American Express Costco Card Review: Earn Cash Back at Costco

TrueEarnings® Card from Costco and American Express American Express® Card and Costco Membership Card in one - with no annual fee for Costco members Cash back on the things you buy: 3% for the first $3,000 in annual gasoline purchases (1% thereafter), 2% for restaurants, 2% for travel, and 1% everywhere else, including Costco Rated 4.5 out of 5 stars in overall satisfaction by current TrueEarnings® Cardmembers from Costco and American Express Go to issuer's official application, terms, and details Intro APR for Purchases Intro APR for Balance Transfer APR as low as Annual Fee 0% for 6 months - 15.24% (Variable) $0

After an initial 0% introductory APR (Annual Percentage Rate) for the first 6 months of card membership, the APR is adjusted to a variable 15.24%.

This APR isn’t the lowest of rates currently available for credit cards, but it certainly isn’t bad when you compare it to other cards. Also, this American Express card is free of annual fees (when cardholders pay their annual Costco membership fee), which is a feature that you don’t find for many cards in the network.

Benefits

This credit card is basically an American Express card and Costco Membership Card in one, so you only need one card in your wallet. It is also one of the very few credit cards that you can use to pay for your purchases at Costco.

The card also features cash back opportunities, which is always a nice bonus to have if you utilize your credit card for most of your purchases. With this card, you earn 3% for your first $3,000 in gasoline purchases annually, which equals $90 back in your wallet simply for using your card. After you reach the $3,000 limit, you will earn 1% on all remaining gas purchases for the rest of the year.

You also earn an unlimited 2% cash back for restaurant meals and travel, as well as 1% for virtually all other purchases, including those made at Costco. Many cash back cards exclude warehouse clubs from their cash back earnings, or they limit those earnings to 0.25% to 0.50%. This makes the 1% cash back on Costco purchases a real benefit for cardholders who go to Costco on a regular basis.

Here are some important things to know about this cash back program:

• Gasoline must be purchased from Costco or a domestic stand-alone gas station in order to accumulate bonus rewards; gas purchased from other warehouse clubs or supermarkets are excluded from the bonus.

• Cardholders receive their cashback reward on an annual basis through the form of an in-store coupon. The coupon can be redeemed at any U.S. Costco for merchandise or cash. It’s important to know that the coupon expires on August 31st following its issue, so cardholders will want to redeem the coupon when they receive it in the mail.

With American Express cards comes an expected level of service and benefits, and cardholders receive both with this card. Extra benefits include car rental loss and damage insurance, travel assistance, extended warranty service, purchase protection and the American Express Ticket Savings Center:

• Car Rental Loss and Damage Insurance – coverage for theft or damage when you utilize the card to reserve and pay for auto rental

• Travel Assistance – American Express is available to offer medical, legal, financial or other emergency assistance while you are traveling more than 100 miles from home.

• Extended Warranty – extends the manufacturer’s warranty for up to one additional year for purchases made with the card

• Purchase Protection – provides cardholders with 90-day coverage from date of purchase for any theft and accidental damage for up to $1,000 per occurrence

• American Express Ticket Savings Center – cardholders get exclusive access to this benefit, which provides ticket savings while earning cash back

Between the Costco benefits, cash back and purchase protections, this card is the perfect everyday card for consumers who shop at Costco.