BIGTRAVLR

I have been racking my brain to figure out how to get the maximum benefit out of my Costco membership, and still get AAdvantage miles via my AAdvantage Mastercard. As any Costco member knows, it's cash, debit card, check, or AMEX at the checkout. If you don't have an AMEX linked to the AA program, you were out of luck to get miles for purchases there.

I finally figured out how.

After financing my new truck via Costco.com's auto financing partern (I checked everywhere, it was the lowest rate I could get from banks, credit unions, on-line, etc...), I was sent a $20 Costco cash card as part of a promotion.

I went to Costco.com to see if I could recharge the cash card online, and they no longer offer that service online -- BUT -- I could buy another cash card at any value up to $2,000 and pay with my AAdvantage Mastercard. They ship the card to you via UPS for a nominal shipping fee (which also earns you miles), and then you have your Costco cash card to use the next time you go to Costco, and you get AAdvantage miles to boot!

If you're a Costco Executive Club Member, and provide your number when purchasing your Cash cards, you also will get your 2% cash back on the purchase of the card, and then 2% when you actually go to Costco to buy your items...so it becomes 4% cash back on top of the miles.

Horace

The straightforward way to get AAdvantage miles when shopping at Costo -- without having to pay ahead on a gift card -- is to get a Starwood American Express card.

There's usually a good bonus for signing up, and you can use it many other places besides Costco. You get one Starwood Preferred Guest (SPG) point for each dollar you charge. 20,000 SPG points = 25,000 AAdvantage points -- that's a 25% bonus each time you convert.

You may find that you don't need an AAdvantage Mastercard (with its higher annual fee) any more.

ALadyNCal

BIGTRAVLR -- That's good to know Later this year I may give up my American Express account and this is a good alternative because we shop frequently at Costco.

flytoeat

FYI - you do not get the 2% on both sides of the transaction when purchasing gift cards. I cannot remember which side does not give the 2%.

paradocs

I shop at Sam's and for years I wrote checks. Now I stop by Walmart and buy gift cards with my Starwood AMX. It really adds since I spend more than $500 a month there.

If you give up the Mastercard you will not be able to do promotions linked to it like Hyatt's Faster Free Nights.

[This message has been edited by paradocs (edited Feb 08, 2004).]

askworldtraveler

CitiCards now offers a debit card with two miles options (depending on what you pay annual for the card, either one mile for 2 dollers spent, or 1 for 1)..... I took the 1 for 1 and as a EXP - there's no top limit on number of miles - works great at Costco.

mia

<<I could buy another cash card at any value up to $2,000 and pay with my AAdvantage Mastercard.>>

Did you verify that Citibank will process this transaction as a Purchase rather than a Cash Advance?

dennis

BIGTRAVLR

Yes, I checked with Citi, and it is treated just as any other purchase.

I'm not sure on the 2% reward, I was only thinking that if you were buying it as a gift, that you would get the 2% on your account, b/c you were the one paying. I have not gotten it yet, so I was only guessing on the other side, as how would they know whether it was paid for by an Executive Member, or if an Executive Member got it as a gift? In either case, it is supposed to be "the same as cash", so I don't see why you wouldn't get the 2% when you buy. But I will report back after I get it.

I agree on getting the AMEX, but I've gotten rid of all but one card, and a business card. Question, can I get a business AMEX that is linked to Starwood points?

raydog9379

That works... but I hate to say it... why in the world would you trade 20,000 star points for 25,000 miles... if you think about it. The 20,000 starpoints could get you a few free nights somewhere.

The only way I'd do it is if I needed the AA miles bad for something.. over the hotel. Or if I had so many starpoints that I didn't know what to do with them all.

Just my 2 cents...

yyzflyer

Thanks for this tip paradocs, even if unintentional. We recently switched to Sam's after years with Costco, with the only big downside being unable to use the Amex card. We have been using a debit card to shop there and getting no points. You have just solved that problem.

paradocs

yyzflyer: you are most welcome! And now you will have some new excitement and satisfaction when you go to Sam's!

ALadyNCal

Your Citibank AA Debit Card MASTER CARD works at Costco? I have one of those and thought it didn't... Right now I use my American Express Delta @ Costco.

T/BE20/G

It works because you can pay at Costco with your ATM card - it doesn't matter whether it is a Visa/MasterCard branded ATM card at all... you use it as an ATM card, not as a credit card.

rmc1

Hopefully new AMEX cards will start coming out soon from banks that issue Visa/MC. Visa and MC had in their contracts with banks that you could not issue another card and still issue V/MC. The courts said last year that they cannot do this so the major banks can now issue AMEX and Discover cards along with V/MC.

I've only heard of the first bank to start with AMEX later this year (forget name, but it was a big one - saw in USA Today).

I wonder if Citi will have some and maybe offer an AMEX with AA. We'll have to wait and see.