What the Costco Anywhere Visa Business Card is and who should consider it

The Costco Anywhere Visa Business Card by Citi is a rewards card issued by Citibank that you can use at Costco warehouses, Costco.com, and anywhere Visa is accepted. Unlike the consumer Costco card (which Costco itself issues), this card comes from a bank and offers cash back rewards on most purchases. You do not need a Costco membership to carry the card, though you will need one to shop at the warehouse.

This card makes sense if you run a small business, use Costco regularly for supplies or inventory, and want cash back on those purchases. It also works for sole proprietors and freelancers who buy business items at Costco but do not want to be locked into the warehouse-only Costco membership card.

The card charges an annual fee, so you should plan to use it enough to earn back that cost in rewards. If you shop at Costco only once or twice a year, the fee will likely outweigh the benefits.

Key Takeaways

  • The card earns 2% cash back at Costco warehouses and Costco.com, and 1% cash back everywhere else Visa is accepted.
  • An annual fee of $120 applies, with a $120 annual Costco Shop Card reward for renewing cardholders in some cases — check the current offer when you review the card.
  • You can use this card at any Visa merchant, not just Costco, which sets it apart from Costco's own membership card.
  • The card requires a business tax ID or Social Security number and a business checking account to open.
  • Cash back rewards post to your statement as a statement credit or can be redeemed as a Costco Shop Card.

Rewards structure and how cash back works

The card earns 2% cash back on purchases at Costco warehouses and Costco.com. You earn 1% cash back on all other purchases made anywhere Visa is accepted — gas stations, restaurants, office supply stores, and so on. There is no cap on how much cash back you can earn in a year.

Cash back appears on your monthly statement as a statement credit. You can also choose to receive your rewards as a Costco Shop Card, which is a prepaid card you can spend at Costco. The Shop Card option can be useful if you want to set aside rewards specifically for warehouse purchases.

Rewards do not expire as long as your account remains open and in good standing. If you close the card, any unredeemed cash back is forfeited, so plan your redemption before you cancel.

Annual fee and whether it pays for itself

The card charges a $120 annual fee, charged to your account each year on the anniversary of when you open it. Citi sometimes offers a $120 Costco Shop Card credit to cardholders who renew, which effectively makes the renewal free if you use the Shop Card at Costco. Check the current offer when you are reviewing the card, because renewal incentives change.

To break even on the annual fee, you need to earn $120 in cash back rewards per year. At the 2% rate at Costco, that means spending $6,000 per year at the warehouse. At the 1% rate on other purchases, you would need to spend $12,000 per year outside Costco. Most small business owners who use Costco for regular supplies hit this threshold easily, but sole proprietors with light spending should do the math before opening the card.

If you currently hold the consumer Costco card (issued by Costco itself) and are thinking about switching, remember that the consumer card has no annual fee but also offers no cash back rewards. The business card makes sense only if you spend enough to earn back the $120 fee.

How to open the account and what documents you need

You can open the Costco Anywhere Visa Business Card online through Citi's website or by calling Citi's business card phone line. The process takes about 10 minutes and asks for basic business information.

You will need to provide a business tax ID (EIN) or your Social Security number if you are a sole proprietor. You will also need a business checking account number and routing number. Have your business address, phone number, and estimated annual revenue on hand when you start the process.

Citi will pull a hard inquiry on your business credit report (and sometimes your personal credit report for sole proprietors). Approval usually happens within a few minutes to a few hours. If Citi needs more information, they will call the phone number you provided on the process.

Once approved, your physical card ships within 7 to 10 business days. You can request a rush card for an additional fee if you need it sooner. You can also add employee cards to your account at no extra cost, which is useful if multiple people in your business need to make purchases.

Where you can and cannot use the card

You can use the Costco Anywhere Visa Business Card at any Costco warehouse location in the United States, Canada, and Mexico. You can also use it on Costco.com for online purchases. Outside of Costco, you can use it anywhere Visa is accepted — grocery stores, gas stations, hotels, airlines, and online retailers.

The card does not work at Costco Gas Stations or Costco pharmacies, which are separate from the main warehouse. You also cannot use it at Sam's Club, other warehouse clubs, or non-Costco merchants that do not accept Visa.

If you need a card that works only at Costco and want no annual fee, Costco's own membership card (the Costco Anywhere Visa Card for consumers) is a better choice. That card has no fee but offers no rewards outside the warehouse.

Interest rates, fees, and what happens if you carry a balance

The card charges a variable purchase APR that depends on your creditworthiness and current market rates. Citi does not publish a fixed range, so you will see your actual rate in the card agreement after approval. Most business cardholders see rates between 14% and 24%, though rates vary.

The card also charges a cash advance APR, which is typically higher than the purchase rate. Cash advances (withdrawals from an ATM using your card) also incur a fee of either $5 or 3% of the amount withdrawn, whichever is greater. Avoid cash advances unless you have no other option.

There is no grace period for cash advances — interest starts accruing when ready. For regular purchases, you get a grace period of at least 25 days from the statement closing date, so you can avoid interest by paying your full balance by the due date each month.

Late fees start at $35 for the first late payment and can go up to $39 for subsequent ones. Returned payment fees (if a check or ACH payment bounces) are also $39. The best approach is to set up automatic payments for at least the minimum due, so you never miss a important date.

How the card compares to other business cards for warehouse shopping

The main alternative is Costco's own membership card, the Costco Anywhere Visa Card (the consumer version). That card has no annual fee and earns 2% back at Costco and 1% everywhere else — the same rewards structure. The trade-off is that Costco's card is issued by Costco itself, not a bank, and you cannot use it outside Costco. If you shop only at Costco and want to avoid an annual fee, Costco's card is the better choice.

If you shop at multiple warehouse clubs or want rewards at non-warehouse retailers, the Citi business card gives you more flexibility. You can use it at Sam's Club, BJ's Wholesale, or any other merchant, whereas Costco's card works only at Costco.

Other business cards like the American Express Blue Business Plus or the Chase Ink Business Unlimited offer different rewards structures (often higher cash back on specific categories like internet or phone bills). Compare the categories where you spend most of your business money before deciding.

Frequently Asked Questions

Do I need a Costco membership to get this card?

No, you do not need a Costco membership to open or carry the card. However, you will need a membership to shop at Costco warehouses. You can shop at Costco.com without a membership, but warehouse shopping requires one. If you do not have a membership, the card's 2% Costco reward becomes less valuable.

Can I add employee cards to this account?

Yes, you can add employee cards at no extra cost. Each employee card is linked to your main account and draws from the same credit line. You can set spending limits on individual employee cards through Citi's online portal. Employee cards are useful for businesses where multiple people make purchases on behalf of the company.

What happens to my rewards if I close the card?

Any unredeemed cash back is forfeited when you close the account. Redeem your rewards as a statement credit or Costco Shop Card before you cancel. If you have a large balance of rewards, contact Citi to redeem them before closing the account.

Can I use this card for personal purchases, or only business purchases?

The card is issued as a business card, but Citi does not restrict what you buy with it. You can use it for personal purchases, business purchases, or a mix of both. Keep in mind that business cards typically do not offer the same consumer protections as personal cards, so review the cardholder agreement for details on purchase protection and dispute resolution.

How long does it take to receive the physical card after approval?

The card ships within 7 to 10 business days of approval. You can request expedited shipping for an additional fee if you need the card sooner. In the meantime, you may be able to use a temporary card number for online purchases at Costco.com or other Visa merchants, depending on Citi's current policies.