Costco quietly added a major credit card perk

Core Insights - Costco is enhancing its membership value by introducing new perks, particularly focusing on cash back benefits for its credit card holders, which is a strategic move to retain members during challenging economic times [4][10][11]. Membership and Economic Context - As of the latest earnings call, Costco has 81.4 million total paid members, indicating a strong membership base [6]. - Many Americans are currently feeling financially strained, with 61% believing the economy is not working for them and 35% reporting a worsening financial situation over the past year [3][9]. New Credit Card Benefits - Costco has increased the cash back reward on fuel purchases from 4% to 5% for holders of the Costco Anywhere Visa card, which is particularly beneficial given the current economic climate [7][10]. - In addition to the fuel cash back, the Costco Anywhere Visa card offers 4% cash back on other eligible gas purchases and electric vehicle charging, 3% on restaurants and eligible travel, and 1% on all other purchases [8][15]. Strategic Initiatives - The company is committed to improving membership value through various initiatives, including extended opening hours and additional benefits for Executive members [11][12]. - Costco's strategy to enhance member value is aimed at preventing membership churn, especially as consumers become more budget-conscious [11][12]. Future Outlook - The CEO of Costco emphasized that the membership card is the most important item sold, indicating a focus on driving membership renewals and potentially introducing more perks in the future [13].