topic Re: Best Cards for Costco – A Quick Guide to Higher Rewards in Credit Cards

Best Cards for Costco – A Quick Guide to Higher Rewards

PullingMeSoftly — Fri, 16 Jun 2023 04:31:29 GMT

After replying to a recent question posted in one of my older approval threads (VWest), I began thinking about what options are really best for those who shop at Costco. I realize there are several cards that may have their place in our wallets, which I didn’t consider before investigating this topic. So now with a more thorough understanding, I wanted to share this info and welcome any thoughts, discussion, and/or other recommendations:

Finding elevated multipliers for wholesale can be a bit challenging, and particularly for Costco since they only accept Visa. Note that the same list applies to other wholesale clubs, particularly BJ’s and Sam’s, both of which also accept MC, Amex, and Discover (so there are additional options out there for those clubs). However, I’m keeping this list specific to Costco (with an emphasis on in-store purchases):

Best Cards for the Job (ascending) Updated March 2023:

Any flat-rate 2% Visa card should be the baseline
Chase Freedom Unlimited 1.5x (1.87x or 2.25x w/portal redemption via Preferred/Reserve)
Bank of America Unlimited Cash Rewards 1.5% (1.87% w/Gold, 2.25% w/Platinum, 2.62% w/Platinum Honors)
Bank of America Premium Rewards 1.5x (1.87x w/Gold, 2.25x w/Platinum, 2.62x w/Platinum Honors)
Bank of America Premium Rewards Elite 1.5x (1.87x w/Gold, 2.25x w/Platinum, 2.62x w/Platinum Honors)
Bank of America Customized Cash Rewards 2% (2.5% w/Gold, 3% w/Platinum, 3.5% w/Platinum Honors)
Citi Costco Anywhere Visa 2%
Capital One Venture X/Venture 2x (while cash redemption is $.01/point, other redemptions, i.e. transfer partners, may yield higher)
Affinity FCU Cash Rewards Visa Sig 2x ~~– 7x~~ (points valued at $.01/point) for most/all of the year. Supermarkets is a permanent base multiplier at 2x (along with restaurants and gas), and in my own DP's some Costco purchases have been qualifying as supermarket/grocery spend. Add to that, 5% quarter rotating categories which have included supermarket/grocery and wholesale for multiple quarters, which stack with the 2x base for 7x. In my own experience, there appears to be times when some charges qualify as supermarket/grocery vs. wholesale, so whether or not the spend stacks with a current quarter 5x multiplier may be a mixed result (others may say otherwise). (Update for Q1 2023: At least for Q1, and possibly into future quarters, Affinity FCU has suspended the roatating category bonus structure, and replaced it with a total spend bonus as follows: Spend $2,000 and earn 3,000 points = $30 cash value; Spend $5,000 and earn 6,500 points = $65 cash value; Spend $7,500 and earn 11,500 points = $115 cash value. Depending on whether or not you may have spend that will fit with the bonus thresholds, this may be of enhanced value for your Costco spend.
Upgrade Cash Rewards Elite Visa 2.2% (all purchases), thanks @ptatohed)
Alliant CU's Visa Sig 2.5% (If earning Tier One rewards: Opt in to receive eStatements; and at least one electronic deposit posted to the account each calendar month; and maintain an average daily balance of $1,000 or more)
AOD FCU Visa Sig 3% (AOD's card is no longer available for new applications, but existing users still earn at the same rate)
US Alliance CU Visa Sig 3x (Rate reverts back to 1% at the end of 2022, but will continue to be a 6% grocery card through 12/31/23, points valued at $.01/point)
Bellco CU Colorado Rewards Visa 3x [Open membership via backdoor, redemption value varies depending upon thresholds 2500-5000 point redemption 1 pt = 0.83c (2.5%), at 10,000 pts $100 statement credit 1 pt = 1.0c (3.0%), thanks @ptatohed]
Synchrony Venmo Visa 3% (when grocery is highest spend category, grocery includes Costco)
US Bank Shopper Rewards 3% (when selecting wholesale clubs as a 3% category, $95 AF)
US Bank Altitude Reserve 3x via mobile wallet (4.5x if redeeming for travel, thanks @digitek)
Comenity AAA Daily Advantage Signature Visa 3% (in addition to 5% groceries, 3% on gas/EV, pharmacy, streaming, AAA membership not required, thanks @Hex)
Redstone FCU Visa Sig 3% (wholesale clubs, groceries, discount stores, utilities, phone and streaming services, and an overpowered 5% on Gas & Restaurants each with a separate $7k annual cap, 1.5% on everything else. Rewards given through the MyChoice rewards program, technically as points redeemed at .5 cents/point, but points awarded at 10x, 6x, and 3x for the aforementioned categories, thanks @Beefy1212)
NIH FCU Visa Sig Cash Rewards at 3% (4% on personal/home categories which includes wholesale for the first 12 months, open membership)
Safe CU Cash Rewards Visa (both Signature and Platinum) 5% (selectable quarter category ~~only once~~ twice a year, geo-restricted to some Northern CA counties)
Vantage West CU Connect Rewards Visa 5x (selectable quarter category for in-store wholesale, points valued at $.01/point, permanent selectable quarterly category, geo-restricted to select AZ counties)

Membership Levels and Executive Membership Stacking:

Regular Costco shoppers may want to consider the value of Executive membership which gives a 2% return on spend up to $1000 in rewards, which essentially is stacked with your card multiplier rewards. The 2% Executive return is given via an annual store credit certificate.

Current membership prices are:

Gold Star Membership is $60/year
Gold Star Executive Membership: $120/year

It should be noted that certain purchases don’t qualify for the Executive 2% rewards, including: cigarettes/tobacco-related products, gas, Costco Shop Cards, postage stamps, alcohol (depends on which state you’re in), food court purchases, and membership fees.

When is Executive membership worth it?

The spend threshold to break even for the higher cost is $3000 annual spend (so basically $250/month), which will return $60
For many households, like mine, realistic spend is more like $6000/year ($500/month) which returns $120.
Big spenders doing $12k/year ($1000/month) would get $240.

Feel free to let me know if there is anything I may have missed, and I welcome any thoughts and suggestions, thanks!

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

wingennis — Sat, 05 Nov 2022 21:34:27 GMT

I order from Costco via Instacart which eliminates the Visa requirement. I used to use my BCP, now I use my Amex Gold for 4x. Costco codes as groceries via Instacart so you can use any of the rotating cards during 5% grocery quarters that way.

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

digitek — Sat, 05 Nov 2022 23:09:09 GMT

As always Pulling (😁 edit) this is a well researched breakdown, nice write up.

One small correction is for Altitude Reserve it is 4.5% when redeemed for any travel you book, doesn't have to be through their portal. This is something that kind of sets it apart from other cards with increased rewards when booking travel as it doesn't have to be done through their portal, you can book however you want and booking directly can have some benefits.

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

cws-21 — Sat, 05 Nov 2022 21:51:22 GMT

@digitek wrote:
As always Aim_High this is a well researched breakdown, nice write up.

One small correction is for Altitude Reserve it is 4.5% when redeemed for any travel you book, doesn't have to be through their portal. This is something that kind of sets it apart from other cards with increased rewards when booking travel as it doesn't have to be done through their portal, you can book however you want and booking directly can have some benefits.

@digitek, I think you mean @PullingMeSoftly.

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

Hansolojr — Sat, 05 Nov 2022 22:36:03 GMT

props for this thorough breakdown!

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

Anonymous — Sun, 06 Nov 2022 00:33:37 GMT

@wingennis wrote:
I order from Costco via Instacart which eliminates the Visa requirement. I used to use my BCP, now I use my Amex Gold for 4x. Costco codes as groceries via Instacart so you can use any of the rotating cards during 5% grocery quarters that way.

Isn't there an instacart markup ?

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

Who_wuda_thought — Sun, 06 Nov 2022 01:15:47 GMT

@Anonymous wrote:
@wingennis wrote:
I order from Costco via Instacart which eliminates the Visa requirement. I used to use my BCP, now I use my Amex Gold for 4x. Costco codes as groceries via Instacart so you can use any of the rotating cards during 5% grocery quarters that way.
Isn't there an instacart markup ?

@Anonymous Yes, and (hopefully if decent customer) 15%-20% tip. Many who live quite aways from Costco and/or don't want to personally involve themselves in the circus of parking/shopping at Costco find the extra cost well worth it.

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

wasCB14 — Sun, 06 Nov 2022 01:18:26 GMT

@Anonymous wrote:
@wingennis wrote:
I order from Costco via Instacart which eliminates the Visa requirement. I used to use my BCP, now I use my Amex Gold for 4x. Costco codes as groceries via Instacart so you can use any of the rotating cards during 5% grocery quarters that way.
Isn't there an instacart markup ?

Yes. It varies by item, but approximately...

$100 in the warehouse (Visa only)

$115-$125 as Costco-member-only Costco.com "same day delivery by Instacart" (before tip) (Amex okay, 4x on Gold)

$130-$135 non-Costco-member Instacart.com (before tip) (Amex okay, 4x on Gold)

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

Who_wuda_thought — Sun, 06 Nov 2022 01:33:49 GMT

@wasCB14 wrote:
@Anonymous wrote:
@wingennis wrote:
I order from Costco via Instacart which eliminates the Visa requirement. I used to use my BCP, now I use my Amex Gold for 4x. Costco codes as groceries via Instacart so you can use any of the rotating cards during 5% grocery quarters that way.
Isn't there an instacart markup ?
Yes. It varies by item, but approximately...

$100 in the warehouse (Visa only)
$115-$125 as Costco-member-only Costco.com "same day delivery by Instacart" (before tip) (Amex okay, 4x on Gold)
$130-$135 non-Costco-member Instacart.com (before tip) (Amex okay, 4x on Gold)

@wasCB14 @Anonymous

Most times less than that for Costco members. For ordering on Instacart, we have found 15%-25% to be the common ground markup. Higher priced items, just $5-$10 higher total than in-store price. Then if the Costco member has Instacart Plus membership as well, reduced 2.9% service fee (may vary per region) and free delivery.

Ordering via Costco Same Day, a delivery charge/service fee is factored into.EACH item price for every item ordered. So if ordering just one item, not too bad and comparable to Instacart w/Instacart Plus. Ordering many items through Costco Same-day...you pay a lot more for that single delivery.

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

ptatohed — Sun, 06 Nov 2022 08:13:30 GMT

The Bellco CU Colorado Rewards Visa offers 3x points on wholesale clubs (and quite a lot more categories actually - grocery, gas, etc., etc.). From what I read, there is an easy backdoor into the CU. The rub is if you redeem statement credit (or gift cards) at $25 redemption, it's 1 pt = 0.83c (2.5% CB). At $50 redemption, it's the same. But if you can hold out until you have 10,000 pts, you can get a $100 statement credit so 1 pt = 1.0c (3.0% CB). You can also redeem for merchandise.

15,000 intro bonus points for $500/90 days spend. And they have a way to earn extra points shopping with certain merchants.

I also read their customer support isn't so great.

https://www.bellco.org/personal/consumer-lending/bellco-credit-cards/colorado-rewards-visa-credit-card/

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

Kforce — Sun, 06 Nov 2022 13:45:02 GMT

@Anonymous wrote:
@wingennis wrote:
I order from Costco via Instacart which eliminates the Visa requirement. I used to use my BCP, now I use my Amex Gold for 4x. Costco codes as groceries via Instacart so you can use any of the rotating cards during 5% grocery quarters that way.
Isn't there an instacart markup ?

The flip side of this if you shop for what you need from a list you spend less than wandering through a store. Personal nature has almost everyone picking up extra things. The extra charge & tip might/or might not outweigh the extra items, gas, & time !!

I go to my local Costco, my daughter orders her stuff, swears she spends less. Can't agree on this in my own family

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

Hex — Sun, 06 Nov 2022 17:01:40 GMT

The AAA Daily Advantage Signature Visa from Comenity bank offeres 3% on wholesale clubs. Unfortunately I'm not seeing any purchase protection or extended warranty coverage with this card. Maybe only use it for small ticket items where it doesn't matter. The same holds true for AOD.

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

PullingMeSoftly — Sun, 06 Nov 2022 17:38:28 GMT

@digitek wrote:
As always Pulling (😁 edit) this is a well researched breakdown, nice write up.

One small correction is for Altitude Reserve it is 4.5% when redeemed for any travel you book, doesn't have to be through their portal. This is something that kind of sets it apart from other cards with increased rewards when booking travel as it doesn't have to be done through their portal, you can book however you want and booking directly can have some benefits.

Thanks @digitek good catch, revised!

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

wingennis — Sun, 06 Nov 2022 17:39:30 GMT

@Who_wuda_thought wrote:
@Anonymous wrote:
@wingennis wrote:
I order from Costco via Instacart which eliminates the Visa requirement. I used to use my BCP, now I use my Amex Gold for 4x. Costco codes as groceries via Instacart so you can use any of the rotating cards during 5% grocery quarters that way.
Isn't there an instacart markup ?
@Anonymous Yes, and (hopefully if decent customer) 15%-20% tip. Many who live quite aways from Costco and/or don't want to personally involve themselves in the circus of parking/shopping at Costco find the extra cost well worth it.

Thank you for answering. Our rural area hasn't experienced a huge mark up yet. I will pay a lot to avoid going into Costco. I used to pay the extra for the upgraded Sam's Club membership that let you go early before it opened to the public.

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

PullingMeSoftly — Sun, 06 Nov 2022 17:39:59 GMT

@ptatohed wrote:
The Bellco CU Colorado Rewards Visa offers 3x points on wholesale clubs (and quite a lot more categories actually - grocery, gas, etc., etc.). From what I read, there is an easy backdoor into the CU. The rub is if you redeem statement credit (or gift cards) at $25 redemption, it's 1 pt = 0.83c (2.5% CB). At $50 redemption, it's the same. But if you can hold out until you have 10,000 pts, you can get a $100 statement credit so 1 pt = 1.0c (3.0% CB). You can also redeem for merchandise.

15,000 intro bonus points for $500/90 days spend. And they have a way to earn extra points shopping with certain merchants.

I also read their customer support isn't so great.

https://www.bellco.org/personal/consumer-lending/bellco-credit-cards/colorado-rewards-visa-credit-card/

Thanks @ptatohed, great info, added!

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

PullingMeSoftly — Sun, 06 Nov 2022 17:44:27 GMT

@Hex wrote:
The AAA Daily Advantage Signature Visa from Comenity bank offeres 3% on wholesale clubs. Unfortunately I'm not seeing any purchase protection or extended warranty coverage with this card. Maybe only use it for small ticket items where it doesn't matter. The same holds true for AOD.

Forgot about this one, thanks @Hex, added! The Daily Advantage is actually looking like a pretty strong offering (reservations about Comenity not withstanding)

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

PullingMeSoftly — Sun, 06 Nov 2022 17:57:49 GMT

Interesting timely article posted on DOC, regarding digital Costco shop cards. Per the article, "The e-cards work both online and in the warehouse, but they are more limited than the physical version in that they do not work for Costco gas. The fine print also mentions that the digital cards do no work at Food Courts."

Thanks @wingennis, @Who_wuda_thought, @wasCB14, @Anonymous for the thoughts on Costco online shopping, which is helpful to those who indeed want to avoid the crowds (especially the guy eating a food sample strolling with his cart blocking the aisle ugghhhh!)

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

PullingMeSoftly — Sun, 06 Nov 2022 17:56:39 GMT

@Hansolojr wrote:
props for this thorough breakdown!

Thank you @Hansolojr!

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

OmarR — Sun, 06 Nov 2022 23:58:10 GMT

I use my Vantage West VISA for 5% back @ Costco.

However, their pharmacy POS is NOT set up as a warehouse club but more like medical so they can accept HSA/FSA VISA or MC.

Using my Vantage West there only gets my 1%. But if i purchase a cash/shop card at a regular register, then that gets me the 5%, and than I use that cash/shop card at the pharmacy.

Re: Best Cards for Costco – A Quick Guide to Higher Rewards

notmyrealname23 — Mon, 07 Nov 2022 02:43:24 GMT

So where do the Capital One Venture/VentureX end up on this list? They are VISA cards.