Have a Costco Executive Membership? Here Are 5 Things You Can't Spend Your Rewards On

An Executive membership at Costco costs $120 a year, compared to $60 a year for a basic membership. But there's a big perk to upgrading to an Executive membership -- getting 2% cash back on your Costco purchases.

If you spend $3,000 a year at Costco, you'll break even on the $60 upgrade fee for the Executive membership. So from there, it's just extra cash back coming your way.

Meanwhile, if you have an Executive membership at Costco, you'll receive a rewards certificate once a year in the mail. You won't get to cash out your rewards month after month, but rather, you'll need to wait a year for them to accrue.

You can then take that rewards certificate and use it to buy anything from buying groceries at your local Costco store to a new TV. But here are a few items you can't use your Executive rewards certificate for.

1. Costco gas

Costco tends to have some of the most affordable gas in town. But unfortunately, you can't present your rewards certificate at the pump -- even if you're filling up at Costco. You'll need to pay cash for your gas or charge it on a credit card.

2. Food court purchases

The Costco food court can be a great source for a cheap lunch. But you won't be able to get your meal for free by redeeming your rewards certificate, since food court purchases aren't eligible. Thankfully, though, you may be able to fill up at the food court for as little as $1.50 thanks to Costco's inflation-resistant hot dog and soda combo. So make a point to carry a little cash when you're doing your shopping at a time that coincides with a meal.

3. Travel services

Costco's travel services can hook you up with amazing vacation packages at affordable prices. But unfortunately, you can't redeem your rewards certificate for travel. You'll need to find another way to pay. Remember, though, you can still accrue cash back on travel booked through Costco if you have an Executive membership.

4. Auto services

Costco's auto center could be a good place to go if you need to replace a tire or something similar. But you'll need to find a way to pay directly, since you can't use your rewards certificate for auto services. Just like with travel, though, you can earn cash back on that new tire purchase with your Executive membership.

5. Costco.com purchases

You'll find a host of items on Costco.com -- more inventory than you might find at your local store. But if you're hoping to use a rewards certificate to pay for your online haul, think again. You can't use a rewards certificate online. You can only use it for in-store purchases.

The fact that you can't use your rewards certificate for so many different things might be a point of frustration. But it could still very much pay to upgrade to an Executive membership if you spend more than $3,000 a year at Costco, because you're basically looking at coming out ahead financially either way. Besides, if you're someone who shops at Costco regularly, then chances are, you'll easily manage to find a way to put that certificate to good use, no matter what it amounts to.