Costco quietly raises gas rewards for its Visa card to 5% at warehouse pumps, lifts annual cap to $350
Issaquah, Washington (Times Media Service) — Costco has quietly raised gas rewards for its Anywhere Visa Card by Citi, now offering 5% cash back at Costco gas pumps (up from 4%) and increasing the annual cap to $350 to encourage member loyalty.
Key takeaways
- New rate: 5% cash back on gas purchased at Costco-branded pumps (up from 4%). Source: Fox Business, Citi
- Other gas & EV charging: 4% cash back on eligible purchases outside Costco (cap applies). Source: Citi
- Cap: Both rates apply to the first $7,000 in combined eligible purchases, raising the maximum reward from $280 to $350 per year; thereafter gas/EV rewards drop to 1%. Source: Fox Business, Citi
- Other rewards unchanged: 3% on restaurants/travel, 2% at Costco/Costco.com, 1% on other purchases; card requires active Costco membership and carries no annual card fee. Source: Citi, Fox Business
How the change works
Costco’s updated rewards structure creates a split-rate system aimed at directing fueling to Costco locations. Key mechanics:
- 5% at Costco pumps: Purchases of gasoline at Costco-branded pumps earn 5% cash back until the combined gas/EV spending cap of $7,000 is reached.
- 4% elsewhere: All other eligible gas and EV charging — when not purchased at Costco pumps — earn 4% cash back up to the same $7,000 cap.
- After the cap: Once combined eligible spending exceeds $7,000 in a calendar year, subsequent gas and EV purchases earn 1% for the remainder of the year.
Citi’s website confirms the split rate and the shared $7,000 cap, meaning customers who primarily fuel at Costco pumps will maximize the 5% rate while mixed fueling strategies should monitor the combined cap closely: Citi’s card terms.
Why the change was quiet — and why it matters
Fox Business characterized the boost as a “quiet” change after outlets noticed the update and Citi revised its public terms. Costco did not immediately offer extra comment when contacted: Fox Business.
Business rationale: Co‑branded cards are tools to deepen member loyalty, drive in-warehouse and ancillary spending, and capture interchange revenue. With more than 80 million paid members nationally, raising the top gas reward to 5% further incentivizes regular Costco pump usage.
What stays the same
- Dining and eligible travel rewards remain at 3%.
- In-warehouse and Costco.com purchases remain at 2%.
- All other purchases continue at 1%.
- Rewards redemption remains an annual certificate, issued after February billing cycles, redeemable for cash or merchandise at Costco warehouses.
- The card still requires an active Costco membership; there is no separate card annual fee.
Redemption mechanics continue to rely on Costco’s yearly certificate system rather than monthly statement credits: reporting notes and Citi details confirm this approach (Fox Business, Citi).
What this means for members in dollars and cents
The $7,000 combined cap is central to the value change. At 5%, $7,000 in Costco gas purchases yields $350 cash back — a $70 increase over the previous $280 maximum under the 4% structure.
Example scenarios:
- A commuter spending $2,000 per year at Costco pumps would earn $100 at 5% (versus $80 at 4%) — a $20 difference.
- A heavy driver who reaches the $7,000 threshold now secures $350 instead of the prior $280 maximum.
Mixed fueling (Costco and non-Costco) consumes the same combined cap, which can accelerate entry to the 1% post-cap rate.
Regulatory and product transparency notes
Citi’s updated terms on its site are the primary public confirmation of the benefit change: Citi’s card page. News outlets flagged the revision after spotting new language online — a reminder that issuer-driven updates can be posted quietly but materially affect cardholder planning (Fox Business, MoneyTalksNews).
Implications for Las Vegas, Nevada
Local dynamics shape how valuable the change is for Las Vegas drivers:
- Local fueling patterns: Commuters and frequent drivers near Costco gas stations can see steady annual savings, especially families and rideshare drivers who refill regularly.
- Competition with neighborhood stations: A higher reward at Costco pumps may pull customers away from independents and chains during price competition or promotions.
- EV owners and charging: EV charging is grouped under the 4% non-Costco category — so EV drivers relying on public/home chargers see less impact from the Costco-pump boost.
- Tourism and membership: Benefits require an active Costco membership, so the boost primarily rewards local members rather than short-term visitors.
Sources and verification
Reporting and confirmation are based on issuer disclosures and coverage by business outlets:
- Citi — Costco Citi Card gas benefits
- Fox Business — coverage of the quiet boost
- MoneyTalksNews — additional reporting
Full preservation of original links and sources: the article references and links to the exact URLs reported above for verification and reader follow-up.
