Chase Freedom works at Costco because it is on the Visa network. Costco only accepts Visa cards at its stores. Costco previously accepted only American Express cards until 2016, when it made the switch to Visa.
The Chase Freedom card offers at least 1% cash back on all purchases, up to 5% back on $1,500 spent in special bonus categories each quarter. The Q4 2018 bonus categories included wholesale clubs, such as Costco. Chase Freedom’s 5% Costco rewards rate is not guaranteed to return because the card’s bonus categories are not the same year to year. Keep that in mind if you’re comparing new cards to apply for.
On that note, an even better credit card than Chase Freedom for Costco purchases is the Costco Anywhere Visa, the store’s own co-branded card. Issued by Citi, the Anywhere Visa offers 2% cash back at Costco, 3% back on dining and travel, and up to 4% back on gas. Plus, its annual fee is $0.
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