I save money at Costco in a lot of ways, but perhaps the easiest is through buying gift cards. Costco sells a variety of gift cards for popular brands, all at a steep discount.
Although a few gift cards have smaller discounts (5% or so), I’ve seen deals for up to 35% off the face value. This is a massive discount.
Not every gift card deal will be a win at Costco, but there are some that I buy there almost exclusively. Here’s what they are.
1. Popular restaurants
If you visit chain restaurants, then you really need to check out Costco’s restaurant gift card selection. You can find gift cards for a ton of chains for good discounts every week.
Here are a few examples of some restaurant gift card deals:
- TGI Fridays: $100 in gift cards for $79.99
- California Pizza Kitchen: $100 in gift cards for $79.99
- Landry’s Multi-Brand: $100 in gift cards for $79.99
- Peet’s Coffee: $100 in gift cards for $79.99
- IHOP: $100 in gift cards for $79.99
The only downside to this strategy is that I’m not getting my bonus credit card rewards for dining purchases, but even a 5% cash back card isn’t going to beat the 20%-plus discount on the gift card. Moreover, I use rewards cards at Costco to buy the gift cards in the first place, so I get at least some bonus rewards on the purchase one way or another.
2. Gaming system stores
Long gone are the days of game cartridges that thunk satisfyingly into place — and only work right when you blow on them. Now, everything is digital, even the stores where we buy our games.
Costco has gift cards for all three of the major console’s digital stores (plus Roblox). Denominations and discounts can vary, but here are a few examples of what’s on Costco.com right now:
- Microsoft Xbox: $100 in gift cards for $89.99
- Sony PlayStation: $100 in gift cards for $89.99
- Nintendo eShop: $200 in gift cards for $179.99
- Roblox: $50 in gift cards for $44.99
If you purchase your gift cards online, you’ll get eGift cards, which are basically digital codes that are emailed to you. You’ll need to purchase in-store to get physical gift cards.
3. Costco Shop cards
Costco sells a lot of gift cards for other retailers, but it also sells gift cards for its own stores: Costco Shop cards. Unlike other gift cards, however, Shop cards aren’t discounted; you’ll pay full face value for these suckers.
So what’s the allure? Well, while you need to be a member to purchase Costco Shop cards, you don’t need to be a member to use them.
Considering that even the Costco food court is now closed to non-members in most locations, Shop cards could be a great way to let you friends and family explore Costco’s unique charms without needing to get their own memberships.
Yes, you also get your Executive Reward
One last thing really worth mentioning is that regular gift card purchases (not Shop cards) count toward your Executive Reward. So that’s an extra 2% back you’ll get on top of the other discounts.
If you aren’t familiar with the Executive Reward, it’s worth checking out. Upgrading to a Costco Executive membership costs an extra $65 per year, but you’ll get 2% back (once a year via a Reward certificate) on your Costco and costco.com purchases.
It takes about $3,250 in annual Costco spending to make up the $65 upgrade difference, which is about $270 a month. If your Costco spending is over this, it’s worth upgrading.
