The Costco Anywhere Visa® Business Card by Citi* isn’t like other business credit cards, which tend to focus on rewarding purchases in telecommunications, travel and office expenses. The card has more in common with its consumer version — the. Its rewards structure is centered around gas, restaurants, travel and Costco purchases, that is, the same reward categories individual cardholders receive. If business travel paired with is hurting your bottom line, this card earns one of the best rewards rates on gas.
There’sfor this credit card, as is common with business credit cards, nor any . But you’ll have to have a Costco Business membership — a $60 annual cost — to open and maintain the credit card. This membership allows you to shop at any Costco location for business, personal or resale use.
You won’t find other common offerings such as aor , which are typical with other business cards. So if this particular rewards program doesn’t suit your spending patterns, you might be better off with a different business card.
Read on to learn more about the rewards program and its limitations. You’ll want to consider the rewards redemption process before signing up for this card. We also recommend some alternative cards if this doesn’t suit your needs.
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The flagship rewards rate with the Costco Anywhere Visa Business card is in the gas spending category. You get 4% cash back on eligible gas for up to $7,000 per spending per year (then 1%). This same return rate has earned the card’s consumer version a spot on our roundup of the. The amount that an average American household spends on gas in a year falls within the spending limit, but if your business requires a lot of vehicle travel, your annual gas costs may exceed the card’s spending threshold.
The rest of the rewards rates don’t cut you off beyond a certain spending threshold. You’ll earn 3% back onand eligible purchases worldwide, 2% back on Costco and Costco.com purchases and 1% back on all other purchases. For the right business, this can be an enticing combination.
While the rewards rates are attractive, your rewards are less accessible than with other cards. You only gain access to your cumulative rewards once a year in February when your billing statement closes. Costco will issue you an annual credit card reward certificate that you can redeem for cash or merchandise at any U.S. Costco warehouse (including in Puerto Rico).
If you don’t have a Costco nearby, you should think twice about getting this card — the high rewards rates won’t help you much if you can’t redeem them. Also, if you don’t have the patience to wait for the rewards to be issued annually, this may not be a good option for your business.
The consumer version of the Costco credit card is the most similar, but if you are looking for a better fit for your business, these cards are worthy alternatives.
Ink Business Cash® Credit Card by Chase
The Ink Business Cash® Credit Card offers some of the best features of all business credit cards, from the welcome bonus to the rewards to the introductory APR.
You’ll earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year — something nearly all businesses are able to benefit from. You’ll also get 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year, and 1% on all other purchases.
The welcome bonus offers $750 bonus cash back after you spend $7,500 in purchases in the first three months, and you can take advantage of 12 months of 0% introductory APR on purchases (13.49% to 19.49% thereafter). These are a lot of valuable benefits all for no annual fee.
Capital One Spark Cash Plus
The Capital One Spark Cash Plus offers a simpler rewards program that can potentially beat the rewards value of the Costco business card, depending on your business’s spending patterns.
You’ll earn 2% cash back on all of your purchases, with no restrictions. There is no preset spending limit, so if your business makes large purchases often, this may be a good fit. If you have to book business travel, you can also earn 5% onand car rentals booked through Capital One Travel. You’ll also earn up to a $1,000 welcome bonus — $500 when you spend $5,000 in the first three months and another $500 if you spend $50,000 in the first six months.
It’s important to note that there is noassociated with this card. You’re expected to pay your balance in full each month and will be charged a 2.99% monthly late fee on your remaining balance if you miss your payment.
What is a business credit card?
Business credit cards are specifically geared toward small business owners. They can help you keep your business finances separate from your personal transactions, distribute and manage employee cards and earn rewards in typical small-business spending categories.
Like consumer credit cards, business credit cards most commonly come in the form of either cash-back rewards or travel rewards. Cash-back cards offer rewards in the form of cash or statement credit. A statement credit is basically a reduction of the amount you owe the issuer. A travel rewards credit card offers rewards in the form of miles or points. You can redeem miles or points either through the issuer’s travel portal for a small bonus or gift cards or you can transfer them to a partner travel affiliate, like a hotel group or airline. And, like a personal credit card, business cards must be managed carefully to ensure that a small business owner doesn’t hurt their business credit score.
What are corporate credit cards?
Corporate credit cards, also known as commercial credit cards, are designed for larger businesses — typically those with 100 or more employees or revenue of at least $10 million.
Should I get a business credit card?
If you spend in concentrated “business” categories — such as office supplies or telecom services — or want to have employee spending on a central credit account, then, yes. You may also appreciate these cards’ business-specific tools like budget trackers and account managers.
If you’re a small business owner, it’s a good idea to keep your business expenses separate from your personal finances — both for tax purposes and to make it simpler to review your spending. But you could just as easily keep your expenses separate, and track them, with a dedicated consumer credit card. As such, the typical rationale for getting a business credit card is to help manage employee cards or earn more rewards from business purchases.
by exhaustively comparing them across set criteria developed for each major category, including cash-back, welcome bonus, travel rewards and balance transfer. We take into consideration the typical spending behavior of a range of consumer profiles — with the understanding that everyone’s financial situation is different — and the designated function of a card.
*All information about the Costco Anywhere Visa® Business Card by Citi and Costco Anywhere Visa® Card by Citi has been collected independently by CNET and has not been reviewed by the issuer.
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