Costco quietly boosts gas rewards for branded credit card holders

Core Insights - Costco has increased gas rewards for its branded credit card holders, raising the cash back rate from 4% to 5% for gas purchases at Costco gas stations [1][4] - The new cash back rates apply only to the first $7,000 in annual purchases, allowing members to earn up to $350 in rewards, an increase from the previous maximum of $280 [2] - The move aims to enhance customer loyalty and profitability by encouraging Costco's over 80 million members to adopt the co-branded credit card [4] Cash Back Structure - The 5% cash back applies exclusively to gas purchases at Costco, while purchases outside of Costco and EV charging will earn 4% cash back [1][7] - After reaching the $7,000 spending cap, the cash back rate drops to 1% for the remainder of the year [2] - Other rewards remain unchanged, with cardholders earning 3% cash back on restaurants and eligible travel, 2% on purchases at Costco, and 1% on all other purchases [7] Card Features - The Costco Anywhere Visa Card has no annual fee but requires an active Costco membership, offering benefits such as no foreign transaction fees and travel protections [8] - Rewards are issued annually as a certificate, typically after the February billing cycle, and can be redeemed for cash or merchandise at Costco warehouses [8] Company Strategy - Maintaining a high renewal rate, which has been around 90% over the years, is a top priority for Costco [5]