Costco Anywhere Visa® Business Card by Citi – Review
If you own your own business, you’ve probably weighed the pros and cons of a warehouse club membership with Costco. Now, there’s another argument in Costco’s favor: the Costco Anywhere Visa® Business Card by Citi. The Costco Anywhere Visa Business Card is a business credit card with generous cash back rewards that favor Costco members, frequent travelers, and foodies.
Costco Anywhere Visa Business is intended solely for Costco members. To qualify and remain in good standing, you need to have a paid-up Costco membership. The standard business Costco membership costs $60 per year, plus any applicable local tax. Executive business membership, which entitles members a 2% reward (up to $750 per year) on certain Costco purchases, costs $120 per year, plus applicable taxes. Your credit card always doubles as your Costco ID, regardless of your chosen membership plan, so you can leave your Costco membership card at home when you shop.
Costco Anywhere Visa Business has a very attractive cash back program. It earns 4% cash back on the first $7,000 spent on eligible gas purchases (including at Costco gas stations), unlimited 3% back on travel and restaurant purchases, and unlimited 2% back on Costco and Costco.com purchases. On the other hand, it doesn’t have a sign-up bonus or introductory 0% APR promotion.
Costco Anywhere Visa Business’s cash back rewards program is split into 4 tiers:
Every year, you receive a coupon for the full amount of the cash back earned during the previous calendar year with your February account statement. This coupon can be redeemed for store credit, hard cash (or paper check), or a combination of the 2 at any Costco warehouse location. If you choose to redeem for store credit and the coupon’s value is greater than your redemption transaction’s value, Costco gives you the rest in cash or paper check form.
You must earn at least $1 in rewards each year to receive a coupon. If you don’t hit the $1 threshold by December 31st, you forfeit whatever rewards you do earn that year.
There is no annual fee for the card itself. However, cardholders are required to maintain current, paid-up Costco business memberships at a minimum annual cost of $60 plus applicable local tax. Foreign transactions cost 3%, but they’re free at international Costco locations. Cash advances cost the greater of $10 or 5%. Balance transfers are not allowed. Late and returned payments cost $37.
This card comes with some useful cardholder benefits. These include:
This card requires excellent credit. Any notable credit issues are likely to disqualify you from consideration.
Though the Costco Anywhere Visa® Business Card by Citi is clearly a great deal for business owners who travel and dine out frequently, it’s wise not to overlook its unlimited 2% cash back on Costco and Costco.com purchases. Without this card, only Executive members (who pay $120 per year, plus tax, for the privilege) get 2% back on Costco purchases – and their earnings are capped at $750 per year. Anywhere Visa Business cardholders get unlimited 2% back for just $60 per year, plus tax. If you’re already a frequent Costco shopper or can easily adjust your purchasing habits to take advantage of this deal, it alone could make your Costco Anywhere Visa Business Card worthwhile.
Costco Anywhere Visa® Business Card by Citi is ideal for business owners who spend heavily at Costco, restaurants, and travel merchants. It’s also useful for entrepreneurs who drive often for business, though not for business owners with vehicle fleets that guzzle gas. This card falls short for business owners who can’t practically or financially justify a Costco membership, as well as those who prefer more convenient redemption options.
This card’s benefits include exceptional dining and travel rewards, unlimited 2% cash back on Costco and Costco.com purchases, solid gas rewards for drivers who can approach or reach the $7,000 annual spending cap, no annual fee beyond the required Costco membership fee, and no foreign transaction fee at international Costco locations.
Its downsides include the Costco membership requirement, the lack of a sign-up bonus, the in-person and infrequent rewards redemption, sensitive fraud detection practices, and a lack of balance transfers.
Overall, this is a very good card for business owners who travel, eat out, and shop at Costco a lot.
Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
Brian Martucci writes about frugal living, entrepreneurship, and innovative ideas. When he’s not interviewing small business owners or investigating time- and money-saving strategies for Money Crashers readers, he’s probably out exploring a new trail or sampling a novel cuisine. Find him on Twitter @Brian_Martucci.
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Costco Anywhere Visa® Business Card by Citi – Review
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