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 oncetwice 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!
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.
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.
props for this thorough breakdown!
@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.
@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.
