What the Costco Citi Visa Card is and who issues it
The Costco Citi Visa is a credit card issued by Citibank that you can use only at Costco warehouses and on Costco.com. You do not need to be a Costco member to open the card, but you do need a Costco membership to use it — the card and membership are separate things you pay for separately.
Citibank is the bank behind the card. Costco sets the rewards structure and decides which purchases earn cash back. When you use the card at Costco, you earn cash back on your purchases. When you use it elsewhere, you do not earn rewards, and the card will be declined outside Costco locations.
The card comes with no annual fee. You pay only for your Costco membership, which costs either $65 or $130 per year depending on which tier you choose.
Key Takeaways
- The Costco Citi Visa earns 4% cash back on gas (up to $110 per year, then 1%), 2% on Costco purchases, and 1% on all other Costco.com purchases.
- You can use the card only at Costco warehouses and Costco.com, nowhere else, and you must have a Costco membership to use it.
- Cash back is paid as an annual Costco Cash certificate that arrives by mail, not as a statement credit or deposit to your bank account.
- The card has no annual fee, but you must pay for a Costco membership ($65 or $130 per year) to use the card at all.
- Costco periodically raises the cash back rates, so the percentages listed here may change — check Costco.com for current rates before you open the card.
How cash back works and when you receive it
Cash back on the Costco Citi Visa is not paid to your credit card statement or your bank account. Instead, Costco mails you a Costco Cash certificate once per year, usually in January or February. The certificate shows the total cash back you earned during the previous calendar year and can be spent only at Costco warehouses or Costco.com.
The cash back rates are: 4% on gas purchased at Costco stations (capped at $110 per year, then 1% after that), 2% on other Costco warehouse purchases, and 1% on Costco.com purchases. These rates change at Costco's discretion, so the percentages you earn may be different from what is listed here.
Because cash back is mailed as a certificate rather than credited to your account, you cannot use it when ready after a purchase. You have to wait until the certificate arrives to spend the cash back. The certificate is valid for one year from the date it is issued.
When you might want this card versus other options
The Costco Citi Visa makes sense if you shop at Costco regularly and want to earn rewards on those purchases without paying an annual card fee. The 2% cash back on warehouse purchases is competitive with other grocery and warehouse cards, and the 4% on gas is higher than most cards offer.
The card is less useful if you shop at Costco only occasionally or if you want a card you can use everywhere. Because the card works only at Costco, you cannot use it for everyday purchases at other stores, restaurants, or online retailers. If you want a single card that earns rewards across multiple types of spending, a general-purpose rewards card may be a better fit.
The card also requires a Costco membership, which costs money upfront. If you do not already have a membership, you should factor that cost into whether the card's rewards will pay for itself. A membership costs $65 (Gold Star) or $130 (Executive) per year, and the Executive membership includes additional benefits beyond warehouse access.
How to open the card and what you need
You can open the Costco Citi Visa online at Costco.com or in person at a Costco warehouse. You do not need to be a member yet, but you will need to become one to use the card once it arrives. If you are not already a member, you can join at the same time you open the card, or you can join separately.
To open the card, you will need to provide your Social Security number, date of birth, and current address. Citibank will check your credit report as part of the approval process. The card typically arrives within 7 to 10 business days after approval.
Once the card arrives, you can use it when ready at any Costco warehouse or on Costco.com if you have an active membership. If you do not have a membership yet, you will need to join before the card will work.
Annual fees, interest rates, and other costs
The Costco Citi Visa has no annual fee. You pay only for your Costco membership, which is a separate cost from the card itself.
If you carry a balance on the card, you will pay interest. The interest rate (called the APR, or annual percentage rate) varies based on your credit history and current market rates. Citibank will tell you the APR you may have access to for before you finish opening the card. Carrying a balance means you pay interest on purchases, so paying your full statement balance each month avoids this cost.
If you miss a payment, you may be charged a late fee. If you go over your credit limit, you may be charged an over-limit fee. Both of these are avoidable by paying on time and staying within your limit.
What happens if you cancel your membership or close the card
If you close your Costco membership, your card will stop working at Costco warehouses. You can still use the card on Costco.com if you have an active online account, but most people close the card when they close their membership because there is nowhere else to use it.
If you close the card but keep your membership, you can still shop at Costco — you will just need to use a different payment method. You can pay with cash, debit, or another credit card at the warehouse.
If you have an outstanding Costco Cash certificate when you close your membership or card, you can still use it to shop at Costco. The certificate remains valid for one year from the date it was issued, regardless of whether you still have the card or membership.
How the card compares to other warehouse and grocery cards
The Costco Citi Visa is designed specifically for Costco shoppers and cannot be used anywhere else. Other cards, like the American Express Blue Cash Preferred or the Capital One Savor card, earn cash back at grocery stores and gas stations but work everywhere and have higher annual fees ($95 to $150).
If you shop at multiple warehouse clubs or grocery chains, a general-purpose card may give you more flexibility. If you shop almost exclusively at Costco, the Costco card's lack of an annual fee and its warehouse-specific rewards rates make it a lower-cost option.
Some people carry both the Costco card and another rewards card — using the Costco card at Costco and the other card for purchases elsewhere. This approach lets you earn rewards on all your spending, but it requires managing two cards and two statements.
Frequently Asked Questions
Can I use the Costco Citi Visa at other stores or online?
No. The card works only at Costco warehouses and Costco.com. It will be declined if you try to use it anywhere else. If you need a card for everyday purchases, you will need a different card.
Do I have to be a Costco member to open the card?
No, you can open the card without a membership. However, you must have an active membership to use the card once it arrives. You can join Costco at the same time you open the card, or you can join later.
When do I get my cash back, and how do I use it?
Costco mails you a Costco Cash certificate once per year, usually in January or February. The certificate shows your total cash back earned that year and can be spent only at Costco warehouses or Costco.com. It is valid for one year from the date it is issued.
What is the interest rate on this card?
The interest rate (APR) varies based on your credit history and current market rates. Citibank will show you the rate you may have access to for before you finish opening the card. You can avoid paying interest by paying your full statement balance each month.
Is there an annual fee for the card?
No annual fee for the card itself. You pay only for your Costco membership ($65 or $130 per year), which is separate from the card.