Your Costco Credit Card Just Got Cooler

by Jeremy Hartley · 4 comments

credit card breakup
Costco and American Express recently broke up, and Visa has seized the opportunity. This means that the Costco branded payment card is changing at the warehouse. After doing some research on the card, I’m excited for this new relationship which officially begins on June 20, 2016. Plenty of perks are “in store” (pun intended) for cardholders.

Better Cash Back!

The current Costco American Express TrueEarnings Card gives offers 3% cash back on gasoline purchases at Costco, 2% cash back on travel expenses and restaurants (in the U.S only), and 1% cash back on all other purchases. That was great and all, but check this out – the new Costco Anywhere Visa Card (offered by Citi) boasts a 4% cash back on Costco gasoline purchases, 3% cash back on travel and restaurants (worldwide) and the same 1% return on other purchases. You’ll still receive this cash as a voucher that arrives every February.

A Newer Cash Back Opportunity

The Visa card offers one more perk I’m particularly excited about. When you shop at Costco or, you’ll receive 2% cash back instead of the usual 1% offered by American Express. This new incentive will see your February voucher rise if you’re a big Costco shopper. Note: the Blue Cash Preferred Card from American Express offers 6% cash back on groceries. If you’re not a Costco subscriber, then it might be worthwhile to shop at Sam’s Club and use this card instead.

Everything Will Roll Over

In case you’re sweating about the transition, rest assured that Costco, Visa, and American Express are making this as easy as possible. You’ll be provided with new account information when your new card arrives in the mail, and your balance will automatically be rolled over. Also, your credit score will not be affected in any way. However, if you have any recurring payments, you’ll need to enter your new card information.

A Few More Incentives

Your new Visa card offers worldwide car rental insurance, travel accident insurance, and trip cancellation protection. You’ll also enjoy an extended warranty on your purchases (which means if the manufacturer fails on a product, you’ll have a longer time to return if you use the new Visa). If items purchased by your Visa card are stolen within 120 days, the new card offers refunds too. Same goes for damages, except this incentive will first try to cover repairs first.

The new relationship between Costco and Visa is an excited time in the credit world. Walmart has already countered with their new “3-2-1 Program”. Since Visa has raised the bar, we could see a credit card war emerge, which is great for the consumer.

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  • Jon says:

    Costco switched from American Express to Capital One MasterCard, at least in Canada.

  • Investment Hunting says:

    I was ecstatic about the Costco American Express Card. This new card is even better. time for me to apply 🙂

    • David @ says:

      The new Visa card is better – no doubt about it. I’m sure there will be quite a few months of confusion though as people can’t figure out the right payment method so expect longer lines at Costco 🙂

  • David @ says:

    I for one can’t wait until June when Costco switches over Visa.

    I instantly get 1% more cash back because my Visa has 2% cash back on everything. And plus, I won’t have to carry my American Express card in my wallet again!

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