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Christine ran her own business developing and managing insurance and financial services. This stoked a passion for points and miles and she now has over 2 dozen credit cards and creates in-depth, deta...
A long-time points and miles student, Jessica is the former Personal Finance Managing Editor at U.S. News and World Report and is passionate about helping consumers fund their travels for as little ca...
Juan has been involved in credit cards, loyalty, travel, and personal finance for more than 10 years. He has worked for several outlets including The Points Guy and Forbes and was previously Editor-in...
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If you’re a Costco shopper, chances are you’ve heard of the Costco Anywhere Visa® Card by Citi and wondered about the associated benefits. After all, brand-associated credit cards can frequently offer loyalists elevated rewards earnings, and additional related benefits.
And you’re probably wondering how this card stacks up to some of the competition. We’re taking a deep dive into the Costco Anywhere card, and comparing it to the popular Chase Sapphire Preferred® Card to see if it deserves a spot in your wallet.
The Chase Sapphire Preferred card is a good choice as a first travel rewards card, and its flexible, transferable rewards are a great benchmark to compare against the cash-back offerings of the Costco Anywhere card. We’ll also look at redemption options and the additional benefits offered by each card.
Join us as we determine whether the Costco Anywhere card proves to be a worthwhile choice or the Chase Sapphire Preferred card rules, even for the avid Costco shopper. Let’s get started.
Chase Sapphire Preferred Card vs. Costco Anywhere Card — Overview
Before looking at the Chase Sapphire Preferred card and Costco Anywhere card from a few different angles, it might be helpful to summarize the earning potential, redemption options, and the associated card benefits side-by-side.
Here’s how the 2 cards compare in all the key categories:
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
A fantastic travel card with a huge welcome offer, good benefits, and perks for a moderate annual fee.
A fantastic travel card with a huge welcome offer, good benefits, and perks for a moderate annual fee.
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
The Chase Sapphire Preferred® card is one of the best travel rewards cardson the market. Its bonus categories include travel, dining, online grocery purchases, and streaming services, which gives you the opportunity to earn lots of bonus points on these purchases.
Additionally, it offers flexible point redemption options, no foreign transaction fees, and excellent travel insurance coverage including primary car rental insurance. With benefits like these, it’s easy to see why this card is an excellent choice for any traveler.
Pros
5x points on all travel booked via the Chase Ultimate Rewards portal
5x points on select Peloton purchases over $250 (through March 31, 2025)
5x points on Lyft purchases (through March 31, 2025)
3x points on dining purchases, online grocery purchases, and select streaming services
2x points on all other travel worldwide
$50 annual credit on hotel stays booked through the Chase Ultimate Rewards portal
6 months of complimentary Instacart+ (activate by July 31, 2024), plus up to $15 in statement credits each quarter through July 2024
Excellent travel and car rental insurance
10% annual bonus points
No foreign transaction fees
1:1 point transfer to leading airline and hotel loyalty programs like United MileagePlus and World of Hyatt
Complimentary Spot Club Platinum status with The Parking Spot for 2 years, 20% off of your first reservation, and points for 1 free day of parking (enroll by October 26, 2023)
Cons
$95 annual fee
No elite benefits like airport lounge access or hotel elite status
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
Enjoy benefits such as 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining, and 2x on all other travel purchases, and $50 annual Ultimate Rewards Hotel Credit, plus more.
Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
The Costco Anywhere card does not offer a welcome bonus.
Earning Potential
Earn 3x points with the Chase Sapphire Preferred card or 3% cash-back with the Costco Anywhere card when dining out. Image Credit: WavebreakMediaMicro via Adobe Stock
The Chase Sapphire Preferred card earns flexible Ultimate Rewards points while the Costco Anywhere card earns cash-back. We’ll discuss how your rewards can be used, but first, let’s look at how rewards are earned on each of our featured cards.
3% cash-back on airfare, hotels, car rentals, cruises, rideshares, travel agencies (including Costco Travel)
Gas Stations
1x points
4% cash-back at gas stations, including Costco gas stations, and EV charging purchases, up to $7,000 in purchases each year
Dining
3x points
3% cash-back
Costco and Costco Online
1x points
2% cash-back
Online Grocery Stores and Select Streaming Services
3x points
1% cash-back
All Other Purchases
1x points
1% cash-back
Additional Earning
10% anniversary points boost
N/A
While the number of rewards you earn will depend on your spending mix, let’s look at a simple spending scenario (including monthly shopping at Costco) to illustrate the earning differences between the 2 cards:
$300 per month at Costco ($3,600 per year)
$200 per month on gas ($2,400 per year)
$100 per month on dining ($1,200 per year)
Average $200 per month on travel ($2,400 per year using the Chase travel portal for the Chase Sapphire Preferred card and qualifying travel purchases on the Costco Anywhere card)
If using the Chase Sapphire Preferred card, the yearly earnings would be:
1x points on $3,600 at Costco = 3,600 points
1x points on $2,400 on gas = 2,400 points
3x points on $1,200 on dining = 3,600 points
5x points on $2,400 on travel = 12,000 points
Total: 21,600 Ultimate Rewards points
Let’s add up the yearly earnings if using the Costco Anywhere card:
2% cash-back x $3,600 at Costco = $72
4% cash-back x $2,400 on gas = $56
3% cash-back x $1,200 on dining = $36
3% cash-back x $2,400 on travel = $72
Total: $236in cash-back
If you spend a lot at Costco, on gas, and eligible travel, you may fare better with the Costco Anywhere card when it comes to earnings. However, earnings are just one factor in determining a card’s value. Let’s continue and look at the value of those earnings at redemption time for each of our featured cards.
Bottom Line: The Chase Sapphire Preferred card earns the most on travel purchased via the Chase travel portal, dining, online grocery stores, and select streaming services. The Costco Anywhere card’s biggest earning categories are gas stations, select travel, and dining. The mix of your actual spending will determine which card delivers the most total earnings.
Redemption Options
While rewards earnings are important, the real value you’ll get from them is revealed at redemption time. Here are the options for redeeming your rewards for both of our featured cards:
Chase Sapphire Preferred Card
Costco Anywhere Card
Redeem points for 1.25 cents each via the Chase travel portal
Cash-back is accumulated during the calendar year and issued as a certificate once a year, which can be used in-store to purchase merchandise or redeemed for cash or check
Let’s refer back to our earlier spending scenario. Spending on the Costco Anywhere card yielded $236 cash-back and the Chase Sapphire Preferred card yielded 21,600 Ultimate Rewards points. If the Ultimate Rewards points were redeemed for travel via the Chase travel portal, the value would be $270 (1.25 cents per point).
However, by our valuations of Chase points at 2 cents per point, those points are actually worth $432 when you transfer Ultimate Rewards points to travel partners. With travel partners, you have the potential to receive greater value than cash-back or travel portal redemptions.
However, if you don’t spend a lot on travel and don’t prefer to redeem your rewards for travel, you may find cash-back rewards a better fit for you.
Bottom Line: Your spending mix, redemption preferences, and card benefits will determine which card is a better fit for your circumstances. If you prefer to redeem your rewards for travel, the Chase Sapphire Preferred card can deliver greater value.
Travel Benefits and Protections
Image Credit: Flo Maderebner via Pexels
Travel benefits and protections can provide peace of mind, help when you need it, save money on your travel purchase, or provide elite-style perks.
Here are some of the travel protections found on the Chase Sapphire Preferred card and the Costco Anywhere card:
Auto Rental Collision Damage Waiver — Pay for your entire rental with your card, decline the agency’s CDW/LDW coverage, and receive primary worldwide coverage for damage or theft with the Chase Sapphire Preferred card. Primary coverage means that you do not have to file a claim with other insurance before card coverage kicks in. The Costco Anywhere card also offers primary worldwide coverage outside of the U.S. and secondary coverage within the U.S.
Roadside Assistance — Make just 1 call and pay a low pre-negotiated fee with either card for a service call that includes limited towing, lockout service, fuel delivery (cost of fuel not included), tire changing, winching, and jump-starting service.
Travel Accident Insurance — If an eligible tragic accident occurs while traveling, you will have $500,000 in travel accident insurance with the Chase Sapphire Preferred card and $250,000 with the Costco Anywhere card.
Travel and Emergency Assistance Services — While you’re traveling, enjoy 24/7 assistance and referrals for travel, medical, or legal emergencies where you’re traveling far from home. Keep in mind that you’re responsible for any services used.
No Foreign Transaction Fees — Both of our featured cards do not charge foreign transaction fees.
$50 Ultimate Rewards Hotel Credit — Make a hotel booking with your card via the Chase travel portal and receive a $50 statement credit each card anniversary year.
Visa Signature Luxury Hotel & Resort Collection Benefits — Enjoy hotel VIP status, an upgraded room (when available), daily breakfast for 2, late checkout (when available), and a $25 food and beverage credit.
Trip Cancellation and Trip Interruption Insurance — If your trip is canceled or disrupted for a covered reason, you could receive up to $10,000 per person, up to $20,000 per trip.
Trip Delay Reimbursement — For common carrier trips where you are delayed for a covered reason, you could receive up to $500 for eligible unreimbursed expenses.
Lost Luggage Reimbursement — If your luggage is lost or damaged, you could receive up to $3,000.
Baggage Delay — Receive up to $100 per day with a maximum of $500 in reimbursement for eligible incidentals, if your bags are delayed more than 6 hours.
Shopping benefits and protections that come with the Chase Sapphire Preferred card or Costco Anywhere card can save you money. With the Chase Sapphire Preferred card, you’ll also have the additional benefit of earning a lot of bonus Ultimate Rewards points on purchases.
Shopping protections can provide coverage if something should happen to an eligible purchase made with your card. Here are some of the protections you’ll find on both cards:
Purchase Protection — Make an eligible purchase with either card and receive coverage for theft or damage for 120 days from the purchase date. Coverage for the Chase Sapphire Preferred card is limited to $500 per item and up to $50,000 per calendar year. The Costco Anywhere card limits coverage to $1,000 per item and up to $50,000 per calendar year.
Both cards also offer zero liability fraud protection against unauthorized purchases and a free FICO credit score.
Chase Sapphire Preferred Card
Save money on your purchases and receive elevated earnings with these Chase shopping benefits.
Chase Offers — Savings on everyday purchases add up when you log in to your online Chase card account and add merchant offers to your card.
Shop through Chase — Earn additional Ultimate Rewards points by first visiting the Shop through Chase section of your online card account. Earn up to 20x more rewards by making your purchase via the portal.
Instacart Benefits — Cardholders are eligible for a free 6-month Instacart+ membership plus a $15 quarterly credit.
Extended Warranty — Eligible items purchased with the Chase Sapphire Preferred card that have a manufacturer’s warranty of 3 years or less will receive coverage for 1 additional year.
Costco Anywhere Card
Costco Anywhere cardholders enjoy targeted savings on a regular basis.
Shopping Offers — Receive special offers for purchasing discounted gift cards and coupons to use for specific in-store purchases.
Please note that this is not an all-inclusive list of benefits that come with our featured cards, just a list of key benefits for comparison purposes. We’ve also abbreviated the benefit descriptions. For a complete list of benefits and the applicable terms and conditions, you’ll want to access each card’s guide to benefits.
Bottom Line: The Chase Sapphire Preferred card has a broader collection of travel and shopping benefits and protections. But the Costco Anywhere card does offer primary car rental insurance outside of the U.S. and shopping protections that include purchase protection.
Annual Fees and Authorized Users
Annual fees and adding additional users to your card account can add to the cost of being a cardholder.
The Chase Sapphire Preferred card charges an annual fee of $95 while the Costco Anywhere card does not charge an annual fee. However, you must be a Costco member to be approved for the Costco Anywhere card. The current price of membership is $60 per year for a Gold Star membership and $120 for a Gold Star Executive membership.
While the Chase Sapphire Preferred card charges an annual fee, its generous welcome bonus can make up for the first year’s annual fee. After receiving the welcome bonus, travelers who use the Chase travel portal could receive value beyond the annual fee after purchasing just $2,000 in travel each year.
If you shop frequently at Costco, your cash-back earnings with the Costco Anywhere card could also more than offset the cost of membership. If you maxed out the 4% cash-back on gas or EV charging purchases alone, you would receive $280 cash-back each year.
Bottom Line: There is an annual cost associated with having each of our featured cards. However, both cards require a low spending threshold to realize enough earnings to offset those costs.
Final Thoughts
If you’re a Costco shopper, there is value with the Costco Anywhere card. If you spend $1,500 a year on gas (4% back) or $3,000 at Costco (2% back), you would cover the cost of a Gold Star membership fee.
One downside to the Costco Anywhere card is that the rewards are only distributed once a year. Fortunately, you can redeem that rewards certificate in-store for cash (or merchandise).
However, if you spend a lot on travel, want greater flexibility and value when redeeming your rewards, and can use the additional travel and shopping benefits, the Chase Sapphire Preferred card is the better card. The additional value of the 10% anniversary points contributes to making the card difficult to beat.
The Chase Sapphire Preferred card also serves a broader purpose of establishing a valuable long-term relationship with Chase, a prominent financial institution providing additional financial services products you may utilize throughout your lifetime.
So, both cards can live harmoniously in the wallet of a Costco shopper. Before you apply for either, though, be aware of Chase’s 5/24 rule.
Featured Image Credit: Upgraded Points
Frequently Asked Questions
Yes. For frequent Costco shoppers the card offers plenty of value. The 4% cash-back at gas stations and EV charging alone delivers enough value to more than offset the cost of the Costco membership required to be eligible for the card.
Each February, you’ll receive an email with your rewards certificate (if you’re signed up for paperless delivery) or a paper certificate in the mail. The certificate contains your earnings for the prior calendar year and can be redeemed for merchandise, cash, or check by visiting a Costco warehouse.
Yes. You can redeem your Ultimate Rewards points during checkout at a merchant that accepts PayPal by linking your Chase card to your PayPal account, then selecting to use Ultimate Rewards points to pay. However, it is not recommended that you redeem Ultimate Rewards points via PayPal, as you will only receive 0.8 cents per point in value.
No. The Costco Anywhere card does not offer a welcome bonus.
The Chase Sapphire Preferred card does not come with airport lounge access. The Chase Sapphire Reserve® comes with complimentary Priority Pass Select membership, which includes worldwide access to associated airport lounges, participating restaurants, and Minute Suites.
Christine ran her own business developing and managing insurance and financial services. This stoked a passion for points and miles and she now has over 2 dozen credit cards and creates in-depth, detailed content for UP.
Disclaimer: Any comments listed below are not from the bank advertiser, nor have they been reviewed or approved by them. No responsibility will be taken by the bank advertiser for these comments.
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This bonus value is an estimated valuation calculated by UP after analyzing redemption options, transfer partners, award availability and how much UP would pay to buy these points.
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