The Costco Anywhere Visa Business Card is a compelling option for business owners looking for a cash-back credit card without an annual fee. It stands out due to its lucrative earning potential, offering up to 4% cash back on eligible gas and electric vehicle (EV) purchases, limited to $7,000 per year. Additionally, cardholders will benefit from a 3% cash back on restaurant and travel purchases, 2% on all purchases made at Costco and its website, and a flat 1% cash back on all other expenses. Though the card does not come with introductory offers, it provides a simple rewards structure that can be particularly beneficial for those with regular business expenses or for owners who frequently shop at Costco for supplies.
The card’s rewards system encourages frequent use, especially for business-related purchases. The significant 4% cash back on select gas and EV charging purchases is especially advantageous for businesses that rely on vehicle use. However, it’s essential to note that fuel purchases from non-Costco vendors only garner 1% cash back. There’s also a 3% return on travel expenses booked through Costco Travel or other providers, and the card boasts no limit on rewards earned in this category, making it an excellent choice for business owners who travel often. Furthermore, the card offers unlimited 2% cash back on all Costco purchases and 1% cash back on other purchases made elsewhere, adding to its versatility.
One limitation of the Costco Anywhere Visa Business Card is its unique rewards redemption process. Unlike many cash-back cards that allow frequent transactions or points exchanges, this card provides a payout in the form of a rewards certificate issued annually in February. Cardholders can redeem this certificate for cash or merchandise at Costco until December 31 of that same year, which might not suit everyone’s financial habits. This model could make it harder for businesses needing immediate cashback for expenses. Additionally, the cardholder must ensure they maintain their Costco membership to fully enjoy all card features.
The Costco Anywhere Visa is highly beneficial for business owners who regularly make bulk purchases at Costco, as it can significantly enhance savings on everyday expenses. The outlined cash-back structure supports frequent shopping for supplies, making it easier for businesses to manage their overhead costs. However, potential applicants should consider their creditworthiness, as the card typically requires excellent credit for approval. The absence of any welcome offers or an introductory APR can also deter initial interest, but the consistent cash-back rewards over time may add up to substantial savings for loyal users.
While this card offers many advantages, it also has a few drawbacks. The requirement to redeem cash-back rewards only once a year might not appeal to all consumers, especially those who prefer the flexibility of redeeming rewards more frequently. Furthermore, excellent credit is necessary for acceptance, which could limit access to some small business owners. Despite these cons, the absence of foreign transaction fees and the card’s acceptance across millions of locations worldwide make it a versatile option for businesses operating both domestically and internationally.
For those considering alternatives, several business credit cards offer competitive cash-back rewards and other beneficial features. Cards like the Chase Ink Business Cash Credit Card and Bank of America’s Business Advantage Customized Cash Rewards offer different reward structures, including introductory offers and enhanced cashback categories, appealing to various spending habits. It’s worth evaluating these options, particularly if immediate rewards and lower credit requirements are priorities. Ultimately, for those anchored to Costco and who engage frequently with their offerings, the Costco Anywhere Visa Business Card presents an appealing choice for managing business expenses.