Costco Cash Rewards Program Terms

Earning Costco Cash Rewards on Purchases: You'll earn Costco Cash Rewards for purchases using your Card Account, minus returns and refunds, as follows:

  • 4% cash back on eligible gas worldwide, including gas at Costco, for the first $7,000 per year in gas purchases and then 1% thereafter.
    • Certain Non-Qualifying Purchases. You will only earn 1% cash back, not 4%, for gas purchased at superstores, supermarkets, convenience stores and warehouse clubs other than Costco or for fuel used for non-automobile purposes.
  • 3% cash back on restaurant (including cafes, bars, lounges and fast food restaurants) and eligible travel purchases worldwide, including airfare, hotels, car rentals, travel agencies, cruise lines and Costco Travel.
    • Certain Non-Qualifying Purchases. You will only earn 1%, not 3%, for purchases made at bakeries and certain restaurants/cafes inside department stores, grocery or warehouse clubs. Additionally, you will only earn 1%, not 3%, for purchases made at timeshares, campgrounds, bed & breakfasts and for purchases of train and commuter travel.
  • 2% cash back on all other purchases from Costco and
  • 1% cash back on all other purchases, including the non-qualifying purchases listed above.

Merchant Classification for Rewards Categories: Merchants are assigned a merchant category code ("MCC"), which is determined in accordance with Visa procedures based on the kinds of products and services the merchants primarily sell. We don’t control the assignment of these codes and are not responsible for the codes used by merchants. When you use your card to make a purchase, we’re provided an MCC for that purchase. We group similar merchant codes into categories for purposes of making rewards offers. Sometimes you may expect a purchase to fit within a rewards category, but if the code assigned to the merchant wasn’t grouped into that category, your purchase will not qualify for additional Costco Cash Rewards. For example, you won’t earn additional points for purchases at a restaurant located within a retailer if the restaurant is assigned a "retailer" code instead of a "restaurant" code. Please also note – purchases made through mobile/wireless technology may not earn additional Costco Cash Rewards depending on how the technology is set up to process the purchase. We reserve the exclusive right to determine which purchases qualify for additional Costco Cash Rewards.

What doesn't qualify as a purchase? The following types of transactions don't qualify as purchases that earn Costco Cash Rewards:

  • Use of checks that access your Card Account
  • Balance transfers
  • Cash advances
  • Travelers checks, foreign currency purchases, money orders, wire transfers and similar cash-like transactions
  • Lottery tickets, gaming chips and similar betting transactions
  • Interest and account fees
  • Unauthorized charges
  • Items returned for credit

Returns: Returned items may result in credits being applied to your Card Account which will reduce or may eliminate accumulated Costco Cash Rewards and may result in a negative cash rewards balance. If your Card Account has a negative Costco Cash Rewards balance, any newly earned Costco Cash Rewards will be used to offset such negative Costco Cash Rewards balance until such balance has been brought to zero.

You must maintain your Costco Membership to receive and redeem your Costco Cash Rewards.

Receiving & Redeeming Costco Cash Rewards: Your reward is distributed annually once your February billing statement closes. Your reward is distributed in the form of a credit card reward certificate, unless your annual reward amount is greater than $10,000, in which case Citi and Costco reserve the right to distribute your reward in an alternative form (e.g., a check or electronic transfer), at Citi and/or Costco’s discretion. Credit card reward certificates are redeemable through December 31 of the year issued in a single transaction at any U.S. Costco warehouse, including in Puerto Rico, for merchandise or cash back. The credit card reward certificate, or alternative-form distribution, will contain your Costco Cash Rewards balance based on your eligible purchases during the annual reward period. The annual reward period is based on January through December billing statements. Should you choose to redeem only a portion of the certificate for merchandise, you will receive the remaining balance in cash or an alternative form (e.g. check or electronic transfer), at Costco's discretion. Some warehouses may not permit the credit card reward certificate to be redeemed for alcohol purchases. Requests to redeem the credit card reward certificate for cash may be fulfilled in an alternative form (e.g., a check or electronic transfer), at Costco’s discretion. Your credit card reward certificate must be redeemed in person on or prior to its expiration date of December 31 in the year in which it is issued. Any Costco Cash Rewards you have earned on purchases made by authorized users on your Card Account will be added to your Costco Cash Rewards total. Only you, the authorized officer, are eligible to receive the annual credit card reward certificate; however, you or anyone you authorize may redeem the certificate as long as you or the authorized individual has a valid Costco membership. You will not receive a credit card reward certificate if your reward is less than $1 or your account is closed at the time your credit card reward certificate is scheduled to be sent; any Costco Cash Rewards that had been accrued at that time will be forfeited.

Account Closure: If we close your Card Account, you will no longer be able to earn Costco Cash Rewards, and you will forfeit any Costco Cash Rewards accumulated, but not yet distributed. If you close or convert your Card Account prior to receiving the credit card reward certificate in your February billing statement, any earned Costco Cash Rewards will be forfeited.

Forfeiture: All Costco Cash Rewards not disbursed via an annual credit card reward certificate due to the reward amount being less than $1, the account status (including account closure), or other reasons, will be forfeited. Additionally, any Costco Cash Rewards not redeemed by December 31 of the year of issuance of the credit card reward certificate will be forfeited.

Value of Costco Cash Rewards: Costco Cash Rewards have no cash value until such time as they are redeemed at a Costco warehouse.

Property Rights: You have no property rights or other legal interests in Costco Cash Rewards. Costco Cash Rewards may not be transferred to any other person including through such events as inheritance, bankruptcy or divorce. Costco Cash Rewards cannot be assigned or pledged.

Changes to Program Rules: We may make changes to the Costco Cash Rewards Program at any time without notice. We will give you 30 days' written notice if we make any of the following changes: a change that negatively affects the number of Costco Cash Rewards you can earn, a change that negatively affects how/when you may lose your Costco Cash Rewards, a change that negatively affects how you can exercise your rights with respect to Costco Cash Rewards, or if we cancel the program.

Fraud: If we see evidence of fraud, misuse, abuse, or suspicious activity, we will investigate and, if we determine that fraud, misuse or abuse has occurred, we may take actions against you. These actions may include, without limitation:

  • Taking away the Costco Cash Rewards you earned because of fraud, misuse or abuse
  • Preventing you from earning Costco Cash Rewards
  • Suspending or closing your Costco Cash Rewards Account
  • Taking legal action to recover Costco Cash Rewards redeemed because of such activity and to recover our monetary losses, including litigation costs and damages

Some examples of fraud, misuse, abuse and suspicious activity include:

  • Using your Card Account in an abusive manner for the primary purpose of acquiring Costco Cash Rewards
  • Using your Business Card Account other than for business or commercial purposes