What is the Costco Anywhere Visa® Business Card by Citi?
The Costco Anywhere Visa Business Card by Citi is a rewards-based credit card exclusively available to Costco members. This card is designed to help business owners maximize their spending by earning cash back on essential purchases like gas, travel, and dining. With no foreign transaction fees and an attractive rewards structure, this business credit card can be an excellent choice for those who frequently shop at Costco warehouses or make substantial purchases in categories like gas and restaurants.
This card provides additional value through its rewards program for businesses with a paid Costco membership and regularly purchase merchandise or fuel. However, it might not be the best fit for companies that don’t utilize Costco or have spending patterns that don’t align with the card’s rewards categories.
How does the Cost Business Credit Card work?
The Costco Anywhere Visa Business Credit Card by Citi works by rewarding cardholders with cash back on various purchase categories. It also functions as a membership card for Costco warehouses, making it the only business credit card you need for membership access and spending rewards. Here’s a detailed breakdown:
Rewards Structure
The card’s rewards structure is one of its most significant selling points. Purchases in the following categories receive cash back:
- 4% cash back on eligible gas and EV charging purchases (up to $7,000 annually, then 1%)
- 3% cash back on restaurants and eligible travel purchases
- 2% cash back on purchases at Costco and Costco.com
- 1% cash back on all other purchases
These rewards make the card a solid option for businesses with significant expenses in gas, dining, or travel.
Interest Rates
The card’s APR is variable and depends on the applicant’s creditworthiness at the time of approval. As a business credit card, it’s essential to manage balances carefully to avoid paying interest on purchases.
Redeemable Rewards
Cash back rewards are issued annually as a reward certificate, which can be redeemed for cash or merchandise at Costco warehouses. This means rewards are not redeemable immediately, so businesses need to plan their spending and redemption accordingly.
Foreign Transaction Fees
The card has no foreign transaction fees, making it an excellent option for business owners who frequently travel internationally for work.
What are the qualifications for the Costco Business Credit Card?
To qualify for the Costco Anywhere Visa Business Credit Card, applicants must meet the following requirements:
- Costco Membership: Only Costco members are eligible to apply for this card. Membership fees apply and must be maintained to keep the card active.
- Business Verification: Applicants must provide details about their business, such as the business name, address, and Tax ID number.
- Credit Score: A good to excellent credit score (typically 690 or higher) is recommended for approval.
- Personal Guarantee: Applicants must provide a personal guarantee, which means their credit will be checked, and they will be held liable for any debts incurred on the card.
How do I apply for the Costco Anywhere Visa® Business Card?
Applying for the Costco Business Credit Card is straightforward. Follow these steps:
Step 1: Ensure You Have a Costco Membership
To apply for the card, you must have a paid Costco membership. You can sign up online or at a Costco warehouse if you are not a member.
Step 2: Gather Business and Personal Information
Prepare your business details, including the legal business name, address, Tax ID number, and estimated annual revenue. You’ll also need your personal information, such as your Social Security Number and income details.
Step 3: Visit the Citi Application Site
Go to Citi’s official website or the Costco website to find the application page for the Costco Anywhere Visa Business Credit Card.
Step 4: Complete the Application
Fill out the online application form, providing all requested information. Double-check for accuracy to avoid delays in processing.
Step 5: Submit the Application
Once you’ve reviewed the application, submit it. Approval decisions are typically provided within a few business days, though some applications may require additional review.
What are the advantages of the Costco Business Credit Card?
The Costco Anywhere Visa Business Credit Card offers several benefits. The standout feature is its robust rewards program, which provides substantial cash back on essential business expenses like gas and dining.
Additionally, the card has no foreign transaction fees, making it ideal for international travel. Its integration with Costco membership means businesses can streamline their spending and rewards in one place. Moreover, the annual rewards certificate encourages disciplined spending and offers flexibility in redeeming rewards at Costco warehouses.
What are the disadvantages of the Costco Business Credit Card?
While the Costco Business Credit Card has notable advantages, there are some drawbacks. The annual reward certificate can be limiting, as it’s only redeemable at Costco. Businesses that need more frequent access to rewards may find this inconvenient. The card’s requirement for a paid Costco membership adds an extra cost, which may not be worthwhile for those who don’t shop at Costco regularly.
Additionally, rewards on Costco purchases are capped at 2%, which is lower than some other business credit cards. Lastly, businesses that rely on financing should be cautious of the card’s variable interest rates.
Costco Business Credit Card Pros & Cons
Pros:
- 4% cash back on gas and EV charging purchases.
- 3% cash back on restaurants and travel.
- No foreign transaction fees.
- Doubles as a Costco membership card.
Cons:
- Rewards are issued annually.
- Requires a paid Costco membership.
- Limited redemption options.
- Variable interest rates.
Frequently Asked Questions
Here are the most common questions about the Costco business credit card.
Is the Costco Anywhere Visa® Business Card worth it?
The Costco Business Credit Card is worth it for businesses that frequently shop at Costco and spend significantly in its high-reward categories, such as gas, dining, and travel. It’s also an excellent choice for business owners who value no foreign transaction fees. However, businesses with different spending habits or prefer immediate reward redemption might find better alternatives.
Is there an annual fee for the Costco Business Credit Card?
There is no annual fee for the Costco Anywhere Visa Business Card itself. However, a paid Costco membership is required, and it cost-effectively serves as the card’s annual fee.
What are the alternatives to the Costco Business Credit Card?
Small business owners have several alternatives to the Costco business card. This option is best suited for companies that already have and use a Costco business account. If your small business does not use Costco, you might want to consider one of the following alternatives.
Other Business Credit Cards
Business owners who want more flexibility in rewards and redemption options might consider other business credit cards, such as the Chase Ink Business Preferred or the American Express Blue Business Cash Card. These cards offer competitive reward structures and broader redemption opportunities.
There are also other store-specific business credit cards, such as the Sam’s Club business credit card. If your company regularly shops at another big box store, you might consider one of these credit cards.
Small Business Loans
Small business loans can be a better option for businesses that need more considerable sums of money for significant expenses like equipment purchases or expansion. These loans often provide access to more substantial funds with flexible repayment terms.
You may be interested in one of the following small business loans:
- Bad credit business loans.
- Business line of credit.
- Business loans for women.
- Business term loans.
- Equipment financing.
- Accounts receivable factoring.
- Merchant cash advance.
- Revenue-based business loans.
- SBA loans.
- Working capital loans.
- ERC advance.
Costco Anywhere Visa® Business Credit Card by Citi Review – Final Thoughts
The Costco Anywhere Visa Business Card by Citi is a valuable tool for Costco members looking to earn rewards on everyday business expenses. While it’s not the perfect fit for every business, it offers significant advantages for those whose spending aligns with its rewards structure.
As with any financial product, it’s essential to weigh the pros and cons carefully and consider alternative options before making a decision. A different business credit card or even a small business loan might make more sense if your company doesn’t have a Costco business account or if you don’t spend in the card’s rewards categories.
Contact us if you have more questions about the Costco business credit card or to apply for a small business loan. Our alternative financing experts can help you find the best funding options for your business needs.
