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Nearly two-thirds of Americans feel the current economy is not working for them.
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Customers with a Costco credit card just got a new benefit that can help ease financial stress.
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Costco offers cardholders generous cash back benefits on popular products.
In the nearly 20 years that I’ve been a Costco member, I’ve never once found myself questioning whether or not to continue paying for warehouse club access.
Yes, these days, I have a family of kids to feed, so it makes sense to keep my Costco membership for access to the bulk savings I get. But even when it was just me and my husband, we always agreed that the money we saved at Costco well outweighed the cost of the membership.
Still, these days, Americans are spending their money more carefully because of high 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% of Americans say the current economy is not working for them. Even worse, 35% of Americans say their financial situation has gotten worse, not better, in the past 12 months.
Given that many Americans are feeling pessimistic about the economy and their own personal finances, Costco needs to go even further out of its way to retain members. And the company recently made a very smart move in that regard.
Costco members don’t have 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 branded credit card because it offers 2% cash back on all Costco purchases — a huge benefit. And that extends to Costco.com.
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During Costco’s most recent earnings call, the company announced it ended the quarter with 81.4 million total paid members. And many of those members also have a Costco Anywhere Visa card.
Now, holders of the branded card can enjoy a big money-saving benefit: 5% cash back rewards on gas purchased at Costco.
Of course, cash back at the pump has long been a benefit of the Costco Anywhere Visa. But until recently, members were only eligible for 4% back on fuel purchases at Costco. Increasing that award to 5% couldn’t come at a better time, given how financially squeezed Coast’s members and consumers are overall.
In addition to 5% cash back on gas purchased at Costco, cardholders receive:
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4% cash back on other qualifying gas purchases and electric vehicle charging
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3% cash back on restaurants and eligible travel, including Costco travel
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1% cash back on all other purchases
Source: Citi.com
Increasing the cash back benefit on fuel purchases is a smart thing for Costco, as it eases the burden of major expenses for members. But that’s not the only move Costco has taken recently to retain and grow memberships.
In addition to extra cash back at the pump, Costco has introduced perks including the following.
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Extended fuel station hours
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Early shopping hours for executive members
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Extra shopping hours for all members on Saturday
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$10 off Instacart orders of $150 or more for Executive Members
“We are committed to continuing to improve the value of membership,” CFO Gary Millerchip said in the company’s most recent earnings call.
“We’ve made some big changes recently with extended opening hours and Instacart benefits and 5% gas on credit cards, but we’ll continue to find ways to add more membership value.”
Related: Costco quietly drops prices on key items
Costco is well aware that in these tough times, consumers who need to save funds may be quick to dump their memberships when the money runs out. Sweetening the deal at the pump is a great strategy to prevent churn.
This is a great way to keep executive members happy.
One pain point among executive members is that fuel purchases at Costco don’t qualify for the 2% cash back that comes with paying for the top tier. So extra cash back on a branded credit card is a great way to make up for it.
All told, there’s a good chance Costco will focus on member pricing in the coming year.
More retail:
“The most important item we sell is the membership card,” Costco CEO Ron Wakris told Fortune in a 2024 interview. “Everything we do supports that transaction.”
It will be interesting to see what additional steps Costco takes to drive membership renewals, and whether it adds more features for members to enjoy.
Maurie Backman owns shares of Costco.
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This story was originally published by TheStreet on January 10, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
