Costco New Card Offers Better Cash Back Rewards

Anna Müller · 2026-06-10

If you're a Costco fan, you know that every dollar saved feels like a win. And now, there's a new card in town that promises to give you even more cash back on your purchases. Let's break down what this means for you and how you can make the most of it. ### What's the Deal with the New Card? Costco has partnered with a major credit card issuer to launch a new rewards card. This isn't just any card—it's designed to boost your cash back on everyday spending, especially at Costco warehouses and on gas. The key difference? Higher percentages on categories you actually care about. - **Cash back on gas**: Up to 4% back at Costco gas stations (and 1% elsewhere) - **Restaurants and travel**: 3% back on dining out and eligible travel purchases - **Costco purchases**: 2% back on all Costco warehouse and online purchases - **Everything else**: 1% back on all other purchases That's a solid upgrade from older cards that offered less. And the best part? There's no annual fee beyond your standard Costco membership. ### How Does It Compare to Other Cards? You might be wondering, "Is this really better than my current card?" Let's put it in perspective. Many cash back cards offer 1.5% to 2% on everything, but they often cap rewards or have rotating categories. This Costco card keeps it simple and generous, especially if you're already spending big at the warehouse. > "Cash back cards are only as good as your spending habits. If you're a regular Costco shopper, this card could easily pay for your membership each year." Think about it: If you spend $200 a week at Costco on groceries and gas, that's over $10,000 annually. At 2% back on warehouse purchases and 4% on gas, you're looking at roughly $200 to $400 in rewards per year. That's real money. ### What About the Fine Print? No rewards card is perfect, and this one has a couple of quirks. First, you can only redeem your cash back once a year, typically in February. So you won't get instant gratification. Second, the card is only available to Costco members, which means you'll need to keep your membership active. Also, remember that the 4% gas cash back is capped at the first $7,000 in gas purchases each year. After that, it drops to 1%. For most drivers, that's plenty—$7,000 in gas at $4 per gallon is 1,750 gallons, which is more than enough for a typical family car. ### Who Should Get This Card? This card is a no-brainer for: - **Frequent Costco shoppers**: If you're there weekly, the 2% back adds up fast. - **Road trip warriors**: The 4% gas cash back is one of the best in the industry. - **Travel lovers**: 3% on restaurants and travel is competitive with many travel cards. But if you rarely shop at Costco or prefer a card with more flexible redemption options, you might want to look elsewhere. This card rewards loyalty to the warehouse, not general spending. ### How to Apply Applying is straightforward. You can sign up at any Costco warehouse or online through the issuer's website. You'll need your membership number and some basic personal info. Approval depends on your credit score, but most members with good credit should qualify. One tip: Don't rush. Compare this card with your current setup. If you're already using a card that gives 2% on everything without caps, the Costco card might not be a huge upgrade. But if you're looking to maximize rewards on gas and warehouse spending, it's a solid choice. ### Final Thoughts Costco's new card is a smart move for loyal members. It simplifies cash back and rewards the spending you're already doing. Just remember the annual redemption schedule and the gas cap. If those aren't dealbreakers, you could be earning hundreds more each year. So, next time you're at the checkout, think about how much more you could be getting back. It's not just about saving money—it's about making your membership work harder for you.