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Do the "eligible travel rewards" that earn 3% cash back on the Costco Anywhere Visa® Card by Citi include resort charges and lift tickets at ski resorts?
This question has been edited for clarity.
The Costco Anywhere Visa® Card by Citi earns 3% cash back at restaurants and on eligible travel. That's a well-above-average rate of return, but how do you know what actually earns the bonus rewards? It all depends on the business's merchant category code.
The Costco Anywhere Visa® Card by Citi is a valuable card to pair with a Costco membership, but the rewards program is more restrictive than what you get with a typical cash-back card.
- High rewards rates for gas/EV charging and travel
- No foreign transaction fees
- Restrictive rewards that you can only cash out once per year
- Requires a paid Costco membership
- No welcome bonus
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Discover one of Citi's best cash back rewards cards designed exclusively for Costco members
- Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
- 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel.
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
- No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
Balance transfer fee
5% of each balance transfer; $5 minimum
Foreign transaction fee
None
What qualifies as travel with the Citi Costco Visa?
How transactions are classified
When you use a debit or credit card, the purchase is classified using a four-digit merchant category code (MCC). This classification is important if your card offers bonus rewards for certain purchases.
You may be able to determine a company's MCC by asking the company how it is classified through its payment processor, but finding that information may not always be easy. The most reliable way I've found is to make a small test purchase to see how it codes. For bigger brands, you may have success looking at the experience of other people with the same card, which they may share on relevant credit card forums on sites like Reddit.
What counts as a travel purchase with the Citi Costco Visa?
A Citi spokesperson confirmed with CNBC Select that the MCC is what determines your rewards. The Citi Costco Visa's eligible travel purchases include:
- Travel agencies
- Cruise lines
- Costco Travel
- Hotels
- Car rentals
- Airfare
There are key exclusions listed as well. These purchases only earn 1% back, not 3%:
- Timeshares
- Campgrounds
- Bed and breakfasts
- Train and commuter travel
This presents a problem for Ski Enthusiast, because a ski resort could be classified as a hotel or a timeshare. How you book the lodging and pay for the resort fees or lift tickets can also change the MCC. A ski trip paid for as part of a travel package is more likely to qualify for the Costco Visa's 3% cash-back category because you'll typically book that through a travel agency.
Erase the mental burden with a flat-rate card
The Costco Visa and other top travel credit cards earn 3% back or 3X points on eligible travel charges. That's a great return, but there are lots of credit cards that earn 2% cash back on every purchase.
If you're uncertain about how an expensive purchase will code, a card that earns 2X rewards everywhere is a great compromise. You're not losing much, and being able to earn 2% back instead of 1% back on everyday purchases can make up for any rewards you miss out on because you don't have bonus spending categories.
The Citi Double Cash® Card is one of my favorite all-around credit cards. It earns at least 2% cash back on all purchases (1% when you buy and 1% when you pay) and has no annual fee. The cash back is earned as Citi ThankYou points, which means you can redeem it for cash back, gift cards and more, or you can transfer your rewards to any of Citi's travel partners.
What makes the Citi Double Cash® Card special is that it sits near the top of its class in several categories. It is an excellent option if you want flat-rate rewards, a balance transfer intro-APR or no annual fee.
- Balance transfers get a long intro APR
- Generous flat-rate cash-back rewards structure
- Earns transferable rewards
- No annual fee
- It has a foreign transaction fee
- Intro APR only applies to balance transfer
- Points transfer ratios are reduced compared to premium cards
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.49% - 28.74%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
The Wells Fargo Active Cash® Card is another strong flat-rate rewards credit card. It earns 2% cash rewards on every purchase and also has no annual fee. You can't transfer this card's rewards to Wells Fargo's travel partners, but you can combine its rewards with cards like the Wells Fargo Autograph® Card or Wells Fargo Autograph Journey® Card and then convert the rewards into airline miles or hotel points. So if you have the right combination of Wells Fargo cards, you can transform the Active Cash into a useful travel card.
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.
- High, unlimited flat-rate return on purchases
- Intro APR on purchases and qualifying balance transfers
- Lower introductory balance transfer fee
- Up to $600 of cell phone protection against damage or theft (subject to a $25 deductible)
- Charges a 3% foreign transaction fee
- Balance transfer fee increases to 5% of each transfer (minimum $5) after 120 days
- Limited redemption options unless you pair it with a Wells Fargo card that allows point transfers
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $100 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.74%, 24.74%, or 28.74% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don't expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Balance Transfer Fee
3% intro for 120 days from account opening, then up to 5%, min: $5
Foreign Transaction Fee
3%
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