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Costco Business Credit Card: Is It Right For Your Business?

The Costco Business Credit Card from Citi offers compelling rewards and benefits for Costco members. With no annual fee, this card aims to provide value to small business owners who frequently shop at Costco. Should you get the Costco Business Credit Card for your company? Here’s an in-depth look at what this card offers to help you decide.

Overview of the Costco Business Credit Card

The Costco Business Credit Card is a Visa credit card issued by Citi for small business owners who have a Costco membership. This card has no annual fee and provides generous rewards on Costco purchases and at gas stations. Key highlights include:

  • 4% cash back on eligible gas purchases at U.S. and Canadian gas stations, up to $7,000 per year. After that, 1% cash back.
  • 4% cash back on eligible purchases at U.S. restaurants
  • 3% cash back on restaurants worldwide
  • 3% cash back on eligible travel purchases
  • 2% cash back on all other eligible Costco purchases
  • 1% cash back on all other purchases  
  •  No foreign transaction fees
  • No annual fee 
  • Access to Citi Entertainment offers and experiences
  • Extended warranty protection and purchase protection 
  • Complimentary Costco Shop Card after spending $3,000 in the first 3 months

Who is this card good for?

The Costco Business Credit Card is designed for small business owners who have a Costco membership and frequently shop at Costco for business supplies and expenses. It provides significant rewards on Costco purchases, gas, dining, and travel, making it ideal if you spend heavily in those categories. If you don’t have a Costco membership, this card would not make sense since you can’t even use it at Costco without being a member. It also may not be worth it if you rarely shop at Costco or don’t spend significantly on gas, dining, or travel. The rewards diminish in value if Costco is not a major spending category for your business.

Also Read: Boost Your Business Success with Citi Business Credit Card

Benefits and Features of the Costco Business Credit Card

Let’s take a closer look at some of the key benefits this credit card offers:

Earn Cash Back at Costco

The primary perk of the Costco Business Credit Card is **3% cashback on all eligible Costco purchases, with no limit**. This applies to anything you buy at Costco warehouses, on Costco.com, and at Costco gas stations. Since regular Costco members receive only a 2% reward on Costco purchases when using the regular Citi Costco Anywhere Visa Card, the extra 1% is significant. If you spend heavily at Costco for your business, this adds up to major savings.

4% Cash Back on Gas

You’ll earn 4% cash back on the first $7,000 per year in gas purchases at U.S. and Canadian gas stations, including Costco. This equates to **up to $280 per year** in rewards just from gas purchases. After you hit the $7,000 limit, you still earn 1% back on additional gas purchases.

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More Category Bonuses 

In addition to boosts at Costco and gas stations, this card also provides nice bonuses in other common business spending categories:

  • 4% cash back at U.S. restaurants
  • 3% cash back at restaurants worldwide 
  • 3% cash back on eligible travel purchases including airfare, hotel stays, car rentals, taxis, tour operators, and more.

So you can rack up extra rewards on dining and travel expenses for your business. Any little bit helps!

No Annual Fee

Cards with lucrative ongoing rewards often charge high annual fees. But one nice perk of the Costco Business Credit Card is it has no annual fee to use it. This makes the rewards you earn pure profit. Just note you do have to pay the standard Costco membership fee annually to be eligible for this card. But there’s no additional credit card fee.

Also Read: A Complete Guide to the Truist Business Credit Card

Citi Entertainment Benefits

  • Cardholders get access to Citi Entertainment offers and experiences including:
  • Access to purchase tickets at Citi Private Pass entertainment events     
  • Special dining experiences, celebrity chef events, and culinary events
  • Pre-sales for concerts and shows 
  • Access to VIP events and movie screenings

These entertainment perks, while not hugely valuable, are nice add-ons to have.

Extended Warranty and Purchase Protection

Like many credit cards, the Costco Business Credit Card comes with extended warranty protection and purchase protection benefits. This provides extra peace of mind when buying items for your business. Extended warranty protection gives you an extra 2 years of warranty protection beyond the manufacturer’s warranty on eligible items. Purchase protection covers new items against damage or theft for 120 days after purchase. While you hope to never need these protections, they provide added coverage when you use the card to buy business equipment, electronics, furniture, and other purchases.

Complimentary Shop Card

As a welcome offer, you’ll receive a **$60 Costco Shop Card** after spending $3,000 on purchases within the first 3 months after opening the account. This Costco Shop Card can be redeemed for purchases at Costco warehouses. Depending on your Costco spending, you may already spend $3,000 there within 3 months. But if not, it’s helpful motivation to hit that spending goal and earn a nice bonus reward you can use on your next Costco trip.

How Does the Costco Business Credit Card Compare?

How does the Costco Business Card stack up against other small business credit cards? Here’s a brief look at how some key benefits and features compare:

Rewards

The Costco Business Card provides exceptional rewards, specifically on Costco and gas purchases. The 4% back on gas is tough to beat. And 3% back on Costco purchases is higher than what the regular Costco credit card offers. Cards like the Chase Ink Business Cash provide 5% back on certain categories like internet/cable/phone, then 2% back on dining and gas. The Ink Cash has broader 2% categories than the Costco card, but lower rewards at Costco.

Welcome Offer

The $60 Costco Shop Card you get after $3k spend is just okay. Many competing business cards offer $500 – $1000+ in welcome bonuses if you meet initial spending requirements. The Blue Business Plus Credit Card from American Express offers a $500 statement credit after $5,000 spend, for example.

Annual Fee

The lack of an annual fee is a nice perk that cards from issuers like American Express don’t offer. You have to pay annual fees of $95 or more on the Ink Business Cash, Amex Blue Business Plus, and other cards.

Benefits

The Costco Business Card comes with standard benefits like extended warranty, purchase protection, etc. But it doesn’t offer as many business-focused benefits as many competing cards. For example, the Amex Blue Business Plus offers employee cards, accounting software integrations, business insurance, and more. So when choosing between the Costco Business Credit Card and other options, consider the types of rewards and benefits most valuable to your company. Costco-focused benefits or overall flexibility? No annual fee or more bonus categories? Compare your spending and priorities.

Also Read: Get Your Business Off the Ground with the Divvy Business Credit Card

What Credit Score Do You Need for the Costco Business Credit Card?

Citi has not formally announced the minimum credit score requirement for the Costco Business Credit Card. However, most reports indicate you will need **at least a 700 credit score** to qualify for this card. Some people have been approved with scores in the mid 600s, but 700 seems to be the typical threshold. As a small business credit card, the Costco Business Credit Card looks at your personal credit score when considering your application – not your business credit score. A 700 credit score is considered good credit, though not excellent. Having good or better credit improves your odds of approval and lets you qualify for the best rates and terms. If your personal credit score is under 700, you may have a harder time qualifying. In that case, you can work on boosting your credit before applying. Get caught up on any late payments, keep credit card balances low, and fix any errors on your credit reports. It’s also wise to check your credit reports from Equifax, Experian and TransUnion to understand your current standing.

How Hard Is It To Get Approved for the Costco Credit Card? 

The Costco Business Credit Card is a bit more challenging to get than regular credit cards, but approval is fairly straightforward if you meet the requirements. Here are some key criteria that help your approval odds:

  • Good credit score – You’ll need around a 700 minimum score, as discussed above. Higher scores improve your chances.
  • Costco membership – You must have a current Costco membership in your business’s name to qualify and take advantage of rewards.
  • No negative marks on your credit report – Avoid late payments, bankruptcies, foreclosures, and Here is an expanded conclusion for the blog post on the Costco Business Credit Card focusing on lead generation and CTR:

Is the Costco Business Credit Card Right for You?

The Costco Business Credit Card offers compelling rewards and benefits that can provide real savings for the right type of small business. If you frequently shop at Costco and spend heavily on gas and dining, this card can put hundreds of dollars per year back in your pocket through cash back. Before applying, consider if your business spending aligns with the card’s bonus categories. Analyze your monthly expenses to estimate potential savings. Use Costco for all your business essentials? Gas up a fleet of company vehicles? Entertain clients over lunch and dinner? The more your costs align with its rewards, the bigger payoff the card will provide. Also ensure you meet the 700+ credit score requirement to qualify and can handle the $3,000 minimum spend in 3 months to earn the welcome bonus. If approved, you can enjoy an unlimited 4% cash back on gas purchases and 3% back at Costco with no annual fee. That’s like getting a permanent discount on already low Costco prices! For true Costco devotees, this card can quickly become a go-to payment option and provide recurring rewards. To explore if it’s the right fit, visit the Citi website for full details and application. With a quick online application and decision in 60 seconds, you’ll soon find out if you can start saving with the Costco Business Credit Card. Unlocking thousands in rewards takes just minutes. See if this business credit card can benefit your bottom line today! 5 Star Processing is a leader in payment processing solutions with one of the fastest processing times in the industry. They utilize advanced encryption and fraud prevention to protect your sensitive customer information. Their systems are designed for maximum uptime to avoid interruption to your sales. Whether you need online payments, in-store processing, or invoice generation, 5 Star Processing has the tools and experience to meet your business needs. Best of all, their rates beat out many competitors in the space while still providing premium solutions. When you need a payment processor you can count on for speed, reliability, and affordability, 5 Star Processing checks all the boxes. Reach out for a quick quote today to see how they can handle your payment processing and take your bottom line to the next level. So consider the Costco Business Credit Card for your warehouse spending and 5 Star Processing for seamless transactions. This combination can help maximize rewards and sales while keeping costs low. Visit 5 Star Processing’s website now to learn more about how their payment solutions can benefit your business!

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