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Citi’s Visa® Costco Anywhere Card is one of the best gasoline credit cards available. However, some people ask why they don’t get 4% cash back at every gas station, not just at a Costco station. Which gas station then returns 4% in cash?
As the Costco website describes it, the card earns “4% cashback on qualifying gas worldwide, including gas at Costco, for the first $7,000/year on gas purchase, then 1% thereafter.” The website goes on to note that you do not receive 4% on “gas purchased from supermarkets, supermarkets, convenience stores, and warehouse clubs other than Costco, or on fuel used for non-automotive purposes.”
This is not a problem – if you are a member of Costco, Visa Costco can be a good deal. There is no annual fee, except for the Costco membership fee you already pay, and using the card at Costco and elsewhere can earn significant rewards.
In addition to qualifying gasoline purchases, Costco Visa earns 3% on restaurants and qualifying trips, 2% back on Costco purchases, and 1% on everything else. However, one of the biggest benefits, as mentioned, is the 4% gas bonus.
What gas stations will bring you 4%?
When Costco and Citi first released the card in 2016, there was some confusion about where the 4% gas refund would be earned. You definitely earn them when you fill up at Costco, where gas is usually cheaper than at a regular gas station. But the company representatives said that you get it at other gas stations.
As with other categories of bonuses, whether you receive a bonus for a particular type of purchase depends on how the merchant is coded by payment networks using the so-called Merchant Category Code (MCC).
Card companies know which merchant you are charging from only through the Merchant Category Code (MCC) that card networks assign to individual businesses. Visa has separate codes for various grocery stores and convenience stores (5499), service stations (5541) and automatic filling stations (5542). Supermarkets and warehouse clubs also have separate codes. Citi has no control over how merchants are coded.
Citi has confirmed that Costco Visa will give 4% at stores classified as gas stations. In practice, most places you fill up with gas are labeled as gas stations rather than convenience stores, even if they are associated with a convenience store that offers the usual assortment of gum, lottery tickets, old-fashioned hot dogs, and cold beer.
Paying at a gas station or in a store can affect income
Some card users have reported on various websites that they have used Citi Costco cards on QuikTrip and Circle K and received the full 4%. Sometimes there is a different MCC to pay by card at a gas station rather than to go inside and pay, so if you go to pay it might explain why you don’t get 4% cash at some gas stations. Although in some cases you can get 4% when you pay at the pump. as well as inside the store.
It would be nice to think that these rules apply nationwide, but that’s not the way category bonuses work. Unfortunately, sometimes it’s just a matter of trial and error.
bottom line
The next time you’re wondering if a particular purchase is rewarding, remember that you’re not alone. If you are really trying to maximize your spend, you can try to find out his MCC and see if your card brings rewards in that particular category.
If not, we suggest that you do not try another seller. And remember, unlike other major rewards programs, Costco Rewards are paid annually after your February billing cycle ends in a coupon that can be redeemed at Costco stores and online.
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