The Costco Credit Card Rewards Structure

The Costco Anywhere Visa Card by Citi offers cash back on purchases made at Costco and gas stations, plus a smaller rate on everything else. At Costco warehouses and Costco.com, you earn 2% cash back. At gas stations (including Costco gas), you earn 2% cash back on the first $4,000 per year, then 1% after that. On restaurants and travel, you earn 1% cash back. On all other purchases, you earn 1% cash back.

The card has no annual fee, which means the rewards structure is the only cost to consider. Cash back posts to your Costco Cash certificate, which you can use at any Costco warehouse or on Costco.com. The certificate expires one year from the issue date, so you need to spend the rewards within that window or they disappear.

Costco also offers a Costco Anywhere Visa Card for business owners, with the same warehouse and gas rates but different rewards on other categories. This guide focuses on the consumer card, which is the most common version.

Key Takeaways

  • You earn 2% cash back at Costco warehouses and Costco.com, and 2% on the first $4,000 per year at gas stations, then 1% after that.
  • The card has no annual fee, making it a low-cost option if you already shop at Costco.
  • Cash back appears as a Costco Cash certificate that expires one year from issue, so you must use rewards within 12 months.
  • You must be a Costco member to open the card, and the card itself does not extend your membership.
  • The card works only at Costco, Costco.com, and gas stations; rewards on restaurants and other retailers are lower than competing cards.

When the Costco Card Makes Sense for Your Spending

The Costco card works best if you spend most of your grocery and household budget at Costco and fill up at Costco gas. The 2% rate at the warehouse is competitive with other grocery cards, but only if Costco is where you actually shop. If you split your grocery spending between Costco, a traditional supermarket, and other retailers, a card that rewards groceries broadly may earn you more.

The gas rewards cap at $4,000 per year means you hit the 1% rate after spending $80 per month at the pump. If you drive frequently or have a long commute, you will max out the 2% tier and earn 1% on additional gas purchases for the rest of the year. For moderate drivers, the 2% cap covers most or all of your gas spending.

The card is less useful if you spend heavily on restaurants, travel, or online shopping outside Costco. The 1% rate on those categories trails cards designed for dining or travel rewards. If you want one card that covers multiple spending categories well, this card is narrowly focused on Costco and gas.

No Annual Fee and No Membership Extension

Unlike some warehouse cards, the Costco Anywhere Visa has no annual fee. This removes a barrier to keeping the card open even in months when you do not visit the warehouse. However, the card does not extend or renew your Costco membership — you pay for membership separately, and the card is a separate product.

You must have an active Costco membership to open the card. If your membership lapses, you can still use the card at gas stations and for online purchases, but you cannot enter a warehouse. This separation means you are paying two fees: one for membership and one for the card (which is zero, but membership is not).

How Cash Back Works and the One-Year Expiration

Cash back does not post to a linked bank account or appear as a statement credit. Instead, Costco issues a Costco Cash certificate to your account, usually monthly. You print the certificate or show it on your phone at checkout, and it works like a gift card. The certificate is valid for one year from the issue date.

If you do not use the certificate before it expires, the balance is forfeited. Costco does not roll unused cash back into the next certificate or let you carry it forward. This means you need to plan to spend the rewards within 12 months, or you lose them. For heavy Costco shoppers, this is usually not a problem. For occasional shoppers, the expiration date is a real constraint.

You can check your Costco Cash balance online through your Costco account or by calling the card issuer. The certificate amount is also printed on your monthly statement.

Comparing the Costco Card to Other Grocery and Gas Cards

The Costco card's 2% at the warehouse is matched by several other cards, including the Citi Double Cash (2% on all purchases) and the Fidelity Rewards Visa (2% on all purchases). The difference is that those cards earn 2% everywhere, while the Costco card earns 2% only at Costco and gas stations. If you shop at multiple grocers, a flat-rate card may earn more overall.

Cards designed for groceries, like the Discover it Cash Back (5% rotating categories, including groceries for part of the year) or the Blue Cash Preferred (3% at US supermarkets), offer higher rates in specific quarters or months. However, they require you to set up categories or watch for rotating periods, and the Discover card caps the 5% rate at $1,500 per quarter. The Costco card is simpler: 2% at Costco, always.

For gas, the Costco card's 2% on the first $4,000 per year is solid but not exceptional. The Citi Double Cash and Fidelity Rewards both earn 2% on gas everywhere. The Amex Blue Cash Preferred earns 1% on gas, which is lower. The trade-off is that the Costco card ties you to Costco gas, while other cards work at any pump.

Costco Membership and Card Approval Requirements

To open the Costco Anywhere Visa, you need an active Costco membership. You cannot open the card without one. Costco membership tiers are Gold Star (standard), Gold Star Executive (higher annual fee, includes 2% rewards on Costco purchases), and Business. The card is separate from membership and does not change your tier.

The card issuer, Citi, will run a credit check and review your credit history. There is no set minimum credit score, but Citi typically approves applicants with good to excellent credit (usually 670 or higher). If you have recent late payments, collections, or a very short credit history, approval is less likely.

You can open the card online through Costco.com or in a warehouse. The process takes a few minutes, and you usually get a decision when ready. If approved, the physical card arrives in 7 to 10 business days.

Frequently Asked Questions

Can I use the Costco card outside the warehouse?

Yes, but rewards are lower. You earn 2% at Costco gas stations, 1% at restaurants and travel, and 1% on all other purchases. The card works anywhere Visa is accepted, but the best rewards are at Costco and Costco gas.

What happens if my Costco membership expires?

You can still use the card at gas stations and for Costco.com purchases, but you cannot enter a warehouse. Your existing Costco Cash certificates remain valid until their one-year expiration date. You will need to renew your membership to shop in-warehouse again.

Does the card renew my Costco membership?

No. The card and membership are separate products. You pay for membership renewal independently, and the card does not extend or discount your membership fee.

Can I combine multiple Costco Cash certificates?

No. Each certificate is issued separately and must be used individually. You cannot combine balances or transfer cash back to a bank account. You can use multiple certificates at one checkout if you have more than one active.

What if I do not use my Costco Cash before it expires?

The balance is forfeited. Costco does not roll unused rewards into future certificates or offer extensions. You need to spend the certificate within one year of the issue date or lose it.