The new card, of course, replaces the retired TrueEarnings Costco American Express card.
Old AmEx cardholders automatically received the card in May.
As part of the shift, Costco began accepting any Visa-branded credit card.
It’s also worth noting that as part of the transition, Citi did not make a credit inquiry for the old Amex cardholders.
New Costco Anywhere Visa has Better Cash Back Rewards than Old TrueEarnings Costco American Express Card
Costco Visa card details were thought to have been leaked previously, as they were published on the SEC website as part of the SEC documentation. However, it turns out they were incorrect.
As I originally had speculated, the new Costco Anywhere Visa Card has cash back rewards earnings benefits that exceed the old Costco card. And unexpectedly, it does so in almost every category (1% on everything else is the same).
|Reward Category:||Costco Anywhere Visa Card by Citi cash back rewards:||TrueEarnings Costco American Express cash back rewards:|
|Gas||4% back on gas purchases at Costco and other gas stations (on up to $7,000 spent per year)||3% back on gas purchases at Costco and other gas stations (on up to $4,000 spent per year)|
|Restaurants & Travel||3% back on restaurants and most travel purchases||2% back on restaurants and most travel purchases|
|Costco||2% back at Costco and Costco.com||1% back at Costco and Costco.com|
|Everything Else||1% back on everything else||1% back on everything else|
The 2% cash back at Costco and on Costco.com makes a lot of sense, and it is what I was hoping for prior to the incorrect leak showing it at 1%. There are other Visa cards that pay more than 1% cash back on all purchases and since Costco will be taking all Visa cards, it would not have made sense for their own branded card to offer less cash back than non-Costco branded cards already in the market.
If you spend a few thousands dollars per year at Costco, as I do, the increase is not insignificant.
The 4% cash back at Costco and other qualified gas stations and 3% at restaurants and on travel are also significant.
Additionally, if you purchase an Costco appliance, TV, and PC warranty bumps up to 4 years if you use the Costco Visa card.
As with the old AmEx, rewards will be sent in the form of an annual check redeemable in store.
Do these enhancements to the new card make you a happy Costco member? If not, check out Costco’s alcohol prices. ;-)
Update: I wrote an article on how to run the numbers on whether a Costco membership (and Executive Upgrade) is worth the cost. With this no annual fee card, it’s hard not to find the value to justify at least the base membership.