What the Citi Costco card does and who should consider it

The Citi Costco Anywhere Visa Card is a rewards card designed specifically for Costco members. You earn cash back on purchases at Costco and at gas stations, and a lower rate everywhere else. The card has an annual fee, but no foreign transaction fees — a feature that matters if you travel internationally.

This card makes sense if you shop at Costco regularly and spend enough on gas or Costco purchases to offset the annual fee. If you rarely visit Costco or prefer a card with broader rewards categories, other cards may serve you better. The card is issued by Citi but branded by Costco, which means your account terms and customer service come through Citi.

One thing to know upfront: you must be a Costco member to open this card, and you must remain a member to use it. If your membership lapses, the card stops working at Costco, though you can still use it elsewhere.

Key Takeaways

  • The Citi Costco card earns 4% cash back at Costco and 4% at gas stations (including Costco gas), 3% at restaurants and travel, and 1% everywhere else.
  • The card carries an annual fee that varies by card type, and you must be an active Costco member to hold it.
  • Cash back rewards are issued as an annual statement credit or check, not as points you can redeem on demand.
  • The card has no foreign transaction fees, making it useful for international travel if you also use it for everyday purchases.
  • Citi handles the account, billing, and customer service, even though Costco brands the card.

The rewards structure and how cash back is paid

The card earns cash back at different rates depending on where you spend. At Costco warehouses and Costco.com, you earn 4% cash back. At gas stations (including Costco gas pumps), you earn 4%. At restaurants and on travel purchases (hotels, airfare, rental cars, and transit), you earn 3%. Everything else earns 1%.

There is a catch: cash back is not issued monthly or on demand. Instead, Citi calculates your total rewards once a year and sends you a statement credit or a check. You cannot transfer rewards to a travel partner, use them to pay your balance early, or redeem them for merchandise. The annual payout happens around the time your card anniversary arrives, though the exact timing depends on your account opening date.

If you close the card before the annual payout, you forfeit any unissued cash back. This matters if you are considering canceling — wait until after the rewards post, or you lose money you have already earned.

Annual fees and whether they make financial sense

The Citi Costco card charges an annual fee. The exact amount depends on which version of the card you hold — there is a standard version and a higher-tier version with additional benefits. Citi notifies you of the fee before charging it, and you can cancel if you do not want to pay.

To decide whether the fee is worth it, calculate your expected cash back for the year. If you spend $5,000 at Costco annually, that is $200 in cash back at the 4% rate. If you also spend $3,000 on gas, that is another $120. Add in restaurant and travel spending, and you may easily exceed the annual fee. If your spending is lower, the math may not work in your favor.

One way to think about it: the card pays for itself if you spend enough to earn back more than the fee amount. If you are unsure, you can open the card, track your spending for a few months, and cancel before the next annual fee posts if the rewards do not justify the cost.

How to open the card and what you need

You open the Citi Costco card through Costco's website or by asking at the membership desk in your warehouse. Citi runs the credit check and makes the approval decision. You will need your Social Security number, income information, and current address. The process takes about 15 minutes online.

You must have an active Costco membership — either Gold Star (standard) or Executive (higher tier). If you do not have a membership, you will need to join Costco first. Membership costs vary by location and membership type, and Costco renews memberships annually.

Once approved, your physical card arrives in the mail within 7 to 10 business days. You can request a digital card number to use when ready while you wait for the physical card. Citi also offers the option to add authorized users to your account, though each authorized user is a separate person and not a linked account.

No foreign transaction fees and what that means for travel

Unlike many rewards cards, the Citi Costco card charges no foreign transaction fees. This means if you use the card to pay for something in another country — a hotel in Canada, a restaurant in Mexico, a train ticket in Europe — Citi does not add a percentage fee on top of the purchase. For frequent international travelers, this can save hundreds of dollars per year.

The card still works through Visa's exchange rate, which is competitive but not the absolute lowest available. If you are comparing cards for travel, the lack of foreign transaction fees is a real advantage, but it is not the only factor. Some cards offer travel insurance, trip cancellation protection, or lounge access — benefits the Citi Costco card does not include.

One limitation: the card works only where Visa is accepted. Costco warehouses outside the United States may not accept it, and some countries have limited Visa acceptance. Check before you travel whether your destination accepts Visa cards.

How the card interacts with your Costco membership and account

Your Citi Costco card is linked to your Costco membership number. When you use the card at a Costco warehouse, the system recognizes both your membership and your card in one transaction. You do not need to show a separate membership card — your Citi card serves that purpose at checkout.

If your Costco membership expires and you do not renew it, your card stops working at Costco warehouses. You can still use it at other merchants (gas stations, restaurants, online), but you lose the 4% cash back at Costco. You can renew your membership at any time, and once you do, the card works at Costco again.

If you have an authorized user on your account, they receive their own physical card and can use it at Costco with your membership number. Both cards earn rewards on the same account, so all cash back is combined into one annual payout.

Comparing this card to other Costco payment options

Costco also accepts other Visa cards, Mastercard, American Express, and Discover. If you do not want the Citi Costco card, you can use any of these payment methods at the warehouse. However, you will not earn the 4% cash back that the Citi card offers — you will earn whatever your other card provides, which is often 1% or 2%.

Some people hold both the Citi Costco card and another rewards card. They use the Citi card at Costco and gas stations (where it earns 4%), and use a different card for categories where that card earns more. For example, if you have a card that earns 5% on restaurants, you might use that card at restaurants instead of the Citi card's 3%.

If you are comparing the Citi Costco card to other cash back cards, look at your actual spending. A card that earns 2% on all purchases might be better than the Citi card if you do not spend much at Costco or gas stations. A card with no annual fee might be better if your Costco spending is low.

What happens if you close the card or your membership ends

If you cancel the card, Citi closes your account. Any unissued cash back is forfeited, so time your cancellation for after the annual rewards payout. You can request a final statement showing all transactions and rewards earned.

If your Costco membership ends and you do not renew it, Citi does not automatically close your card. The card remains open, but it no longer works at Costco warehouses. You can still use it at gas stations, restaurants, and other merchants. If you want to close the account entirely, you can call Citi customer service and request cancellation.

If Citi closes your account due to inactivity or policy violation, you lose access to the card when ready. Citi will notify you in writing if this happens. Any pending rewards are typically forfeited, though you can contact Citi to ask about exceptions.

Frequently Asked Questions

Can I use the Citi Costco card outside the United States?

Yes, the card works anywhere Visa is accepted internationally. You will not pay foreign transaction fees, which saves money on overseas purchases. However, Costco warehouses outside the US may not accept it, and some countries have limited Visa acceptance. Check with your destination before traveling.

What if I want to add a family member to my card?

You can add an authorized user through Citi. The authorized user receives their own physical card and can make purchases on your account. Both cards earn rewards that combine into one annual payout. The authorized user does not need their own Costco membership — they use your membership number.

Do I lose my cash back rewards if I cancel the card?

Yes, any cash back that has not yet been issued is forfeited if you close the account. Citi issues rewards once per year around your card anniversary. To keep your rewards, cancel after the annual payout posts, or wait until the next payout before closing.

Can I use this card if I do not have a Costco membership?

No, you must be an active Costco member to open and use this card. If you do not have a membership, you will need to join Costco first. Membership is required to shop at the warehouse and to hold the card.

How does the 4% cash back at gas stations work?

You earn 4% cash back at any gas station, including Costco gas pumps. There is no cap on how much you can earn, and the 4% applies to the full purchase amount. This includes the cost of fuel and any convenience items you buy at the pump.