-
Nearly two-thirds of Americans believe the current economy is not working for them.
-
Costco credit card customers just got a new benefit that can help ease financial strains.
-
Costco is offering cardholders a generous cash-back benefit on a popular product.
In the 20 or so years I’ve been a Costco member, I’ve never once found myself wondering whether to continue paying for access to the warehouse club.
Of course, I have a family of kids to feed these days, so it makes sense to keep my Costco membership to access the bulk savings I get. But even when it was just my husband and I, we always agreed that the money saved at Costco far outweighed the cost of the membership.
However, these days, Americans are spending their money more cautiously due to increased inflation and general money concerns.
In November, the consumer price index rose 2.7% on an annual basis.
And not surprisingly, a December 2026 Marist poll found that 61 percent of Americans felt the current economy just wasn’t working for them. Worse still, 35% of Americans said their financial situation got worse, not better, in the past 12 months.
With many Americans feeling pessimistic about the economy and their own personal finances, Costco must do even more to retain members. And the company just made a very smart move in this regard.
Costco members do not need to sign up for the store’s branded credit card, the Costco Anywhere Visa. Costco accepts all Visa cards as payment, as well as debit cards, personal checks and cash.
But Costco members can benefit from the store’s brand credit card because it offers a major perk — 2 percent cash back on all Costco purchases. And that extends to Costco.com.
Related: Target Sees a Shift in Consumer Behavior
During Costco’s most recent earnings call, the company announced that it ended the quarter with a total of 81.4 million paid members. And many of these members also have the Costco Anywhere Visa card.
Now, brand cardholders can enjoy a huge money-saving perk: 5% cash back rewards on gas purchased at Costco.
Of course, cash back at the pump has long been a perk of the Costco Anywhere Visa. But until recently, members were only eligible for 4 percent back on fuel purchases at Costco. Raising that reward to 5% couldn’t have come at a better time, given how many Costco members and consumers as a whole are feeling financially strapped.
In addition to 5% cash back on gas purchased at Costco, cardholders receive:
-
4% cashback on other qualifying gas purchases and electric vehicle charging
-
3% cash back on eligible restaurants and travel, including Costco Travel
-
1% cash back on all other purchases
Source: Citi.com
Increasing the cash back benefit on fuel purchases is a smart thing for Costco because it eases the burden of a major expense for members. But that’s not the only step Costco has taken recently to help retain and grow its membership.
In addition to extra cash back at the pump, Costco has introduced perks including the following.
-
Extended service station hours
-
Early Bird Program for Executive Members
-
Additional shopping schedule for all members on Saturdays
-
$10 off Instacart orders of $150 or more for Executive Members
“We are committed to continuing to improve subscription value,” CFO Gary Millerchip said during the company’s most recent earnings call.
“Obviously, we’ve made some big changes recently with the expanded program and Instacart benefits and 5% gas credit card, but we’ll continue to look for ways to add more member value.”
Related: Costco has quietly dropped prices on key items
Costco is aware that in these trying times, consumers who need to save funds may quickly drop memberships as cash becomes tighter. Sweetening the offer at the pump is a great strategy for preventing churn.
It’s also a great way to keep executive members happy.
A sore point among executive members is that fuel purchases at Costco are not eligible for the 2% cash back that comes with paying for that higher tier. So brand credit card extra cash back is a great way to compensate.
All told, there’s a good chance Costco will continue to focus on member value in the coming year.
More retail:
“The most important item we sell is the membership card,” Costco CEO Ron Vachris told Fortune in an interview in 2024. “Everything we do supports that transaction.”
It will be interesting to see what additional steps Costco takes to drive membership renewal and if they add even more perks for members to enjoy.
Maurie Backman owns Costco stock.
Related: 90-Year-Old Supply Retailer Files for Chapter 11 Bankruptcy
This story was originally published by TheStreet on January 10, 2026, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.