Costco Anywhere Visa Business Card by Citi Review
Full Costco Anywhere Visa Business Card Review by Citi
Generous cash back rewards on gasoline purchases
Strong travel rewards
Use of rewards is limited and infrequent
Costco membership is required and a questionable purchase for business purchases only
- Generous cash back rewards on gasoline purchases: With 4% cash back earnings on gasoline purchases, the Citi Costco Anywhere Visa Business Card offers one of the best reward rates now available on gasoline. And while there is a cap on purchases qualifying at this rate, the limit of $ 7,000 per year, or $ 583 per month, should allow your business to purchase a lot of gasoline each month at the rate of $ 4. %.
- Solid travel rewards: For a card that isn’t billed like a business travel card, the Costco Anywhere Visa Business has surprising strength in dining and travel rewards. With 3% cash back, the card’s earnings in these categories compare favorably to cards like Chase Ink Business Preferred, which offers 3 points per travel dollar. And those rewards, like the 4% cash back on gasoline purchases, apply worldwide. On the flip side, when it comes to travel perks like rental car insurance, this card has little or no of it, which means it probably shouldn’t be the only card in your wallet when shopping. ‘a business trip.
- Use of rewards is limited and infrequent: While some cash back business cards can be used in more than one way, the Costco Anywhere Visa Business card only has one and requires a visit to a Costco store. Rewards are issued as a credit card certificate that you redeem for merchandise or cash back at Costco warehouses in the United States. Plus, where almost every other cash back card gives out rewards at least quarterly, this card makes you wait up to a year to receive your money back. Costco credit card reward certificates are only issued annually.
- Costco membership is required: If you already frequent Costco as a consumer, this stipulation will not be a burden; a personal membership qualifies you for this business card, provided you meet all other conditions. If, however, you are not a member, you will need to pay $ 60 (or $ 120 for an executive membership) to join the club.
- So-So Rewards on Corporate Purchases: Do your homework before getting a Costco membership primarily for corporate purchases, especially if those don’t include gasoline, which earns you a special cashback. While Costco prices on office supplies may be lower than elsewhere, and the 2% cashback on the card lowers them even more, you might get better reward rates with another card, including another Visa card, which could also be used for payment at Costco. For example, the Chase Ink Business Cash, a Visa card, offers 5% cash back on the first $ 25,000 of combined purchases at office supply stores and on Internet, cable and telephone services each year.
The Citi Costco Anywhere Visa Business card is best suited for business owners who will be spending heavily on the card’s most rewarding categories: gas, food, and travel. This helps if the business owner already has a Costco membership for personal reasons, as it reduces the prerogative to justify the cost of the membership from rewards on business purchases only. Although the card does not have any travel benefits, it is also a good choice for purchases abroad. Where many cards restrict premiums for gasoline in the United States, the Costco Anywhere Visa Business card offers its 4% rate for purchases worldwide, where, with generally higher gasoline prices, the cash back could easily be 20 cents or more per gallon. The 3% rate on catering and travel costs also applies internationally. The Costco Anywhere Visa Business also does not charge an overseas transaction fee, which is useful not only for overseas travel, but also for placing orders from the United States to overseas suppliers.
The Citi Costco Anywhere Visa Business Card provides the following tiered rewards by category:
- 4% cash back on gas worldwide, including Costco gas
- 3% cash back in restaurants and when traveling
- 2% Cash Back at Costco and Costco.com stores
- 1% cash back on all other purchases
The rewards are unlimited at the 3%, 2% and 1% levels; the more you spend on your business, the more cash back you can earn. If you typically spend $ 2,000 a month on meals and travel, for example, you could earn $ 720 a year in cash back.
The rewards for gasoline, however, are limited to earning the 4% cash back rate on the first $ 7,000 of gasoline purchases each year. After that, your rewards on gas transactions drop to the default level of 1% cash back until the start of your new account’s anniversary year.
So to put that in perspective, let’s say you hit the spending limit of $ 7,000 in the first seven months of the year. You would earn $ 280 in cash back for these purchases. If you continued to spend $ 1,000 per month for the remaining five months of the year, you would only earn an additional $ 50 cash back on that additional $ 5,000 in gasoline expenses.
Details on how to use rewards
This card is a little different when it comes to redeeming its rewards, and not really in a good way. Most other business cards allow frequent or even continuous redemptions throughout the year; Capital One Spark Cash, for example, lets you redeem rewards whenever you want, regardless of the amount.
Citi’s Costco Anywhere Visa Business card, on the other hand, only gives cash back once a year, after your February billing statement closes. This means that all cash back rewards earned for the previous year are given to you at once. The reward certificate must then be redeemed for cash back or merchandise by visiting a Costco warehouse in the United States
Even using the online rewards at Costco.com requires a visit to a warehouse to redeem the certificate for a Costco Shop card that can be used in the online store.
Receiving rewards each year might encourage you to invest the amount, for example, rather than spending it. But it also means that you might have to wait months to receive rewards, during which time you could have used that money. And the redemption could be further delayed until you have time and need to visit a Costco warehouse, as these are the only places your reward certificate can be redeemed.
How to Maximize Your Rewards
Making the most of your rewards earned with this card is like spending strategically. The more you spend, the more rewards you can earn. Here is a comparison of two different spend profiles to give you an idea of the earning potential of your rewards.
Let’s say you run a business with no employees. Your typical annual expenses might look like this:
- $ 1,000 on gas
- $ 5,000 on restaurants and travel
- $ 6,000 on Costco purchases
- $ 5,000 on miscellaneous purchases
Your total cash back rewards would then be added to these totals:
- $ 40 on gas
- $ 150 on restaurants and travel
- $ 120 on Costco purchases
- $ 50 on all other purchases
- Total Cash Back Earned: $ 360
These are acceptable rewards, corresponding to an average cashback rate of 2.1%, which is slightly higher than what you would get with Capital One Spark Cash (2%) and much more than what you would get with Chase Encre Business Cash Unlimited (1.5%).
Now suppose your business has a number of employees in addition to yourself, and your annual expenses look more like this:
- $ 7,000 on gas
- $ 10,000 on restaurants and travel
- $ 12,000 on Costco purchases
- $ 5,000 on miscellaneous purchases
Your total cash back rewards would add up as follows:
- $ 280 on gas
- $ 300 on restaurants and travel
- $ 240 on Costco purchases
- $ 50 on all other purchases
- Total Cash Back Earned: $ 870
These rewards result in a 2.5% reward rate, which meets or exceeds what most other business cards would offer on such a diverse range of purchases. This percentage underscores how most rewarding this card is if you spend up to, or near, the $ 7,000 per year cap on gasoline purchases. The 4% cash back rate is way above what you can get with other business cards that offer gas rewards, and even improves over most dedicated gasoline credit cards. ‘gasoline.
Costco Anywhere Visa Business Card by Citi Standard Benefits
The Citi Costco Anywhere Visa Business credit card shares these benefits with most other business cards:
- Protection of purchases against damage and theft: This benefit covers you for repairs or a refund if purchases made with your card are damaged or stolen within 120 days or purchase or 90 days for New York residents.
Citi ranked sixth out of 11 national card issuers in JD Power’s 2020 U.S. Credit Card Satisfaction Survey. Citi’s score was below average.
Customer service is available over the phone if you have any questions or need help with your account. Help is available seven days a week and you can also manage your account online or through the Citi mobile app.
This card includes standard security features, including chip technology. You can also set up account notifications and alerts to manage your transaction history and monitor suspicious or potentially fraudulent activity.
Fees to watch out for
The only real fees you should know about are the Costco membership fees that you have to pay to maintain your credit card account. You can set up your membership so that fees are automatically billed to your card each year. Please be aware that if you do not pay your Costco membership fee, Citi reserves the right to cancel your card account.
The main draw to businesses of Citi’s Costco Anywhere Visa Business credit card is its exceptional 4% discount on gasoline purchased anywhere, even outside of the United States (although smaller, larger businesses can be limited by the card’s annual limit of $ 7,000 on spending that earns these rewards). It also works quite well as a full travel card, with 3% rewards on travel and dining expenses. The card also saves 2% on office supplies and other business purchases at Costco. That said, shop around. Other business cards can be as rewarding, or more rewarding, when it comes to loading office supplies, with more flexibility as to where they are purchased.