwise unchanged: 3% back on restaurants and eligible travel, 2% back on Costco and Costco.com purchases, and 1% on all other purchases. The card carries no annual fee but requires an active Costco membership to qualify (Fox Business; NerdWallet).
What this means for EV drivers
EV charging is grouped with gas for the $7,000 combined cap and payout rules. The 5% headline rate applies only to Costco locations that sell fuel or explicitly process charging as Costco fuel; charging at home or third-party networks generally earns 4% (or 1% after the cap). Check whether local Costco locations offer EV charging and how those transactions are coded (Citi FAQ; Fox Business).
Why members should check their statements
Because the rollout was subtle, transaction coding matters. Some Costco-branded stations may process purchases through third-party merchant IDs, which could prevent transactions from qualifying for the 5% rate. Cardholders should review statements and the Citi FAQ for definitive terms.
Pricing and competition
Rewards are a tool to increase warehouse foot traffic and member value. By boosting in-warehouse fuel rewards, Costco strengthens the appeal of its card and may prompt competitors and fuel programs to adjust offers in response.
Implications for The World
Economic impact: Consumers who use Costco fuel regularly gain modest savings; retailers and card issuers may rebalance offers in markets where Costco operates. (Citi FAQ; Fox Business)
Political consequences: While industry-driven, the change could surface in debates about fuel affordability and consumer protections because private-sector rewards alter net consumer costs (Citi FAQ).
Social effects: Lower net fuel costs at Costco benefit members who shop there, but the requirement of both a Costco membership and the Citi card narrows who receives the gain (NerdWallet).
Practical applications for consumers worldwide
- Confirm whether local Costco pumps process transactions as Costco fuel (processing differences can affect eligibility) — check the Citi FAQ.
- Track combined gas and EV charging spend to anticipate hitting the $7,000 cap; after that, purchases earn 1%.
- Remember rewards are issued annually as a certificate redeemable in-warehouse and expire year-end; request direct deposit for awards of $500+ if preferred (Citi FAQ; NerdWallet).
Practical next steps for cardholders
- Review your Citi statements and the Citi FAQ to confirm how purchases are coded.
- If you rely on EV charging, map Costco locations with charging and verify how charges are processed for rewards.
- Compare the net value of this card’s benefits against alternatives, factoring membership costs, redemption rules and caps (NerdWallet).
Sources and documentation
- Reporting: Fox Business coverage
- Official terms: Citi FAQ on the Costco Anywhere Visa Card
- Card overview: NerdWallet overview of card features
Reporting note: This story draws on Citi’s official card FAQ and industry coverage of the quietly announced change. Sources: Citi FAQ; Fox Business; NerdWallet.
