Costco Anywhere Visa® Business from Citi Review

As a financial expert with years of experience in credit card analysis, I am constantly on the lookout for credit cards that offer exceptional value. One such card that stands out in the crowded market is the Costco Anywhere Visa® Business from Citi. Aimed at business owners who are also Costco members, this card offers a range of benefits that can significantly enhance the purchasing power of any enterprise. This review will delve deep into the specifics of the card, providing you with a comprehensive understanding of its features, benefits, and potential drawbacks.

Costco Anywhere Visa® Business from Citi Key Takeaways

Before diving into the nuanced details, let’s summarize the key takeaways of the Costco Anywhere Visa® Business from Citi:
– Cashback Structure: Offers 4% cash back on eligible gas and EV charging purchases worldwide, including those at Costco, for the first $7,000 per year and then 1% thereafter. Also, 3% cash back on restaurant and eligible travel purchases, 2% on all purchases from Costco and Costco.com, and 1% on all other purchases.
– Fees: No annual fee, no foreign transaction fees, but balance transfers are not available.
– APR: 20.49% variable APR for purchases and 29.99% variable APR for cash advances.
– Eligibility: Requires excellent credit (740-799).
– Issuer: Citi, a well-known financial institution with a variety of credit card offerings.

Costco Anywhere Visa® Business from Citi Pros and Cons

Like any financial product, the Costco Anywhere Visa® Business from Citi comes with its own set of advantages and disadvantages. It’s crucial to weigh these before making a commitment.

Pros

– No Annual Fee: One of the most attractive features is the lack of an annual fee, which is rare for a card offering such lucrative rewards.
– No Foreign Transaction Fees: Ideal for businesses with international operations or frequent travel.
– High Cashback Rates: The 4% cash back on gas and EV charging is particularly beneficial for businesses with substantial travel or delivery operations.
– Versatile Rewards: The tiered cashback structure allows for savings across a variety of spending categories, making it versatile for different business needs.

Cons

– No Balance Transfers: If you’re looking to consolidate debt, this card won’t be of much help as it doesn’t offer balance transfer options.
– High APR: The 20.49% variable APR for purchases is relatively high, making it less suitable for carrying a balance.
– No Welcome Bonus: Many cards offer a sign-up bonus to attract new customers, which is missing here.
– Reward Cap on Gas: The 4% cash back on gas and EV charging is capped at $7,000 annually, after which it drops to 1%.

Costco Anywhere Visa® Business from Citi Benefits

The Costco Anywhere Visa® Business from Citi offers a range of benefits that can make it a valuable addition to any business’s financial toolkit. Let’s explore these in more detail.

High Cashback Rates

The most compelling feature of this card is its cashback structure. Here’s a breakdown:
– 4% Cash Back on Gas and EV Charging: This is particularly advantageous for businesses with significant travel or logistics needs. Whether you’re fueling a fleet of vehicles or charging EVs, the savings can add up quickly. Note that the 4% cashback applies to the first $7,000 spent annually, after which it drops to 1%.
– 3% Cash Back on Restaurants and Travel: This is beneficial for businesses that entertain clients or have frequent travel requirements. Whether it’s booking flights, hotels, or dining out, the 3% cashback can contribute to significant savings.
– 2% Cash Back on Costco Purchases: If your business makes frequent purchases from Costco, either in-store or online, this can be a substantial benefit. Office supplies, equipment, and other necessities can be acquired with a 2% cashback, enhancing your savings.
– 1% Cash Back on Other Purchases: While not as lucrative as the other categories, the 1% cashback on all other purchases is still a valuable feature, ensuring that every dollar spent earns some return.

No Annual Fee

Many business credit cards come with annual fees that can range from $95 to several hundred dollars. The Costco Anywhere Visa® Business from Citi, however, has no annual fee, which is a significant advantage. This makes it an appealing option for businesses looking to maximize their savings without incurring additional costs.

No Foreign Transaction Fees

For businesses with international dealings or those that require travel abroad, the absence of foreign transaction fees is a notable benefit. These fees typically range from 1% to 3% of the transaction amount and can add up quickly. With this card, you can make purchases abroad without worrying about extra charges, making it ideal for global business operations.

Purchase Protection and Extended Warranty

The card also offers purchase protection and an extended warranty on eligible items. Purchase protection covers damage or theft of new purchases for a certain period, usually 90 days. The extended warranty benefit increases the manufacturer’s warranty by an additional period, often up to one year, providing extra peace of mind for your business purchases.

Travel and Emergency Assistance

For businesses that require frequent travel, the travel and emergency assistance services offered by this card can be invaluable. This includes access to a range of services such as medical and legal referrals, emergency transportation, and assistance with lost luggage. While these services don’t cover the costs, they provide essential support that can be a lifesaver in emergencies.

Conclusion

In conclusion, the Costco Anywhere Visa® Business from Citi is a robust credit card offering a variety of benefits tailored to the needs of business owners, especially those who are frequent Costco shoppers or have substantial travel and dining expenses. The high cashback rates, coupled with no annual fee and no foreign transaction fees, make it a highly attractive option. However, the high APR and lack of balance transfer options may be a deterrent for some.
As with any financial product, it’s essential to consider your business’s specific needs and spending patterns before making a decision. If your business frequently purchases gas or EV charging, dines out, travels, or shops at Costco, this card could provide significant savings and benefits. Always ensure to pay off your balance in full each month to avoid high-interest costs and make the most out of the cashback rewards.
For businesses looking to optimize their expenses and maximize rewards without incurring additional costs, the Costco Anywhere Visa® Business from Citi is certainly worth considering.