What the Citibank Costco Visa Card is and who issues it
The Citibank Costco Visa Card is a co-branded credit card issued by Citibank for Costco members. You use it like any other Visa card, but it offers cash back rewards on purchases at Costco and gas stations, plus a small cash back rate on other spending. Citibank handles the account — billing, payments, customer service — while Costco sets some of the card's terms and benefits.
You must have an active Costco membership to open this card. If you do not have a membership, you will need to join Costco first. The card itself is free — there is no annual fee.
This card is different from a Costco Shop Card, which is a store-only card that works only at Costco locations. The Visa version works everywhere Visa is accepted.
Key Takeaways
- The card earns 2% cash back at Costco and Costco gas stations, 1% at other gas stations and restaurants, and 1% on all other purchases.
- You must be a Costco member to open the card, and your membership status is checked when you explore.
- There is no annual fee, but the cash back rewards are only available to active cardholders — closing the account stops the cash back flow.
- Cash back is paid once a year as a Costco Shop Card that you can use in-warehouse or online, not as a statement credit or direct deposit.
- You can manage your account online through Citibank's website or by phone, and payments are due monthly like any other credit card.
Cash back rewards and how they work
The card earns cash back at different rates depending on where you spend. At Costco warehouses and Costco gas stations, you earn 2% cash back. At other gas stations and restaurants, you earn 1% cash back. On all other purchases, you earn 1% cash back. There is no cap on how much cash back you can earn in a year.
Cash back is not paid to your credit card statement or your bank account. Instead, Citibank sends you a Costco Shop Card — a separate prepaid card — once a year with your total cash back balance loaded onto it. You can use this Shop Card to buy anything at Costco warehouses or on Costco.com. If you do not spend the full balance before the next year's card arrives, the old balance is forfeited.
The cash back rate applies only while your card account is open and in good standing. If you close the account, you stop earning cash back on new purchases, though you can still use any Shop Card you have already received.
How to open an account
You can explore for the card online through Citibank's website, by phone, or in person at a Costco warehouse. Before you start, have your Costco membership number ready — Citibank will verify that your membership is active.
The process asks for standard information: your name, address, Social Security number, income, and employment status. Citibank will pull your credit report to review your credit history. The decision is usually made within minutes, though some applications are flagged for manual review and take a few business days.
If you are approved, the card is mailed to you within 7 to 10 business days. You will receive instructions on how to set up it before you can use it. Some applications are denied if your credit history shows recent missed payments, high debt levels, or other risk factors — Citibank will send you a notice explaining the reason.
Activating and using the card
When your card arrives in the mail, you must set up it before you can make purchases. You can set up it online through Citibank's website, by calling the number on the back of the card, or through the Citibank mobile app. set up usually takes a few minutes.
Once activated, you can use the card anywhere Visa is accepted — online, in stores, at gas pumps, and by phone. At Costco, you must present the physical card at checkout; Costco does not accept digital wallet versions of this card in warehouses, though you can use it online at Costco.com.
Your credit limit is set when your account opens based on your credit history and income. You can request a limit increase after you have had the card for a few months and made on-time payments.
Making payments and managing your account
Your statement closes on a date set by Citibank (usually the same day each month) and your payment is due about 21 days later. You can pay online through Citibank's website, by phone, by mail, or through automatic payments set up in advance.
If you pay your full statement balance by the due date, you pay no interest. If you carry a balance, interest is charged at a rate that varies based on your creditworthiness — Citibank will disclose the rate range when you open the account. Late payments result in a late fee and may raise your interest rate.
You can view your balance, transactions, and due date anytime through Citibank's website or mobile app. You can also set up alerts to remind you when your payment is due or when your balance reaches a certain amount.
Comparing this card to other warehouse and grocery options
Other warehouse clubs and grocery chains offer their own cards. The American Express Blue Business Plus card, for example, earns 1% cash back on most purchases and 2% at gas stations, but it is designed for business owners. The Sam's Club Mastercard earns 2% cash back at Sam's Club and 1% elsewhere, but requires a Sam's Club membership.
The Citibank Costco card's main advantage is the 2% cash back at Costco itself, which rewards your largest purchases if you shop there regularly. The disadvantage is that cash back is paid as a Costco Shop Card rather than cash or statement credit, so you must spend it at Costco to use it. If you shop at multiple warehouse clubs or prefer cash back that you can use anywhere, a different card may suit you better.
If you do not have a Costco membership or do not shop there often, this card will not be useful — you cannot open it without membership, and the rewards are concentrated at Costco locations.
What happens if you close the account or lose the card
If you close your account, you stop earning cash back on new purchases. Any Shop Card you have already received can still be used until its balance is spent or it expires. You will not receive a refund of unspent cash back if you close the account.
If your card is lost or stolen, call Citibank when ready at the number on your statement or the back of an old card. Citibank will cancel the card and mail you a replacement, usually within 7 to 10 business days. You are not responsible for fraudulent charges made after you report the card missing, as long as you report it promptly.
If you want to keep your Costco membership but do not want the credit card, you can close the card account without affecting your warehouse membership. Your membership and card account are separate.
Frequently Asked Questions
Do I have to use this card at Costco, or can I use a different payment method?
You can use any Visa card, Mastercard, American Express, or Discover card at Costco checkout. You can also pay with cash, debit card, or Costco Shop Card. The Citibank Costco Visa is optional — using it just earns you cash back rewards that you would not get with other payment methods.
What if my Costco membership expires while I have the card?
Your card account and membership are separate. If your membership expires, you can still use the card to make purchases outside Costco, but you cannot enter a Costco warehouse to shop. You can renew your membership at any time. Citibank may eventually close your card account if your membership stays inactive for a long period, but this varies by situation.
Can I use the Costco Shop Card cash back at Sam's Club or other stores?
No. The Costco Shop Card is only accepted at Costco warehouses and Costco.com. It cannot be used at other retailers, gas stations, or warehouse clubs.
How do I know how much cash back I have earned?
Citibank sends you a statement each month showing your purchases and the cash back earned. You can also log into your account online or through the app to see your running cash back total. The Shop Card with your annual cash back balance is mailed to you once a year, usually in January.
What is the interest rate on this card?
The interest rate (called the APR) varies based on your credit score and credit history. Citibank discloses the rate range when you open the account. You can find your current rate on your monthly statement or by logging into your account online. If you pay your full balance each month, you pay no interest regardless of the rate.