What the Citi Costco Executive card offers and who it's built for
The Citi Costco Executive credit card is a cash-back card issued by Citi in partnership with Costco. It's designed for people who shop at Costco regularly and want cash back on those purchases, plus cash back on gas, restaurants, and travel. The card comes with an annual membership fee, which means the math only works if you spend enough to earn back more than you pay.
This card is not the same as a Costco membership. You need a Costco membership to use the card, and you need to renew the card annually. The card itself is only available to Costco members, so if you don't have a membership, you can't get the card.
The card is most useful for households that spend $3,000 or more per year at Costco, or that regularly buy gas, groceries, or restaurant meals. If you shop at Costco once or twice a year, the annual fee will cost you more than the cash back you earn.
Key Takeaways
- The card earns 2% cash back at Costco and on Costco.com, 3% on restaurants and travel, and 1% on all other purchases.
- The annual fee is $120, which you pay once per year whether you use the card or not.
- You must have an active Costco membership to hold the card; if your membership lapses, the card is closed.
- Cash back is paid as an annual Costco Shop Card (a gift card), not as a statement credit or deposit to your bank account.
- The card has no foreign transaction fees, which can save money if you travel outside the United States.
Cash back rates and how the rewards are paid
The card earns 2% cash back on all Costco purchases and Costco.com orders, 3% cash back on restaurants and travel (including hotels, rental cars, and airfare), and 1% cash back on everything else. These rates are fixed and do not change based on spending level or membership tier.
Cash back is not paid to your credit card statement or your bank account. Instead, it is paid as a Costco Shop Card, which is a gift card you can use only at Costco or Costco.com. The Shop Card is issued once per year, usually in December, and shows the total cash back you earned from January through December. If you don't spend the full balance before the card expires, the remaining balance is lost.
The 2% rate at Costco is higher than most general cash-back cards offer, but only if you actually shop there. If you use the card for non-Costco purchases, the 1% rate is lower than cards that offer 1.5% or 2% on everything.
The annual fee and whether it pays for itself
The annual fee is $120, charged once per year. This is a real cost that comes out of your pocket whether you use the card or not. To break even, you need to earn at least $120 in cash back per year.
At a 2% rate, you need to spend $6,000 per year at Costco to earn $120 in cash back. At a 3% rate on restaurants and travel, you need to spend $4,000 per year on those categories. Most Costco members who shop regularly will hit $6,000 per year without much effort — a family of four buying groceries weekly will reach that in about four months. But if you shop at Costco fewer than 10 times per year, the card will likely cost you money.
The card also comes with a Costco membership fee, which is separate. A Gold Star membership (the standard membership) costs $65 per year, and an Executive membership costs $130 per year. The credit card fee is in addition to whichever membership you choose.
How the card compares to the standard Costco Visa
Citi also issues a standard Costco Visa with no annual fee. That card earns 1% cash back at Costco and Costco.com, 1% on restaurants and travel, and 1% on everything else. It pays cash back the same way — as a Costco Shop Card once per year.
The difference is that the Executive card earns 2% at Costco instead of 1%, and 3% on restaurants and travel instead of 1%. If you spend $6,000 per year at Costco, the Executive card earns you $120 more in cash back than the standard card, which exactly covers the $120 annual fee. Anything you spend above $6,000 at Costco is pure gain.
The choice between the two comes down to your Costco spending. If you spend less than $6,000 per year at Costco, the standard card is better. If you spend more, the Executive card pays for itself and then some.
What happens if your Costco membership lapses
If you let your Costco membership expire, your credit card is automatically closed. Citi will not keep the card open even if you want to keep using it for the 3% restaurants and travel rate. This is a hard rule — the card exists only for Costco members.
If you cancel your membership intentionally, you can reopen it later and reapply for the card. But you will have to pay the membership fee again, and you will have to go through the credit card process process again. There is no way to pause the card while keeping your membership.
The annual fee is charged on the anniversary of when you opened the card, not on your membership renewal date. So if you open the card in March and your membership renews in January, you will pay the card fee in March and the membership fee in January — two separate charges in different months.
Interest rates, fees, and credit requirements
The card carries a variable APR for purchases and balance transfers. The exact rate depends on your credit score and credit history — Citi does not publish a single rate. In general, you should expect a rate between 16% and 24% if you carry a balance, though some applicants with excellent credit may receive lower rates.
There is no annual fee waiver for the first year, no sign-up bonus, and no introductory APR period. You pay the full $120 fee in the first year.
Late payment fees are up to $40 for the first late payment and up to $40 for subsequent late payments within six months. There is no foreign transaction fee, which is useful if you travel outside the United States and use the card for hotels, rental cars, or restaurants.
To be approved, you typically need a credit score of 670 or higher, though Citi does not publish a minimum. The process is done online and takes a few minutes.
When the card makes financial sense
The Executive card is worth the annual fee if you meet at least one of these conditions: you spend more than $6,000 per year at Costco, you spend more than $4,000 per year on restaurants and travel combined, or you spend a mix of both that adds up to enough cash back to cover the fee.
The card is not worth it if you shop at Costco only a few times per year, or if you rarely eat at restaurants or travel. In those cases, the standard Costco Visa with no annual fee will save you money.
The card is also not useful if you need to carry a balance month to month. The interest you pay will quickly erase any cash back you earn. If you can't pay the full statement balance each month, a card with a 0% introductory APR period would be a better choice.
Frequently Asked Questions
Can I use the card outside of Costco?
Yes. The card earns 3% cash back at restaurants and travel, and 1% on all other purchases. You can use it anywhere Visa is accepted. However, the highest rewards rate (2%) is only at Costco, so the card is most valuable for Costco shopping.
What if I don't spend all the cash back before the Shop Card expires?
Costco Shop Cards expire one year from the issue date. Any balance you don't spend is forfeited. You cannot convert it to cash or transfer it to another card. Plan to spend the balance before the expiration date, or use it to buy items you were planning to purchase anyway.
Does the card come with purchase protection or travel insurance?
The card includes extended warranty protection on may be able to access purchases and trip cancellation insurance. The specific coverage details are in the card benefits guide, which Citi sends with your card. Coverage limits and exclusions explore, so read the guide before relying on these benefits.
Can I get the card if I don't have a Costco membership yet?
No. You must have an active Costco membership to open the card. If you don't have a membership, you need to join Costco first, then explore for the card. You cannot open the card and use it to join Costco.
Is there a sign-up bonus?
No. The card does not offer a sign-up bonus or introductory cash back rate. You earn the standard rates from your first purchase. The only benefit in the first year is the cash back itself.