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As you may already know, beginning on June 20th Costco will make the big switch from accepting American Express cards to accepting Visa credit cards in their stores. I am not personally a huge Costco Fan Girl, but I know plenty of people who are, and so credit card companies obviously want their Visa card to be the one that you transition to using at Costco beginning next week.
Of course there is the new Costco Anywhere Visa by Citi card that will offer the following perks:
- 4% cash back on eligible gas worldwide, including gas at Costco, for the first $7,000 per year and then 1% thereafter
- 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
However, the it turns out the actual Costco Visa card won’t be the best card to use at Costco in 2016. Chase may not be the one issuing the co-branded Costco card, but they seem to be the one with the best Costco cash back category this year!
The Chase Freedom with the rotating 5x bonus categories currently has wholesale clubs as one of their second quarter 5x bonus categories (along with grocery stores), but instead of that category ending on June 30th as was previously announced, a Chase rep told me today that wholesale clubs will continue to earn 5x (aka 5% cash back) until the end of 2016! This means that the Chase Freedom will earn 5x at Costco in 2016, as well as at other wholesale clubs.
The exact wording from Chase was:
Chase Freedom is announcing that it will continue to offer the 5% cash back category of Wholesale Clubs through the end of the year. Chase Freedom cardholders earn 5% cash back each quarter on up to $1,500 in combined purchases from Wholesale Clubs, including Costco®, BJ’s® and Sam’s Club®, and other additional rotating quarterly categories.
The 5% back from that card (or 5x points if you also have a premium Ultimate Rewards card) easily beats the 2% back at Costco offered by the Citi co-branded product, up to the quarterly max. Great news for those who are Costco or wholesale club shoppers!
Editorial Note: The opinions expressed here are mine and not provided, reviewed, by any bank, card issuer, or other company unless otherwise stated.