What is the Costco Anywhere Visa® Business Card by Citi?
The Costco Anywhere Visa Business Card by Citi, also known as the Costco Anywhere Visa Card, is a rewards-based credit card exclusively available to a Costco member. This card is designed to help business owners maximize their spending by earning cash back on essential purchases like gas, travel, and dining. With no foreign transaction fees, a variety of credit card benefits, and an attractive rewards structure, this business credit card can be an excellent choice for those who frequently shop at Costco warehouses or make substantial purchases in categories like gas and restaurants.
Key features of this card include:
- Earn cash back on eligible purchases at Costco and elsewhere
- No annual fee with paid Costco membership
- Requires good to excellent credit to apply
- Must be a Costco member to apply.
This card provides additional value through its rewards program for businesses with a paid Costco membership and who regularly purchase merchandise or fuel. However, it might not be the best fit for companies that don’t utilize Costco or have spending patterns that don’t align with the card’s rewards categories.
How does the Costco Business Credit Card work?
The Costco Anywhere Visa Business Credit Card by Citi works by rewarding cardholders with cash back on various purchase categories. It also functions as a membership card for Costco warehouses, making it the only business credit card you need for membership access and spending rewards.
Cardholders’ Costco membership ID doubles as their Costco Anywhere Visa® Business Card. Costco Cash Rewards are provided as an annual credit card reward certificate, which is redeemable at US Costco Warehouses. The annual reward certificate is issued after the February billing statement closes, and rewards are finalized at the time of the February billing statement.
The Costco Anywhere Visa® Business Card by Citi offers cash back rewards on purchases at Costco and everywhere Visa is accepted. Cardholders earn 5% cash back on gas purchases at Costco and 4% cash back on other eligible gas and EV charging. The Costco Executive members can stack their 2% cash back with the card’s rewards for higher total rewards.
The Costco Anywhere Visa® Business Card offers travel protections like travel accident insurance and roadside dispatch. The card allows instant locking of a misplaced or lost card through Citi Quick Lock.
Here’s a detailed breakdown:
Rewards Structure
The card’s rewards structure is one of its most significant selling points. Purchases in the following categories receive cash back:
- 4% cash back on eligible gas at Costco and EV charging purchases (up to a combined $7,000 spend per year, then 1% on all subsequent purchases)
- 3% cash back on restaurants and eligible travel purchases
- 2% cash back on other Costco purchases and Costco.com beyond gas and travel
- 1% cash back on all other purchases
These rewards make the card a solid option for businesses with significant expenses in gas, dining, or travel.
Interest Rates
The card’s Citi variable APR depends on the applicant’s creditworthiness at the time of approval and may change with the Prime Rate. The card also offers a balance transfer feature, which is subject to its own APR and fees. As a business credit card, it’s essential to manage balances carefully to avoid paying interest on purchases.
Redeemable Rewards
Cash back rewards are issued annually as a reward certificate, which can be redeemed for cash or merchandise at Costco warehouses. This means rewards are not redeemable immediately, so businesses need to plan their spending and redemption accordingly.
Convenience Features
The Costco Anywhere Visa Business Card by Citi offers convenience, security, and rewards, featuring contactless-chip technology, digital wallet compatibility, and purchase protection against damage or theft. With no foreign transaction fees, it’s ideal for international business spending. The card has a competitive variable APR, and you can take advantage of flexible payment options with Citi Flex Plans, subject to credit approval.
Foreign Transaction Fees
The card has no foreign transaction fees, making it an excellent option for business owners who frequently travel internationally and make foreign purchases for work.
Cash Advance Options
The Costco Anywhere Visa Business Card by Citi offers cash advance options for those times when your business needs quick access to cash. You can obtain a cash advance at ATMs or by requesting a cash advance check, giving you flexibility in how you access funds. The cash advance fee is either $10 or 5% of the amount of each cash advance, whichever is greater, so it’s essential to factor in these costs when considering a cash advance.
The variable APR for cash advances is 29.49%, and if you pay late or have a payment returned, a variable penalty APR up to 29.99% may apply. There’s also a minimum interest charge of $0.50 on your account. While the ability to access cash can be helpful in emergencies, it’s important to remember that cash advances typically come with higher fees and interest rates compared to regular purchases. As with any Citi business card, keeping your balances low and making timely payments is essential to avoid unnecessary interest charges and fees.
If you’re considering a cash advance with your Costco Anywhere Visa Business Card, review the terms carefully and explore other options if possible. Responsible use of cash advances can help you manage short-term cash flow needs, but it’s best to use this feature sparingly to keep your business finances on track.
What are the qualifications for the Costco Business Credit Card?
To qualify for the Costco Anywhere Visa Business Credit Card, applicants must meet the following requirements:
- Costco Membership: Only Costco members are eligible to apply for this card. Membership fees apply and must be maintained to keep the card active. If you wish to add an employee as an authorized user, each authorized user must have their own individual Costco membership to access and utilize the card benefits.
- Business Verification: Applicants must provide details about their business, such as the business name, address, and Tax ID number.
- Credit Score: A good to excellent credit score (typically 690 or higher) is recommended for approval. Checking your FICO® Score with the card is free and does not impact your score.
- Personal Guarantee: Applicants must provide a personal guarantee, which means their credit will be checked, and they will be held liable for any debts incurred on the card.
How do I apply for the Costco Anywhere Visa® Business Card?
Applying for the Costco Business Credit Card is straightforward. Follow these steps:
If you need accessibility support, applicants can use a relay service, such as TTY, for assistance during the application process.
Step 1: Ensure You Have a Costco Membership
To apply for the card, you must have a paid Costco membership. You can sign up online or at a Costco warehouse if you are not a member.
Step 2: Gather Business and Personal Information
Prepare your business details, including the legal business name, address, Tax ID number, and estimated annual revenue. You’ll also need your personal information, such as your Social Security Number and income details.
Step 3: Visit the Citi Application Site
Visit Citi’s official website or the Costco website to access the application page for the Costco Anywhere Visa Business Credit Card.
Step 4: Complete the Application
Fill out the online application form, providing all the requested information. Double-check for accuracy to avoid delays in processing.
Step 5: Submit the Application
Once you’ve reviewed the application, submit it. Approval decisions are typically provided within a few business days, though some applications may require additional review.
What are the advantages of the Costco Business Credit Card?
The Costco Anywhere Visa Business Credit Card offers several benefits. The standout feature is its robust rewards program, which provides substantial cash back on essential business expenses like gas, dining, and eligible travel, including Costco Travel.
Additionally, as a Visa card, it is accepted wherever Visa is accepted, offering convenience for business purchases worldwide. The card has no foreign transaction fees, making it ideal for international travel. Its integration with Costco membership means businesses can streamline their spending and rewards in one place. Moreover, the annual rewards certificate encourages disciplined spending and offers flexibility in redeeming rewards at Costco warehouses.
What are the disadvantages of the Costco Business Credit Card?
While the Costco Business Credit Card has notable advantages, there are some drawbacks. The annual reward certificate can be limiting, as it’s only redeemable at Costco. Businesses that need more frequent access to rewards may find this inconvenient. The card’s requirement for a paid Costco membership adds an extra cost, which may not be worthwhile for those who don’t shop at Costco regularly.
While there is no annual fee, certain features or payment plans, such as installment or Citi Flex Plan options, may incur a monthly fee, adding to the ongoing costs for some users.
Additionally, rewards on Costco purchases are capped at 2%, which is lower than some other business credit cards. Lastly, businesses that rely on financing should be cautious of the card’s variable interest rates.
Costco Business Credit Card Pros & Cons
Pros:
- 4% cash back on gas and EV charging purchases.
- 3% cash back on restaurants and travel.
- No foreign transaction fees.
- Doubles as a Costco membership card.
Cons:
- Rewards are issued annually.
- Requires a paid Costco membership.
- Limited redemption options.
- Variable interest rates.
Frequently Asked Questions
Here are the most common questions about the Costco business credit card.
Is the Costco Anywhere Visa® Business Card worth it?
The Costco Business Credit Card is worth it for businesses that frequently shop at Costco and spend significantly in its high-reward categories, such as gas, dining, and travel. It’s also an excellent choice for business owners who value no foreign transaction fees. However, businesses with different spending habits or that prefer immediate reward redemption might find better alternatives..
What are the costs of a Costco Business Credit Card?
Citi pricing details include the card’s interest rates, such as the variable APR for purchases and balance transfers, as well as fees like annual fees, late payment fees, and foreign transaction fees. It’s essential to review the full terms to understand all costs associated with the card.
The card by Citi pricing covers the APR for purchases and cash advances, balance transfer fees, cash advance fees, and any applicable foreign transaction fees. For example, the card typically has no annual fee with a paid Costco membership, but other charges may apply depending on usage.
A plan fee is a monthly charge applied when you use Citi Flex Pay Plans to split eligible purchases into fixed monthly payments. The plan fee amount depends on the duration and terms of the selected Flex Plan, and it is added to your monthly statement, impacting the total cost of using the installment option.
Is there an annual fee for the Costco Business Credit Card?
There is no annual fee for the Costco Anywhere Visa Business Card itself. However, a paid Costco membership is required, and it cost-effectively serves as the card’s annual fee.
What are the alternatives to the Costco Business Credit Card?
Small business owners have several alternatives to the Costco business card. Many of these alternative cards offer balance transfers as a feature, which can help consolidate debt or manage existing balances. Be aware that a balance transfer fee may apply, and this fee can vary depending on the card.
Some cards also let you transfer whichever way best suits your needs, with different fees or conditions based on the transfer method. This option is best suited for companies that already have and use a Costco business account. If your small business does not use Costco, you might want to consider one of the following alternatives.
Other Business Credit Cards
Business owners seeking more flexibility in rewards and redemption options may consider alternative business credit cards, such as the Chase Ink Business Preferred or the American Express Blue Business Cash Card. These cards offer competitive reward structures and broader redemption opportunities.
There are also other store-specific business credit cards, such as the Sam’s Club business credit card. If your company regularly shops at another big box store, you might consider one of these credit cards.
Small Business Loans
Small business loans can be a better option for businesses that need more considerable sums of money for significant expenses like equipment purchases or expansion. These loans often provide access to more substantial funds with flexible repayment terms.
You may be interested in one of the following small business loans:
- Bad credit business loans
- Business line of credit
- Business loans for women
- Business term loans
- Equipment financing
- Accounts receivable factoring
- Merchant cash advance
- Revenue-based business loans
- SBA loans
- Working capital loans
- ERC advance
Costco Anywhere Visa® Business Credit Card by Citi Review – Final Thoughts
The Costco Anywhere Visa Business Card by Citi is a valuable tool for Costco members looking to earn rewards on everyday business expenses. While it’s not the perfect fit for every business, it offers significant advantages for those whose spending aligns with its rewards structure.
As with any financial product, it’s essential to weigh the pros and cons carefully and consider alternative options before making a decision. A different business credit card or even a small business loan might make more sense if your company doesn’t have a Costco business account or if you don’t spend in the card’s rewards categories.
Contact us if you have more questions about the Costco business credit card or to apply for a small business loan. Our alternative financing experts can help you find the best funding options for your business needs.
