Change in COSTCO VISA Rewards program

[JimMIA]

We just found out today that Costco has changed their VISA Rewards program and will no longer redeem their rewards for CASH or a CHECK.

In the past, we had always taken our rewards certificate to the store and redeemed it for a Costco check. For years, we have been using the Costco Rewards VISA as our primary household credit card and had been receiving a large cash-back reward each year. We then deposited the check in our regular checking account and used our Costco VISA for all gas and store purchases and racked up more rewards.

Today we were told -- both by store personnel and by confirming with Costco Member Services -- that the only option going forward is a Costco Gift Card, which can only be used in a Costco store or gas station. We were told that the 2021 Reward Certificate (which we have already cashed) is the last year those rewards can be redeemed for cash or a regular check.

Problem is, a gift card does NOT earn rewards -- so we would get nothing for any purchases made directly from Costco with the gift card. That's a deal breaker for us.

We will continue our Costco membership, possibly at a lower level, and just use someone else's 2% cashback VISA at Costco.

 

[Christine]

We just found out today that Costco has changed their VISA Rewards program and will no longer redeem their rewards for CASH or a CHECK.

In the past, we had always taken our rewards certificate to the store and redeemed it for a Costco check. For years, we have been using the Costco Rewards VISA as our primary household credit card and had been receiving a large cash-back reward each year. We then deposited the check in our regular checking account and used our Costco VISA for all gas and store purchases and racked up more rewards.

Today we were told -- both by store personnel and by confirming with Costco Member Services -- that the only option going forward is a Costco Gift Card, which can only be used in a Costco store or gas station. We were told that the 2021 Reward Certificate (which we have already cashed) is the last year those rewards can be redeemed for cash or a regular check.

Problem is, a gift card does NOT earn rewards -- so we would get nothing for any purchases made directly from Costco with the gift card. That's a deal breaker for us.

We will continue our Costco membership, possibly at a lower level, and just use someone else's 2% cashback VISA at Costco.

Thanks for the heads up! Sounds like it's time to change over to a new card. Like you, I get a lot of rewards cash back from Costco. The last few years it's been about $1200. I don't mind spending some of it at Costco but I don't want to be forced to spend all of that amount in the store. I guess the bright side for me for the 2022 rewards is that I expect they will be much lower than usual. Between me not shopping as much this year due to a surgery that left me non-weight bearing for 2 months, my rewards are way down.

 

[princesscinderella]

We just found out today that Costco has changed their VISA Rewards program and will no longer redeem their rewards for CASH or a CHECK.

In the past, we had always taken our rewards certificate to the store and redeemed it for a Costco check. For years, we have been using the Costco Rewards VISA as our primary household credit card and had been receiving a large cash-back reward each year. We then deposited the check in our regular checking account and used our Costco VISA for all gas and store purchases and racked up more rewards.

Today we were told -- both by store personnel and by confirming with Costco Member Services -- that the only option going forward is a Costco Gift Card, which can only be used in a Costco store or gas station. We were told that the 2021 Reward Certificate (which we have already cashed) is the last year those rewards can be redeemed for cash or a regular check.

Problem is, a gift card does NOT earn rewards -- so we would get nothing for any purchases made directly from Costco with the gift card. That's a deal breaker for us.

We will continue our Costco membership, possibly at a lower level, and just use someone else's 2% cashback VISA at Costco.

That stinks!! We don’t have the visa but we have the executive membership and get the 2% for purchases. I love the years we book a cruise through Costco. It makes sense that they would want to keep those funds funneled back into their pockets like the Disney visa does.

 

[Theta]

That stinks!! We don’t have the visa but we have the executive membership and get the 2% for purchases. I love the years we book a cruise through Costco. It makes sense that they would want to keep those funds funneled back into their pockets like the Disney visa does.

And Amazon visa as well.

 

[MillauFr]

The Costco Visa was never a good deal in my opinion. Sure you got 2% back at Costco, 4% back on Costco gas, but only 1% on other purchases. That is pitifully low. I always use my Fidelity Visa which gives you 2% back on all purchases and the Chase Sapphire Reserve that gives you 4.5% back on restaurants and travel.

 

[johnsontrio]

I cash my check every year and continue to make all purchases using my card. Never made sense to spend that check at the register. This past February when the checks came, I was told they no longer cash them. However, I was told to go make purchase of one item and I would receive all the change back when I presented the check to pay for my purchase. Good enough.

 

[Lynne G]

Gift card would not be as good. I too, shop when I get the reward check, and pay with it, then getting quite a bit of cash back when I did not spend as much as the total of the reward amount. Seems like many of the credit card banks are changing to not as rewarding benefits.

 

[izzy]

It doesn’t bother me. I usually only get a $200-300 reward check, and that’s an easy amount to spend at Costco. My only caveats are if I only spend $50 that I should still have a balance left on the gift card, and I hope there is not a time limit on when that gift card has to be used.

 

[JimMIA]

.

The Costco Visa was never a good deal in my opinion. Sure you got 2% back at Costco, 4% back on Costco gas, but only 1% on other purchases. That is pitifully low. I always use my Fidelity Visa which gives you 2% back on all purchases and the Chase Sapphire Reserve that gives you 4.5% back on restaurants and travel.

Both DD and I use our Fidelity VISA as our primary card for personal purchases, but DW and I used the Costco card as our primary household card. I applied for a joint Fidelity VISA online, and got an almost immediate approval.

The Fidelity card is 2% back on all purchases with no annual limit on purchases. There is no annual fee, and the cashback will be automatically be credited to our joint household checking account. We have switched all of our accounts to Fidelity since DW retired, in large part because they do not nickel and dime you at every opportunity -- no fee, no charge for checks, no fee for online banking including bill pay, etc...plus I've been doing business with them for many years and am very comfortable.

My oldest DD also recommended the Chase Sapphire Preferred card, so we'll look at those options as well.

 

[MillauFr]

My oldest DD also recommended the Chase Sapphire Preferred card, so we'll look at those options as well.

I like the Chase Card because it gives you free medical evacuation insurance for cruises and lounge access at the airport. We can usually hit the Club at SeaTac, get a couple of free glasses a wine a piece, and then go to Bambuza where the card gives us $112 credit on food and drink. I like their Pho soup but that can be tricky to eat on the airplane.

 

[kdonnel]

I prefer points based cards rather than straight cash back. If you jump through the right hoops, you can get much more value than the straight cash back cards. But you have to be flexible with your travel to get the exceptional values from the points.

 

[barkley]

costco visa is lousy as compared to what costco amex used to offer. that amex card was awesome if you had to deal with an extended warranty-the visa process is terrible and designed to be user unfriendly.

that said, i'll still keep the card and use it in the manner of my amazon card-exclusively for items purchased through the associated vendor (makes it easy to prove if a card has been compromised when a purchase history only shows one vendor exclusively used). i'll just save the gift card for my oldest who has me buy them for her anyway b/c that way she can use costco but not have to have a costco membership.

 

[connorlevismom]

Oh this makes a huge difference to us. We use our Costco card for everything and usually end up with between $1500-$2000 a year that we then have then issue us a check. We use that money for our Spring Break trip. If they are only going to allow me to use that money at Costco, I will look elsewhere.

What other card that offer cash back do other people use?

 

[Dan Murphy]

My understanding is that they will no longer just give you cash for the entire amount. However, if you buy an item, any item, you will continue, as now, to receive the change in cash. Buy a hot dog for $1.50, get the change in cash.

 

[JimMIA]

Oh this makes a huge difference to us. We use our Costco card for everything and usually end up with between $1500-$2000 a year that we then have then issue us a check. We use that money for our Spring Break trip. If they are only going to allow me to use that money at Costco, I will look elsewhere.

What other card that offer cash back do other people use?

We will use a Fidelity Rewards VISA. No annual fee, 2% cash back on everything with no limitations, credited to any Fidelity account.

We have a Fidelity Cash Management account that we use for our household checking account (no fees, no charge for checks, no fees for online deposits or bill pay) so that's where our rewards will go.

If you don't have any other Fidelity accounts, you just apply your cash back to your Fidelity credit card bill.

You do not have to be a Fidelity customer to apply, and you can apply online.

 

[Christine]

My understanding is that they will no longer just give you cash for the entire amount. However, if you buy an item, any item, you will continue, as now, to receive the change in cash. Buy a hot dog for $1.50, get the change in cash.

Dan, I've been trying that for years and they never have the change to give me. That's where I get pushed to get the check which I then deposit in my own accounts. So when I show with me $1700 check to purchase my $1.50 hot dog, they're going to tell me that they can't accommodate the cash back and then I'll get the gift card.

 

[JimMIA]

My understanding is that they will no longer just give you cash for the entire amount. However, if you buy an item, any item, you will continue, as now, to receive the change in cash. Buy a hot dog for $1.50, get the change in cash.

That is not what we were told, both by local store personnel and Costco customer service.

Customer service said the program had changed, and rewards will no longer be redeemable in cash.

 

[MillauFr]

What other card that offer cash back do other people use?

Fidelity Visa. 2% cash back. I also use Fidelity for all of my banking needs. As Jim said, no nickel and diming like traditional banks.

 

[tasha99]

The Costco Visa was never a good deal in my opinion. Sure you got 2% back at Costco, 4% back on Costco gas, but only 1% on other purchases. That is pitifully low. I always use my Fidelity Visa which gives you 2% back on all purchases and the Chase Sapphire Reserve that gives you 4.5% back on restaurants and travel.

I just cancelled my Reserve card. My hope is we'll be travelling again, and I can reopen it and get the welcome points again (it's been more than 4 years for me). But . . . right now, Chase Sapphire Preferred has a 100,000 point welcome bonus. DH just signed up for it since he was never on my CSR card. Hoping between the two of us putting everything on cards and getting new welcome bonuses that we can have a stash built in the next couple years. I panicked and cashed out all our points at the start of the pandemic.

 

[georgina]

There are 2 separate Costco rewards programs we have - the executive rewards and the credit card cash back. One of ours came last November and while I got cash for it, they said it was the last time. I thought that was the executive rewards but not sure. The other came in Feb and I was able to get cash for that. I have been thinking about cancelling the Costco Visa anyway but since there's no AF, not that important. I only use it at Costco and for gas now. I usually buy Costco gift cards when Chase Freedom has them as a 5% category so I don't use the Costco card much, plus I hate Citibank.