Gas prices have turned every fill-up into a budgeting exercise, which is why a reliable 5 percent cash back rate on fuel stands out as more than a minor perk. For drivers who already shop in bulk and plan their spending, pairing a warehouse membership with the right credit card can turn routine trips to the pump into a steady stream of rewards. The latest upgrade to Costco’s co-branded card does exactly that, giving Members a way to earn elevated Cash rewards on gas without changing where they fill up.
The Costco Anywhere Visa Card by Citi has long been a workhorse for loyal shoppers, but its new 5 percent rate on gas at Costco locations pushes it into a different tier of everyday value. For households that log serious mileage, that single change can be worth hundreds of dollars a year, especially when layered on top of the card’s existing cash back structure on travel, dining, and Costco purchases.
How Costco’s 5% Gas Cash Back Actually Works
The core of the upgrade is simple: eligible cardholders now earn 5 percent cash back on gas purchased at Costco gas stations, up from the previous 4 percent level. Reporting on the Percent Cashback Rate Increase notes that this higher rate applies specifically to gas bought at Costco locations when using the Costco Anywhere Visa Card, which is the retailer’s primary co-branded product with Citi. That means Members who already line up at the warehouse pumps can now collect a richer rebate on every gallon without changing their routine, as long as they pay with the right card.
Outside the warehouse, the structure is slightly different. Coverage of the change explains that all other eligible gas purchases that are not made at Costco, as well as qualifying EV charging, continue to earn 4 percent cash back, with Both the 5 percent and 4 percent cash back rates subject to an annual cap on combined spending. The new 5 percent tier therefore functions as a targeted boost for Costco’s own fuel business rather than a blanket increase on every gas purchase, which is why the fine print on the Costco Anywhere Visa page still highlights a broader 4 percent category for gas and EV charging overall.
The Card Behind the Perk: Key Features of Costco Anywhere Visa
The 5 percent gas rate sits on top of a broader rewards framework that already made the Costco Anywhere Visa Card a strong everyday option for Members. The issuer’s own breakdown shows that cardholders Earn 4 percent cash back on eligible gas and EV charging worldwide (now effectively 5 percent at Costco pumps), 3 percent on eligible travel and restaurants, 2 percent on purchases from Costco and Costco.com, and 1 percent on all other purchases, with the high gas and EV tier capped at a combined $7,000 per year before dropping to 1 percent. That mix is designed to reward common household spending categories while still nudging Members to keep their biggest fuel purchases within the warehouse network.
Independent reviews of the product emphasize that the Costco Anywhere Visa Card by Citi offers high ongoing cash back rates that can rival or exceed many general-purpose cards, particularly if a household spends heavily on fuel and dining. One analysis notes that the card’s structure, including its tiered rewards and lack of a separate annual fee beyond the required warehouse membership, makes it competitive even if cardholders hit that cap on gas and EV purchases. Another review points out that the card does not currently advertise a large Welcome bonus, but it still stands out for its uncapped 3 percent on eligible travel, including bookings through Costco Travel, and its 2 percent rate on in-club and online Costco purchases, which can add up quickly for frequent shoppers who already rely on Costco for groceries and household staples.
Why Costco Boosted Rewards at the Pump
Costco’s decision to raise its cash back on gas from 4 percent to 5 percent for people with the Costco Anywhere Visa Card did not happen in a vacuum. Reporting on the change notes that the retailer quietly made the adjustment ahead of a quarterly earnings call, a timing that suggests leadership wanted to highlight added value for Members at a moment when consumers as a whole are feeling squeezed financially. By sweetening the rewards at the pump, Costco can position its gas stations as an even more compelling reason to maintain a membership and to adopt the co-branded card.
Additional coverage of the Percent Cashback Rate Increase underscores that the new 5 percent rate only applies to gas purchased at Costco’s own stations with the Costco Anywhere Visa Card, which reinforces the company’s strategy of using rewards to deepen engagement within its ecosystem rather than subsidizing spending elsewhere. A separate report on how Costco made a big credit card change Members will love notes that Both Citi co-branded Costco cards, the Costco Anywhere Visa and Costco Anywhere Visa Business, received the upgrade, broadening the impact across consumer and small-business customers. For Costco, that wider rollout helps lock in more fuel volume and card usage, while for cardholders it means the same elevated rate whether they are filling up a family SUV or a work van.
Who Qualifies: Membership and Card Requirements
The 5 percent gas perk is not open to every driver who pulls into a Costco station. The issuer makes clear that the Costco Anywhere Visa Card is available exclusively to Costco members, which means a shopper must first hold an active, paid warehouse membership before they can even apply. The card itself carries no separate annual fee, but the membership requirement effectively serves as the price of admission for the rewards program, including the elevated gas rate. That structure ensures that the richest benefits flow to people who are already part of the Costco ecosystem and who are likely to use the warehouse for more than just fuel.
Guidance on how to Earn cash back with the Costco credit card explains that There are several ways to earn rewards once approved, including the high gas and EV tier, the 3 percent category for travel and dining, and the 2 percent rate on Costco purchases, with 1 percent on all other purchases. Another overview aimed at prospective applicants frames the decision in simple terms: You want to get rewarded for gas or EV charging purchases, and The Costco Anywhere Visa Card by Citi is built to do exactly that for Members who qualify. For shoppers who do not want to open a new credit line, Costco still allows payment at the pump with other Visa cards or debit, but those alternatives will not unlock the 5 percent rate that is now tied specifically to the co-branded product.
How Much 5% Cash Back on Gas Is Really Worth
On paper, a 1 percentage point jump from 4 percent to 5 percent might sound modest, but the math looks different when applied to a full year of driving. Official card materials highlight that the high gas and EV tier, which now includes the 5 percent rate at Costco pumps, applies to a combined $7,000 per year in spending before reverting to 1 percent. At the full 5 percent rate, that cap translates into a potential $350 in annual cash back from gas alone if all of that spending occurs at Costco stations, compared with $280 under the previous 4 percent structure, a $70 difference for the same fuel usage.
Consumer-focused coverage of How to get cash back on Costco gas illustrates the impact with real-world behavior, noting that Members who regularly fill up on Kirkland Signature gas at warehouse pumps can now earn more Cash rewards on the same routine trips. Another section of the same reporting points out that the combined $7,000 per year cap still applies, so heavy drivers or families with multiple vehicles may hit the ceiling and see their incremental earnings drop to 1 percent on additional gas purchases. For many households, though, annual fuel spending will fall below that threshold, which means every extra dollar at the pump within Costco’s network now earns the full 5 percent rate.
Beyond Gas: Other Everyday Rewards That Add Up
While the 5 percent gas perk is grabbing headlines, the Costco Anywhere Visa Card’s value does not stop at the pump. The issuer’s rewards breakdown shows that cardholders earn 3 percent cash back on eligible travel and restaurants, a category that includes bookings through Costco Travel as well as dining out, which can be a meaningful rebate for families who take one or two big trips a year or who frequently eat at midrange chains. The same materials confirm that the card pays 2 percent on purchases from Costco and Costco.com, effectively turning every bulk grocery run or appliance purchase into a small discount that stacks on top of the warehouse’s already aggressive pricing.
Analysts who have reviewed the card stress that these high ongoing cash back rates are what make the product competitive even in a crowded rewards market, particularly for shoppers who already rely on Costco for a large share of their household spending. One detailed review notes that the card’s structure, including its 3 percent on eligible travel, including Costco Travel, and its 2 percent on in-club and online Costco purchases, can generate substantial annual rewards if a family consistently uses the card for those categories. Another overview of the benefits of the Citi Costco Credit Card points out that the card’s combination of high category rates and no foreign transaction fees can make it a practical choice for Members who travel internationally, provided they are comfortable managing the annual reward certificate that arrives once a year rather than receiving monthly statement credits.
How and When Cardholders Receive Their Cash Back
The way Costco distributes rewards is different from many other cash back cards, and that structure matters when evaluating the new 5 percent gas rate. Instead of issuing monthly or rolling statement credits, the Costco Anywhere Visa Card accumulates rewards throughout the year and then provides an annual cash back certificate, which can be redeemed for cash or merchandise at Costco warehouses. Reporting on how Costco made a big credit card change Members will love notes that Costco members who also have the co-branded card receive this certificate once a year, and that the timing of the arrival of the cash rewards is a key part of how the program works.
Additional coverage of how Costco quietly added a major credit card perk explains that during Costco’s most recent earnings discussion, executives highlighted the card’s rewards structure as a way to deliver value at a time when consumers as a whole are feeling squeezed financially. That annual certificate can function like a built-in rebate check, arriving after a year of spending on gas, travel, dining, and Costco purchases, and for some households it effectively funds a large stock-up trip or a big-ticket item. The trade-off is that cardholders must wait for that yearly payout instead of seeing immediate credits, which makes it important to track how much Cash Back they are earning on categories like gas so the eventual certificate matches expectations.
How the Costco Gas Perk Compares to Other Cards
In a market crowded with rotating categories and limited-time promotions, a permanent 5 percent rate on gas at a specific retailer stands out for its simplicity. Some general-purpose cards, such as the Chase Freedom Flex, have historically offered 5 percent on gas during certain quarters, but those promotions are temporary and require activation, and one review of the Costco Anywhere Visa Card notes that the particular offer mentioned for the Chase Freedom Flex is no longer available. By contrast, the Costco card’s elevated gas rate is built into its ongoing rewards structure, at least for now, and does not require cardholders to track quarterly calendars or opt in.
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