Costco Anywhere Visa® Business Card by Citi review: Stellar fuel rewards but restrictive redemption

Rewards rate: Top-notch fuel rewards rates

The Costco business card offers bonus category cash back, which may help earn rewards on other business expenses. Since it’s co-branded, you can use this card with other merchants that accept Visa credit cards.

Although you may have initially looked into this card for its 2 percent cash back on Costco and Costco.com purchases, the Costco Anywhere Business card also holds one of the highest cash back rates available — even for a gas card. You can earn 5 percent cash back on gas at Costco and 4 percent back on other eligible gas and EV charging purchases. Just keep in mind that there’s a $7,000 combined rewards spending cap for the fuel purchase categories before the rates drop to 1 percent. That limit may not be an issue depending on your business’ typical expenses though.

You’ll also earn unlimited 3 percent back on restaurant and travel purchases, plus 1 percent back on all other purchases. The travel category covers airfare, hotels, car rentals, travel agencies, cruise lines and Costco Travel purchases. Together with the fuel bonus categories, these are fantastic reward rates even compared to non-branded cash back cards.

Rates and fees: No annual fee to offset

Although the Costco Business credit card itself has no annual fee, you need a Costco membership to apply, which starts at $65 per year. However, this shouldn’t be a big deal since you’ll likely already have a Costco membership if you plan to shop there enough to justify a brand-specific rewards card for your business spending. Even if your business doesn’t shop at Costco often, you can easily offset the membership fee with cash back if you at least spend $109 each month on gas at Costco or $136 each month on other eligible gas and EV charging purchases elsewhere.

This card doesn’t provide zero-interest offers — unlike some no-annual-fee business cards — to help you save on interest if you need to finance upcoming purchases. The Costco business card’s ongoing APR isn’t as outrageous as some closed-loop store credit cards’ chart-topping interest rates, but it’s around the current average interest rate and on par with other popular co-branded retail cards’ APRs.

Fortunately, there are also no foreign transaction fees, which can save you the typical 3 percent charge that many cash back cards charge. This can be a huge help in case you take advantage of the travel rewards category and any business expenses pop up while you’re abroad.

Rewards redemption: Once-per-year distribution and frustrating restrictions

Here’s the kicker to the standout rewards rates: Cash back is only redeemed once per year after your February billing statement as one “credit card reward certificate.” You must then redeem your certificate at a physical U.S. or Puerto Rico Costco store before December 31 of that year, or you lose those rewards.

This inconvenient redemption option could be a massive deal-breaker since you won’t see any of your rewards till the first March after you’ve signed up for the card. Considering most business cards allow you to redeem your rewards at the end of each month — and don’t require going to your nearest Costco to redeem — you’ll have to consider whether these redemption drawbacks are worth it compared to an easier-to-use rewards card.

Welcome offer: No rewards or other bonuses

Disappointingly, the Costco business credit card doesn’t offer a sign-up bonus.

This is surprising since many other cash back, no-annual-fee business cards extend bonuses worth $300 to $500 or more. Other retail credit cards may even offer credits, like the Prime Visa card, which typically offers a sizable gift card instantly upon approval.

Perks: Few benefits apart from rewards

The Costco business card and consumer Costco Anywhere Visa® Card by Citi alike are remarkably light on benefits outside the rewards program. Both allow you to use your credit card as your membership card, and both offer standard purchase protection that covers the cost of repairs or provides a refund if your item is damaged or stolen within 120 days of purchase. You could also enjoy lost baggage protection, which no-annual-fee cards typically don’t offer.

Like all other Citi cards (including debit cards), you’ll also have access to the Citi Entertainment program. This feature grants you access to exclusive “experiences” like presale concert tickets, travel activities, dining opportunities and more. How helpful this perk can be varies from person to person, but it’s far from exclusive since most issuers offer a similar feature.

Who is the Costco business card right for?

Naturally, you should only consider the Costco business card if your small business requires shopping for products wholesale with this specific retailer. 

The exceptional gas and EV charging rewards may make it worth considering if you shop often enough to make up for the annual Costco membership cost, but this could be too inconvenient due to the restrictive redemption process. Plus, if you plan on adding authorized users, they’ll require their own memberships.