What is Costco?
Costco is a membership warehouse club that offers a range of products at value prices. It was founded in 1983 by James Sinegal and Jeffrey Brotman. Costco operates on a membership-only basis, with customers required to pay an annual fee to access its stores.
One key feature of Costco is its Kirkland Signature brand, offering high-quality products at lower prices. The company also provides various services, such as travel updates and insurance options for its members. Costco has a strong focus on sustainability and ethical business practices.
Costco’s main competitor in the membership warehouse club industry is Sam’s Club, which is owned by Walmart. Both companies offer similar products and services, but they have some differences. For example, Costco only accepts Visa credit cards for purchase transactions, while Sam’s Club accepts multiple payment options.
Does Costco offer a Business Credit Card?
Costco offers the Costco Anywhere Visa® Business Card by Citi. Here are some of the card’s essential details:
Card Issuer: Citi Bank
Purchase APR: 20.49% (variable).
Foreign Transaction Fees: None
Annual Fee: $0 (with Costco membership)
Cash Advance Fee: $10, or 5% of the cash advance, whichever is greater.
Sign-Up Bonus: None
Costco Cash Rewards:
- 4% back on eligible gas and EV charting (for the first $7,000/year, then 1% after).
- 3% back on restaurants and eligible travel.
- 2% back on all Costco and Costco.com purchases.
- 1% back on all other purchases.
The Costco Anywhere Visa® Business Card by Citi is a popular choice for business owners who frequently shop at Costco. This card offers cash-back rewards on eligible purchases. There is no annual fee with a paid Costco membership, making it a cost-effective option for businesses.
Additionally, cardholders can enjoy benefits such as extended warranty protection, damage and theft purchase protection, Citi Flex Pay Plans, and worldwide car rental insurance. Overall, the Costco Anywhere Visa® Business Card by Citi provides valuable rewards and benefits for businesses that shop at Costco regularly.
Costco Anywhere Visa® Business Card by Citi Pros & Cons
Pros:
- Cash back rewards on eligible purchases.
- No annual fee with a paid Costco membership.
- Additional benefits like travel and purchase protection.
- Easy to manage account online.
Cons:
- Requires a Costco membership to apply.
- Limited redemption options for cash-back rewards.
- High APR for those who carry a balance.
- May not be accepted at all retailers outside of Costco.
What is Sam’s Club?
Sam’s Club is a membership-based retail warehouse club that offers a wide range of products at discounted prices to its members. It operates on a similar model to Costco, where customers pay an annual fee to access the store and take advantage of bulk savings on items ranging from groceries to electronics to household goods.
Sam’s Club was founded in 1983 in Midwest City, Oklahoma, by Walmart founder Sam Walton. The chain has since grown to have locations throughout the United States and internationally, allowing customers to save money on everyday essentials by buying in bulk.
Does Sam’s Club offer a Business Credit?
Sam’s Club offers a business credit card called the Sam’s Club Business Mastercard.
Card Issuer: Synchrony Bank
Purchase APR: 20.15% – 28.15%
Foreign Transaction Fees: None
Annual Fee: None
Cash Advance Fee: $5 or 3% of the cash advance amount, whichever is greater.
Sign-Up Bonus: $30 statement credit if you make $30 worth of Sam’s Club purchases in the first 30 days.
Rewards:
- 5% back gas purchases up for the first $6,000, then 1% after.
- 3% back on Sam’s Club purchases for Plus members.
- 3% back on dining and takeout.
- 1% back on Sam’s Club purchases for Club members.
- 1% back on all other purchases.
This card is designed to help businesses make purchases and manage expenses efficiently. With this credit card, companies can earn cash-back rewards on eligible purchases, providing a cost-effective solution for their financial needs.
The Sam’s Club Business Credit Card comes with no annual fee, making it a budget-friendly option for businesses of all sizes. Cardholders can enjoy exclusive savings and benefits when shopping at Sam’s Club and other partner merchants. The card also offers fraud protection and online account management tools for added convenience.
One key benefit of the Sam’s Club Business Credit Card is the ability to earn cash-back rewards on purchases made at Sam’s Club and other select categories. This can help businesses save money on everyday expenses and improve their bottom line. Moreover, the card provides detailed monthly statements to help businesses track their spending and manage their finances effectively.
Sam’s Club Business Mastercard Pros & Cons
Pros:
- Earn cash back on eligible purchases.
- No annual or foreign transaction fee.
- Additional cards for employees at no extra cost.
- Mastercard benefits such as fraud protection and extended warranty.
Cons:
- High APR for purchases and cash advances.
- Limited rewards redemption options.
- Requires a Sam’s Club membership.
- May not be accepted at all locations outside of Sam’s Club.
How do I choose between the Costco vs Sam’s Club Business Credit Card?
Small business owners should consider several factors when deciding between the Costco Anywhere Visa® Business Card by Citi and the Sam’s Club Business Mastercard.
Credit Approval
When deciding between the Costco and Sam’s Club business credit card, consider your credit score and financial history to choose the card you’re more likely to qualify for. Review the specific requirements and eligibility criteria for each card before deciding.
Membership Benefits
Both Costco and Sam’s Club offer unique membership benefits that can add value to your business. Consider which retailer you prefer to shop at and which membership perks align better with your business needs.
Rewards Program
Compare the rewards programs of both credit cards to see which offers the best rewards for your business spending habits. Look at the cash-back percentages, bonus categories, and redemption options to determine which card will provide the most value.
APR and Fees
Evaluate each credit card’s annual percentage rate (APR) and fees. Choose the card with the lowest APR and fees to save money on interest charges and other costs.
Credit Limit
Consider each card’s credit limit and ensure it meets your business’s spending requirements. A higher credit limit can provide more flexibility for your business expenses.
Customer Service
Research the customer service reputations of Citi (issuer of the Costco card) and Synchrony Bank (issuer of the Sam’s Club card). Opt for a card with reliable customer service that promptly addresses any issues or concerns.
Acceptance
Check the acceptance of Visa and Mastercard at your preferred vendors and suppliers. Choose a widely accepted card to maximize its utility for your business transactions.
By carefully evaluating these factors, small business owners can make an informed decision about the store credit card that best suits their business needs and preferences.
How do I apply for a Costco Business Credit Card?
To apply for the Costco Anywhere Visa® Business Card by Citi, follow these simple steps:
Step 1: Visit the official Costco website or go directly to the Citi website to find the application page for the Costco Anywhere Visa® Business Card.
Sept 2: Complete the online application form with all the required information, including your business, personal, and financial details.
Step 3: Review the terms and conditions of the card, including interest rates, fees, and rewards program, to ensure you understand all aspects of the card.
Step 4: Submit your application online and wait for a decision from Citi. You may receive an instant decision or have to wait a few days for a response.
Step 5: If approved, you will receive your Costco Anywhere Visa® Business Card in the mail within a few weeks. Activate your card as soon as you receive it by following the instructions provided.
Step 6: Once your card is activated, you can start using it for business purchases at Costco and anywhere else that accepts Visa cards.
Following these steps, you can easily apply for and use the Costco Anywhere Visa® Business Card by Citi for all your business needs.
How do I apply for a Sam’s Club Business Credit?
Follow these steps to apply for the Sam’s Club Business Mastercard:
Step 1: Visit the Sam’s Club website or go to a local Sam’s Club store to start the application process.
Step 2: Choose the Business Credit option on the website or ask a representative in-store for assistance with applying for the Sam’s Club Business Mastercard.
Step 3: Fill out the application form with your business information, including your business name, address, phone number, and tax ID number.
Step 4: Provide any additional required information, such as your personal information and financial details.
Step 5: Review the terms and conditions of the Sam’s Club Business Mastercard to ensure you understand the fees, interest rates, and rewards associated with the card.
Step 6: Submit your application and wait for a decision from Sam’s Club on whether you have been approved for the Business Mastercard.
Step 7: If approved, you will receive your new Sam’s Club Business Mastercard in the mail within a few weeks.
Step 8: Activate your card and start using it to make purchases at Sam’s Club and earn rewards on your business expenses.
Frequently Asked Questions
Here are the most common questions about Costco vs Sam’s Club business credit card options.
Is getting a Costco or Sam’s Club Business Credit Card easier?
Both Costco and Sam’s Club have specific criteria for approving business credit card applications. Generally, obtaining either card can be straightforward if you meet their requirements and have a good credit history.
Does Costco or Sam’s Club report Business Credit Card activity to the credit bureaus?
Costco and Sam’s Club both report business credit card activity to credit bureaus, aiding in building business credit history. This reporting helps businesses establish credibility and potentially access better financing options in the future.
Costco’s business credit card reports to Experian, Equifax, and TransUnion, while Sam’s Club reports to Dun & Bradstreet. Having business credit cards that report to major credit bureaus can positively impact a company’s credit profile.
Are there other store Business Credit Cards to consider?
Several options are worth considering if you’re exploring credit card offerings from different stores. Store cards like those from Target, Walmart, and Best Buy offer various benefits. These rewards cards often provide discounts, cash-back, or points for store purchases.
- Target REDcard: Offers a 5% discount on most purchases at Target and free shipping on eligible items.
- Walmart Rewards Card: Provides cash-back rewards on Walmart purchases and fuel discounts at Walmart gas stations.
- Best Buy Credit Card: Offers flexible financing options, rewards points on purchases, and exclusive member offers.
When comparing credit card options, it’s essential to consider factors such as interest rates, rewards programs, and any annual fees associated with the card. Each card issuer has its unique perks and drawbacks, so choosing the right rewards credit card based on your spending habits and preferences is crucial.
Is the Costco or Sam’s Club Business Credit Card better for Bad Credit?
The Costco and Sam’s Club business credit cards benefit those with bad credit. However, the Sam’s Club Mastercard is more accessible to individuals with lower credit scores. This card provides cash-back rewards on gas, dining, and travel purchases.
On the other hand, the Costco Anywhere Visa Business Card by Citi requires a higher credit score for approval. However, it offers higher cash-back rewards on gas, travel, and other purchases at Costco and Costco.com. This card is exclusive to Costco members.
Costco vs Sam’s Club Business Credit Card – Final Thoughts
The Costco and Sam’s Club business credit cards offer unique benefits tailored to the needs of small business owners. While Costco may be better for those who frequently shop at their stores, Sam’s Club provides advantages for businesses that prefer their offerings.
Ultimately, the choice between the two will depend on individual preferences and spending habits. Before making a decision, it’s essential to consider the rewards, fees, and perks carefully.
Contact us if you have more questions about business credit cards or to apply for a small business loan. Our alternative financing experts can help you find the best funding programs for your business needs.
