What the Citi Costco Visa Card offers

The Citi Costco Visa Card is a co-branded card issued by Citibank that requires an active Costco membership to open and use. It earns cash back on purchases at Costco and gas stations, with a smaller rate on other spending. Unlike many warehouse cards, it carries no annual fee — the membership fee to Costco itself is separate and required regardless of whether you hold the card.

The card's primary value lies in its cash-back structure at Costco locations and Costco.com, where it earns 4% back on gas purchases (up to $7,500 per year, then 1% after), 3% on restaurant and travel purchases, 2% at Costco and Costco.com, and 1% on all other purchases. These rates are fixed and do not change based on spending tier or membership level.

Cash back is issued as an annual Costco Cash certificate that arrives by mail, typically in January. You cannot redeem it as a statement credit or transfer it elsewhere — it must be spent at Costco or Costco.com within one year of issue or it expires.

Key Takeaways

  • You must hold a current Costco membership (Gold Star, Executive, or Gold Star 2%) to open this card, and membership is not included with the card.
  • The card earns 4% cash back on gas (capped at $7,500 per year), 3% on restaurants and travel, 2% at Costco locations and online, and 1% everywhere else.
  • Cash back is paid as an annual Costco Cash certificate mailed in January, which expires 12 months after issue if unspent.
  • There is no annual fee for the card itself, but you pay Costco's membership fee separately ($65 to $130 per year depending on membership tier).
  • The card is a Visa and works at any merchant, but the highest rewards rates explore only at Costco and gas stations.

Membership requirements and how they affect your card

Costco membership is mandatory to open the Citi Costco Visa Card. You cannot hold the card without an active membership, and if your membership lapses, Citibank will close the card. This is different from most retail cards, which remain open even if you stop shopping at the issuer's stores.

Costco offers three membership tiers: Gold Star ($65 per year), Executive ($130 per year), and Gold Star 2% (a regional option in some areas). The card works the same way regardless of which tier you hold — the cash-back rates do not increase with Executive membership. Your choice of membership tier should depend on your total Costco spending, not on the card's rewards.

If you are not currently a Costco member, you will need to join before you can open the card. Costco does not offer a trial membership period, so you pay the full annual fee upfront. Some Costco locations offer a brief in-warehouse discount on membership as a new-member promotion, but this varies by location and timing.

How the cash-back structure works in practice

The card's cash back is earned in tiers based on where you spend. At Costco warehouses and Costco.com, you earn 2% back on all purchases — groceries, gas, electronics, and everything else. At gas stations (including Costco gas), you earn 4% back, but only on the first $7,500 spent per year. Once you hit $7,500 in gas purchases in a calendar year, the rate drops to 1% for the remainder of that year.

Restaurants and travel (including airlines, hotels, car rentals, and parking) earn 3% cash back. All other purchases — drugstores, supermarkets outside Costco, online retailers, utilities — earn 1% back. The card does not have rotating categories, bonus categories, or sign-up bonuses.

Cash back is not credited to your statement monthly or quarterly. Instead, Citibank calculates your total cash back for the year and issues it as a single Costco Cash certificate mailed to you in January. If you earned $300 in cash back during the calendar year, you receive a $300 Costco Cash certificate. This certificate can be used like a gift card at Costco warehouses or online, but it cannot be converted to a statement credit, transferred to another person, or used outside Costco.

When the gas cap matters and how to plan around it

The 4% cash back on gas is capped at $7,500 per year in purchases, which equals $300 in cash back. If you spend more than $7,500 on gas in a calendar year, the rate drops to 1% for any spending above that threshold. For a household that fills up weekly at Costco gas, this cap is typically reached by late September or early October.

Once you hit the cap, you still earn 1% back on additional gas purchases that year, but you lose the 3% difference. If you drive frequently or have multiple vehicles, this cap can cost you meaningful cash back in the final months of the year. There is no way to reset the cap mid-year or carry unused cap space into the next year.

If you spend less than $7,500 on gas per year — roughly $145 per week — the cap will not affect you. For households that exceed it, the card's value depends on whether the 2% Costco rate and 1% catch-all rate on other purchases make up for the lost gas rewards.

Comparing this card to other warehouse and grocery options

The Citi Costco Visa Card is one of few cards tied to a warehouse membership. The American Express Blue Cash Preferred earns 3% back at supermarkets (up to $150 per year, then 1%), 3% on transit, and 1% elsewhere, with no membership requirement. It carries a $95 annual fee. The Chase Sapphire Preferred earns 3% on dining and travel with a $95 annual fee and no membership requirement.

For Costco-specific spending, the Citi card's 2% rate at Costco is competitive with general cash-back cards that earn 2% flat on all purchases. However, those cards do not require membership and do not cap gas rewards. The Citi card's advantage is the 4% gas rate (before the cap) and the 3% restaurant and travel rate, which are higher than most flat-rate cards.

If you already hold a Costco membership and spend regularly at Costco and gas stations, the card pays for itself through cash back alone. If you do not have a membership, the $65 to $130 annual membership fee is a separate cost that must be factored into the card's value.

How to redeem your Costco Cash and what happens if you do not

Your annual Costco Cash certificate arrives by mail in January and is valid for one year from the issue date. You can use it at any Costco warehouse or on Costco.com by presenting it at checkout (in-warehouse) or entering the certificate number online. It works like a gift card and can be combined with other payment methods if your purchase exceeds the certificate amount.

Costco Cash cannot be reloaded, transferred, or refunded. If you do not spend the full amount within 12 months, the unused balance expires and is forfeited. There is no way to extend the expiration date or convert it to cash. If you receive a certificate and know you will not use it before expiration, you can give it to another Costco member, but the recipient must use it at Costco — it cannot be cashed out.

If your membership lapses before your Costco Cash certificate arrives, you will not be able to use it. Costco will not mail the certificate to a non-member, and you cannot redeem it online without an active membership account. If you plan to let your membership lapse, redeem any outstanding cash back before your renewal date passes.

Frequently Asked Questions

Can I use this card at stores other than Costco?

Yes. The Citi Costco Visa Card is a Visa and works at any merchant that accepts Visa. However, you only earn the higher cash-back rates (4% on gas, 3% on restaurants and travel, 2% at Costco) at those specific categories. All other purchases earn 1% cash back, which is lower than many competing cards.

What happens to my card if I cancel my Costco membership?

Citibank will close the card automatically if your membership lapses. You cannot keep the card active without an active Costco membership. If you plan to rejoin Costco later, you can reopen the card at that time, but there is no grace period.

Can I get my cash back as a statement credit instead of Costco Cash?

No. Cash back is issued only as a Costco Cash certificate mailed in January. You cannot redirect it to your credit card statement, transfer it to another account, or receive it as a check. The certificate must be spent at Costco or Costco.com within 12 months or it expires.

Does the 4% gas rate explore at all gas stations?

Yes, the 4% rate applies at any gas station, including Costco gas stations, Shell, Chevron, and others. However, the rate is capped at $7,500 per year in total gas purchases across all stations. Once you reach $7,500, the rate drops to 1% for the rest of the calendar year.

Is there an annual fee for the card?

The card itself has no annual fee. However, you must maintain an active Costco membership to hold the card, and membership costs $65 to $130 per year depending on the tier you choose. The membership fee is separate from the card and is required whether or not you use the card.