What the Costco Citibank card does and who should consider it

The Costco Anywhere Visa Card by Citi is a co-branded credit card that gives you cash back on purchases at Costco and at gas stations, plus a smaller cash back rate on everything else. You need an active Costco membership to open the card, and the card itself has no annual fee — but you do pay for the Costco membership separately, which costs either $65 or $130 per year depending on which tier you choose.

The card is designed for people who already shop at Costco regularly and want to earn cash back on those purchases without paying an annual card fee. If you do not have a Costco membership or do not plan to use it, this card will not work for you. If you do shop there often, the cash back can offset part of your membership cost over the year.

This card is issued by Citibank and managed through Comenity's payment systems, which means your account statements, payment options, and customer service all run through Citi's infrastructure.

Key Takeaways

  • You earn 2% cash back at Costco and on Costco.com, 2% at gas stations (up to $110 per year, then 1%), and 1% on all other purchases.
  • You must have an active Costco membership to open the card, and membership costs $65 or $130 per year depending on the tier.
  • The card itself has no annual fee, but cash back is paid as an annual reward certificate you can only use at Costco.
  • You can carry a balance and pay interest if you need to, but the card's cash back does not offset high interest charges.
  • Costco members who do not have this card can still use any Visa to shop there; this card is optional, not required.

Cash back rates and how the rewards work

The card pays 2% cash back on all Costco and Costco.com purchases. At gas stations, you earn 2% cash back up to $110 per year in rewards (which equals $5,500 in gas purchases), then 1% after that. On everything else — restaurants, groceries outside Costco, online shopping, utilities — you earn 1% cash back.

Cash back is not paid to your card account or your bank account. Instead, Citi sends you an annual reward certificate that you can only spend at Costco or Costco.com. The certificate arrives once a year, usually in December, and it expires after one year. If you do not use it within that year, you lose it. You cannot convert it to cash, transfer it, or use it anywhere except Costco.

Because the reward is a certificate rather than cash, the value depends on whether you actually shop at Costco. If you earn $200 in rewards but only spend $50 at Costco that year, you will lose $150 of the certificate's value when it expires.

Membership cost versus cash back earnings

A Costco Gold Star membership costs $65 per year. An Executive membership costs $130 per year and includes additional perks like extra cash back on certain purchases and discounts on Costco services. To break even on the $65 membership cost using only this card's cash back, you would need to spend about $3,250 per year at Costco (earning $65 in 2% cash back). To break even on the $130 Executive membership, you would need to spend about $6,500 per year at Costco.

Many Costco members spend more than this threshold, so the card's cash back can offset the membership fee. However, you should calculate your own spending before opening the card. If you spend $2,000 per year at Costco, you will earn only $40 in rewards, which does not cover the $65 membership cost — the card does not make financial sense for you unless you value Costco's other benefits (bulk pricing, return policy, pharmacy discounts) enough to pay for membership anyway.

The gas station cash back has a built-in cap: you earn 2% only on the first $5,500 in gas purchases per year ($110 in rewards), then 1% after that. If you spend more than $5,500 on gas annually, the card's value on gas purchases drops significantly in the later months of the year.

Interest rates, fees, and balance transfers

The Costco Citibank card has no annual fee. However, like most credit cards, it charges interest if you carry a balance. The card's purchase APR (the interest rate on regular purchases) varies based on your credit score and creditworthiness; Citi does not publish a single rate. You can expect a range from roughly 16% to 24% APR, but your actual rate depends on your credit profile.

The card does not offer an introductory 0% APR period for new purchases or balance transfers. If you transfer a balance from another card, you will pay interest on that balance when ready at the card's standard APR. There is no balance transfer fee waived for a limited time.

Late payments trigger a late fee, and if you miss a payment by 60 days or more, the card issuer may report the delinquency to credit bureaus, which damages your credit score. The card also has no rewards on cash advances, and cash advances carry a higher APR than purchases.

How to open the card and what you need

To open a Costco Anywhere Visa Card, you must first have an active Costco membership. You cannot open the card without one. Once you have membership, you can explore through Costco's website, in a Costco warehouse, or by phone. Citi will run a hard credit inquiry, which temporarily lowers your credit score by a few points.

You will need to provide your Social Security number, date of birth, address, and income information. Citi will check your credit report to decide whether to approve you and what credit limit to offer. Approval usually takes a few minutes to a few days. If you are approved, the card arrives by mail within 7 to 10 business days.

If you do not have a Costco membership yet, you must join first. Membership requires an in-person visit to a warehouse or an online signup through Costco's website. You will need a valid ID and a payment method (debit card or credit card) to complete membership.

Comparing this card to other Costco payment options

Costco members can shop using any Visa card, not just the Costco Citibank card. If you use a different rewards card — for example, a card that pays 2% cash back on all purchases, or 3% at gas stations — you may earn more rewards than the Costco card offers, depending on your spending pattern.

A flat 2% cash back card (with no annual fee) would earn you the same 2% at Costco but also 2% on gas, groceries, and everything else, rather than just 1%. However, you would lose the 2% gas station bonus and the higher Costco rate. The trade-off depends on where you spend most of your money.

If you do not want a credit card at all, Costco accepts debit cards and cash. You will not earn any rewards, but you will also not pay interest or carry a balance. Some members prefer this approach to avoid debt entirely.

What happens if you cancel your Costco membership

If you cancel your Costco membership, your credit card account does not automatically close, but Citi may close it or restrict it at their discretion. You can still use the card to make purchases on your existing balance, but you cannot use it at Costco anymore because you no longer have membership. The card becomes a standard Visa with 1% cash back on all purchases (since you can no longer earn the 2% Costco rate).

If you rejoin Costco later, you can reactivate the card's Costco benefits, or you can explore for a new card. There is no penalty for letting the card sit unused, but you will not earn rewards on non-Costco purchases at a competitive rate compared to other cards.

Frequently Asked Questions

Can I use this card outside the United States?

Yes, the card is a Visa and works internationally. However, Citi charges a foreign transaction fee of 3% on purchases made outside the U.S., which reduces the value of your rewards. If you travel frequently, a card with no foreign transaction fee may be a better choice.

What if my reward certificate expires before I use it?

The certificate expires one year after it is issued, and Citi does not extend the expiration date or allow you to roll it over to the next year. If you do not spend the full amount at Costco before the expiration date, you lose the unused portion. There is no way to convert it to cash or transfer it to another member.

Do I earn cash back on Costco gas station purchases?

Yes, but the gas station cash back is capped at $110 per year (2% on the first $5,500 in purchases). After you reach $5,500 in gas purchases in a calendar year, the rate drops to 1% for the rest of the year. This cap resets on January 1st each year.

What is the credit limit, and can I request an increase?

Citi sets your initial credit limit based on your credit score, income, and credit history. The limit typically ranges from $500 to $5,000 for new cardholders, but it varies. You can request a credit limit increase after you have had the card for several months and made on-time payments. Citi may approve the increase without a hard inquiry if you have been a good customer.

Can I earn rewards on Costco purchases made by someone else using my card?

Yes, you earn rewards on any purchase made with your card, regardless of who makes the purchase. If you add an authorized user to your account, purchases they make also earn rewards at the same rates. However, you are responsible for all charges on the card.