Costco members holding the Anywhere Visa Card to receive 5% cash back on gas

Costco has secretly increased gas rewards for its credit card holders.

Members who hold the Costco Anywhere Visa Card, issued by Citi, can now expect to earn 5% cash back at Costco fuel pumps, up from the previous 4%.

The higher rewards only apply to gas stations located at the giant warehouse and do not extend to any off-premises gas purchases or electric vehicle charging.

However, all other qualifying gas purchased outside of Costco and electric vehicle charging will earn 4% cash back.

Costco is opening a new warehouse as part of an affordable housing development in South Los Angeles

Cash back rates of 5% and 4% apply only to a member’s first $7,000 in annual purchases, allowing members to earn up to $350 instead of the previous maximum of $280.

After reaching the annual spending cap, the cash back rate drops to 1% for the rest of the year.

Costco breaks records with huge sales of pizza and pies during the holiday season

president Joe Biden called on congress to suspend the federal gasoline tax, a largely symbolic move by an embattled president running out of options to ease station prices that weighs on his party's political prospects. Photographer: David Paul Morris/Bloomberg via Getty Images"/>

Customers line up at a Costco gas station in Concord, California, on Wednesday, June 22, 2022. (David Paul Morris/Bloomberg/Getty Images)

“If you are a Costco member, you may be able to earn Costco Cash Back rewards on gas purchases with your Costco Anywhere Visa card,” Citi said. “It offers great cash rewards on fuel as well as other purchases, allowing you to save money.”

The move effectively incentivizes Costco’s more than 80 million paid members to upgrade to the co-branded credit card, boosting profitability while fostering greater loyalty among its already loyal customer base.

Costco store in Alhambra, California, on Thursday, June 27, 2024. (Eric Thayer/Bloomberg via Getty Images/Getty Images)

Costco has repeatedly emphasized that the company’s top priority is maintaining a high replenishment rate, which has hovered around 90% over the years.

Other rewards offered by the card remain unchanged. Cardholders will continue to earn 3% cash back on eligible dining and travel, including Costco Travel, 2% on purchases at Costco and 1% on all other purchases.

Click here to get FOX Business on the go

The Costco Anywhere Visa Card, which includes perks like no foreign transaction fees and strong travel protections, has no annual fee but requires an active Costco membership.

Rewards are issued once a year as a certificate, usually after the February billing cycle, and can be redeemed for cash or merchandise at Costco warehouses.

FOX Business has reached out to Costco for more information.