The Costco Business Credit Card is great for small business owners who want to save extra on supplies bought in bulk, in addition to gas, travel and dining. It’s worth getting if you’re a Costco member because it has a $0 annual fee and gives 2% cash back at Costco, 3% back on travel and dining, and up to 5% back on gas. Costco membership is not included, and you need to be a member to get this card.
What I Like About the Costco Business Credit Card
Great rewards on gas, EV charging, dining & travel
The Costco Business Credit Card excels in these major purchase categories, thanks to bonus rewards earning rates that can be several times higher than average, according to
WalletHub research. More specifically, cardholders earn:
• 5% cash back rewards on gas at Costco
• 4% cash back on other eligible gas and electric vehicle (EV) charging purchases
• 3% cash back at restaurants
• 3% cash back on eligible travel purchases , including Costco Travel
The bonus gas reward rates apply to the first $7,000 in combined gas and EV charging purchases each year — this includes both the 5% back at Costco gas stations and the 4% back on other eligible gas and EV charging. After that, you get 1% back.
You should also note that bakeries and certain restaurants inside department stores, grocery stores and warehouse clubs do not qualify for the 3% restaurant rewards rate.
Good rewards at Costco
The Costco Business Credit Card gives you 2% cash back on all purchases made at Costco and Costco.com (excluding gas). That’s nearly double the
1.18% cash back that you’d earn on all purchases with the average cash rewards card, according to WalletHub’s latest
Credit Card Landscape Report. This is the highest flat, unlimited rewards rate that you can expect at Costco.
What I Like About the Costco Business Credit Card
Average rewards beyond the bonus categories
Purchases that don’t qualify for one of the card’s bonus reward rates earn just 1% cash back. That’s better than nothing, but it’s also nothing special. In fact, it’s just shy of average, according to WalletHub’s research.
Business owners who can qualify for the Costco Business Credit Card can also get a higher minimum reward rate from other cards. It might be better to use such a card for purchases the Costco card wouldn’t reward as handsomely.
Rewards paid out just once per year
Most credit cards with rewards actually give you those rewards when the purchases that earn them post to your account. This allows you to benefit on a regular basis. But the Costco Business Credit Card is a bit different.
You’ll only get your rewards once per year, each February, in the form of a rewards certificate. Furthermore, you have to redeem your earnings in a single transaction at a Costco store (for merchandise or cash back) by December 31 of the year in which you receive a rewards certificate. If you don’t redeem in time, your rewards are lost.
High APR
You’re unlikely to save money with this card if you don’t pay your bill in full every month. If you fail to pay your statement balance by the due date, the card’s high interest rate will quickly offset the value of your rewards. So, if you need a card for financing, this isn’t it.
Excellent credit required
Your personal credit standing is what drives business credit card approval, and most people won’t be able to meet the Costco Business Credit Card’s excellent-credit requirement, so it’s a good idea to
check your credit score for free on WalletHub before you apply. We estimate that you should have pretty good approval odds if your score is 750+. Just keep in mind that Citibank might use a different score, and approval is never guaranteed.
Costco Credit Cards for Business vs. Personal Use
There is no clear advantage in choosing the Costco Anywhere Visa Business Card over the
general-consumer version or vice versa, because they offer very similar terms. The business version could provide a higher spending limit, given that businesses tend to spend more than individuals, but that certainly isn’t guaranteed. Furthermore, you'll be
personally liable for debt no matter which option you choose, and you can qualify for either card with a personal Costco membership.
So, if you’re a business owner and you’re going to use the card for company expenses, the business version is the way to go. If it’s for personal use, opt for the consumer version instead.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.
