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Clever Dude

Brandon Marcus

Costco Cash Back Rewards: What You Need To Know

Costco Executive Citi BJ Sam Club Visa Sam Club Plus BJ Wholesale Club Costco Travel Plus

Two important things happen to many Costco members in February. First, it is often the month when the Costco membership renewal notification arrives, which may also include the Executive Membership 2% Reward certificate. Second, it is the month when cardholders receive the annual cash-back rewards from the Costco Anywhere Visa® Card by Citi. While both may be described as cash-back rewards, they are two separate rebates from very different programs available to Costco members.

That distinction matters because the rewards do not work exactly the same way, the earning limits have changed, and the amount a member needs to spend to justify an Executive upgrade is different from what it was a few years ago. Let’s examine, compare, and contrast both programs, along with how Costco stacks up against Sam’s Club and BJ’s Wholesale Club.

Executive Membership Costco Cash Back Rewards

The standard $65 Gold Star membership gets shoppers through the Costco doors, while the Executive Membership costs $130 per year and adds a 2% annual reward on qualifying purchases at Costco warehouses, Costco.com, and qualifying Costco Travel purchases. The Executive Membership upgrade costs an additional $65 per year. The 2% reward can reach a maximum of $1,250 during a 12-month period.

The basic break-even calculation is straightforward. A member needs about $3,250 in qualifying annual purchases to generate $65 in rewards and recover the Executive upgrade fee. That is higher than the old $3,000 figure because Costco increased the membership price. A household that spends $5,000 on qualifying purchases, for example, would generate approximately $100 in Executive rewards, leaving about $35 in rewards after covering the $65 upgrade cost.

Costco sends the reward certificate with the renewal statement before the membership renewal date. The exact timing depends on the member’s renewal cycle, but Costco says the reward generally arrives roughly two and a half to three months before renewal. The certificate can be redeemed toward most merchandise purchases at Costco warehouse front-end registers, although Costco excludes certain purchases and the reward cannot simply be used like a general-purpose bank check.

The rules also matter if a member downgrades or cancels. Costco says an Executive Membership reward must be redeemed while the membership remains active, and canceling or downgrading can affect the treatment of the reward and any refund of the upgrade fee. The reward itself does not carry a standard expiration date, unlike the Costco credit card reward certificate.

One useful detail often gets overlooked: the Executive Membership reward and the Costco Anywhere Visa reward are separate. The Executive reward comes from the membership tier. The credit card reward comes from spending on the card. That means a qualifying $1,000 Costco purchase charged to the Costco Anywhere Visa can potentially earn 2% from the Executive Membership and another 2% from the card, for a combined 4% reward rate on that purchase.

Costco members who have a Costco Anywhere Visa® Card by Citi can earn cash-back rewards throughout the year by using the card for eligible purchases. The 2026 earning structure looks like this:

5% on gas purchased at Costco
4% on other eligible gas and EV charging purchases
5% and 4% rewards combined on the first $7,000 in annual eligible gas and EV charging spending, then 1% thereafter
3% on restaurants and eligible travel, including Costco Travel
2% on all other purchases at Costco and Costco.com
1% on all other purchases

The card has no separate annual fee as long as the cardholder maintains a paid Costco membership. The card also has no foreign transaction fees, according to Costco’s current benefit information.

The rewards arrive as an annual credit card reward certificate after the February billing statement closes. Unlike the Executive Membership reward, the Costco Anywhere Visa reward certificate generally must be redeemed by December 31 of the year it is issued. It can be used for merchandise at U.S. Costco warehouses or exchanged for cash at Costco, subject to the program’s rules.

That timing creates an easy mistake. Someone can receive two rewards around the same time and assume they represent one large Costco rebate. They do not. The Executive reward comes from eligible Costco spending during the membership year, while the Citi reward reflects eligible credit card spending during the card’s annual rewards period.

Costco vs. Sam’s Club vs. BJ’s Wholesale Club

Costco is not the only warehouse club with a membership reward program. The best choice depends heavily on where a household shops, how much it spends, and whether it wants a co-branded credit card.

Program	Membership Cost	Membership Reward	Store Credit Card Reward	Key Detail
Costco Executive	$130/year	2% on qualifying purchases, up to $1,250	Costco Anywhere Visa: 2% at Costco, 3% restaurants/travel, 5% Costco gas	Executive upgrade breaks even at about $3,250 in qualifying annual spending
Sam’s Club Plus	$120/year	2% Sam’s Cash on qualifying purchases, up to $750 annually	Sam’s Club Mastercard: up to 5% gas, 3% dining, 3% Sam’s Club purchases for Plus members	Membership reward and card rewards are separate
BJ’s Club+	$120/year	2% back on most eligible BJ’s purchases, up to $500 per membership year	BJ’s One+ Mastercard: 5% at BJ’s and 2% elsewhere	Rewards do not expire while membership remains active

Sam’s Club Plus members earn 2% Sam’s Cash on qualifying in-club purchases, with a current annual limit of $750 according to Sam’s Club’s terms. The Sam’s Club Mastercard can add 5% back on gas for the first $6,000 annually, 3% on Sam’s Club purchases for Plus members, 3% on dining, and 1% on other purchases.

BJ’s Club+ membership costs $120 per year and offers 2% back in rewards on most eligible BJ’s purchases, up to $500 per membership year. The BJ’s One+ Mastercard can add 5% back on most BJ’s purchases and 2% back on other purchases, while also offering a 15-cent-per-gallon fuel discount at BJ’s Gas.

The lesson is simple: the biggest advertised percentage does not automatically equal the best deal. A household that shops at Costco every week may get more value from Costco’s combination of the Executive reward and credit card. A household that spends heavily on gas may prefer a different structure. The math should follow actual shopping habits, not the biggest number in the advertisement.

Maximize Your Rewards

Use this list before deciding whether to upgrade, apply for a card, or change where you shop:

Calculate annual qualifying warehouse spending. Add up realistic purchases, not spending created just to earn rewards.
Check the break-even point. Costco Executive members need about $3,250 in qualifying annual spending to generate $65 in rewards.
Separate membership rewards from credit card rewards. They are different programs with different rules.
Use the best card for each category. The Costco Visa offers different rates for gas, restaurants, travel, Costco purchases, and other spending.
Track annual caps. The highest reward rate usually applies only up to a spending limit.
Pay the credit card balance in full whenever possible. Interest charges can erase rewards very quickly.
Keep credit utilization under control. A good rewards strategy should not require carrying a balance or regularly pushing a credit card close to its limit.
Check the reward expiration date. The Costco credit card certificate and Executive Membership reward follow different rules.
Plan for large purchases. A qualifying laptop, appliance, mattress, or other major purchase can create a meaningful reward opportunity when the item already fits the budget.

The most important box on the list may be the one about credit utilization. Rewards are only useful when the interest cost does not swallow them. Someone who earns 2% or 3% in rewards but carries a balance at a high interest rate can lose far more money than the rewards provide. Keeping balances manageable, paying on time, and avoiding unnecessary applications for multiple cards generally makes more sense than chasing every available percentage point.

Use Rewards For Big Purchases

Costco rewards can become especially useful when a planned purchase already appears on the household shopping list. Computers and laptops offer a good example. A shopper who needs a $1,500 laptop might earn 2% from a qualifying Executive Membership purchase and another 2% from the Costco Anywhere Visa, potentially producing $60 in combined rewards before considering any sale price or other promotion.

The same idea can apply to major appliances, furniture, mattresses, televisions, and other large purchases sold through Costco. The key word is planned. Buying a $2,000 television solely to generate $80 in rewards does not create a bargain. Buying a television that was already needed and comparing Costco’s total price, warranty, return policy, and rewards can make the calculation much more useful.

Big purchases can also help a member reach the Executive Membership break-even point. Someone who normally spends $2,800 on qualifying purchases might cross the $3,250 threshold after buying a needed laptop or appliance. That purchase does not make the upgrade automatically worthwhile, but it can change the annual math.

The same principle applies to the other warehouse clubs. A Sam’s Club Plus member may benefit from a large qualifying in-club purchase that earns Sam’s Cash, while a BJ’s Club+ member may use a planned major purchase to generate additional rewards. The winning strategy involves comparing the final price and the reward structure together rather than focusing on the reward percentage alone.

Get The Most Cash Back From Your Costco Membership

Recoup Your Executive Membership Fee: To recoup the $65 fee to upgrade to the executive membership, you’ll have to spend thousands annually at Costco. If your rewards check doesn’t exceed $65, you can go to customer service and receive the difference. This makes upgrading to the executive membership a can’t lose proposition.
Use Your Costco Anywhere : You earn cashback using your Costco Anywhere . Use it for every purchase possible, earn cash back, and pay the bill as soon as you get home.
Double Up Rewards By Shopping At Costco: Purchase as much of your necessities as possible at Costco using the Costco Anywhere . You’ll earn the 2% Executive Membership rewards AND the 2% cashback from the credit card cashback program. That’s a total of 4% cashback for everyday items you buy anyway!
Know What Costco Sells: Consider Costco when you’re looking for computers, small appliances, water heaters, indoor and outdoor furniture, mattresses, and even carpeting!
Don’t Forget Costco.com: Costco warehouses are huge, but they don’t contain everything Costco sells. You may be surprised at what else you can find at Costco.com that can help boost your rewards checks.

Joining the Costco club may make you feel special, like you’re part of an exclusive group. This is due to the ingroup bias, which psychologists say is an evolutionary advantage to help our communities thrive. In fact, you can even find Costco memes being shared among groups who share the membership.

These two programs provide an opportunity to earn Costco cash back rewards simply by changing where I buy my day-to-day necessities. I’m looking forward to earning as much cashback as possible using my Costco membership next year! If you’re ready to become a Costco member, you can take the next steps here.

Learn more about how you can use your Costco rewards with these additional articles about Costco: