Costco membership and the Costco credit card are two separate things, and you need membership to shop there but not the card
Costco requires a paid membership to enter the warehouse and make purchases. The membership itself costs money — the amount depends on which tier you choose. The Costco credit card is optional: it is a Visa card issued by Citi that gives you cash back on Costco purchases and other spending, but you can shop at Costco with any payment method if you have a membership.
Many people confuse the two because Costco heavily promotes the card to members. The card does offer rewards that add up, but it is not required to shop. This guide walks through what each one costs, what you get, and how they work together.
Key Takeaways
- Costco membership costs either $65 or $130 per year depending on whether you choose Gold Star or Executive, and you must have one to enter the warehouse.
- The Costco Visa card is issued by Citi and gives you 2% cash back on Costco purchases, but you can pay with any card or cash if you have a membership.
- The Costco card has no annual fee and the cash back is paid as an annual reward certificate you can use at Costco or redeem for cash.
- You can hold a Costco membership without the card, or use the card without upgrading to Executive membership.
Costco membership tiers and what they cost
Costco offers two main membership levels: Gold Star and Executive. Gold Star is the basic membership and costs $65 per year. Executive membership costs $130 per year and includes additional benefits like higher cash back on the Costco credit card and discounts on Costco services.
Both memberships give you the same warehouse access and the ability to shop at Costco. The difference is in the perks attached to Executive membership — mainly a higher cash back rate on the Costco card (see below) and discounts on things like travel, insurance, and home services. If you shop at Costco regularly and use the card, the Executive membership can pay for itself through the higher rewards rate.
Memberships renew automatically each year on the anniversary of your sign-up date. You can cancel anytime before renewal and receive a prorated refund for the unused portion of your membership.
How the Costco Visa card works and what it rewards
The Costco Visa card is a cash back card with no annual fee. It is issued by Citi and works like any other credit card — you explore, receive a card in the mail, and use it to make purchases. The cash back structure depends on your membership level.
With a Gold Star membership, the Costco card gives you 2% cash back on Costco purchases and 1% cash back on all other purchases. With an Executive membership, you get 2% cash back on Costco purchases and 1% on everything else, but you also earn an additional 2% cash back on Costco gas and food court purchases (for a total of 4% on those categories). The cash back is paid once per year as a reward certificate that you can spend at Costco or redeem for cash.
You do not need to carry the physical card to use it — Costco allows you to load it to your membership account and pay with your phone at checkout. You also do not need the card to shop at Costco; you can use any payment method as long as you have a valid membership.
explore for the Costco credit card
You can explore for the Costco Visa card in the warehouse, online at Costco.com, or through Citi's website. In-warehouse applications are often the fastest — a Costco employee can walk you through it and you may get a temporary card number to use right away. Online applications typically take a few business days for approval.
To explore, you will need your Social Security number, a current address, and income information. Citi will run a hard credit inquiry, which temporarily lowers your credit score by a few points. There is no annual fee for the card, so you can close it anytime without penalty.
If you are denied, you can ask Citi why and reapply after addressing the issue — usually a low credit score or insufficient credit history. Having an active Costco membership is not a requirement to explore for the card, though most cardholders are members.
When the Costco card makes financial sense
The Costco card is worth getting if you shop at Costco regularly and spend enough to earn back more in rewards than you would with a different card. The math depends on your spending and which membership you have.
If you have a Gold Star membership and spend $3,000 per year at Costco, you earn $60 in cash back (2% of $3,000). If you have an Executive membership and spend the same amount, you earn $60 in cash back on the purchases themselves, plus an additional 2% on gas and food court spending — which could add another $20 to $40 depending on how much you buy in those categories. The Executive membership costs $65 more per year than Gold Star, so you need to earn at least that much extra in rewards to break even.
If you rarely shop at Costco or prefer to use a different rewards card, you can keep your membership and pay with whatever card you want. The Costco card is a tool, not a requirement.
Costco membership without the credit card
You can have a Costco membership and never get the credit card. Many members pay with their own credit cards, debit cards, or cash. You lose the cash back rewards, but you keep full warehouse access and the ability to buy anything Costco sells.
This makes sense if you already have a rewards card that gives you better cash back on your spending, or if you prefer to keep your credit cards to a minimum. The membership itself is what gets you in the door; the card is just one way to pay.
Costco credit card without Executive membership
You can hold the Costco Visa card with a Gold Star membership. You do not need to upgrade to Executive to use the card — you just get the lower cash back rate (2% on Costco purchases instead of the higher rate Executive members receive). This is useful if you want the card's rewards but do not shop at Costco enough to justify the extra $65 per year for Executive membership.
The card itself has no annual fee regardless of membership level, so there is no extra cost to holding it with a basic membership.
Frequently Asked Questions
Can I use the Costco card at other stores?
Yes. The Costco Visa card is a regular Visa card and works anywhere Visa is accepted. You earn 1% cash back on non-Costco purchases with any membership level. The higher rewards rates (2% to 4%) only explore to Costco purchases and Costco gas.
What happens to my cash back if I don't spend it?
Your cash back reward certificate expires 12 months after it is issued. You can use it to buy anything at Costco, or you can redeem it for cash at the membership desk. If you do not use it within the year, you lose it.
Do I need a Costco membership to explore for the card?
No. You can explore for the Costco Visa card without a membership. However, most cardholders are members because the card's main benefit is the cash back on Costco purchases. Without a membership, you cannot shop at Costco, so the card is less useful.
Can I have more than one Costco card?
You can have an additional cardholder on your account — for example, a spouse or adult family member. Each cardholder gets their own card linked to the same account and earns rewards that are combined into one annual certificate.
What if I cancel my membership but keep the card?
You can keep the Costco Visa card after you cancel your membership. The card still works everywhere Visa is accepted and you still earn 1% cash back on non-Costco purchases. You just lose access to the warehouse and the higher cash back rates on Costco spending.