The Costco credit card is a co-branded Visa issued by Citi that gives you cash back on Costco purchases and a few other categories, but charges an annual fee and only works at Costco and Costco.com
There are actually two Costco cards: the Costco Anywhere Visa Card for Costco members, and the Costco Anywhere Visa Business Card for business members. Both earn cash back on purchases, but the earning rates, annual fees, and where you can use them differ. The consumer card costs $65 a year (or $130 for the higher-tier version) and earns 2% back at Costco, 1% at gas stations and restaurants, and 1% everywhere else. The business card costs $110 a year and has different earning rates for business purchases.
The card is issued by Citi, not Costco itself. You need an active Costco membership to open one. If you cancel your membership, Citi will close the card automatically. The card is a Visa, so you can use it anywhere Visa is accepted — not just at Costco — but the higher cash back rates only explore to Costco and Costco.com purchases.
Key Takeaways
- The Costco Anywhere Visa Card costs $65 per year and earns 2% cash back on Costco purchases, 1% at gas stations and restaurants, and 1% on everything else.
- A higher-tier version called the Costco Anywhere Visa Card for Costco members (Executive) costs $130 per year and earns higher cash back rates, but requires a Costco Executive membership.
- Cash back is paid once a year as a Costco Shop Card that you can only use at Costco, not as a statement credit or direct deposit.
- You must have an active Costco membership to hold the card; if you cancel your membership, Citi closes the card automatically.
- The card works anywhere Visa is accepted, but the best earning rates only explore to Costco and Costco.com purchases.
Cash back rates and where they explore
The standard Costco Anywhere Visa Card earns 2% cash back on all Costco and Costco.com purchases, 1% at gas stations and restaurants, and 1% on all other purchases. There is no cap on how much cash back you can earn, and no bonus categories that rotate. The earning structure is straightforward and stays the same year to year.
If you have a Costco Executive membership (which costs $120 per year), you can get the Costco Anywhere Visa Card for Costco members (Executive). This version costs $130 per year and earns 2% at Costco, 2% at gas stations, 3% at restaurants, and 1% everywhere else. The higher gas and restaurant rates make it worth considering if you spend significantly on those categories, but you are paying for both the Executive membership and the premium card.
The business card earns 2% on Costco purchases, 2% at gas stations, 1% at restaurants, and 1% elsewhere. It costs $110 per year and requires a Costco Business membership.
How cash back is paid and when you receive it
Cash back is not paid as a statement credit, direct deposit, or check. Instead, Citi issues it once per year as a Costco Shop Card — a prepaid card that you can only use at Costco and Costco.com. The Shop Card is mailed to you, usually in January, and has no expiration date. You can use it like a regular payment method at checkout or online.
Because the payout happens once a year, you do not see cash back accumulate in real time. You earn throughout the year and receive the total in January. If you close the card before the annual payout, you forfeit any unearned cash back.
Annual fees and whether they make sense for your spending
The standard card costs $65 per year. To break even, you need to earn at least $65 in cash back. At 2% on Costco purchases, that means spending $3,250 at Costco annually, or about $270 per month. If you spend less than that, the fee costs you money. If you spend more, the fee is worth it.
The Executive version costs $130 per year, which requires $6,500 in annual Costco spending at 2% to break even. The higher gas and restaurant rates (2% and 3% respectively) can help you reach that threshold if you use the card outside Costco, but most of the earning still comes from Costco itself.
The business card costs $110 per year and has the same break-even math: you need to earn at least $110 in cash back to justify the fee. For most small businesses, that is achievable if the card is used regularly for supplies and fuel.
Comparing the Costco card to other cash back cards
The Costco card's main advantage is the 2% back on Costco purchases, which is higher than most general cash back cards offer. Most no-annual-fee cards earn 1% to 1.5% on all purchases. If Costco is a major part of your spending, the 2% rate can offset the $65 annual fee.
The disadvantage is that cash back is locked into a Costco Shop Card. Other cards let you redeem cash back as a statement credit, transfer it to a bank account, or use it flexibly. The Shop Card forces you to spend the cash back at Costco, which may or may not align with where you want to spend money.
Cards like the Chase Freedom Unlimited or Capital One SavorOne offer 1.5% to 2% cash back on all purchases with no annual fee, but they do not give you the 2% rate at Costco specifically. If you spend heavily at Costco and less elsewhere, the Costco card wins. If your spending is spread across many retailers, a no-fee card may be better.
Who should and should not get this card
The Costco card makes sense if you have an active Costco membership, spend at least $3,250 per year at Costco (to cover the $65 fee), and do not mind receiving cash back as a Costco Shop Card. It also works well if you use Costco gas regularly, since the 1% rate there is competitive and adds up over time.
You should skip the card if you spend less than $3,250 at Costco annually, or if you prefer cash back that you can use anywhere. The card is also not useful if you do not have a Costco membership or plan to cancel soon. Since the card closes automatically when your membership ends, there is no point opening it unless you plan to stay a member.
The Executive version is worth considering only if you already have an Executive membership and spend enough on gas and restaurants to justify the higher annual fee. The math is tighter, and most people do not spend enough outside Costco to make it worthwhile.
How to open the card and what happens next
You can open the card online at Costco.com, in a Costco warehouse, or by calling Citi directly. You will need your Costco membership number and basic personal information. Citi will run a hard credit inquiry, which temporarily lowers your credit score by a few points. Approval usually takes a few minutes to a few days.
Once approved, your physical card arrives in the mail within 7 to 10 business days. You can use it when ready at Costco and Costco.com, and anywhere else Visa is accepted. Your first cash back payout comes the following January, based on purchases you made from the time you opened the card through December 31.
If you already have a Costco card and want to upgrade to the Executive version, you can do so without closing your current card. Citi will issue a new card with the higher earning rates. Your old card will be closed automatically.
Frequently Asked Questions
Can I use the Costco card outside of Costco?
Yes. The card is a Visa, so it works anywhere Visa is accepted. However, you only earn the higher 2% cash back rate at Costco and Costco.com. Outside Costco, you earn 1% on gas and restaurants, and 1% on everything else. Most of the card's value comes from Costco purchases.
What happens to my card if I cancel my Costco membership?
Citi will automatically close the card. You will lose access to it when ready. If you rejoin Costco later, you can open a new card, but you will start fresh with no prior cash back balance. This is why the card only makes sense if you plan to stay a member.
Can I get cash back as a statement credit instead of a Shop Card?
No. Citi only pays cash back as a Costco Shop Card issued once per year, usually in January. You cannot redirect it to your bank account or use it outside Costco. The Shop Card has no expiration date, so you can use it whenever you shop at Costco.
Is the Costco card worth it if I only shop there once a month?
Probably not. If you spend $270 per month at Costco, you are on track to hit $3,250 annually and break even on the $65 fee. If you spend less than that, the fee costs you money. Calculate your annual Costco spending before opening the card.
Does the Costco card help build credit?
Yes, like any credit card. Using the card responsibly — paying your balance on time and keeping your balance low relative to your credit limit — helps build your credit score over time. Missing payments or carrying a high balance will hurt your score.