• Almost two-thirds of Americans feel the current economy isn’t working for them.
  • Customers with Costco credit cards just got a new benefit that can help ease financial strain.
  • Costco offers cardholders a generous cash-back perk on a popular product.

In the roughly 20 years that I’ve been a Costco member, not once have I found myself questioning whether to keep paying for warehouse club access. 

Granted, these days, I have a household of kids to feed, so it makes sense to keep my Costco membership for access to the bulk savings I get. But even when it was just me and my husband, we always agreed that the money we saved at Costco well outpaced the cost of the membership.

Still, these days, Americans are spending their money more cautiously due to elevated inflation and general money-related concerns.

In November, the Consumer Price Index rose 2.7% on an annual basis. 

And not surprisingly, a December 2026 Marist poll found that 61% of Americans felt the current economy just isn’t working for them. Worse yet, 35% of Americans said their financial situation had gotten worse, not better, over the past 12 months.

Given that many Americans are feeling pessimistic about the economy and their own personal finances, Costco needs to go out of its way even more so to retain members. And the company just made a very smart move in that regard.

Costco cardholders will enjoy a new perk.

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Costco quietly adds a key credit card benefit

Costco members don’t have to sign up for the store’s branded credit card, the Costco Anywhere Visa. Costco accepts all Visa cards as payment, as well as debit cards, personal checks, and cash. 

But Costco members can benefit from the store’s branded credit card because it offers a major perk – 2% cash back on all Costco purchases. And that extends to Costco.com. 

Related: Target sees shift in consumer behavior

During Costco’s most recent earnings call, the company announced that it ended the quarter with 81.4 million total paid members. And many of those members have the Costco Anywhere Visa card as well.

Now, holders of the branded card can enjoy a huge money-saving perk: 5% cash back rewards on gas purchased at Costco. 

Of course, cash back at the pump has long been a perk of the Costco Anywhere Visa. But until recently, members were only eligible for 4% back on fuel purchases at Costco. Raising that reward to 5% could not have come at a better time, seeing as how many Costco members and consumers on a whole are feeling squeezed financially.

Other benefits of the Costco Anywhere Visa

In addition to 5% cash back on gas purchased at Costco, cardholders get:

  • 4% cash back on other eligible gas purchases and electric vehicle charging
  • 3% cash back on restaurants and eligible travel, including Costco Travel
  • 1% cash back on all other purchases
    Source: Citi.com

A strategic move on Costco’s part

Boosting the cash back benefit on fuel purchases is a smart thing for Costco to do, since it eases the burden of a major expense for members. But that’s not the only step Costco has taken recently to help retain and boost membership. 

In addition to extra cash back at the pump, Costco has introduced perks including the following.

  • Expanded fuel station hours
  • Early shopping hours for Executive members
  • Extra shopping hours for all members on Saturdays
  • $10 off of Instacart orders of $150 or more for Executive members

“We’re committed to continuing to improve the value of the membership,” CFO Gary Millerchip said during the company’s most recent earnings call.

“We’ve made obviously some major changes recently with the extended opening hours and the Instacart benefits and 5% gas on the credit card, but we’ll continue to look for ways to add greater membership value.”

Related: Costco quietly lowered prices on key items

Costco is well aware that in these trying times, consumers who need to conserve funds may be quick to dump their memberships as money gets increasingly tight. Sweetening the deal at the pump is a great strategy for preventing churn.

It’s also a great way to keep Executive members happy. 

One pain point among Executive members is that fuel purchases at Costco are not eligible for the 2% cash back that comes with paying for that higher tier. So extra cash back on the branded credit card is a great way to make up for it.

All told, there’s a good chance Costco will continue to focus on member value in the coming year. 

More Retail:

  • Costco sees major shift in member behavior
  • Retail chain shuts all locations as legal changes hit industry
  • Lululemon struggles to reverse concerning customer behavior
  • T-Mobile launches free offer for customers after major loss

“The most important item we sell is the membership card,” Costco CEO Ron Vachris told Fortune in a 2024 interview. “Everything we do supports that transaction.”

It will be interesting to see what further steps Costco takes to drive membership renewals, and whether it adds even more perks for members to enjoy.

Maurie Backman owns shares of Costco.

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