The Costco Anywhere Visa Card is the primary card Costco endorses, but your best choice depends on how much you spend and whether you shop elsewhere
Costco partners with Visa to offer the Costco Anywhere Visa Card by Citi, which earns cash back on Costco purchases and gas. If you have a Costco membership and use a credit card regularly, this card is worth comparing against cards you may already own. The card is not required to shop at Costco — you can pay with any Visa, Mastercard, American Express, or Discover — but it offers rewards specifically tied to Costco spending.
The choice between the Costco card and another card depends on three things: how much you spend at Costco each year, whether you buy gas there, and what rewards you earn on non-Costco purchases. A card that earns 2% cash back everywhere may serve you better than the Costco card if you spend less than $1,200 at Costco annually. A card that earns 5% on groceries may be stronger if you do most of your grocery shopping outside Costco.
Key Takeaways
- The Costco Anywhere Visa Card earns 4% cash back on gas at Costco and 2% on Costco purchases, but carries an annual fee of $65 for the standard version.
- You do not need the Costco card to shop at Costco; you can use any Visa, Mastercard, American Express, or Discover card instead.
- A flat-rate 2% cash back card may save you money if you spend less than $3,250 at Costco per year, because the annual fee erases the reward advantage.
- The Costco card earns only 1% cash back on non-Costco purchases, so it works best for people who do most of their spending at Costco.
- Costco also offers an American Express card with different rewards rates; you can hold both if you want to use Amex at Costco and Visa elsewhere.
How the Costco Anywhere Visa Card rewards work
The Costco Anywhere Visa Card earns cash back at different rates depending on where you use it. At Costco warehouses and Costco.com, you earn 2% cash back. At Costco gas stations, you earn 4% cash back. On all other purchases, you earn 1% cash back. The card has an annual fee of $65 for the standard version and $130 for the Executive version, which also earns an extra 1% on Costco purchases (bringing that rate to 3%).
Cash back is paid once per year as a Costco Cash certificate that you can use in the warehouse or online. You cannot transfer it to a bank account or use it outside Costco. If you do not spend the certificate within a set time, it expires, so you need to plan to use your rewards at Costco.
When the Costco card makes financial sense
The Costco card saves you money only if the cash back you earn exceeds the annual fee. At the standard 2% rate on Costco purchases, you need to spend at least $3,250 per year at Costco to break even on the $65 fee. That works out to about $270 per month. If you spend less than that, a flat-rate 2% cash back card from another bank will cost you nothing and earn the same reward rate on Costco purchases.
The card becomes more valuable if you buy gas at Costco. The 4% rate on gas is higher than most other cards offer. If you fill up there regularly, the gas rewards alone can cover part or all of the annual fee. For example, if you spend $1,000 per year on gas at Costco, you earn $40 in cash back — more than half the annual fee.
The Executive version ($130 annual fee) makes sense only if you spend enough to earn at least $130 in extra rewards from the additional 1% on Costco purchases. That requires spending about $13,000 per year at Costco, or roughly $1,100 per month.
Comparing the Costco Visa to other cards you might own
If you already have a 2% cash back card with no annual fee, compare your total annual Costco spending to the Costco card's annual fee. A card like the Citi Double Cash or Capital One Quicksilver earns 2% on all purchases and costs nothing per year. You would need to spend more than $3,250 at Costco annually for the Costco card to earn you more cash back than these cards would.
If you have a card that earns 5% cash back on groceries, the math changes. Costco sells groceries, but the Costco card earns only 2% on Costco purchases. A 5% grocery card would earn you more cash back per dollar spent at Costco, even after accounting for the Costco card's annual fee. In this case, using your existing card at Costco may be the better choice.
Some cards earn bonus categories on gas, warehouse clubs, or both. The American Express Blue Cash Preferred earns 3% on gas and transit, and 1% on other purchases — less than the Costco card's 4% on Costco gas, but it has no annual fee. The Ink Business Preferred from Chase earns 3% on internet, cable, and phone, plus 1% on other purchases. Comparing these cards to the Costco card depends on your spending pattern outside Costco.
The Costco American Express card as an alternative
Costco also offers a co-branded American Express card through Citi. This card earns 3% cash back at Costco warehouses and Costco.com, 3% on gas (at any station), 3% on restaurants, and 1% on all other purchases. It has an annual fee of $120. You can use American Express at Costco, whereas the Visa card is for Visa transactions only.
The American Express card may be better if you eat out frequently or buy gas at non-Costco stations. The 3% on restaurants and gas outside Costco adds up faster than the Visa card's 1% on non-Costco purchases. However, the higher annual fee ($120 versus $65) means you need to spend more to break even. You can hold both cards if you want — some people use Amex for restaurants and gas, and the Visa card for Costco purchases.
What happens if you do not have a Costco membership
You do not need a Costco membership to open the Costco credit card. However, you cannot use the card to shop at Costco without a membership. The card is useful only if you plan to get a membership and shop there regularly. If you are considering the card as a way to avoid paying for membership, it will not work — Costco requires a paid membership to enter the warehouse.
If you do not shop at Costco, a general-purpose cash back card will serve you better. The Costco card's rewards are tied to Costco, so earning 1% on non-Costco purchases is not competitive with cards that earn 2% everywhere.
How to decide: a straightforward comparison
Start by estimating your annual Costco spending. Include groceries, household items, gas, and anything else you buy at Costco. If the total is less than $3,250 per year, a flat-rate 2% card costs you less and earns the same reward rate. If it is between $3,250 and $13,000, the standard Costco Visa card ($65 fee) likely saves you money. If it is above $13,000, the Executive version ($130 fee) may be worth it.
Next, check whether you have a card that earns more than 2% on groceries or 4% on gas. If you do, compare the total cash back you would earn with that card to the cash back plus annual fee of the Costco card. The card that puts more money in your pocket is the right choice.
Frequently Asked Questions
Can I use the Costco Visa card outside Costco?
Yes. The card earns 1% cash back on all non-Costco purchases. However, this rate is lower than most other credit cards offer, so it is not ideal for everyday spending outside Costco. Use it primarily at Costco and gas stations, and use another card for other purchases.
Do I have to renew my Costco membership to keep the credit card?
No. Your credit card and membership are separate. You can keep the card even if your membership lapses, but you cannot use the card to shop at Costco without an active membership. The annual fee will still be charged.
What if I close my Costco membership?
You can keep the credit card open, but it becomes much less useful because you cannot shop at Costco. The 1% cash back on non-Costco purchases does not justify the annual fee. Most people close the card when they close their membership to stop paying the fee.
Can I earn cash back on Costco gift cards?
Yes. Purchasing a Costco gift card with the Costco credit card earns the same 2% cash back as any other Costco purchase. However, using the gift card itself to buy items does not earn additional cash back.
How long does it take to receive my cash back?
Cash back is issued once per year as a Costco Cash certificate, usually in December. You receive it by mail or can pick it up at the warehouse. The certificate is valid for a set period, typically until the end of the following year, so plan to use it before it expires.