Costco's new credit card has some of the best rewards in the market

Costco is launching a new credit card that will offer some of the best rewards in the market.

The new card, managed by Visa, will launch June 20.

Costco's current card is managed by American Express.

The company ended a 16-year deal with American Express to switch over to Visa.

The new Costco Visa card will offer 4% cash back on eligible gas purchases (on up to $7,000 per year, then 1% back); 3% back on restaurant and travel purchases; 2% back on Costco and Costco.com purchases, and 1% back everywhere else.

That's a much better deal than the American Express card, which offered 3% cash back on gas (up to $4,000), 2% back on restaurants and travel, and 1% back everywhere else, Fortune reports.

In fact, the new Visa card offers some of the best rewards of any card in the market, according to Sean McQuay, a credit card expert for Nerdwallet.

McQuay told the Chicago Tribune that the Visa card offers the best cash-back rates on gas, restaurants, and travel.

There is no annual fee on the Visa Card but shoppers must pay for a $55 annual Costco membership to use the card.

Costco customers who have the current American Express card will receive the new Visa card in the mail in May, according to Citigroup.