The Costco card makes sense if you spend at least $50 to $100 monthly at Costco itself, but the math depends on which card you choose and what you buy outside the warehouse
Costco offers two credit cards: the Costco Anywhere Visa Card (issued by Citi) and the Costco Visa Card (issued by Synchrony). The Anywhere card works everywhere; the regular card works only at Costco and Costco.com. Both charge an annual fee — $65 for the Anywhere card, $59 for the regular card — and both earn cash back on purchases.
Whether the card pays for itself depends on your Costco spending and where else you shop. If you spend $3,000 or more per year at Costco, the cash back alone will cover the annual fee. If you spend less, you need to earn cash back outside Costco to break even. The Anywhere card offers this option; the regular card does not.
Key Takeaways
- The Costco Anywhere Visa earns 4% cash back at gas stations (up to $7,500 per year, then 1%), 3% at restaurants and travel, and 2% at Costco — enough to offset its $65 annual fee if you spend roughly $3,000 yearly at Costco or $1,625 at gas stations.
- The regular Costco Visa earns 2% cash back at Costco and 1% everywhere else, so it only pays for itself if you spend at least $3,000 per year at the warehouse.
- Both cards require an active Costco membership to open and use; the card does not replace membership.
- Cash back posts as an annual reward certificate you redeem at Costco, not as a statement credit, so you must shop there to use your earnings.
- If you do not have a Costco membership or spend less than $2,000 yearly at the warehouse, a general cash back card from another issuer will likely save you money.
Costco Anywhere Visa: The card that works outside the warehouse
The Costco Anywhere Visa earns 4% cash back on gas (capped at $7,500 per year in may be able to access purchases, then 1% after), 3% on restaurants and travel, 2% at Costco and Costco.com, and 1% on everything else. The $65 annual fee is charged once per year.
The gas category is where this card can justify itself without heavy Costco spending. If you fill up at a gas station 20 times per year and spend $50 each time, you earn $40 in cash back annually from gas alone. Add $100 per month in Costco purchases ($1,200 per year at 2% = $24) and you have $64 in cash back — nearly enough to cover the fee. Restaurant and travel spending pushes you over the edge.
The catch: cash back arrives as a Costco Cash certificate once per year, usually in December. You cannot use it outside Costco, and you cannot convert it to a statement credit. If you do not shop at Costco regularly, the reward sits unused.
Regular Costco Visa: For members who shop only at the warehouse
The regular Costco Visa earns 2% cash back at Costco and Costco.com, and 1% on all other purchases. The annual fee is $59. This card has no bonus categories outside the warehouse, so earning enough cash back to cover the fee requires spending almost entirely at Costco.
At $3,000 per year in Costco spending, you earn $60 in cash back — just enough to break even. Below that threshold, the card costs you money. The 1% cash back on outside purchases is too low to meaningfully offset the annual fee unless you spend thousands per year on non-Costco purchases, which defeats the purpose of a warehouse-focused card.
This card makes sense only if you are a heavy Costco shopper ($250+ per month) and do not care about earning rewards outside the warehouse.
How the cash back reward actually works
Both Costco cards issue cash back as an annual Costco Cash certificate, not as a credit to your bill or a deposit to a bank account. The certificate arrives in the mail or through your Costco account, usually in December, and expires 12 months after issue. You redeem it like a gift card at the register or online.
This structure matters. If you do not shop at Costco between December and the following November, your reward expires unused. If you shop at Costco only occasionally, you may forget the certificate exists. Unlike cash back from other cards, which you can use anywhere, Costco Cash is locked to Costco purchases.
Membership is separate from the credit card
Both cards require an active Costco membership to open and use. The membership fee ($65 for Gold Star, $130 for Executive) is separate from the credit card fee. You cannot use the card to shop at Costco without a current membership, and the card does not waive or reduce the membership cost.
If you are already a Costco member, the card fee is an additional cost on top of membership. If you are not a member, you need to pay both fees to use the card at all. Some people factor the card's cash back into their membership decision, but the two are distinct expenses.
When a different card makes more sense
If you spend less than $2,000 per year at Costco, a general cash back card from another issuer will likely save you money. Cards like the Chase Freedom Unlimited (no annual fee, 1.5% cash back everywhere) or the American Express Blue Cash Everyday (no annual fee, 1% cash back everywhere, 3% at supermarkets) have no annual fee and let you use your rewards anywhere.
If you shop at Costco but also value flexibility, the Costco Anywhere Visa makes sense only if you spend enough on gas, restaurants, or travel to justify the $65 fee. If your spending is concentrated at Costco and nowhere else, the regular Costco Visa is cheaper than the Anywhere card, but only if you spend at least $3,000 per year at the warehouse.
If you do not have a Costco membership and do not plan to get one, neither card is relevant. Costco does not issue a card for non-members.
Comparing the two Costco cards side by side
| Feature | Costco Anywhere Visa | Regular Costco Visa |
|---|---|---|
| Annual fee | $65 | $59 |
| Works outside Costco | Yes | No |
| Cash back at Costco | 2% | 2% |
| Cash back on gas | 4% (capped at $7,500/year) | 1% |
| Cash back at restaurants | 3% | 1% |
| Cash back on travel | 3% | 1% |
| Cash back everywhere else | 1% | 1% |
| Reward format | Costco Cash certificate (annual) | Costco Cash certificate (annual) |
| Requires Costco membership | Yes | Yes |
Frequently Asked Questions
Do I need a Costco membership to get the credit card?
Yes. Both Costco cards require an active membership to open and use. The membership fee is separate from the card fee, so you pay both. You cannot use the card to shop at Costco without a current membership.
Can I use my Costco Cash reward outside of Costco?
No. The cash back from both cards arrives as a Costco Cash certificate that works only at Costco and Costco.com. You cannot convert it to cash, transfer it to another account, or use it elsewhere. The certificate expires 12 months after issue.
What happens if I don't spend enough to cover the annual fee?
You lose money. If the Costco Anywhere Visa costs $65 and you earn only $40 in cash back, you have a net loss of $25 for the year. The same applies to the regular card. Calculate your expected annual cash back before opening either card.
Can I use the Costco Anywhere Visa at other warehouse clubs?
Yes, the Anywhere card works at any merchant that accepts Visa, including Sam's Club and other retailers. However, you earn only 1% cash back outside Costco's bonus categories (gas, restaurants, travel), so it is not optimized for other warehouses.
Is the Costco card better than a regular cash back card?
Only if you spend enough at Costco or in the bonus categories to exceed the annual fee. If you spend less than $2,000 per year at Costco and do not use gas or restaurants heavily, a no-fee card like the Chase Freedom Unlimited will save you money.