The Costco Citi Visa is a warehouse-exclusive card with rewards tied to Costco spending

The Costco Citi Visa is a co-branded credit card issued by Citi for Costco members. It earns cash back on Costco purchases and gas, with higher rewards rates inside the warehouse than outside. Unlike some warehouse cards, it works at any merchant that accepts Visa, not just at Costco.

The card has no annual fee, but you must be a Costco member to open one. Costco membership itself costs money — Gold Star membership is currently $65 per year, and Executive membership is $130 per year. The card's rewards structure is fixed: you cannot choose categories or set up bonus categories like you can with some other cash-back cards.

Citi handles the card account, customer service, and fraud protection. Costco handles membership verification and the warehouse experience itself. If you already pay for a Costco membership, the card adds a rewards layer without a separate cost.

Key Takeaways

  • The card earns 4% cash back on Costco gas and 2% on other Costco purchases, but only 1% outside Costco.
  • You must hold a current Costco membership to open the card, and membership fees are separate from the card's $0 annual fee.
  • Cash back is issued as an annual Costco Shop Card that you can use only at Costco, not as a statement credit or direct deposit.
  • The card works everywhere Visa is accepted, but the best rewards are earned at Costco locations.
  • There is no sign-up bonus, unlike many competing cash-back cards from other issuers.

How the rewards structure works

The card earns cash back at different rates depending on where you use it. At Costco warehouses and Costco.com, you earn 2% on most purchases and 4% on gas bought at Costco pumps. At other merchants — restaurants, grocery stores outside Costco, travel — you earn 1% cash back. There are no rotating categories, no bonus categories you set up, and no way to earn more than these fixed rates.

Cash back accumulates throughout the year and is issued once annually as a Costco Shop Card, which is a prepaid card you can use only at Costco warehouses and Costco.com. You cannot receive the cash back as a statement credit, direct deposit, or check. If you do not spend the Shop Card balance before it expires, you lose the remaining amount. The expiration date is printed on the card itself.

The 4% gas rate applies only to Costco gas pumps. Gas purchased at other stations earns 1%. This matters if you use Costco gas regularly — the difference adds up — but it also means the card's value depends partly on whether a Costco gas station is convenient for you.

Comparing the Costco card to other warehouse and grocery cards

The main competitor is the Costco Anywhere Visa Card by American Express, which is also issued for Costco members. The American Express version earns 3% on Costco gas and 2% on Costco purchases, compared to the Citi card's 4% and 2%. However, the American Express card is not accepted everywhere — it works only at Costco, Amazon, and gas stations. The Citi card works at any Visa merchant, giving you more flexibility outside the warehouse.

Outside Costco, the Citi card's 1% cash back is lower than many general-purpose cards. The Chase Freedom Unlimited and Capital One SavorOne both earn 1.5% on all purchases with no annual fee. If you spend heavily outside Costco, one of those cards might deliver more value. The Citi card makes sense if most of your spending happens at Costco or if you want a single card that works everywhere but prioritizes warehouse rewards.

Unlike the American Express Costco card, the Citi version has no sign-up bonus. Some competing cards offer $100 to $200 in cash back after you spend a certain amount in the first few months. If a sign-up bonus is important to your decision, you may want to compare offers before opening an account.

Who benefits most from this card

The card works best for people who already have a Costco membership and spend a meaningful amount there regularly. If you visit Costco weekly or buy gas there consistently, the 2% and 4% rates will accumulate faster than the 1% you earn elsewhere. The card is less valuable if you visit Costco occasionally or if you do most of your grocery shopping at other stores.

The annual Shop Card payout also matters. If you earn $100 or more in cash back per year, the Shop Card is useful because you will spend it. If you earn less than $50 per year, the rewards may not feel substantial. To estimate your earnings, multiply your annual Costco spending by the relevant rate: most Costco purchases at 2%, gas at 4%, and everything else at 1%.

The card is also practical if you want a Visa that works everywhere but prefer to concentrate rewards at one retailer. Some people carry multiple cards for different categories; this card simplifies that if Costco is your primary shopping destination.

Annual fees and other costs

The Costco Citi Visa itself has no annual fee. However, you cannot use the card without a Costco membership, and membership costs $65 per year for Gold Star or $130 per year for Executive. The Executive membership includes additional benefits like 2% cash back on Costco purchases (on top of the card's rewards), but that is a separate decision from the card itself.

There are no foreign transaction fees on the card, which is useful if you travel internationally and want to use it abroad. However, Costco warehouses are not available outside North America, so the card's best rewards rates do not explore in other countries.

How to open the account and what to expect

You can open the card online at Costco.com or in person at a warehouse. You will need your Costco membership number and basic personal information. Citi will run a hard credit inquiry, which temporarily lowers your credit score by a few points. The card typically arrives within 7 to 10 business days.

Once you have the card, you can use it when ready at Costco and anywhere else Visa is accepted. Your cash back balance appears in your Citi online account and updates monthly. Near the end of the year, Citi will issue your annual Shop Card, which you can pick up at the warehouse or have mailed to you.

If you close your Costco membership, you can no longer use the card, even if your credit account remains open. Citi will typically close the card automatically when your membership lapses.

Frequently Asked Questions

Can I use the card if I do not have a Costco membership?

No. You must be a current Costco member to open the card and to use it. If your membership expires, Citi will close the card. You can renew your membership at any time to reactivate the card, but there is a gap where you cannot use it.

What happens to my cash back if I do not spend the Shop Card?

The Shop Card expires, and any remaining balance is forfeited. The expiration date is printed on the card. You should plan to use the balance before that date or spend it on Costco purchases you were already planning to make.

Does the card work at Costco.com?

Yes. You earn 2% cash back on Costco.com purchases, the same rate as in-warehouse purchases. You do not earn the 4% gas rate online because Costco does not sell gas through the website.

Is there a sign-up bonus?

No. The Costco Citi Visa does not offer a sign-up bonus. You begin earning cash back on your first purchase, but there is no additional bonus for opening the account or spending a certain amount in the first months.

What credit score do I need to open the card?

Citi does not publish a minimum credit score, but the card typically goes to people with good to excellent credit (670 or higher). If you have fair credit, you may still be approved, but approval is not certain. You can check your credit score for free through your bank or a service like Credit Karma before you explore.