The Citi Costco Visa Card gives you cash back on purchases, no annual fee, and warehouse-specific rewards
The Citi Costco Visa Card is a co-branded card issued by Citi that you can use both inside and outside Costco. The main draw is cash back — you earn it on everyday purchases, with higher rates at Costco and gas stations. There is no annual fee, which means you do not pay to hold the card. You must have a Costco membership to open the card, and the card itself acts as your membership card when you shop at the warehouse.
The card works like a standard rewards card, but the cash back structure is built around Costco shopping. You earn different percentages depending on where you spend: the highest rate is at Costco, a middle rate is at gas stations and pharmacies, and a lower rate is everywhere else. Cash back is paid as an annual statement credit, not as points you redeem.
Key Takeaways
- You earn 4% cash back at Costco warehouses and Costco.com, 3% at gas stations and pharmacies, and 1% on all other purchases.
- There is no annual fee, and the card doubles as your Costco membership card.
- Cash back is issued once a year as a statement credit, not as points you can transfer or use elsewhere.
- You must have an active Costco membership to open the card and keep it active.
- The card can be used anywhere Visa is accepted, not just at Costco.
Cash Back Rates and How They Work
The card earns cash back at four different rates depending on where you use it. At Costco warehouses and on Costco.com, you earn 4% cash back. At gas stations and pharmacies (including Costco pharmacies), you earn 3%. On all other purchases — restaurants, groceries outside Costco, online shopping, travel — you earn 1%.
Cash back is not paid monthly or quarterly. Instead, Citi pools your earnings and issues one annual statement credit, usually in January. This means you do not see small cash back amounts trickling in; you get one lump sum once a year. If you close the card or your Costco membership ends before the year is up, you may forfeit unposted cash back, so check your account before making changes.
There is a cap on cash back at Costco: you earn 4% only on the first $110,000 spent per year at the warehouse, then 1% after that. For most members, this cap does not matter. For very high-volume shoppers, it is worth knowing that the highest rate stops once you hit that threshold in a calendar year.
No Annual Fee and Membership Requirements
Unlike many premium rewards cards, the Citi Costco Visa has no annual fee. You do not pay anything to hold it or use it. This makes it straightforward to keep open even if you use it lightly, since there is no cost to carrying it.
You do need an active Costco membership to open the card. Costco membership itself costs money — Gold Star membership is the standard tier and has an annual fee — so the card is not free in the sense that you have no Costco costs. But the card itself adds no fee on top of membership. If your Costco membership lapses, your card will stop working, and Citi will likely close it.
Using the Card Inside and Outside Costco
The card works as a Visa everywhere Visa is accepted, not just at Costco. You can use it at restaurants, grocery stores, online retailers, gas stations, and any other merchant that takes Visa. The cash back rate changes based on the merchant category, so you earn 1% at most places outside Costco.
At Costco, the card serves as both your payment method and your membership card. You do not need to carry a separate membership card or show a digital membership — the Citi card does both jobs. This is convenient if you shop at Costco regularly, since you have one card instead of two.
Online at Costco.com, you also earn the 4% Costco rate. You must use the card to get that rate; other payment methods do not earn the same cash back.
Comparing This Card to Other Costco Payment Options
Before the Citi Costco Visa existed, Costco members could only use an American Express card at the warehouse. Costco ended that partnership in 2016 and moved to Visa. If you have an older Amex Costco card, it no longer works at Costco, though Amex may have converted it to a different card or allowed you to keep it for non-Costco use.
The Citi card is the only co-branded card Costco currently offers. You can still use any other Visa, Mastercard, or Discover card at Costco, but you will not earn the warehouse-specific cash back rates. A regular rewards card might offer 2% cash back on all purchases, which is less than the 4% at Costco but more than the 1% the Citi card earns outside the warehouse. The choice depends on where you spend most of your money.
If you do not have a Costco membership and do not plan to get one, this card is not an option. You cannot open it without membership, and it is not worth getting membership just for the card.
How to Open the Card
You can open the Citi Costco Visa through Costco's website, in the warehouse, or by phone. Costco members can visit the membership desk at any warehouse and ask about the card, or go to Costco.com and look for the card offer in the membership section. You can also call Citi directly; the number is on Costco's website.
You will need to provide standard credit card information: your name, address, Social Security number, income, and employment status. Citi will run a credit check. There is no fee to open the card, and if you are approved, the card typically arrives within 7 to 10 business days.
Your Costco membership must be active and in good standing. If your membership has expired or been suspended, you will not be able to open the card until you renew it.
Annual Statement Credit and Cash Back Limits
Cash back is paid as a statement credit once per year, usually in January. The credit shows up on your Citi bill and reduces what you owe. You cannot redirect it to a bank account, transfer it to another card, or convert it to points. It is a credit only.
The annual cash back is capped at $2,000 per year, which means the maximum statement credit you can receive is $2,000. This cap is rarely hit by typical members, but it exists. If you spend $110,000 at Costco (hitting the 4% cap) plus significant amounts at gas stations and other merchants, you could approach this limit.
If you close the card before the annual statement credit is issued, you may lose any unposted cash back. Check your account in late December or early January to see if a credit has posted before making any changes to your account.
Frequently Asked Questions
Do I need a Costco membership to use this card outside Costco?
No. Once you have the card, you can use it anywhere Visa is accepted. You need membership to open the card and to shop at Costco, but the card itself works as a regular Visa everywhere else. However, you will only earn the higher cash back rates at Costco and gas stations; everywhere else you earn 1%.
What happens to my cash back if I close the card mid-year?
Cash back is issued once a year, usually in January. If you close the card before that date, you may forfeit any unposted cash back earned during the year. Contact Citi before closing to confirm whether your current-year earnings will be credited.
Can I use this card if my Costco membership expires?
No. The card is tied to your membership. If your membership lapses, the card will stop working at Costco and likely everywhere else. Citi may close the account. You would need to renew your Costco membership to use the card again.
Is the 4% cash back at Costco.com the same as in the warehouse?
Yes. You earn 4% cash back on Costco.com purchases, the same rate as in-warehouse shopping. You must use the Citi Costco Visa to earn this rate; other payment methods do not earn the same cash back on the website.
What is the credit limit, and how is it determined?
Citi sets your credit limit based on your credit score, income, and credit history — the same factors any credit card issuer uses. There is no set limit for the Citi Costco card. If you need a higher limit, you can contact Citi and request an increase.