The Costco Credit Card Returns Cash on Warehouse Purchases and Gas

The Costco Anywhere Visa Card by Citi gives you cash back on purchases you are already making at Costco and at gas stations. The card returns 2% on Costco purchases and gas, 1% on all other purchases, and pays that cash back once a year. You do not need the card to shop at Costco — a membership card gets you in — but the credit card stacks rewards on top of what you already spend there.

The card costs nothing to carry if you pay your balance in full each month. If you carry a balance, the interest rate will erase the cash back quickly, so the real benefit only exists if you plan to pay off the card monthly. The cash back is paid as an annual reward certificate that you use like a gift card at Costco, not as a statement credit or direct deposit.

Key Takeaways

  • The card returns 2% cash back on Costco and gas purchases, 1% on everything else, paid once yearly as a Costco reward certificate.
  • There is no annual fee, but the benefit disappears if you carry a balance because interest charges exceed the cash back.
  • You must have a Costco membership to use the card, and the membership fee is separate from the card cost.
  • The cash back certificate expires one year after issue, so you must spend it at Costco or lose it.
  • The card is a Visa, so it works anywhere Visa is accepted, but the rewards only explore to Costco and gas purchases.

How the Cash Back Works in Practice

Spend $100 at Costco and you earn $2 in cash back. Spend $100 on gas and you earn $2. Spend $100 anywhere else and you earn $1. That cash back accumulates throughout the year and Costco mails you a reward certificate in January for the prior year's total. If you earned $120 in rewards, you receive a $120 certificate valid at any Costco warehouse or on Costco.com.

The certificate expires 12 months after the issue date printed on it. If you do not use it within that year, the balance is gone. This is different from cash back that rolls over or compounds — you must actively spend the certificate or forfeit it. For someone who shops at Costco regularly, this is usually not a problem. For someone who shops there once or twice a year, the certificate can expire unused.

The 2% rate applies to Costco purchases and gas only. Warehouse club purchases at other chains, online shopping outside Costco.com, and restaurant or travel spending earn only 1%. If you were hoping for higher rewards on travel or dining, this card does not offer that.

When the Card Saves You Real Money

The card makes sense if you already have a Costco membership and spend at least $100 a month there. At that spending level, you earn roughly $24 a year in cash back — enough to justify carrying the card. If you also buy gas regularly, the 2% rate on fuel adds to that total. Someone who spends $200 monthly at Costco and $100 monthly on gas earns about $72 a year, which is meaningful but modest.

The card saves the most money for households that use Costco as their primary grocery store and fill up at Costco gas stations. A family spending $400 monthly at Costco and $150 on gas earns roughly $132 a year in rewards. Over five years, that is $660 — real money, but not transformative. The benefit shrinks if you shop at Costco infrequently or never buy gas there.

The card also offers travel protections like trip cancellation insurance and emergency medical coverage abroad, plus roadside information. These are secondary benefits — they exist but are not the reason most people carry the card. The primary value is the cash back on routine spending.

The Membership and Interest Rate Trap

The Costco membership is a separate cost from the card. A Gold Star membership (standard warehouse access) costs $65 a year. An Executive membership costs $130 a year and includes a 2% reward on Costco purchases regardless of payment method — but that reward is capped at $1,000 per year. If you have an Executive membership, the credit card's 2% cash back stacks on top of the membership reward, so you earn 4% total on Costco purchases, capped at $2,000 per year in combined rewards.

The card's interest rate is variable and tied to the prime rate. As of now, the APR ranges from around 17% to 24% depending on your credit score. If you carry a $1,000 balance for one month, you pay roughly $14 to $20 in interest — erasing months of cash back rewards. The card only makes financial sense if you pay the full balance each month, every month. If you are tempted to carry a balance, the card becomes a liability.

How This Card Compares to Other Warehouse Options

Sam's Club offers a Mastercard with 5% cash back on gas for the first three months, then 2% ongoing, plus 2% on Sam's Club purchases. The Sam's Club card has an annual fee of $0 to $45 depending on the tier. If you are a Sam's Club member, their card may offer more cash back on gas, but the comparison depends on where you shop and how much you spend.

If you do not have a warehouse membership, a general-purpose cash back card like the Citi Double Cash (2% on all purchases) or Chase Freedom Unlimited (1.5% on all purchases) may return more cash overall, though neither offers the 2% rate on gas that the Costco card does. The choice depends on whether the Costco membership itself makes sense for your household — the credit card is a secondary decision.

What Happens to Your Rewards Certificate

The reward certificate arrives by mail in January and is valid when ready. You can use it at any Costco warehouse or on Costco.com. You do not need to set up it or register it — just present it at checkout like a gift card. If you lose the certificate, Costco can reissue it if you have your membership number and can verify the amount.

The certificate does not earn cash back if you use it to make purchases. It is a one-time payout, not a recurring benefit. Once you spend the certificate, you start earning toward the next year's certificate. If you have a household with multiple cardholders on the same account, all rewards go into one annual certificate under the primary cardholder's name.

Frequently Asked Questions

Do I need a Costco membership to get the credit card?

Yes. You must have an active Costco membership to open the card and to use the rewards certificate. The membership and the card are separate purchases — the card itself has no annual fee, but the membership costs $65 or $130 per year depending on the tier.

What if I carry a balance on the card?

The interest rate will exceed your cash back rewards. At a typical APR of 20% and a $1,000 balance, you pay roughly $200 per year in interest — far more than the cash back you earn. The card only makes sense if you pay the full balance each month.

Can I use the card outside Costco?

Yes, it is a Visa and works anywhere Visa is accepted. However, you only earn 2% cash back at Costco and gas stations. All other purchases earn 1%, so the card is not competitive for dining, travel, or online shopping outside Costco.com.

What happens if my reward certificate expires?

The balance is forfeited. Certificates expire 12 months after the issue date. If you do not spend it within that year, you lose the cash back you earned. Costco does not extend expiration dates or roll balances forward.

Does the card work with an Executive membership?

Yes, and the rewards stack. An Executive member earns 2% cash back from the membership plus 2% from the credit card, totaling 4% on Costco purchases. The combined reward is capped at $2,000 per year, so the maximum benefit is $2,000 in annual cash back.