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- Costco quietly introduces a new credit card perk that could help you during tough times (marketrealist.com)
Costco Sweetens the Deal for Members with New Credit Card Perk
Issaquah, WA – In a move that could offer a welcome reprieve for budget-conscious households, retail giant Costco has quietly rolled out an enhanced credit card perk designed to ease financial strain for its millions of members. This comes as personal finance remains a top concern for many Americans, despite recent economic growth.
While the nation’s GDP has seen better-than-expected growth, a significant portion of the population reports feeling their financial situation has worsened over the past year. In this climate, any opportunity for savings, particularly on essential expenses like groceries and gas, is a valuable commodity for low and middle-income families.
Costco, a company that derives a substantial portion of its revenue from its membership model, consistently seeks ways to retain and attract members. The company recently announced a boost to its co-branded credit card’s cashback rewards, a benefit that could significantly impact members’ wallets.
The retailer reported a robust 81.4 million total paid members in its most recent earnings call, many of whom utilize the Costco credit card for their purchases. Previously, cardholders earned 4% cashback on gas purchases at Costco gas stations. This reward has now been increased to a generous 5%.
Beyond the pump, cardholders also enjoy a 4% cashback on other eligible gas purchases and electric vehicle charging, along with a 3% cashback on restaurant and eligible travel expenses, including bookings through Costco Travel.
In a less common move for the warehouse club, Costco also offered a special promotion for new members towards the end of 2023. Those who signed up by December 31st received digital Costco Shop Cards for in-store and online purchases.
Groupon, which facilitated the promotion, stated, “Become a new Costco member, unlock exclusive savings on groceries, electronics, gas, and more – and get rewarded with a $40 or $60 Digital Costco Shop Card to spend online or in-store.” The offer was specifically for new members or those whose previous memberships had lapsed for at least 18 months.