In the battle to offer the most attractive cash back rewards on their payment cards, Costco’s 4% back on gas purchases outstrips Walmart’s 3% back on e-Commerce transactions. But Walmart, moving quickly, will have a few months with the field to itself before Costco launches its Visa credit card on June 20.
The cards — Walmart Credit Card and the prepaid Walmart MoneyCard — will now utilize the 3-2-1 Save cash back program, providing all qualifying cardholders in the U.S. and Puerto Rico the opportunity to earn rewards for purchases they make every day including:
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- 3% back on purchases made on Walmart.com, including Site to Store orders;
- 2% back on fuel purchases at Walmart or Murphy USA gas stations; and
- 1% back on purchases made at Walmart stores and everywhere the Walmart Credit Card or Walmart MasterCard are accepted.
“We’re always looking for ways we can create and change products and services to make them even better for our customers,” said Daniel Eckert, Senior Vice President, Services, Walmart U.S. in a statement. “The new 3-2-1 Save program simplifies and strengthens the card proposition for more than 10 million cardholders and helps add even more value to their Walmart purchases no matter how they choose to shop with us.”
Costco’s new Visa credit card, launching June 20, will offer 4% cash back on eligible gas purchases of up to $7,000 per year; with 1% back on purchases above that amount; 3% back on restaurant and travel purchases; 2% back on Costco and Costco.com purchases and 1% back everywhere else.
Could this trigger more retailers with their own cards such as Kohl’s to offer more than just loyalty rewards points and special sales? Time will tell, but one thing is for sure: the battle for big box credit card supremacy is on.
