I shop at Costco almost every week, which makes sense to me because I have a family of five and we tend to go through a lot of food.
Since Costco typically has the cheapest gas in my area, I often make sure to do my grocery shopping when my tank is low. It doesn’t necessarily make sense to drive miles out of my way to get to Costco for a cheaper fill-up — not in my gas-guzzling minivan. But if I’m going to the store anyway, filling up before I go grocery shopping allows me to do another errand and take advantage of Costco’s low gas prices.
There is one super disappointing thing I’ve discovered about buying gas at Costco, though. And it’s something you should know about so you can work around it.
A big disappointment for Costco
The lines at Costco gas stations are often long, so I find that it generally takes a few minutes longer to fill up my car there than it does at regular gas stations in town. And worse, that’s not the most disappointing thing about filling up at Costco. It’s the lack of cash back for Executive members.
Costco sells two membership levels. The basic membership (Gold Star) currently costs $60 per year, while the Executive membership costs $120 per year. Starting September 1, these costs will increase by $5 and $10 respectively, bringing the cost of a basic Costco membership to $65 and an Executive membership to $130.
Costco customers are often willing to pay double for an Executive Membership because it gives them 2% off in-store and online purchases. However, this cashback offer does not apply to gasoline at Costco gas stations.
How to Create Your Own Cashback Deal
It’s unfortunate that Costco’s Executive Membership doesn’t offer rewards for drivers at the pump, but that doesn’t mean you can’t get money back in other ways.
If you make it a point to fill up your car with a credit card that offers great gas rewards, you may be able to get more than 2% back on your fill-ups. It pays to shop around for a new credit card if all the credit cards you have don’t give you more than 1%.
It’s also worth checking to see if there are any gas stations in your area that offer a significant discount if you pay cash. Let’s say you have a credit card that gives you 2% back at the pump. A $40 fill-up would put $0.80 back in your pocket. But if that $40 is for 11 gallons of gas and there’s a gas station that gives you $0.10 off per gallon if you pay cash, you could save $1.10, which is a better deal than getting $0.80 back.
Overall, it bothers me that Costco doesn’t offer cash back at the pump for Executive members — namely, because I’d get a lot of it if it did. But that doesn’t mean you should stop pumping gas at Costco. Instead, do so with a credit card whose rewards include cash back. And don’t discount the idea of ​​seeking out cash rebates that will reward you even more financially.
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If you shop with a debit card, you could be missing out on hundreds or even thousands of dollars a year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated by our experts as the best cards of 2024 because they offer hefty sign-up bonuses and excellent cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.
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We are firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by the advertisers included. The Ascent does not cover all offerings in the marketplace. The Ascent editorial content is separate from The Motley Fool editorial content and is created by a different team of analysts. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.
This Is the Most Disappointing Thing About Buying Gas at Costco was originally published by The Motley Fool
