Given its wide selection of products, Costco is a convenient one-stop shop for many local enterprises. Members benefit from the store's bulk pricing and warehouse prices. They can save even more money now that they can access the Costco Anywhere Visa® Business Card by Citi*.

Since there is no sign-up incentive or introductory APR, the card's generous rewards rates must be considered the primary selling point. For the first $7,000 you spend annually on qualifying gas and EV charging, you'll receive a 4% cash back bonus, 3% cash back on dining and travel, 2% cash back on everything else purchased at Costco and Costco.com; and 1% cash back on everything else. To be eligible, you must be a Costco member.

Costco Business memberships start at $60 per year; thus, unfortunately, only those with paid memberships may get the card. Once you terminate your membership, you can no longer access your Visa account or any points you may have earned. This makes the card ideal for companies planning to maintain a long-term relationship with Costco. Remember that your paycheck only comes around once a year, in February.

The Payout Rate

If you use your Costco business card for purchases in specific categories, you could get rewarded more quickly. This card can be used at any store that accepts Visa credit cards because it is co-branded with Visa.

Rewards rate

The Costco Anywhere Business Card features one of the best cash-back rates on petrol purchases, even if you may have first considered it because it offers 2% cash back on purchases made at Costco and Costco.com. But at other store-branded gas stations like Walmart, you can receive 4 percent cash back on qualified petrol and EV charging purchases (up to $7,000 in purchases per year, then 1 percent). Another odd limitation is that you can't get 4 percent cash back on fuel used for anything other than vehicles.

If a business takes you out of town, you can get 3 percent cash back on all dining and travel expenses, plus 1 percent cash back on anything else you buy with your card. Anything purchased through airlines, hotels, vehicle rental agencies, cruise lines, and Costco Travel falls under "travel."

These are great reward rates even compared to generic cash-back credit cards. Surprisingly, the Costco cash back is lower than what you'd get with most other retail cards.

For instance, with the Amazon Prime Rewards Visa Signature, you can get 5% cash back on whatever you buy from Amazon, no matter how much you spend. Unlimited 5% rebates on Walmart.com purchases with the Capital One® Walmart Rewards® Card (cash back earned at their brick-and-mortar stores is limited to 2 percent).

Redeeming

The catch to the high payout percentage is that only one "credit card reward certificate" can be redeemed for cash back each year following the February billing statement. After that, you have until December 31 of that year to use your certificate at any actual Costco store in the United States or Puerto Rico.

Rewards Potential

As usual, your annual business spending will significantly impact the benefits you can earn with this card.

We estimated the amount a lone owner or small business might spend in the bonus areas to understand the card's rewards potential. Advisers compile data from a wide range of government sources to calculate annual costs and category averages. The following is an example of the possible profit for a small firm making $108,000 per year based on our data analysis.

Based on a 4% return, a small firm that spends $3,849 on fuel or electric vehicle charging would make $153.96. When you factor in the 3% cash back from $4,511 spent at restaurants and the 3% from $3,762 spent on travel, you get $135.33 and $112.86, respectively.

Then, subtract the $1,896 spent at Costco (2%) for $37.92 in rebates and the $18,054 spent elsewhere (1%) for $180.54 in restitution. With no yearly maintenance charge, that comes to a total annual reward of $620.61.

Costs and Charges

Even though there is no annual charge for the Costco Business credit card, you will need a Costco membership to apply (memberships start at $60 per year). The value of membership will vary from business to business and will depend on the frequency of purchases. Spending $125 monthly in the 4 percent cash back category on eligible petrol and EV charging purchases will easily cover the membership price, even if your business rarely shops at Costco.

Although no introductory APR promotions are available (unlike many business cards), the ongoing APR of 19.74 percent is relatively low for a retail card. If unexpected business needs arise while you are away, you will not be hit with additional costs because of a lack of foreign transaction fees.