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Nearly two-thirds of Americans believe 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 relieve financial stress.
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Costco offers cardholders generous cash back offers on popular products.
In the roughly 20 years I’ve been a Costco member, I’ve never once doubted whether I wanted to continue paying for the warehouse club.
Granted, now that I have a family of kids to support, it makes sense to keep my Costco membership to reap the significant savings. But even though it’s just my husband and I, we always agree that the money we save at Costco far outweighs the membership fee.
Today, though, Americans are more cautious with their money due to rising inflation and general currency-related concerns.
In November, the consumer price index rose 2.7% year-on-year.
Not surprisingly, a December 2026 Marist Poll found that 61% of Americans believe the current economy is not working for them. To make matters worse, 35% of Americans say their financial situation has gotten worse instead of getting better in the past 12 months.
With many Americans feeling pessimistic about the economy and personal finances, Costco needs to work harder to retain members. The company has just made a very smart move in this regard.
Costco members do not need to sign up for the store’s branded credit card, the Costco Anywhere Visa. Costco accepts all Visa cards as well as debit cards, personal checks and cash payments.
But Costco members can benefit from the store’s branded credit card, as it offers one major perk — 2% cash back on all Costco purchases. This extends to Costco.com as well.
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During Costco’s recent earnings call, the company announced that it had 81.4 million paying members at the end of the quarter. Many of these members also have Costco Anywhere Visa cards.
Now, holders of the brand’s card can enjoy a huge money-saving perk: 5% cash back rewards on gas purchases at Costco.
Of course, cash back at the pump has long been a perk of the Costco Anywhere Visa. But until recently, members could only get 4% back on fuel purchases at Costco. Given how many Costco members and consumers in general are feeling financially strapped, increasing the reward to 5% couldn’t come at a better time.
In addition to receiving 5% cash back on gas purchases at Costco, cardholders also receive:
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4% cash back on other eligible natural gas purchases and electric vehicle charging
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3% cash back at restaurants and eligible travel (including Costco Travel)
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All other purchases receive 1% cash back
Source: Citi.com
For Costco, increasing the cash back benefit on fuel purchases is a smart move because it relieves members of a major cost burden. But that’s not the only move Costco has taken recently to help retain and grow members.
In addition to the extra cash back, Costco is offering the following benefits.
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Extend gas station opening hours
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Early shopping time for executive members
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Extra shopping time for all members on Saturday
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Executive members get $10 off Instacart orders over $150
“We are committed to continuing to improve the value of our membership,” Chief Financial Officer Gary Millerchip said during the company’s most recent earnings call.
“We’ve obviously made some big changes recently, including extended hours, Instacart benefits, and a 5% gas fee on credit cards, but we will continue to look for ways to increase the value of our membership.”
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Costco is well aware that during these trying times, as money gets tighter, consumers who need to save money may be quick to abandon their memberships. Making the deal more attractive is a great strategy to prevent customer churn.
This is also a great way to keep executive members happy.
One pain point with executive memberships is that buying fuel at Costco doesn’t qualify for the 2% cash back that comes with paying for higher tiers. Therefore, extra cash back on branded credit cards is a great way to make up for this loss.
All in all, Costco is likely to continue focusing on membership value in the coming year.
More retail:
“The most important item we sell is loyalty cards,” Costco CEO Ron Vachris told Fortune in 2024. “Everything we do supports that deal.”
It will be interesting to see what further steps Costco takes to drive membership renewals and whether it offers more benefits to members.
Maurie Backman owns shares of Costco.
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This article was originally published by TheStreet on January 10, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.