Costco's Visa card is the only credit card Costco accepts, and it returns cash back on most purchases

Costco does not issue its own credit card. Instead, the warehouse partners with Visa and Citi to offer the Costco Anywhere Visa Card by Citi. This is the only credit card Costco accepts at the warehouse, online, or at Costco Gas stations. If you try to use any other Visa card, Mastercard, or American Express at Costco, it will be declined at checkout.

The card returns cash back on your purchases — 2% at Costco and Costco Gas, 1% everywhere else. You do not earn cash back on Costco purchases made with a regular debit card or cash, so the Visa card is how you get rewards on your warehouse spending. The cash back posts to your account once a year, usually in December, and you can use it as a statement credit or request a check.

There is no annual fee. You need an active Costco membership to open the card, and your membership status is checked each time you renew the card or log into your account online.

Key Takeaways

  • The Costco Anywhere Visa Card is issued by Citi and is the only credit card accepted at Costco warehouses, Costco.com, or Costco Gas stations.
  • You earn 2% cash back on Costco and Costco Gas purchases, and 1% cash back on all other purchases, with no annual fee.
  • Cash back is paid once per year, usually in December, and can be used as a statement credit or received as a check.
  • You must have an active Costco membership to open the card, and Citi will verify your membership status during the process process.

How the cash back works and when you receive it

Cash back accrues throughout the year on every purchase you make with the card. At Costco and Costco Gas, you earn 2% back. At all other merchants — restaurants, gas stations outside Costco, online retailers, pharmacies — you earn 1% back. There is no cap on how much cash back you can earn.

The cash back is not applied to your bill each month. Instead, it accumulates in your account and is paid out once per year, typically in December. When your cash back is ready, Citi will send you a notice. You can then choose to have it applied as a credit to your card balance, or you can request a check mailed to you. Some cardholders use the annual payout as a way to offset their Costco membership renewal fee, which is due around the same time.

If you close the card before the annual payout, you forfeit any cash back that has not yet been paid. This is why it matters to time a card closure carefully if you are considering it.

Who should open this card and who might not benefit

The Costco Visa makes the most sense if you shop at Costco regularly and spend enough there to earn meaningful cash back. A household that spends $300 per month at Costco ($3,600 per year) would earn $72 in annual cash back at the 2% rate. If you spend less than $100 per month at Costco, the cash back may not feel worth the effort of managing another card.

The card is also useful if you fill up at Costco Gas frequently. The 2% rate there is competitive with other gas rewards cards, and you avoid the hassle of switching cards at the pump.

The card is less valuable if you rarely visit Costco or if you already have a different rewards card that earns more than 1% on general purchases. The 1% cash back on non-Costco spending is modest compared to cards that offer 1.5% or 2% on all purchases. However, the lack of an annual fee means there is no cost to keeping the card open even if you use it infrequently.

How to open the card and what you need

You open the Costco Visa through Citi's website or by visiting a Costco warehouse. Online, go to Citi.com and search for "Costco Anywhere Visa Card." You will be asked for your Costco membership number, which appears on your membership card. Citi will verify that your membership is active before you can proceed.

During the process, you will provide your name, address, date of birth, Social Security number, and income information. Citi will pull your credit report to make a decision. There is no hard pull preview — Citi will conduct a hard inquiry, which may lower your credit score by a few points temporarily. The decision is usually made when ready or within a few minutes.

If you are approved, your card will arrive in the mail within 7 to 10 business days. You can use it at Costco when ready by providing your membership number at checkout, even before the physical card arrives, if you set up online access to your account. At a warehouse, you can explore in person at the membership desk, though the process is the same and you will still wait for the card to arrive by mail.

What happens if you close your Costco membership

If you cancel your Costco membership, Citi will close your Visa card automatically. You will not be able to use it, and any pending cash back will be forfeited. If you rejoin Costco later, you can reopen the card, but you will go through the process process again.

If your membership lapses because you did not renew it by the expiration date, Citi may close the card during their next verification check, which happens when you try to use the card or when your card is set to renew. To avoid this, renew your Costco membership before it expires if you want to keep the card active.

How the card compares to other warehouse and grocery rewards

Costco does not accept other credit cards, so there is no competing card to use at Costco itself. However, if you shop at other warehouses like Sam's Club or BJ's Wholesale, those stores have their own rewards programs and credit cards with different cash back rates.

For grocery shopping outside Costco, many credit cards offer higher cash back rates than the Costco card's 1% on general purchases. Cards that specialize in groceries often earn 3% to 5% at supermarkets. If you split your shopping between Costco and a traditional grocery store, you might earn more overall by using a grocery-focused card at the supermarket and the Costco card only at Costco.

The main advantage of the Costco card is simplicity: you have one card for Costco purchases, and you do not have to think about which card to use. There is no annual fee, so you are not paying for the privilege of earning 2% back.

Frequently Asked Questions

Can I use the Costco Visa card outside the United States?

Yes, the card works internationally and is accepted wherever Visa is accepted. However, Citi charges a foreign transaction fee of 3% on purchases made outside the U.S., which reduces the value of the cash back you earn. Check your cardholder agreement for the exact fee, as it may change.

What if I do not have a Costco membership yet?

You must have an active Costco membership to open the card. If you do not have one, you will need to purchase a membership first. Costco offers different membership tiers at different price points. Once your membership is active, you can then open the Visa card.

Does the card have any other benefits besides cash back?

The card includes travel protections such as trip cancellation insurance and emergency medical and dental coverage when you are traveling more than 100 miles from home. It also includes purchase protection and extended warranty coverage on may be able to access items. These benefits are secondary to any coverage you may have through your homeowner's or travel insurance, so check your existing policies first.

What if my cash back does not post in December?

Cash back typically posts in December, but the exact date varies by year. If you do not see it by the end of December, log into your Citi account online or call the customer service number on the back of your card. Delays can happen, and Citi can tell you the status of your payout.

Can I transfer my cash back to another account or use it for something other than a statement credit?

Cash back can be applied as a statement credit or received as a check mailed to your address on file. You cannot transfer it to a bank account, redeem it for merchandise, or convert it to points in another program. The check option is useful if you prefer not to reduce your card balance.