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Reward Programs

Costco Cash Back Rewards: What You Need To Know

August 11, 2020
By Brock Kernin
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costco cash back rewards program, costco rewards, costco program
Two important things happen to me in February. First, it’s the month in which I receive my Costco membership renewal notification, which means I also receive my Executive Membership Costco cash back rewards check. Second, it’s the month I receive the annual cash back rewards from my Costco Anywhere Visa® by Citi. While both of these may be described as cash back rewards, they are two separate rebates from very different programs available to Costco members.

Let’s examine, compare, and contrast both programs.

Executive Membership Costco Cash Back Rewards

The standard $60 Gold Star membership gets you in the door to shop at Costco but executive members earn 2% cash back, up to $1000, for qualifying Costco, Costco.com and Costco travel purchases.  The executive membership costs an extra $60 for a total of $120.

Two months before your membership renewal date, Costco sends out a renewal notification along with a rebate check for the cash back earned the previous year. This rebate check can be used at Costco registers for the purchase of merchandise. It cannot be used for the purchase of alcohol, tobacco, or at their food court.

An interesting fact some people don’t know is while the Costco Executive Membership rebate check can’t be cashed at your bank, it CAN be cashed at the Costco customer service counter.

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Costco Anywhere Visa® Card by Citi

Costco members who have a Costco Anywhere Visa® Card can earn cash back throughout the year by purchasing goods and services using the card. The breakdown of the cash back rewards cardholders can earn is as follows:

  • 4% cash back on gasoline purchases (for the first $7000 per year, 1% thereafter)
  • 3% cash back at eligible restaurant and travel purchases
  • 2% cash back on purchases made at Costco, or Costco.com
  • 1% cash back on other purchases

The rewards come in the form of a voucher with the February statement.  As with the executive membership Costco cash back rewards, you can use the voucher at the register to pay for a purchase or you can exchange it for cash at the customer service desk.

Get The Most Cash Back From Your Costco Membership

  • Recoup Your Executive Membership Fee: To recoup the $60 fee to upgrade to the executive membership, you’ll have to spend $3000 annually at Costco.  If your rewards check doesn’t exceed $60, 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 Visa®: You earn cash back using your Costco Anywhere Visa®. 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 Visa®. You’ll earn the 2% Executive Membership rewards AND the 2% cash back from the credit card cash back program.  That’s a total of 4% cash back 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.

Last year I earned an Executive Membership rebate of $64, barely exceeding the $60 membership upgrade cost. It’s just too convenient to stop at the much closer Walmart to pick up necessities.  I was much more successful with the Costco Anywhere Visa By Citi cash back, earning $364.

These two programs provide an opportunity to earn cash back simply by changing where I buy my day to day necessities.  I’m looking forward to earning as much cash back as possible using my Costco membership next year!

Read More

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

  • Save Big At Costco Liquor Stores
  • Save Money On Lawn Fertilizer At Costco NOW
  • Costco Seafood Roadshow: Great Seafood, Great Value

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Reader Interactions

Comments

  1. Money Beagle says

    February 24, 2016 at 9:45 am

    The credit card offers 2% back on travel, and since we put every penny of our Disney World trip on there, our reward will be pretty substantial this year. A small benefit but better than nothing!

    Reply
  2. ESI says

    February 25, 2016 at 12:11 am

    We have an Executive Membership to get the 2% back then use the Fidelity Amex card that gives another 2% cash back. BAM!!!

    Reply
  3. Alex says

    February 25, 2016 at 2:18 pm

    Our local Costco in Canada allows us to receive cash for our rebate cheques. At the cash register we pay for our purchase as normal, and just ask for the rebate in cash. It was a Costco cashier who suggested it!

    Reply
  4. Brock says

    March 3, 2016 at 12:01 am

    @MoneyBeagle – cash back on purchase you’d make anyway is always a smart move – but a trip to Disney should rack up some dollars pretty quick!

    Reply
  5. Brock says

    March 3, 2016 at 12:01 am

    @ESI – Stacking the rewards….we do that too – LOVE It!

    Reply
  6. Brock says

    March 3, 2016 at 12:02 am

    @Alex – I wonder if that’s just a trick that the cashier figured out, or if it’s really meant to work like that….in any case, cash in your hand is a GOOD thing!

    Reply
  7. Yufeng Song says

    May 29, 2016 at 12:53 pm

    I never received any check of the cash back from costco. Might be caused that I moved to a new place. I remembered I updated my location. But, I’m not sure. It is a long time. I’ve received the check of cash back from Sam’s club. Just reminder me that I should received a check of cash back from costco. But the products in costco are better than most stores. Cheaper and fresh.

    Reply
    • Brock says

      June 12, 2016 at 1:47 pm

      Well, it depends upon your membership, Yufeng Song……if you didn’t get the executive membership, you wouldn’t get cash back.

  8. F.B. says

    January 24, 2017 at 10:31 pm

    You can cash out the check at the customer service desk. They prefer you to use it in store, but it can be cashed!

    Reply
    • Brock says

      February 3, 2017 at 8:31 pm

      Thanks for reiterating that point, F.B.!

  9. Syler says

    February 25, 2017 at 4:43 pm

    When should I expect the check? I’m thinking mine got thrown away. Did everyone on this thread already get theirs? Early Feb?

    Reply
    • Brock says

      February 27, 2017 at 12:37 pm

      Hey Skyler, I got my 2% executive membership rewards check a few weeks ago, and just got my check in my Feburary statement from the credit card last week. You might want to contact Costco….

  10. gene says

    June 9, 2017 at 10:42 am

    Be aware: WHENEVER you close your citi Costco VISA account any remaining dollars are forfeited.

    Reply
  11. Marylb says

    October 4, 2017 at 4:59 pm

    We use the Costco Citibank credit card for all purchases at Costco as well as Amazon, gas, hotels, dining, stores etc. The cash rewards add up quickly.

    Reply
  12. Mike Sloan says

    October 29, 2018 at 2:56 pm

    Has anyone checked their Citibank Costco Visa statement to be sure the rewards are correct? I just checked the last 16 month’s statements and 13 of them were incorrect. I am still auditing the rewards, but there is a huge difference between what I should have gotten and what I actually earned.

    Reply
  13. RC says

    January 27, 2020 at 8:57 am

    Last year 2019 in Feb. got 300+ $$ back. Surprise this year Jan. checked rewards have 32$. What a change that is with the executive card.

    Reply
  14. janet Brown says

    April 18, 2020 at 6:43 pm

    My daughter is on my Costco executive membership… will my check include 2% of what she spends ?

    Reply
  15. Marilyn Barry says

    October 2, 2020 at 9:12 am

    I received email said I have a 250 gift card reward from Costco never received a card in the mai! So I go to service desk to get the card please email me on how to revive it

    Reply
  16. Alice Yokoyama says

    December 12, 2020 at 3:49 pm

    Is there any way to use the Rebate as part payment of my home delivery?

    Reply
  17. Betty says

    December 19, 2020 at 12:37 pm

    Can I use the rebate as part of the payment for the next year’s membership?

    Reply
  18. William T Hayes says

    January 15, 2021 at 1:01 am

    I cash my Costco rebate check, then use the cash to buy Costco Stock which pays dividends. It’s an endless loop of money from Costco

    Reply
  19. chris paynter says

    January 17, 2021 at 2:52 pm

    Costco Executive membership rewards checks are no longer redeemable for cash starting this year.

    In previous years, you could apply your annual rewards check for merchandise or redeem the check at the service desk (or supervisor station) for cash. When I went to redeem my check today, I was informed that as of 2021, Costco has eliminated the cash option. I could put it toward my next year’s membership, use it on merchandise, or receive a Costco gift card for the balance. As my rewards certificate this year is $184, I see that as a decrease in value of $9, as any spending I would end up putting on that gift card is spending that I would otherwise be putting on a credit card and earning 5% on. Not a huge change, but certainly a downgrade, especially for those who spend a lot at Costco.

    Chris.

    Reply
    • Heather says

      January 28, 2021 at 7:08 pm

      Interesting. The email I just received today said that I could cash out my rewards certificate.

  20. Heather says

    January 28, 2021 at 7:07 pm

    Do you know if you can earn more rewards on the reward voucher when you use it to purchase items at Costco? Wondering if it is better to receive the cash instead of using the reward to make more purchases.

    Reply
  21. Darlene Lucacel says

    February 4, 2021 at 8:13 pm

    Does purchasing gift cards add rewards to my rebates?

    Reply

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