Costco Credit Cards Offer Limited Travel Rewards, Not Travel Insurance
Costco's two credit cards—the Costco Anywhere Visa Card and the Costco Anywhere Visa Card for American Express—earn cash back on purchases, but neither includes travel insurance, trip cancellation coverage, or emergency information programs. The travel benefit is purely financial: you earn a percentage back on gas, airfare, and other travel purchases, which you can use toward future trips. There is no concierge service, no lost luggage reimbursement, and no emergency medical coverage abroad.
If you are comparing Costco cards to premium travel cards from other issuers, the difference is stark. American Express Platinum and Chase Sapphire Reserve both include trip delay reimbursement, baggage protection, and emergency evacuation coverage. Costco's cards do not. What they do offer is straightforward: cash back that accumulates in your Costco Cash account and can be spent at Costco warehouses or online.
Key Takeaways
- Costco credit cards earn 4% cash back on may be able to access gas (including Costco pumps) and 3% on travel purchases like airfare and hotels, but offer no travel insurance or emergency information.
- Cash back is issued as Costco Cash, a certificate you redeem at Costco warehouses or on Costco.com, not as statement credits or points you can transfer.
- The Visa version earns 1% on most other purchases; the American Express version earns 2% at Costco and on restaurants, but is accepted at fewer merchants.
- Travel rewards are only valuable if you shop at Costco regularly, because the cash back must be spent there—it does not transfer to airline or hotel programs.
How Cash Back Works on Travel Purchases
The Costco Anywhere Visa Card earns 3% cash back on airfare, hotels, car rentals, and cruises purchased directly from the provider or through Costco Travel. It also earns 4% on gas (including Costco gas stations), 2% at Costco warehouses and pharmacies, and 1% on all other purchases. The American Express version earns the same 3% on travel, but 4% at Costco and restaurants, and 2% on gas.
Cash back is issued quarterly as Costco Cash—a certificate with a barcode that you present at checkout or enter online. You cannot convert it to points, transfer it to an airline, or use it outside Costco. If you do not spend your Costco Cash before it expires (typically one year from issue), it is forfeited. This structure means the card is most valuable to households that already spend regularly at Costco on groceries, gas, and pharmacy items.
The 3% travel rate applies only to direct bookings with the airline, hotel, or cruise line, or through Costco Travel, which is Costco's own travel agency. Bookings through third-party sites like Kayak, Expedia, or Booking.com typically earn only 1% because those sites are not classified as travel merchants by Visa or American Express.
Costco Travel as Your Booking Channel
Costco Travel is a separate service that offers package deals on flights, hotels, and cruises. Members can book through Costco Travel and earn the 3% cash back rate on the full purchase price. Costco Travel also negotiates rates with hotels and cruise lines, so the base price may be lower than booking independently, even before the cash back is applied.
However, Costco Travel packages are not always cheaper than booking on your own. You should compare the Costco Travel price plus the 3% cash back against the best rate you find elsewhere before booking. Costco Travel does not offer the same flexibility as independent booking—cancellation policies are set by Costco, not by the hotel or cruise line, and changes to dates or destinations may incur fees.
The Visa Versus American Express Trade-Off
The Costco Anywhere Visa Card is accepted everywhere Visa is accepted, which includes most merchants worldwide. The Costco Anywhere Visa Card for American Express is accepted at fewer locations, particularly outside the United States and at smaller merchants. However, the American Express version earns 4% at Costco and restaurants (versus 2% for the Visa), which may offset the acceptance disadvantage if you spend heavily in those categories.
If you travel internationally or eat out frequently at independent restaurants, the Visa card is the safer choice. If you primarily shop at Costco and dine at chain restaurants, the American Express card may earn you more cash back overall. Neither card includes foreign transaction fees, so both are usable abroad without a currency conversion penalty.
What These Cards Do Not Include
Costco credit cards do not offer trip cancellation insurance, which reimburses you if you have to cancel a prepaid trip due to illness, injury, or death of a family member. They do not include trip delay reimbursement if your flight is delayed more than a certain number of hours. They do not cover lost or delayed baggage, emergency medical evacuation, or emergency dental or vision care abroad.
If travel protection is important to you, you would need to purchase a separate travel insurance policy or use a premium credit card that includes these benefits. Some travel insurance policies are sold by travel agencies or tour operators; others are sold by insurance companies directly. The cost varies widely depending on the length of the trip and the coverage level you choose.
When a Costco Card Makes Sense for Travel
A Costco credit card is worth using for travel if you meet two conditions: you have a Costco membership and you spend enough on groceries, gas, and other Costco purchases to accumulate meaningful cash back. If you spend $300 per month at Costco, you earn roughly $36 per year in cash back at the 1% rate on non-category purchases alone. Add in the 4% on gas and 2% on pharmacy, and that number rises to $60 or more annually.
The card is less valuable if you rarely shop at Costco or if you prefer to book travel through third-party sites. In that case, a general-purpose cash back card or a travel-specific card from another issuer may earn you more. You should also consider whether you value travel insurance and emergency information—if you do, no Costco card will provide it, and you should look elsewhere.
Frequently Asked Questions
Can I use Costco Cash to pay my credit card bill?
No. Costco Cash is a separate certificate that can only be spent on Costco purchases. It cannot be applied to your credit card balance. You must pay your credit card bill separately using a bank account, check, or another payment method.
Do I earn cash back on Costco Travel bookings?
Yes. Costco Travel bookings earn 3% cash back on the full purchase price when you use your Costco credit card. This applies to flights, hotels, cruises, and vacation packages booked through Costco Travel.
What happens if I do not spend my Costco Cash before it expires?
Costco Cash expires one year from the issue date and cannot be extended or replaced. Any unused balance is forfeited. You should check your Costco account regularly to see your cash back balance and expiration date.
Does the 3% travel rate explore to booking sites like Expedia?
No. The 3% rate applies only to direct bookings with airlines, hotels, and cruise lines, or through Costco Travel. Third-party booking sites like Expedia, Kayak, and Booking.com are classified as general merchants and earn only 1% cash back.
Can I transfer my Costco Cash to an airline or hotel loyalty program?
No. Costco Cash can only be spent at Costco warehouses or on Costco.com. It cannot be converted to airline miles, hotel points, or any other loyalty currency.