What the Costco Visa Card offers

The Costco Visa Card is a co-branded card issued by Citi that returns cash back on Costco purchases and other spending. You earn 2% cash back on Costco gas and restaurant purchases, 2% on travel (including flights, hotels, and rental cars), and 1% on all other Costco purchases. Outside Costco, you earn 1% cash back on all other purchases.

The card has no annual fee, which is unusual for a warehouse-focused card. Cash back is deposited as a Costco Shop Card (a store credit certificate) once per year, typically in February. You cannot receive cash back as a statement credit or direct deposit — it must be used at Costco or Costco.com.

The card requires an active Costco membership to open and use it. If your membership lapses, you cannot use the card, though you can still pay off any balance. The card is a Visa Signature card, which means it includes benefits like extended warranty protection, travel accident insurance, and emergency medical and dental coverage abroad.

Key Takeaways

  • You earn 2% cash back on Costco gas and restaurants, 2% on travel purchases, and 1% on all other Costco spending, with no annual fee.
  • Cash back is issued once yearly as a Costco Shop Card, not as a statement credit, so you must spend it at Costco locations or online.
  • You must hold an active Costco membership to open and use the card; a lapsed membership makes the card unusable.
  • The card is best for people who spend regularly at Costco and want to consolidate their warehouse shopping onto one card.

How cash back works and when you receive it

Cash back accrues throughout the year as you use the card at Costco and elsewhere. The total is calculated once annually and issued as a Costco Shop Card, which arrives by mail. The timing varies slightly year to year, but February is typical. You cannot choose to receive the cash back earlier or in a different form.

The Shop Card works like a gift card at any Costco warehouse or on Costco.com. It has no expiration date, so you can use it whenever you choose. If you earn $200 in cash back, you receive a $200 Shop Card. There is no minimum threshold — even small amounts are issued.

Because the cash back is issued only once per year, the timing matters if you plan to use it. If you earn cash back in February but do not shop at Costco again until October, the money sits unused for eight months. Some people time large purchases to maximize the value of their annual cash back.

Who should consider this card versus other options

The Costco Visa Card makes the most sense if you already have a Costco membership and spend at least several hundred dollars per year there. The 2% back on gas is valuable if you fill up at Costco regularly, since Costco gas is often cheaper than competitors and you earn cash back on top of that savings. The 2% on restaurants and travel is competitive with general-purpose cards.

The card is less useful if you shop at Costco infrequently or spend most of your grocery budget elsewhere. A general-purpose cash back card like the Chase Freedom Unlimited or Citi Double Cash offers 1.5% to 2% on all purchases with no restrictions, and you receive cash back as a statement credit monthly rather than once yearly. Those cards also work at any store, not just Costco.

If you have a Costco membership but also shop at other warehouses like Sam's Club, the Costco card locks you into one ecosystem. Sam's Club offers its own Mastercard with similar rewards, so you would need to choose which warehouse to prioritize.

Costco membership requirements and card restrictions

You must have an active Costco Gold Star or Executive membership to open the Costco Visa Card. You cannot hold the card without a membership. If your membership expires and you do not renew it, the card becomes inactive — you can still pay off any balance, but you cannot make new purchases.

The card is not available to non-members, and Costco does not offer a version for people who shop there occasionally. If you are considering the card, factor in the membership cost: Gold Star memberships cost $65 per year, and Executive memberships cost $130 per year. The Executive membership includes additional discounts and cash back on Costco purchases (2% on most items), which stacks with the card's rewards.

The card can only be used at Costco warehouses and Costco.com. You cannot use it at other retailers, though it functions as a regular Visa elsewhere. Some people keep it for Costco spending and use a different card for everyday purchases.

Comparing the Costco card to warehouse and grocery alternatives

The Sam's Club Mastercard offers 5% cash back on gas (up to $6,000 per year, then 1%), 3% on restaurants and travel, and 1% elsewhere. However, Sam's Club membership costs $50 to $110 per year, and the card is only useful if you shop there regularly. If you split your warehouse shopping between Costco and Sam's Club, neither card is ideal.

For grocery-focused rewards, the Kroger Rewards Visa offers 4% back at Kroger and affiliate stores, but only if you are a Kroger member and use their fuel program. The American Express Blue Cash Preferred offers 3% back at US supermarkets (up to $150 per year, then 1%), with a $95 annual fee. The Costco card has no annual fee, which is a significant advantage if you are deciding between warehouse cards.

If you do not have a warehouse membership and shop primarily at traditional grocers, a general-purpose 2% cash back card like the Citi Double Cash or a rotating-category card like the Chase Freedom Flex may return more value. Those cards work everywhere and do not require membership.

How to open the Costco Visa Card

You can open the card online at Citi's website or in person at a Costco warehouse. You will need your Costco membership number and basic personal information. The process takes about 10 minutes online. Citi will perform a hard credit inquiry, which temporarily affects your credit score by a few points.

Approval decisions are usually made when ready online. If approved, the physical card arrives within 7 to 10 business days. You can use the card number for online purchases before the physical card arrives. If you are denied, Citi will explain the reason, and you can reapply after addressing the issue (such as building credit or lowering existing debt).

If you already have a Citi card, opening the Costco card is a separate account. You will have two different card numbers and two separate balances. Some people keep both cards active to use different rewards structures, though managing multiple cards requires more tracking.

Fees, interest rates, and terms to know

The Costco Visa Card has no annual fee, no foreign transaction fees, and no balance transfer fees. The purchase APR varies based on creditworthiness but typically ranges from 16% to 24%. If you carry a balance, interest accrues daily and compounds monthly, so the card is most valuable if you pay the full balance each month.

Late payment fees are up to $39 for the first late payment and up to $40 for subsequent ones. If you miss a payment by 60 days or more, the card issuer may report it to credit bureaus, which damages your credit score. The card also includes fraud protection — you are not liable for unauthorized charges if you report them promptly.

Visa Signature benefits include emergency medical and dental coverage (up to $500 each) when traveling outside the United States, extended warranty protection on may be able to access purchases, and purchase protection against theft or damage. These benefits are secondary to your primary insurance, meaning they pay only after your own insurance is exhausted.

Frequently Asked Questions

Can I use the Costco Visa Card outside of Costco?

Yes, the card functions as a regular Visa everywhere. You earn 1% cash back on non-Costco purchases, which is lower than the 2% you earn on Costco gas and restaurants. Many people use a different card for everyday spending and reserve the Costco card for warehouse purchases to maximize the 2% rewards.

What happens to my card if I cancel my Costco membership?

The card becomes inactive when ready. You can still pay off any balance, but you cannot make new purchases. If you renew your membership later, you can reactivate the card. Canceling the card itself does not affect your membership status.

Can I get my cash back as a statement credit instead of a Shop Card?

No, cash back is issued only as a Costco Shop Card once per year. You cannot redirect it to your bank account or receive it as a statement credit. The Shop Card has no expiration date, so you can use it whenever you shop at Costco.

Does the Costco card cash back stack with Executive membership rewards?

Yes, they are separate. Executive members earn 2% cash back on most Costco purchases through their membership, and the Costco Visa Card earns an additional 1% on those same purchases. The rewards do not combine into a single percentage — you receive both separately.

How does the 2% cash back on gas work if I buy a discounted gas card?

The 2% cash back applies to the Visa card purchase itself, not to the gas you later pump. If you buy a $50 Costco gas card with the Visa, you earn 2% cash back on that $50 purchase. The gas you pump with the card earns nothing additional — the 2% is earned at the point of sale.