What is Costco?
Costco is a membership warehouse club that offers a range of products at value prices. It was founded in 1983 by James Sinegal and Jeffrey Brotman. Costco operates on a membership-only basis, with customers required to pay an annual fee to access its stores.
One key feature of Costco is its Kirkland Signature brand, offering high-quality products at lower prices. The company also provides various services, including travel updates and insurance options, for its members. Costco has a strong focus on sustainability and ethical business practices.
Costco’s main competitor in the membership warehouse club industry is Sam’s Club, which Walmart owns. Both companies offer similar products and services, but they have some differences. For example, Costco only accepts Visa credit cards for purchase transactions, while Sam’s Club accepts multiple payment options.
Does Costco offer a Business Credit Card?
Costco offers the Costco Anywhere Visa® Business Card by Citi. Here are some of the card’s essential details:
Card Issuer: Citibank
Purchase APR: 20.49% (variable).
Foreign Transaction Fees: None
Annual Fee: $0 (with Costco membership)
Cash Advance Fee: $10, or 5% of the cash advance, whichever is greater.
Signup Bonus: None
Costco Cash Rewards:
- 4% back on eligible gas and EV charging (for the first $7,000/year, then 1% after)
- 3% back on restaurants and eligible travel
- 2% back on all Costco and Costco.com purchases
- 1% back on all other purchases
The Costco Anywhere Visa® Business Card by Citi is a popular choice for business owners who frequently shop at Costco. This card offers cashback rewards on eligible purchases. With a paid Costco membership, there is no annual fee, making it a cost-effective option for businesses.
Additionally, cardholders can enjoy benefits such as extended warranty protection, purchase protection against damage and theft, Citi Flex Pay Plans, and worldwide car rental insurance. Overall, the Costco Anywhere Visa Business Card by Citi offers valuable rewards and benefits for businesses that frequently shop at Costco.
Costco Anywhere Visa® Business Card by Citi Pros & Cons
Pros:
- Cash back rewards on eligible purchases.
- No annual fee with a paid Costco membership.
- Additional benefits like travel and purchase protection.
- Easy to manage account online.
Cons:
- Requires a Costco membership to apply.
- Limited redemption options for cashback rewards.
- High APR for those who carry a balance.
- May not be accepted at all retailers outside of Costco.
What is Sam’s Club?
Sam’s Club is a membership-based retail warehouse club that offers a wide range of products at discounted prices to its members. It operates on a similar model to Costco, where customers pay an annual fee to access the store and take advantage of bulk savings on items ranging from groceries to electronics to household goods.
Sam’s Club was founded in 1983 in Midwest City, Oklahoma, by Walmart founder Sam Walton. The chain has since expanded to have locations throughout the United States and internationally, enabling customers to save money on everyday essentials by purchasing in bulk.
Does Sam’s Club offer Business Credit?
Sam’s Club offers a business credit card called the Sam’s Club Business Mastercard. You must be a Sam’s Club member to be eligible to apply.
Card Issuer: Synchrony Bank
Purchase APR: 20.15% – 28.15%
Foreign Transaction Fees: None
Annual Fee: None
Cash Advance Fee: $5 or 3% of the cash advance amount, whichever is greater.
Signup Bonus: $30 statement credit if you make $30 worth of Sam’s Club purchases in the first 30 days.
Rewards:
- 5% back on purchases at gas stations, then $6,000, and then 1% after that
- 3% back on Sam’s Club purchases for Plus members
- 3% back on dining and takeout
- 1% back on Sam’s Club purchases for Club members
- 1% back on all other purchases
This card is designed to help businesses make purchases and manage expenses efficiently. With this credit card, companies can earn cashback rewards on eligible purchases, providing a cost-effective solution for their financial needs. The card has a variable APR ranging from 16.4% to 24.4% for purchases and a penalty APR of up to 29.9%.
The Sam’s Club Business Credit Card offers 5% cash back on gas purchases worldwide, including at Sam’s Club, capped at the first $6,000 spent. Cash back rewards from the Sam’s Club Business Credit Card do not expire as long as the cardholder remains a member in good standing.
The Sam’s Club Business Credit Card comes with no annual fee, making it a budget-friendly option for businesses of all sizes. Cardholders can enjoy exclusive savings and benefits when shopping at Sam’s Club and other partner merchants. The card also offers fraud protection and online account management tools for added convenience.
One key benefit of the Sam’s Club Business Credit Card is the ability to earn cashback rewards on purchases made at Sam’s Club and other select categories. This can help businesses save money on everyday expenses and improve their bottom line. Moreover, the card provides detailed monthly statements to help businesses track their spending and manage their finances effectively.
Sam’s Club Business Mastercard Pros & Cons
Pros:
- Earn cash back on eligible purchases.
- No annual or foreign transaction fee.
- Additional cards for employees at no extra cost.
- Mastercard benefits include fraud protection and extended warranty.
Cons:
- High APR for purchases and cash advances.
- Limited rewards redemption options.
- Requires a Sam’s Club membership.
- May not be accepted at all locations outside of Sam’s Club.
How do I choose between the Costco vs Sam’s Club Business Credit Card?
Small business owners should consider several factors when deciding between the Costco Anywhere Visa® Business Card by Citi and the Sam’s Club Business Mastercard.
Credit Approval
When deciding between the Costco and Sam’s Club business credit cards, consider your credit score and financial history to choose the card for which you’re more likely to qualify. Review the specific requirements and eligibility criteria for each card carefully before making a decision. Both the Costco Anywhere Visa® Card and the Sam’s Club Mastercard have no annual fee, but require a membership that has a yearly fee.
Membership Benefits
Both Costco and Sam’s Club offer unique membership benefits that can add value to your business. Consider which retailer you prefer to shop at and which membership perks align better with your business needs.
Costco membership fees range from $65 to $130 annually, while Sam’s Club membership fees range from $50 to $110 annually. Neither business credit card typically offers a signup bonus, although this can vary based on promotions. Costco membership costs $65 for a Gold Star membership and $130 for a Gold Star Executive membership. Sam’s Club membership costs $50 for a Club membership and $110 for a Plus membership.
Rewards Program
Compare the rewards programs of both credit cards to see which offers the best rewards for your business spending habits. Compare the cashback percentages, bonus categories, and redemption options to determine which card offers the most value.
The Sam’s Club Mastercard provides 1% back at Sam’s Club for Club members and up to 5% back for Plus members, while the Costco card offers 2% back for Gold Star members and up to 4% for Executive members. Rewards from the Sam’s Club Mastercard can be redeemed for cash at any register or for purchases made in-store or online. In contrast, Costco rewards can only be redeemed annually via a certificate.
The Costco Anywhere Visa card allows you to earn rewards on all purchases with no cap on most rewards. The Costco Anywhere Visa earns 3% cash back on dining purchases. Rewards for the Costco Anywhere Visa Card are issued annually, while rewards with the Sam’s Club Mastercard are automatically loaded to the member’s account each month. The cumulative rewards cap for the Sam’s Club Mastercard is $5,000 per year, while Costco card rewards are unlimited, except for specific limits on gas purchases.
APR and Fees
Evaluate each credit card’s annual percentage rate (APR) and fees. Select the card with the lowest APR and fees to minimize interest charges and other expenses.
Credit Limit
Consider each card’s credit limit and ensure it meets your business’s spending requirements. A higher credit limit can provide more flexibility for your business expenses.
Customer Service
Research the customer service reputations of Citi (issuer of the Costco card) and Synchrony Bank (issuer of the Sam’s Club card). Opt for a card with reliable customer service that promptly addresses any issues or concerns you may have.
Acceptance
Check the acceptance of Visa and Mastercard at your preferred vendors and suppliers. Choose a widely accepted card to maximize its utility for your business transactions.
By carefully evaluating these factors, small business owners can make an informed decision about the store credit card that best suits their business needs and preferences.
How do I apply for a Costco Business Credit Card?
To apply for the Costco Anywhere Visa® Business Card by Citi, follow these simple steps:
Step 1: Visit the official Costco website or go directly to the Citi website to find the application page for the Costco Anywhere Visa® Business Card.
Step 2: Complete the online application form with all the required information, including details about your business, personal information, and financial details.
Step 3: Review the terms and conditions of the card, including interest rates, fees, and rewards program, to ensure you understand all aspects of the card.
Step 4: Submit your application online and wait for a decision from Citi. You may receive an instant decision or have to wait a few days for a response.
Step 5: If approved, you will receive your Costco Anywhere Visa® Business Card in the mail within a few weeks. Activate your card as soon as you receive it by following the instructions provided.
Step 6: Once your card is activated, you can start using it for business purchases at Costco and anywhere else that accepts Visa cards.
Following these steps, you can easily apply for and use the Costco Anywhere Visa® Business Card by Citi for all your business needs.
How do I apply for a Sam’s Club Business Credit?
Follow these steps to apply for the Sam’s Club Business Mastercard:
Step 1: Visit the Sam’s Club website or visit a local Sam’s Club store to begin the application process.
Step 2: Choose the Business Credit option on the website or ask a representative in-store for assistance with applying for the Sam’s Club Business Mastercard.
Step 3: Fill out the application form with your business information, including your business name, address, phone number, and tax ID number.
Step 4: Provide any additional required information, such as your personal information and financial details.
Step 5: Review the terms and conditions of the Sam’s Club Business Mastercard to ensure you understand the fees, interest rates, and rewards associated with the card.
Step 6: Submit your application and wait for a decision from Sam’s Club on whether you have been approved for the Business Mastercard.
Step 7: If approved, you will receive your new Sam’s Club Business Mastercard in the mail within a few weeks.
Step 8: Activate your card and start using it to make purchases at Sam’s Club, earning rewards on your business expenses.
Frequently Asked Questions
Here are the most frequently asked questions about Costco and Sam’s Club business credit card options.
Is getting a Costco or Sam’s Club Business Credit Card easier?
Both Costco and Sam’s Club have specific criteria for approving business credit card applications. Generally, obtaining either card can be straightforward if you meet its requirements and have a good credit history.
Does Costco or Sam’s Club report Business Credit Card activity to the credit bureaus?
Costco and Sam’s Club both report business credit card activity to credit bureaus, which helps build a business credit history. This reporting helps businesses establish credibility and potentially access better financing options in the future.
Costco’s business credit card reports to Experian, Equifax, and TransUnion, while Sam’s Club reports to Dun & Bradstreet. Having business credit cards that report to major credit bureaus can positively impact a company’s credit profile.
Is the Costco or Sam’s Club Business Credit Card better for Bad Credit?
The Costco and Sam’s Club business credit cards benefit those with bad credit. However, the Sam’s Club Mastercard is more accessible to individuals with lower credit scores. This card provides cashback rewards on gas, dining, and travel purchases.
On the other hand, the Costco Anywhere Visa Business Card by Citi requires a higher credit score for approval. However, it offers higher cashback rewards on gas, travel, and other purchases at Costco and Costco.com. This card is exclusive to Costco members.
What are the alternatives to Costco & Sam’s Club Business Credit Cards?
While Costco and Sam’s Club business credit cards offer solid value for members, they aren’t the only options available. Depending on your company’s spending habits and financial goals, other business credit cards may provide better flexibility, broader rewards categories, or travel perks. Here are some strong alternatives to consider:
Capital One Quicksilver Card: A simple and flexible option for small business owners who want straightforward rewards. The Capital One Quicksilver Card features flat-rate rewards of 1.5% on all purchases. The Capital One Quicksilver Card has a $0 annual fee. New cardholders of the Capital One Quicksilver Card have a 0% APR on purchases for the first 15 months, making it an excellent choice for managing upfront expenses.
Bank of America Business Advantage Travel Rewards World Mastercard: Ideal for travel-focused businesses, this card offers strong earning potential. The Bank of America Business Advantage Travel Rewards World Mastercard earns 3 points per dollar spent on travel booked through its center. Even better, the Bank of America Business Advantage card has no annual fee, and its rewards never expire.
United MileagePlus Explorer Business Card: For business owners who frequently fly with United, this card provides valuable airline perks. The United MileagePlus Explorer Business Card offers a signup bonus of 60,000 miles, helping you quickly rack up rewards for future flights.
Ink Business Cash® Credit Card: A versatile option from Chase with strong cashback opportunities. The Ink Business Cash Credit Card earns $750 in bonus cash back if $3,000 is spent in the first three months. Additionally, the Ink Business Cash Credit Card features a $0 annual fee and a 0% introductory APR for 12 months, providing businesses with more flexibility on purchases.
Capital One Spark Classic: Designed for businesses building or rebuilding credit, this card still offers valuable rewards. The Cash Back rewards from the Capital One Spark Classic have no expiration and do not require a minimum to redeem, making it easy to maximize everyday spending.
JetBlue Plus Card: A strong alternative for companies that frequently book domestic flights. The JetBlue Plus Card offers a 0% introductory APR on balance transfers made within 45 days of account opening. However, the JetBlue Plus Card has a variable APR on purchases after the introductory period, so businesses should carefully plan usage.
These alternatives offer a wide range of benefits—from travel perks to flexible cashback rewards—and can be paired with or used instead of warehouse club credit cards to diversify your financing strategy.
Costco vs Sam’s Club Business Credit Card – Final Thoughts
The Costco and Sam’s Club business credit cards offer unique benefits tailored to the needs of small business owners. While Costco may be better for those who frequently shop at their stores, Sam’s Club provides advantages for businesses that prefer their offerings.
Ultimately, the choice between the two will depend on individual preferences and spending habits. Before making a decision, it’s essential to carefully consider the rewards, fees, and perks.
Contact us if you have more questions about business credit cards or to apply for a small business loan. Our alternative financing experts can help you identify the most suitable funding programs for your business needs.
