Costco Credit Card - Cash Back calculation issue

[imyeti2]

Hello,
We signed up for the Citi Costco credit card that has the 4% cash back on gas. As I was reviewing my statements recently, the math does not seem to add up. I'm consistently seeing cash back amounts lower than the 4% calculated using the month-end statement.
Do you regularly check the cash back amounts? Have you encountered this issue?
Thanks.

[Alfonsia]

I hate the lack of any way to see this, but it could be a me issue, WF and my credit union Mastercard breaks down the reward by purchase. I have half heartedly looked at the monthly math and it seemed ok. My aim this year is to ditch this card entirely as there are better cards for sure. Mostly because I don't like the reward being held hostage though.

I checked in particularly because I used it to buy gas at BJs, and IIRC it didn't reward the same way because it was coded not in the specific way citi require. Gas at the pump in gas stations is fine. You should pay attention to the sub text on the charge in your statement.

"You will only earn 1% cash back, not 4% for gas and EV charging purchases made at superstores, supermarkets, convenience stores and warehouse clubs other than Costco or for fuel used for non-automobile purchases.”

[Alfonsia]

delete

[AS7911]

"You will only earn 1% cash back, not 4% for gas and EV charging purchases made at superstores, supermarkets, convenience stores and warehouse clubs other than Costco or for fuel used for non-automobile purchases.”

Is from the actual card terms? If so, unless at Costco, the gas rebate is 1%, because I do not think there is a gas station left in this country that is not a "convenience store", is there?

[PeninsulaPerson]

... the math does not seem to add up.

You may be right tho' - if Costco is miscalculating and under-rebating - it's close to impossible to believe that would not already be widely known.

(Meaning Costco would be more likely to be "blamed" even it's a co- branded card!)

[Rex66]

The issue as mentioned above is not everything is considered a gas station even if they sell you gas and it’s clear in the actual rules but not so clear when you pull up to the pump.

[toddthebod]

It's based on the merchant classification. It works the other way, too: you can buy junk food at some 7-11s with gas stations and get 4%.

[Alfonsia]

"You will only earn 1% cash back, not 4% for gas and EV charging purchases made at superstores, supermarkets, convenience stores and warehouse clubs other than Costco or for fuel used for non-automobile purchases.”

Is from the actual card terms? If so, unless at Costco, the gas rebate is 1%, because I do not think there is a gas station left in this country that is not a "convenience store", is there?

Really, it all down to the code
https://www.creditcards.com/card-advice ... stco-card/
as with OP, look at the MCC on your statement or charge on line.

[jeffyscott]

Do you regularly check the cash back amounts? Have you encountered this issue?

I don't, except maybe to look and see that none of the rewards are in the 1% category. We use 2% on everything cards, so typically would not have anything in the 1% category.

I had to go back to 2023 to find any non-Costco gas purchases. I had only two that year and both got 4% (based on the fact that my reward summary shows $0 for purchases in the 1% "other" category for that year).

Both were normal gas stations that presumably had convenience stores (Marathon and BP) and I paid at the pump. I'd expect to get 4% as long as it's a traditional gas station branded store (e.g. not Kroger or something like that) and I pay at the pump. (I have heard that inside registers are sometimes coded differently.)

We usually have some other card with 5% on gas available, so we often use that if it's not Costco gas.

[ArtMan]

Not 100% sure on this, but I believe one of my credit cards details the category on each purchase but only on their website, not on the printed statement. Or you could try calling their customer service people. Let us know. I bet a lot of Bogleheads use Costco Visa cards at the pump.

[jarjarM]

No issue at all for us with the Costco card reward. Just checked one of our previous purchase from a gas station and it's being rewarded at 4%. Like others have mentioned above, probably just a code issue.

[heartwood]

I've put my Costco City Visa in the drawer. I use my AMEX Everyday Blue for gas (and anything I've charged at a gas station: new battery, oil change, etc, and get 3%. Has worked everytime, so far. I do agree its in the coding.

Costco Citi Visa rewards only come once a year in late Feb or Mar, covering the prior year closing 12/31. Charge something in January and you have to wait 14+ months to get your reward.

AMEX Everyday rewards are posted monthly. For an average 10,000 mile/yr driver the added 1% on Citi is peanuts.

10,000 miles /30mpg = 333 gal * $3/gal = $1000

1% = $10

citi = $40
amex = $30

Even with restaurants, I'd rather get 2% back monthly on my Fido Visa than wait for once a year for the 3% from Citi.

Since we're talking gas, your mileage may vary

[susa]

Sign up for Sam's Club / Mastercard "World Elite" with their top-tier membership and enjoy 5% back for gas at any pump, posted monthly

[toddthebod]

Sign up for Sam's Club / Mastercard "World Elite" with their top-tier membership and enjoy 5% back for gas at any pump, posted monthly

I guarantee they have the same issues identifying gas purchases.

[AS7911]

"You will only earn 1% cash back, not 4% for gas and EV charging purchases made at superstores, supermarkets, convenience stores and warehouse clubs other than Costco or for fuel used for non-automobile purchases.”

Is from the actual card terms? If so, unless at Costco, the gas rebate is 1%, because I do not think there is a gas station left in this country that is not a "convenience store", is there?

Really, it all down to the code
https://www.creditcards.com/card-advice ... stco-card/
as with OP, look at the MCC on your statement or charge on line.

while its possible that 2+ year old website might be correct, dont you suppose you should base your information on the actual current T&C for the card?

[MrJedi]

I don't have Costco card, but I've noted that gas stations run by Meijer (midwest grocery store chain) generally don't charge under the type of merchant code that most of these credit card category bonuses are looking for, so you just get the base rewards rate. They just get charged under some generic merchandise store type code.

[MrJedi]

"You will only earn 1% cash back, not 4% for gas and EV charging purchases made at superstores, supermarkets, convenience stores and warehouse clubs other than Costco or for fuel used for non-automobile purchases.”

Is from the actual card terms? If so, unless at Costco, the gas rebate is 1%, because I do not think there is a gas station left in this country that is not a "convenience store", is there?

Really, it all down to the code
https://www.creditcards.com/card-advice ... stco-card/
as with OP, look at the MCC on your statement or charge on line.

while its possible that 2+ year old website might be correct, dont you suppose you should base your information on the actual current T&C for the card?

Here you go:

https://www.citi.com/usc/lpaca/costco/c ... sVIMfLyBLb

Merchant Classification for Rewards Categories:
Merchants are assigned a merchant category code ("MCC"), which is determined in accordance with Visa procedures based on the kinds of products and services the merchants primarily sell. We don’t control the assignment of these codes and are not responsible for the codes used by merchants. When you use your card to make a purchase, we’re provided an MCC for that purchase. We group similar merchant codes into categories for purposes of making rewards offers. Sometimes you may expect a purchase to fit within a rewards category, but if the code assigned to the merchant wasn’t grouped into that category, as recognized by Citi, your purchase will not qualify for additional cash back rewards. For example, you won’t earn additional points for purchases at a restaurant located within a retailer if the restaurant is assigned a "retailer" code instead of a "restaurant" code. Please also note – purchases made through mobile/wireless technology may not earn additional cash back rewards depending on how the technology is set up to process the purchase. We reserve the exclusive right to determine which purchases qualify for additional cash back rewards.

[jeffyscott]

I don't have Costco card, but I've noted that gas stations run by Meijer (midwest grocery store chain) generally don't charge under the type of merchant code that most of these credit card category bonuses are looking for, so you just get the base rewards rate. They just get charged under some generic merchandise store type code.

Oh, I was guessing it would be either gas or grocery. I was thinking I would find out which one by using an idle Citi Custom cash card sometime, but haven't done so yet.

[jeffyscott]

Sign up for Sam's Club / Mastercard "World Elite" with their top-tier membership and enjoy 5% back for gas at any pump, posted monthly

I guarantee they have the same issues identifying gas purchases.

Right, Costco is 4% at any gas station that codes as such. I doubt Sam's club is going to be any different for the above mentioned Meijer gas stations, for example. The longer average delay with Costco might be thought of as effectively reducing the rebate from 4% to about 3.9% at current interest rates.

If you want to get another card for 5% on gas, there's Citi Custom Cash. This doesn't require another club membership or have an annual fee. Also if one has Costco already, pairing that with other Citi Cards has the added convenience of only needing to use one credit card website.

[Fat Tails]

It's based on the merchant classification. It works the other way, too: you can buy junk food at some 7-11s with gas stations and get 4%.

4% cash back on junk food? Why am I just hearing about this now?

[single2019]

It's based on the merchant classification. It works the other way, too: you can buy junk food at some 7-11s with gas stations and get 4%.

4% cash back on junk food? Why am I just hearing about this now?

At the local BP station, cigarettes are coded as gas purchase on a Costco card