For those who want to earn rewards on everyday expenses, the card_name and the Costco Anywhere Visa are excellent choices to add to your wallet.
The Chase Sapphire Preferred is a travel rewards credit card that is perfect for those who love to shop, travel, and dine out. On the other hand, the Costco Visa is a cashback credit card that is ideal for those who frequently shop at Costco.
This article will compare each card based on several factors to help you make an informed decision on which card is the best to add to your wallet.
Full Reviews: Chase Sapphire Preferred® Card and Costco Anywhere Visa® Card by Citi.
Overview: Sapphire Preferred vs Citi Costco Visa
- 4% Cash Back on Eligible Gas and EV Charging for the First $7,000 Per Year, 1% Thereafter.
- 3% Cash Back on Restaurants and Travel
- 2% Cash Back at Costco and Costco.com
- Purchase Protection
- No Foreign Transaction Fees
- No Annual Fee With Your Paid Costco Membership
Welcome Bonus
The Chase Sapphire Preferred currently offers the following welcome bonus:
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The Costco Visa does not offer a welcome bonus.
Earning Points
The Chase Sapphire Preferred earns Ultimate Rewards points and offers bonus points on spending in several categories:
- 5 points per dollar on travel booked through the Chase travel portal;
- 5 points per dollar on Lyft purchases (through March 2025);
- 5 points per dollar on Peloton equipment and accessory purchases of $250 or more (through March 2025, with a limit of 25,000 bonus points);
- 3 points per dollar on dining, including eligible delivery services, takeout, and dining out;
- 3 points per dollar on online grocery store purchases (excludes Target, Walmart, and wholesale clubs);
- 3 points per dollar on select streaming services, including Netflix, Disney+, Spotify, Youtube TV, Pandora, Apple Music, SiriusXM, Sling, Vudu, Fubo TV, Hulu, and ESPN+;
- 2 points per dollar on all travel not booked through the Chase travel portal; and
- 1 point per dollar on all other eligible spending.
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The Costco Visa lets cardholders earn cash back in the following categories:
- 4% back on eligible gas and EV charging for the first $7,000 per year, 1% thereafter;
- 3% back on restaurants and travel;
- 2% back at Costco and Costco.com; and
- 1% back on all other purchases.
Winner: The Chase Sapphire Preferred because it provides higher earning rates in more spending categories and offers more rewards for everyday spending.
Card Benefits
The Sapphire Preferred offers nice benefits, including:
- Receive 25% more value on points redeemed for travel through the Chase Ultimate Rewards® portal.
- $50 annual credit on hotel stays purchased through Ultimate Rewards.
- 10% Points Bonus for each Cardmember anniversary.
- A complimentary one-year subscription to DashPass by DoorDash when you enroll by December 31, 2024.
- Trip cancellation and interruption insurance (up to $10,000 per person and $20,000 per trip).
- Primary car rental insurance.
- Lost luggage reimbursement (up to $3,000 per passenger)
- Baggage delay insurance (up to $100 per day for five days).
- Trip delay insurance (up to $500 per ticket for a delay longer than 12 hours or overnight).
- Extended warranty.
- 120 days purchase protection (up to $500 per claim and $50,000 per year).
- No foreign transaction fees.
- Free 6-month membership to Instacart+ (activate by July 31, 2024).
The Costco Visa offers the following card benefits:
- Secondary Rental Car Insurance
- No Foreign Transaction Fees
- Purchase Protection
Winner: The Chase Sapphire Preferred
The Sapphire Preferred card provides a greater range of benefits, which means that cardholders will get a higher return on investment in terms of value.
Value of the Annual Fee
The Chase Sapphire Preferred comes with an annual fee of $95.
While some users might be initially deterred by this cost, it’s important to consider the value and benefits that come with the card.
The rewards points, travel benefits, and purchase protections can help offset the cost of the annual fee for frequent travelers.
The Costco Visa doesn’t carry an annual fee, making it a great option for individuals who don’t want to deal with extra charges.
Winner: The Costco Visa since it has no annual fee.
Redeeming Points
The earns Ultimate Rewards points, one of the most flexible points currencies.
You can use your points to book flights, hotel stays, and even rent a car through Chase Travel — all at a fixed rate of 1.25 cents per point. For example, 100,000 points are equivalent to $1,250 towards travel.
You can unlock even more value than 1.25 cents per point by transferring rewards to Chase airline and hotel partners.
Ultimate Rewards Transfer Partners [1 to 1]
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Aer Lingus
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Air Canada Aeroplan
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British Airways
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Emirates
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Air France/KLM
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Hyatt Hotels
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Iberia
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IHG Hotels
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JetBlue
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Marriott
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Singapore
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Southwest
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United
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Virgin Atlantic
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One distinctive feature of the Costco Anywhere Visa card is its redemption process, which sets it apart from regular cashback cards. Instead of receiving cashback rewards periodically, the cardholder receives a Reward Certificate once a year, after the February billing statement closes. The certificate’s value is equivalent to the cashback earned during the previous year.
Winner: The Chase Sapphire Preferred provides more redemption options for cardholders, including travel, gift cards, merchandise, experiences, and more. Plus, cardholders can transfer their points to several Chase transfer partners.
The Verdict
Both the Chase Sapphire Preferred and the Costco Visa card offer great value to the average consumer who spends money on groceries, dining, and travel.
However, after considering the rewards, flexible redemption options, benefits, and perks, the Sapphire Preferred is the clear winner in this comparison.
That being said, the Costco Visa card is still a great option for those who live near a Costco store and shop there regularly. With its high cashback rates on Costco purchases, gas, and dining, it can be a valuable addition to your wallet.
Which card are you going to choose?
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