The Citi Costco Visa card offers cash back on purchases at Costco and gas stations, plus an annual warehouse membership credit
The Citi Costco Visa card is a co-branded credit card issued by Citibank for Costco members. It returns 2% cash back on Costco purchases and gas station purchases, 1% on all other purchases, and includes an annual $60 Costco Gold Star membership credit. You must be a Costco member to open the card, and the card itself has no annual fee.
The card is designed to work alongside your Costco membership rather than replace it. The membership credit means the card effectively pays for a Gold Star membership each year if you use it. The cash back rates are fixed — they do not change based on spending category rotations or promotional periods.
Key Takeaways
- The card returns 2% cash back at Costco warehouses and gas stations, and 1% on everything else, with no annual fee.
- You receive a $60 annual Costco Gold Star membership credit, which covers the cost of that membership tier.
- You must already be a Costco member to open the card, and the card is only issued to U.S. residents.
- Cash back is paid as an annual Costco Cash certificate that arrives in January, not as a monthly or quarterly statement credit.
- The card does not earn bonus categories or promotional rates — the cash back percentages stay the same year-round.
How the cash back and membership credit work together
The $60 annual membership credit is applied to your Costco account automatically each year around your membership renewal date. You do not need to claim it or enter a code. If your Gold Star membership costs $65, the credit covers most of it; if you have an Executive membership at $130, the credit reduces what you owe but does not cover the full amount.
Cash back earned during the year is paid as a Costco Cash certificate, which is a physical or digital voucher you can spend only at Costco warehouses or on Costco.com. The certificate arrives in January and is valid for one year. Unlike credit card rewards that post to your account monthly, Costco Cash is an annual lump sum. If you spend $5,000 at Costco during the year, you earn $100 in Costco Cash — but you receive it all at once in January, not spread across twelve months.
What purchases earn 2% and what earn 1%
The 2% cash back rate applies to purchases made at Costco warehouses (in-store and online at Costco.com) and at gas stations. Gas station purchases include fuel pumps at standalone stations, Costco gas stations, and other branded fuel retailers. The 2% rate does not explore to purchases at Costco Travel or other Costco services.
All other purchases earn 1% cash back. This includes restaurants, groceries outside Costco, online shopping, utilities, and any merchant that is not a Costco location or gas station. There are no bonus categories that rotate, and no way to earn higher rates on specific purchase types.
Who can open the card and what you need
You must hold an active Costco membership to open the Citi Costco Visa card. Costco does not issue the card to non-members, and you cannot use the card to pay your membership fee if you do not already have one. You also must be a U.S. resident and at least 18 years old.
To open the card, you can explore online at Costco.com, in a warehouse at the membership desk, or by phone through Citibank. The process asks for your Social Security number, income, and employment information. Citibank will pull your credit report as part of the approval process. There is no minimum credit score published, but the card typically goes to applicants with good to excellent credit.
Comparing this card to other Costco payment options
Before the Citi Costco Visa card, Costco members used the Costco Anywhere Visa card by Citi, which offered similar cash back rates but a different membership credit structure. The Citi Costco Visa is the current card and has replaced the older version for new applications. If you hold the older card, you can keep it, but new members are directed to the Citi Costco Visa.
If you do not want a credit card, you can still shop at Costco with a debit card or cash. You will not earn cash back, but you will have no credit risk or monthly payment obligation. Some members use a different cash back credit card for non-Costco purchases and the Citi Costco card only for warehouse and gas spending, depending on which card offers better rates for their habits.
How the card affects your credit and what to watch for
Opening the card results in a hard inquiry on your credit report, which may lower your score by a few points temporarily. Once the account is open, your credit utilization ratio — the amount you owe divided by your credit limit — affects your score. Paying the full balance each month keeps utilization low and supports your credit health.
The card has no foreign transaction fees, so you can use it internationally without a surcharge. However, Costco warehouses are located only in the United States, Canada, Mexico, Japan, South Korea, Taiwan, the United Kingdom, and Iceland, so the card's primary benefit (2% at Costco) is limited to those countries. The 1% cash back on other purchases applies worldwide.
Annual fees, interest rates, and other costs
The Citi Costco Visa card has no annual fee. You pay interest only if you carry a balance from month to month. The card's purchase APR (annual percentage rate) varies based on your creditworthiness and current market rates; Citibank does not publish a fixed rate. You can find the range during the process process or call Citibank to ask before you explore.
If you miss a payment, late fees explore. The card also charges a cash advance fee if you withdraw cash using the card at an ATM. These costs are avoidable by paying on time and not using the card for cash advances.
Frequently Asked Questions
Do I lose the card benefits if my Costco membership expires?
Your card remains active even if your membership lapses, but you cannot use it at Costco warehouses until you renew. The $60 annual membership credit will not post if you do not have an active membership. If you let your membership lapse and then renew later, the credit applies to the renewal.
Can I use the card outside the United States?
Yes, the card works internationally and has no foreign transaction fees. However, you earn 2% cash back only at Costco locations, which exist in a limited number of countries. In most places outside the U.S., you earn 1% on all purchases. Costco warehouses operate in Canada, Mexico, Japan, South Korea, Taiwan, the United Kingdom, and Iceland.
What happens to my Costco Cash if I don't spend it before it expires?
Costco Cash certificates expire one year from the issue date and cannot be extended. If you do not spend the full amount before expiration, the unused portion is forfeited. You can check your Costco Cash balance online or at the warehouse to track how much you have left.
Can I transfer my Costco Cash to another member's account?
No, Costco Cash is tied to your membership account and cannot be transferred, gifted, or sold. Only you can spend it at your Costco membership number. If you have a household card linked to your account, that cardholder can spend your Costco Cash, but the certificate itself stays with your account.
Does the card offer purchase protection or extended warranties?
The card includes standard Visa protections such as fraud liability protection and purchase dispute resolution. Specific benefits like extended warranty or purchase protection vary and are detailed in the card's terms and conditions, which you can review on Citibank's website or request by phone before you open the account.