What the Citi Visa Card for Costco Does
The Citi Visa Card for Costco is a co-branded credit card issued by Citi that you can use at Costco warehouses and online, as well as anywhere Visa is accepted. The card offers cash back on Costco purchases and gas, plus additional benefits like extended warranties and travel protections. You must be a Costco member to hold the card, and Costco membership is required to shop there regardless of which payment method you use.
This card replaced the previous American Express card that Costco offered. If you held an AmEx Costco card before the switch, you received a new Citi Visa card in the mail automatically, though you had the option to decline it.
Key Takeaways
- The Citi Visa Card for Costco earns 2% cash back on Costco purchases and gas, and 1% on everything else.
- You must have an active Costco membership to open and use this card.
- There is an annual fee, which varies depending on whether you hold a Gold Star or Executive Costco membership.
- The card includes purchase protections, extended warranties, and travel benefits that come with most Visa Signature cards.
- You can use this card at any Costco location worldwide and at any merchant that accepts Visa.
Cash Back Rates and How They Work
The card earns 2% cash back on all Costco purchases, whether you shop in the warehouse or online at Costco.com. You also earn 2% cash back on gas purchases at any gas station, including Costco gas stations. On all other purchases made anywhere Visa is accepted, you earn 1% cash back.
Cash back is paid as an annual reward certificate that arrives in your Costco account or by mail, usually in January. You cannot redeem cash back as a statement credit or transfer it to another account — it comes as a certificate you use at Costco. The certificate is valid for one year from the date it is issued.
There is no limit to how much cash back you can earn, and there is no cap on the 2% rate at Costco or gas. The rewards are automatic and require no enrollment or set up.
Annual Fee and Membership Requirements
The card has an annual fee that is tied to your Costco membership level. If you hold a Gold Star membership (the standard membership), the card's annual fee is $45. If you hold an Executive membership, the card's annual fee is $120. The fee is charged to your card once per year and cannot be waived.
You must maintain an active Costco membership to keep the card open. If your membership lapses, Citi may close the card or restrict its use. Costco membership itself has a separate annual fee — $60 for Gold Star and $120 for Executive — so the total cost of membership plus the card fee ranges from $105 to $240 per year depending on your membership tier.
New cardholders do not receive an introductory period without the annual fee. The fee is charged in the first billing cycle after the card is opened.
Where You Can Use the Card
You can use the Citi Visa Card for Costco at any Costco warehouse location in the United States, Canada, Mexico, Japan, South Korea, the United Kingdom, and other countries where Costco operates. You can also use it on Costco.com for online purchases. Because it is a Visa card, you can use it at any merchant worldwide that accepts Visa — grocery stores, restaurants, gas stations, online retailers, and anywhere else.
The card is not limited to Costco purchases. Many cardholders use it for everyday spending to earn the 1% cash back on non-Costco purchases, though the 2% rate at Costco and gas is where the card's value concentrates.
Protections and Additional Benefits
As a Visa Signature card, the Citi Visa Card for Costco includes several protections that come standard with the product. Purchase protection covers items you buy with the card against theft or damage for 120 days from the date of purchase, up to $10,000 per claim and $50,000 per year. Extended warranty protection adds up to two additional years of coverage (beyond the manufacturer's warranty) on may be able to access items, up to $10,000 per claim.
The card also includes travel accident insurance, which covers accidental death or dismemberment while traveling on a common carrier (plane, train, bus, or ship) that you paid for with the card. Emergency medical and dental services while traveling outside your home country are also covered. Travel benefits typically include lost luggage reimbursement and emergency travel information services.
These protections have limits and exclusions. For example, purchase protection does not cover items damaged through normal wear, items used for business, or items that are intentionally damaged. Review the card's benefits guide for the full terms and conditions of each protection.
How to Open the Card and What You Need
To open the Citi Visa Card for Costco, you must first be a Costco member. You can open the card online at Costco.com, by phone through Citi, or in person at a Costco warehouse. The online process is the fastest route and takes about 10 minutes.
You will need your Social Security number, date of birth, current address, and income information. Citi will run a hard inquiry on your credit report, which may temporarily lower your credit score by a few points. You do not need to have excellent credit to open the card, but Citi will review your credit history and income to decide whether to approve you.
Once approved, the card typically arrives within 7 to 10 business days. You can set up it online, by phone, or at a Costco warehouse. The annual fee is charged in your first billing cycle, so plan for that cost when you decide to open the card.
Comparing This Card to Other Warehouse and Grocery Options
The Citi Visa Card for Costco is the only credit card Costco currently offers. If you shop at Costco, this is your only option for a co-branded card with rewards at that warehouse. However, other general-purpose cash back cards may offer similar or better rewards depending on your spending pattern.
For example, a card that earns flat 2% cash back on all purchases would match the Costco rate but explore it everywhere, not just at Costco and gas. A card that earns 3% or higher at grocery stores might be better if you spend more at traditional grocery stores than at Costco. The best choice depends on where you spend most of your money and whether the Costco membership fee makes sense for your household.
If you do not have a Costco membership and do not plan to get one, this card is not an option. If you have a membership and shop at Costco regularly, the 2% cash back on Costco purchases can offset the annual fee if you spend enough.
Frequently Asked Questions
Do I have to be a Costco member to open this card?
Yes. You must have an active Costco membership to open the card, and you must keep your membership active to use the card. If your membership expires, Citi may close the card or prevent you from using it. Costco membership and the card's annual fee are separate charges.
Can I use this card outside of Costco?
Yes. Because it is a Visa card, you can use it anywhere Visa is accepted — restaurants, gas stations, online retailers, and other merchants. You earn 1% cash back on non-Costco purchases, compared to 2% at Costco and gas stations.
What happens to my cash back rewards?
Cash back is issued once per year as a Costco reward certificate, usually in January. The certificate is valid for one year and can only be used at Costco. You cannot convert it to cash, transfer it to another account, or redeem it outside of Costco.
Is there an introductory period without the annual fee?
No. The annual fee is charged in your first billing cycle after the card is opened. There is no grace period or waiver for new cardholders. The fee depends on your Costco membership level: $45 for Gold Star or $120 for Executive.
What should I do if I no longer want the card?
Contact Citi directly to close the card. You can call the number on the back of your card or log into your online account. Closing the card does not affect your Costco membership — those are separate. If you close the card, you lose access to the cash back rewards and card benefits, but your Costco membership remains active.