The Costco business credit card from Citibank is a store card unlike any other—you’ll be able to use it anywhere, and earn extra for non-Costco spending. Be sure to note, though, that you’ll only be able to redeem rewards for Costco purchases, and you’ll only be able to do so on an annual basis.
Costco Business Credit Card Rewards: Ongoing Offer
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 Business Credit Card: Annual Fee
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.
Get the Costco Business Credit Card if:
- You’re already a Costco member.
- You can make use of Costco-specific rewards redemption.
Skip the Costco Business Credit Card if:
- You don’t want to be tied down by brand-specific rewards.
- You want to be able to redeem your rewards whenever you see fit.
Why the Costco Business Credit Card?
So, now that we’ve combed through the details on the Costco business credit card, let’s highlight and dive deeper into the most notable of these details.
Here are the biggest advantages of choosing the Costco business credit card for your business spending:
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.)
Card Network Enabled
Though this might not seem like much to boast, the Costco business credit card works anywhere—and that’s more than a lot of store cards can tout. Because, the Costco business credit card is also a Visa card, you’ll be able to use it outside of Costco stores and Costco.com. Meanwhile, other store cards will only be valid for purchases at their store or on their website.
This makes the Costco business credit card an outlier in the store-card market, so keep this detail in mind if you’re determined to spend with a brand-specific business credit card.
Keep in Mind With the Costco Business Credit Card
Though the Costco business credit card can outperform other store cards, it will still come with some tell-tale downsides characteristic of a typical store card.
Let’s see the main downsides to the Costco business credit card you’ll need to keep in mind:
Though the Costco business credit card won’t come with an annual fee, you will have to pay a yearly fee to be a Costco Member, which is required for all Costco business credit cardmembers. This membership fee will start at $60 a year, so if you’re not already a Costco member, that’s a fee that you’ll need to include in your calculation of this business credit card’s cost.
Annual Rewards Redemption
Generally speaking, business credit cards will allow you to redeem the rewards you earn as you see fit. If cash flow is tight, you can usually apply your cash back rewards to your monthly statement as needed. And if you’re going on a big business trip, you can typically apply your travel rewards with the click of a button.
But with the Costco business credit card, you’ll only be able to redeem the rewards you earn on an annual basis, which can seriously stifle just how useful these rewards are for your business.
Brand-Specific Rewards Redemption
Finally, though you’ll be able to use your Costco Anywhere business credit card, well, anywhere, the rewards you earn with it won’t be quite as universal. They will be Costco-specific rewards that you will only be able to redeem for Costco purchases. If you’re doing a lot of business spending at Costco, then this is fine, but will ultimately limit how you’re able take advantage of the rewards you earn.
Ink Business Cash® Credit CardGreat For: Typical business expenses
- $750 signup bonus if you spend $7,500 in first 3 months
- 0% intro APR for 12 months on purchases
- 5%, 2% or 1% cash back depending on where you spend
13.24% - 19.24% Variable