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As of April 1, 2016, Citi became the exclusive credit card issuer for Costco, replacing American Express. With this change, all Visa cards are now accepted at Costcos, which is an interesting move, since there are a lot of Visa cards issued by banks other than Citi. Many would argue that Citi overpaid for this deal, and that the real winner is Chase, given that they didn’t pay anything, but most of their cards are now accepted at Costco (since they’re Visa cards).
As part of this switchover, the new Costco Anywhere Visa® Card by Citi was introduced. The card has no annual fee (assuming you have a Costco membership), and comes with the following return on spend:
- 4% cash back on eligible gas worldwide, including at Costco (up to $7,000 per year), then 1%
- 3% cash back on restaurant and eligible travel purchases worldwide
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
This represented a nice improvement over American Express’ old Costco card, which didn’t offer bonus categories that were as generous. However, arguably this card still isn’t the best for the return it offers, as there are cards that offer more lucrative returns in just about all categories. Still, it’s a fairly well rounded card for Costco loyalists, especially given the lack of an annual fee.
For those who have the Costco Anywhere Visa® Card by Citi, there’s some good news. As of January 25, 2018, the Costco Anywhere Visa® Card by Citi will no longer have foreign transaction fees, both for purchases abroad and for purchases through international websites. This new benefit will apply to both new and existing cardmembers. Previously the cards had 3% foreign transaction fees, so that’s a nice improvement for those who previously considered using the card for purchases with foreign transaction fees.
Visa also has the benefit of having great acceptable globally, so in general you’re better off with a Visa card than an American Express card when traveling internationally.
(Featured image courtesy of Nandaro)