Does using a Visa save money for Costco members?

We are talking about cashback cards, Costco credit cards are precisely among the best plastics to save on all purchases since not only does the discount in the form of cashback apply to purchases at Costco stores, but they also go beyond there in exchange for a very low annual cost.

Costco is a global wholesale supermarket giant based in the United States. It is a shopping club in which one pays for the membership that is around USD 55 per year and you can simply buy in any of its stores. In exchange for paying for this membership, Costco passes the discounts on to customers through a simple, quality shopping experience.

It is not uncommon to meet people from all social strata and fans of the company in the countries where it is located. Highly competitive prices, purchase policies, generous warranty and return, and of course slightly larger than normal packages in some cases, but not all.

The truth is that Costco credit cards are issued by Visa and Citi in the United States or Citi Banamex in Mexico. Both have similar features that make them highly regarded by their customers for their added benefit inside and outside of Costco.

Citi Banamex Costco Visa

One of the characteristics of the Citi Banamex and Costco credit cards is the possibility of financing purchases at 7.15% for 6 or 12 months, something that is not exactly what I recommend since nobody wants to be eating sausages with mash today will pay in 2021.

The truth is that the card currently offers 3% cashback at Costco Mexico, payable at the end of the year. In other words, they will return 3% of everything we have bought during the year as if it were an additional payment that we received from our work to save.Purchases that are not financed, that is, at a cash price, will have an additional 2.3% discount at Costco added to the possibility of an additional 2% cashback at the end of the year in case of having the executive membership that has a higher cost. then the general one, but which is usually justified or pays for itself.

The card wouldn’t have much value if it were only useful in Costco stores, and this product offers 2% cashback on all purchases, anywhere in the world. In other words, it competes directly with HSBC 2 Now regarding the 2% cashback, with the difference that it adds discounts and cashback with Costco.

The insurances that Visa Costco Citi Banamex includes include:

  • Extended warranty
  • price protection
  • Protected purchase
  • car rental collision insurance

In short, 3% at Costco and its gas stations in Mexico and the United States + 2% cashback on all purchases outside of Costco. Plus an additional 2.3% discount at Costco Mexico for non-financed purchases and all the guaranteed satisfaction of shopping at one of the most important stories in the world and an incredible price. Not bad, right?

The cost is simple, $450 + VAT or USD 18.50 per year. Spending USD 1,000 outside Costco in a year exceeds the annual cost of the card, and just spending USD 600 inside Costco stores covers the annuity.

Citi Costco Anywhere Visa Signature United States

The Citi United States credit card co-created with Costco has no annual cost, that is, we pay $0 to maintain it. We must have the general membership of Costco to be approved, that is, USD 60 per year, or USD 120 in the case of the executive that offers 2% reimbursement on all Costco purchases payable at the end of the year.

The cashback structure of Citi Costco Anywhere is quite simple, a percentage in each of the specified categories that will return at the end of the year in the form of a bonus by the end of February. This reward is a certificate that can be redeemed for cash or merchandise at Costco USA. Simple.

While Citi Banamex offers 3% at gas stations and purchases at Costco, the Citi USA card promises 4% reimbursement on the first USD 7,000 in gasoline, but at any gas station in the world. In other words, the benefit is not limited only to the company’s gas stations but also includes your preferred and local company.

Who said that this product was not a travel product? The promised cashback for the global travel and dining category is 3%. As long as the establishment where we pay is correctly cataloged in the purchase terminal, we will obtain a 3% refund without limits.

Plus, 2% back at Costco as you’d expect, which adds up to 4% if you’re an executive member. For everything else, 1%.

This credit card can be paired with the Double Cash from the same bank that offers 2% cashback on all purchases but has an international commission, so while we are traveling we could take advantage of the benefits of the Costco Anywhere card, and to all additional categories where we do not receive benefits beyond 1% domestically, use Double Cash.

Citi has eliminated virtually all Visa and Mastercard benefits from its credit cards in an unprecedented move. This card is the only one that still keeps some of these benefits alive:

  • Extended warranty for up to 12 months
  • Purchase protection up to 120 days

Conclusions about saving and Costco

This is an example of a low-cost, high-savings credit card. It allows us to save in the preferred stores, in case of being a member of Costco, and also obtain discounts beyond the borders of the company. In exchange, we sacrifice seeing cents in our account and tempting ourselves to spend them today for an annual accumulation of the same redeemable at the end of the year.

Somehow the fact that Costco’s credit card cashback is payable once a year reinforces the idea of ​​seeing how a cashback card can give us value by receiving payment in full and potentially several hundred dollars every year. years.

By Cary Grant

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