What the Citi Visa Costco card offers and who should consider it

The Citi Visa Card for Costco is a co-branded card issued by Citi and Costco that gives you cash back on purchases at Costco and gas stations, plus a small reward rate on other spending. You do not need to be a Costco member to open the card, but you do need a Costco membership to use it at Costco locations. The card has no annual fee.

The card works best if you shop at Costco regularly and fill up at gas pumps often. If you rarely visit Costco or prefer to shop elsewhere, a different card may give you better returns on your actual spending pattern.

Key Takeaways

  • The card pays 2% cash back at Costco and Costco gas stations, 1% at other gas stations and restaurants, and 1% on all other purchases.
  • There is no annual fee, but you must have an active Costco membership to use the card at Costco locations.
  • Cash back is paid as an annual statement credit, not a monthly deposit, so you cannot redeem small amounts throughout the year.
  • The card does not offer travel protections, purchase protection, or extended warranty coverage that some competing cards include.
  • Citi allows you to add authorized users at no extra cost, which can help if multiple household members shop at Costco.

Cash back rates and where they explore

The card pays 2% cash back on all purchases at Costco warehouses and Costco gas stations. This rate applies whether you buy groceries, household items, or gas. The 2% is the highest reward rate on the card.

Outside Costco, the card pays 1% cash back at other gas stations and restaurants, and 1% cash back on everything else. This means a purchase at a grocery store that is not Costco, or a pharmacy, or an online retailer, earns 1%. The 1% rate is flat across all non-Costco, non-gas, non-restaurant purchases.

Cash back does not post to your account monthly. Instead, Citi calculates your total cash back once per year and issues it as a statement credit. If you earn $120 in cash back over twelve months, you will see a $120 credit on your statement at the anniversary date, not twelve $10 credits spread across the year.

Annual fee and membership requirements

The Citi Visa Card for Costco has no annual fee. You pay nothing to hold the card itself, which is different from some warehouse cards that charge yearly.

You do need an active Costco membership to use the card at Costco locations. If your membership lapses, you can still use the card at other merchants (gas stations, restaurants, other retailers), but you cannot shop at Costco warehouses with it. Costco membership costs $60 per year for a Gold Star membership or $120 per year for an Executive membership, depending on which tier you choose.

How this card compares to other warehouse and grocery options

The American Express Blue Business Plus card pays 1% cash back on most purchases and 2% at U.S. gas stations, but it is designed for business owners and requires a business tax ID. The Amex Blue Cash Everyday card pays 1% on most purchases and 3% at U.S. gas stations and transit, with no annual fee, but it does not offer a higher rate at any specific grocery chain.

The Capital One SavorOne card pays 3% cash back at restaurants and on streaming services, 2% at grocery stores and gas stations, and 1% on everything else, with no annual fee. It does not have a warehouse tie-in, so it rewards broader grocery shopping rather than Costco specifically.

If you shop at Costco multiple times per month and buy gas there regularly, the 2% rate at Costco and Costco gas stations can add up faster than a flat 1% or 2% card. If you shop at multiple grocery chains or rarely visit Costco, a card with a higher rate at all grocery stores may return more cash.

Protections and benefits beyond cash back

The Citi Visa Card for Costco does not include purchase protection, extended warranty coverage, or return protection. It also does not offer travel insurance, emergency medical coverage, or roadside information. These protections are common on premium cards but are not part of this card's benefits.

The card does include fraud protection and zero liability for unauthorized charges, which is standard for Visa cards. If someone uses your card number without permission, you are not responsible for the fraudulent transaction.

How to use the card and manage your account

You can open the card online through Citi's website or in person at a Costco warehouse. The process takes about 10 minutes and asks for your Social Security number, income, and employment information. Citi will tell you whether you are approved when ready or within a few days.

Once approved, you can use the card at any Visa merchant worldwide. At Costco, you must present the physical card or use the Costco app to show your digital card. Citi does not issue a virtual card number for this product, so you cannot use it for online shopping without the physical card details.

You can add authorized users to your account at no cost. Each authorized user gets their own card and earns cash back at the same rates. The cash back from all cards on the account is combined and paid as a single annual statement credit.

Frequently Asked Questions

Do I need a Costco membership to open the card?

No. You can open the card without a membership. However, you will not be able to shop at Costco warehouses until you buy a membership. You can still use the card at gas stations, restaurants, and other retailers.

Can I use this card at Costco.com?

Yes. Online purchases at Costco.com earn 2% cash back, the same rate as in-warehouse purchases. You must log into your Costco account and have a valid membership to shop online.

What happens to my cash back if I close the card?

Any cash back you have earned up to that point will be paid out as a statement credit. Citi will issue the credit within 30 to 60 days of closing the account. You do not lose the cash back you have already earned.

Can I transfer my cash back to another account or use it for something other than a statement credit?

No. Cash back on this card is only paid as a statement credit. You cannot convert it to points, transfer it to a bank account, or redeem it for merchandise. The credit reduces your balance due on your next billing statement.

Is there a limit to how much cash back I can earn?

Citi does not publish a cap on cash back earnings for this card. You can earn cash back on every purchase you make, and there is no maximum annual amount. The only limit is the amount you spend.