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The Definitive Costco Business Credit Card Review—Is It Best for You?

Maddie Shepherd

Staff Writer at Fundera
Maddie Shepherd is staff writer at Fundera. Beyond her deep knowledge of small business financing, Maddie's specialty is business credit cards—she'd love to help match your business with the credit card that benefits you most!
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Buy in bulk for your business at Costco? Then it certainly makes sense to consider the Costco business credit card from Citibank for your business spending. The Costco credit card for business members, called the Costco Anywhere Visa Business Card, offers a surprisingly impressive lineup of rewards and benefits.

You can use this Citibank business credit card wherever you would use any other Visa business credit card. The Costco business credit card will reward all of your business spending—whether you’re spending at Costco or anywhere else—with Costco-specific cash back rewards.

What that means is you’ll be able to use the Costco business credit card wherever Visa is accepted, but the rewards that you earn with the Costco business credit card can only be applied to Costco purchases.

Regardless, you’ll get lots of rewards—so the card still could be a good pick for you. If you want to know more about how the Costco business credit card can help your business get deals, our review can help.

costco-business-credit-card

The Details on the Costco Business Credit Card

The Costco business credit card offers mostly straightforward rewards. Here’s what you can expect if you sign up for the Costco Anywhere Visa Business Card by Citi:

Costco Credit Card Fees

Technically, the Costco business credit card doesn’t come with an annual fee. However, the Costco business credit card requires cardholders to be Costco members. So, if you’re already paying the Costco membership fee, that’s no problem—you’re already budgeting for that. But if you’re not yet a member, you’ll need to factor in the yearly cost of membership—starting at $60—when evaluating this card option.

Additionally, the Costco business credit card won’t assess a foreign transaction fee for purchases you make abroad. You’ll truly be able to use the Costco Anywhere Visa anywhere without having to worry about sneaky fees.

Costco Credit Card Rewards Rates

As you spend with the Costco business credit card, you’ll earn cash back that you can apply toward Costco purchases. This is where being a frequent shopper at Costco and a Costco business credit cardholder really start to work together to help you out.

This cash back will roll in at the following rates:

  • 4% cash back on gas for the first $7,000 you spend annually
  • 3% cash back on restaurants and travel
  • 2% cash back on Costco and Costco.com
  • 1% cash back on everything else

Important to note: These Costco cash back rewards roll in annually, not as you earn them. That can prove to be a headache for some business owners who want to access rewards as soon as they earn them, as they’re typically able to with other cash back business credit cards.

But if you’re spending a lot on gas—but not much more than $7,000 every year—then this 4% cash back rate is tough to beat, even if this cash back is only applicable to Costco purchases.

Costco Credit Card Benefits

Because the Costco business credit card is also a Visa Signature Business credit card, it comes with some pretty stellar cardholder benefits.

Namely, you can access some surprising travel perks like:

  • Rental car insurance
  • Travel and emergency assistance services
  • Roadside assistance
  • Lost luggage reimbursement
  • Travel accident insurance

Yet again, the Costco Anywhere Visa business credit card lives up to its “anywhere” surprisingly well. And if you travel at all for business, these are perks that are hugely helpful—especially when you don’t know you need them. (If you’ve ever had to track down a suitcase in a foreign country, you know.)

→TL;DR (Too Long; Didn’t Read): There’s no annual fee for the Costco business credit card, but you need to be a Costco member. You can get high cash back returns for gas, restaurants, and travel, plus Visa Signature Business benefits, too.

costco-business-credit-card

How the Costco Business Credit Card Compares to Other Rewards Cards

Now that you’ve gone through our Costco business credit card review and seen what this card can offer your business, it’s helpful to have some comparisons to make sure you pick the best card for your business.

Let’s contrast the Costco business credit card versus other top business rewards credit cards for similar spending:

Chase Ink Business Cash

In contrast to the Costco business credit card, the Chase Ink Business Cash will start you off with a generous welcome offer. If you spend $3,000 during the first three months after opening your Ink Cash account, you’ll get $500 in cash back from Chase. And this cash back bonus will come in the form of a statement credit that you can put toward anything.

You’ll also gain access to a 12-month 0% intro APR period that will let you carry interest-free balances from month-to-month for your first year with the card. After this intro period is up, your APR will set in at a rate that will depend on your creditworthiness and the market prime rate, so be sure to check the issuer’s terms and conditions to get the latest APR information.

Even after these intro perks, you’ll continue to earn cash back for your spending at the following rates:

  • 5% cash back on the first $25,000 you spend annually:
    • From office supply stores
    • On cellular phone, landline, internet and cable TV services
  • 2% cash back on the first $25,000 you spend annually:
    • At gas stations
    • At restaurants
  • 1% cash back on all other card purchases

Finally, all of these perks that the Ink Cash offers come at a $0 annual fee which—if you’re not already a Costco member—will outcompete the minimum $60 you’d need to pay each year to access the Costco business credit card.

→TL;DR: If you want access to more versatile cash back rewards, along with a welcome offer of $500 and a 12-month 0% intro APR, then the Ink Cash will serve your business better than the Costco business credit card.

American Express SimplyCash Plus

Another more versatile alternative to the Costco business credit card is the American Express SimplyCash Plus.

With this cash back business credit card, you’ll gain access to a whole 15 months of 0% intro APR on purchases—one of the longest 0% intro APR periods on the market. After those first 15 months, though, your APR will set in at a rate that depends on your creditworthiness and the market prime rate. Be sure to check the issuer’s terms and conditions to get the latest APR information.

As you spend with the SimplyCash Plus, you’ll earn 5% cash back on up to $50,000 on:

  • US office supply store purchases
  • Wireless phone service

You’ll also earn 3% cash back on up to $50,000 within your choice of one of the following categories:

  • Airfare (when you purchase directly from airlines)
  • Hotel stays (when you book directly through the hotel)
  • Gas stations in the US
  • Car rentals from eligible agencies
  • Restaurants in the US
  • Advertising in the US
  • Shipping in the US
  • Computer hardware, software, and cloud computing purchases made in the US and directly with select providers

Finally, you’ll get 1% cash back on everything else. And all of these cash back rewards will cost you no annual fee at all.

If you’re spending much more than $7,000 per year on gas, then you should seriously consider opting for the SimplyCash Plus—and choosing gas station purchases as your 3% cash back category—instead of spending with the Costco business credit card.

→TL;DR: The SimplyCash Plus only gives you 3% cash back for gas stations, but if you’re spending much more than the $7,000 spending cap that the Costco business card places on gas station cash back, then the SimplyCash Plus will be more lucrative. Not to mention, the SimplyCash Plus offers 15 whole months of 0% intro APR.

Bank of America® Business Advantage Cash Rewards Mastercard®

The last alternative we’ll highlight—Business Advantage Cash Rewards Mastercard®—also offers versatile cash back rewards and a more complete package than the Costco business credit card.

If you spend $500 during your first 60 days with the card, you’ll earn a $200 cash back welcome bonus. Not to mention, you’ll gain access to nine months of 0% intro APR, after which your APR will set in at a rate that depends on your creditworthiness and the market prime rate. Be sure to take a look at the issuer’s terms and conditions to get the latest APR information.

Plus, as you spend with this cash back business credit card, you’ll earn at the following rates:

  • 3% cash back on up to $250,000 each year at:
    • Gas stations
    • Office supply stores
  • 2% cash back at restaurants
  • 1% cash back on everything else

Again, the Business Advantage Cash Rewards—though it offers a lower cash back rate for gas than the Costco business credit card does—allows you to earn for much, much more at this top rate than the Costco card.

And just like your other top alternatives to the Costco business credit card, the Business Advantage Cash Rewards card won’t charge you an annual fee, so you won’t have to worry about measuring your rewards against a yearly cost.

→TL;DR: The Business Advantage Cash Rewards Mastercard® offers similar cash back rewards rates to the Costco business credit card, but with fewer limits and with a welcome offer and a 0% intro APR period.

Should You Choose the Costco Business Credit Card from Citibank?

With this Costco credit card review and a look at some worthy competitors, you should have everything you need to figure out whether or not the Costco Anywhere Visa business card is best for you.

If you’re already a Costco member, then the Costco business credit card will be of no extra cost to you and your business. As a result, the Costco-specific rewards the Costco business credit card offers could very well be worth the trouble of getting this business credit card.

That said, if you’re not already a Costco member, you’ll be able to find business credit cards with more versatile cash back rewards that will be of no extra cost to you. But if you’re thinking that you don’t want to take the plunge, continue shopping your top cash back business credit card options—there’s absolutely a business credit card that’ll allow you to start earning beneficial rewards ASAP.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Maddie Shepherd

Staff Writer at Fundera
Maddie Shepherd is staff writer at Fundera. Beyond her deep knowledge of small business financing, Maddie's specialty is business credit cards—she'd love to help match your business with the credit card that benefits you most!

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