Costco members who also have the Costco Anywhere Visa Card by Citi will be happy to hear the retailer has increased the cashback rates on gas purchased at Costco stations to 5%. The old 4% rate still applies to gas and EV charging elsewhere. Costco quietly increased the cashback rate in January 2025, as noted by NerdWallet on January 19. Both Citi co-branded Costco cards (Costco Anywhere Visa and Costco Anywhere Visa Business) got the upgrade. That said, the reason Costco’s credit card upgrade is getting more attention in early 2026 may be tied to the imminent arrival of the cash rewards. Also, last year’s change may have gone largely unnoticed, especially as Costco didn’t run ad campaigns around the new perk.
Importantly, the cashback credit isn’t available to users immediately. Instead, Costco Cash Rewards from Citi are issued as part of the February credit card billing statement. Rewards of $300 or more are eligible for direct deposit, while those under $300 must be redeemed in Costco stores for merchandise, cash, or check. Put differently, Costco members who have been pumping gas at Costco since mid-January 2025 will receive 5% cashback for their gas purchases in a few weeks. They may notice the difference.
The maximum cashback applies to the first $7,000 spent per year on gas and EV charging. After that, the rate drops to 1%. Costco’s upgrade means consumers can earn as much as $350 instead of the previous $280 if the first $7,000 spent on Costco gas is with the Citi card. The cashback amount will be lower than $350 if they use the card for gas and EV charging from non-Costco locations.
Why is Costco raising cashback rewards for gas?
In comments made last month during Costco’s Q1 2026 earnings call, Costco’s CFO Gary Millerchip mentioned the increased cashback rewards for gas as he explained the retailer is looking to “improve the value of the membership” going forward. “We’ve made some major changes recently with the extended opening hours and the Instacart benefits and 5% gas on the credit card, but we’ll continue to look for ways to add greater membership value,” Millerchip said. In September, during the company’s Q4 2025 earnings call, Costco CEO Ron Vachris said the retailer had a “record year for gas volumes.” The longer gas station hours, new gas stations, and expansions of existing gas stations are the factors he cited for the growth.
The Costco Anywhere Visa Card cashback rewards for other purchases remain unchanged. Cardholders will get 3% on dining and eligible travel, 2% for purchases in Costco stores and on Costco.com, and 1% cashback on other purchases. As before, the Costco Anywhere Visa Card carries no annual fee, which is a great perk for a credit card. However, the card is only available to Costco members, which means you’ll have to pay $65 a year for a Gold Star membership or $130 a year for the executive tier.
That said, the credit card’s cashback rewards are a compelling reason to get a Costco membership. It’s an easy way to score extra savings on all sorts of products, including iPhones bought at Costco – not just gas. The Costco Cash Rewards from Citi that cardholders are about to receive in February will expire on December 31 this year.
