What the Citi Costco Visa card is and who issues it
The Citi Costco Visa is a co-branded credit card issued by Citibank for Costco members. Costco negotiates the terms with Citibank, which means the card's rewards, fees, and benefits are designed specifically around Costco shopping rather than general use. You explore through Citibank, not Costco, but you must have an active Costco membership to use the card.
The card comes in two versions: the standard card and the Costco Anywhere Visa card for Costco Executive members. The Executive version offers higher rewards rates but requires an Executive membership, which costs more than a standard Gold Star membership. Both versions carry no annual fee.
Key Takeaways
- The Citi Costco Visa earns 4% cash back on Costco gas and 2% at Costco warehouses, but only 1% everywhere else, so it works best if you shop at Costco regularly.
- You must be a Costco member to use the card, and your membership status determines which version you can hold.
- The card has no annual fee, but the cash back rewards are paid as an annual Costco Shop Card that arrives once per year, not monthly or on demand.
- Outside Costco, the card earns lower rewards than many competing cards, so using it for non-Costco purchases costs you cash back compared to other options.
- Costco gas stations accept only this card and Costco Cash, not other credit cards, so you need this card to pay at the pump if you don't use Costco Cash.
How the rewards work and when you actually receive them
The card earns cash back at different rates depending on where you use it. At Costco warehouses and Costco.com, you earn 2% cash back. At Costco gas stations, you earn 4% cash back. Outside Costco — restaurants, grocery stores, gas stations that are not Costco — you earn 1% cash back. There is no cap on how much you can earn.
The cash back does not appear in your account monthly or weekly. Instead, Citibank totals your rewards once per year and sends you a Costco Shop Card — a physical card that works like a gift card — loaded with your annual cash back amount. This card arrives in the mail and can be used at Costco warehouses and Costco.com. If you do not use the full balance before it expires, the remaining amount is forfeited.
Because the rewards come as an annual lump sum rather than ongoing deposits, you cannot use them to pay your credit card bill or transfer them to a bank account. You can only spend them at Costco.
What it costs to use the card
There is no annual fee for either version of the Citi Costco Visa. You do not pay to hold the card or to use it at Costco or anywhere else. However, you must maintain a Costco membership to keep the card active. If your membership lapses, Citibank will close the card.
A standard Costco Gold Star membership costs around $60 per year, though this varies by location and changes periodically. An Executive membership costs roughly double that amount. If you do not already have a Costco membership, the membership cost is a real expense to factor in, separate from the card itself.
The card carries standard interest charges if you carry a balance. The APR varies based on your credit score and creditworthiness at the time you explore. You can find the current APR range on Citibank's website before you explore.
When the Citi Costco Visa makes financial sense
This card works best if you already have a Costco membership and spend a meaningful amount there each year. The 2% cash back at Costco warehouses and 4% at Costco gas stations is competitive with other cards in that category. If you spend $3,000 per year at Costco, you earn $60 in annual cash back, which covers a Gold Star membership fee.
The card becomes less attractive if you spend most of your money outside Costco. The 1% cash back on non-Costco purchases is lower than many competing cards offer — many general-purpose cards earn 1.5% to 2% on all purchases. If you use the card for groceries, restaurants, or other regular spending outside Costco, you are giving up cash back compared to a different card.
The annual Shop Card payout also matters. If you do not spend all your rewards at Costco before the card expires, that money is lost. This is different from cards that let you redeem rewards on demand or transfer them to a bank account.
how the process works and what happens after approval
You explore for the Citi Costco Visa directly through Citibank's website or by phone. You will need your Costco membership number and basic personal information: Social Security number, income, employment status, and address. Citibank will pull your credit report as part of the process.
If you are approved, the card typically arrives within 7 to 10 business days. You can set up it through Citibank's website or app, or by calling the number on the back of the card. Once activated, you can use it when ready at Costco warehouses, Costco.com, and Costco gas stations, as well as anywhere else Visa is accepted.
Your first rewards cycle runs from the date you open the account through the end of that calendar year. Citibank calculates your cash back and mails your Shop Card in January or February of the following year. Each subsequent year, your rewards cycle runs January through December, and your Shop Card arrives in early February.
Costco gas stations and why this card matters there
Costco gas stations accept only the Citi Costco Visa and Costco Cash (a prepaid card sold at Costco warehouses). They do not accept other credit cards, debit cards, or payment apps. If you want to pay with a credit card at a Costco pump, you must use this card.
This restriction is why many Costco members carry the card even if they do not use it elsewhere. The 4% cash back on gas is also a meaningful incentive — if you fill up at Costco once per week, that adds up to roughly $50 to $100 per year in rewards, depending on gas prices and your tank size.
If you do not want to use a credit card at the pump, you can buy a Costco Cash card at the warehouse and use that instead. Costco Cash is not a credit card and does not build credit history, but it works at the pump and at the warehouse.
How this card affects your credit and what to watch for
Opening the Citi Costco Visa will trigger a hard inquiry on your credit report, which may lower your credit score by a few points temporarily. Once the account is open, the card will appear on your credit report and factor into your credit mix — having different types of credit (credit cards, loans, etc.) can help your score over time.
Your credit utilization — the percentage of your available credit you are using — also affects your score. If you carry a high balance on this card relative to its credit limit, it can lower your score. Paying the full balance each month keeps utilization low and avoids interest charges.
Like any credit card, missing a payment or paying late will damage your credit score and trigger late fees and interest. Set up automatic payments or calendar reminders to avoid this.
Frequently Asked Questions
Can I use the Citi Costco Visa at other warehouse clubs or grocery stores?
Yes, you can use the card anywhere Visa is accepted. However, you only earn the higher rewards rates (2% and 4%) at Costco locations and Costco.com. At other stores, you earn 1% cash back, which is lower than many competing cards. If you shop at other warehouse clubs or grocery chains regularly, a different card might earn you more.
What happens to my rewards if I cancel my Costco membership?
Citibank will close your card if your Costco membership lapses. Any unused Shop Card balance from your most recent rewards cycle will be forfeited. If you plan to let your membership expire, use up your Shop Card before the membership ends.
Can I get the card if I do not have a Costco membership yet?
No. You must have an active Costco membership to open the card. If you are interested in the card, you will need to join Costco first. You can then explore for the card through Citibank.
Does the Shop Card expire?
Yes. The Costco Shop Card that holds your annual cash back rewards expires, though the exact expiration date is printed on the card itself. Typically, you have several months to spend the balance. Any unused amount after expiration is lost.
Is there a sign-up bonus for opening this card?
Citibank occasionally offers sign-up bonuses for the Citi Costco Visa, such as extra cash back in the first few months. These offers change periodically. Check Citibank's website or ask at your Costco warehouse for current promotions before you explore.