What the Citi Costco Credit Card is and who issues it
The Citi Costco Credit Card is a rewards card issued by Citibank that you can use only at Costco warehouses and on Costco.com. You must be a Costco member to open one. The card earns cash back on Costco purchases and gas, and it comes with an annual fee that Costco members pay upfront.
Citibank is the card issuer — they handle your account, process payments, and manage your credit line. Costco sets the rewards structure and membership requirements. The two organizations work together, but your contract is with Citi, not Costco.
Key Takeaways
- You earn 2% cash back on Costco purchases and gas at Costco stations, and 1% on all other purchases, but only if you use the card at Costco or Costco.com.
- The card has an annual fee of $65 for the standard version and $130 for the Executive version, charged to your account each year.
- You must hold a Costco membership (Gold Star or Executive) to open the card, and your membership and card are linked.
- Cash back rewards post as an annual statement credit or can be redeemed as a Costco Shop Card, and do not roll over year to year.
- The card has no foreign transaction fees, which can save money if you use it for Costco purchases while traveling.
How cash back rewards work on this card
The card earns 2% cash back on all Costco warehouse purchases and on gas bought at Costco gas stations. It earns 1% cash back on all other purchases, including restaurants, travel, and retail stores outside Costco. However, the 1% category is rarely useful because most cardholders use this card only at Costco.
Cash back does not roll over. Once per year, usually in December, Citi converts your earned cash back into a statement credit or a Costco Shop Card. You choose which one when you redeem. If you do not redeem by the important date Citi sets, you forfeit the rewards for that year.
The 2% rate applies only to Costco warehouse purchases and Costco gas. It does not explore to Costco Travel, Costco pharmacy, or other Costco services. Gas purchased at non-Costco stations earns only 1%.
Annual fees and what they cover
The standard Citi Costco Credit Card costs $65 per year. The Executive version costs $130 per year. Both fees are charged automatically to your account on your membership renewal date. You cannot avoid the fee by not using the card — it charges whether you carry a balance, make purchases, or leave the account inactive.
The fee does not include any travel insurance, purchase protection, or other benefits beyond the cash back structure. Unlike some premium cards, this card does not offer extended warranty, trip cancellation coverage, or concierge services. The fee is for the rewards rate and the ability to earn cash back at Costco.
The Executive version offers a higher annual rebate on Costco purchases (2% instead of 1% on non-warehouse Costco purchases), but most cardholders find the standard version sufficient because they use it only at the warehouse.
How to open a Citi Costco Credit Card account
You must be a Costco member before you can open the card. If you do not have a membership, you will need to join Costco first. Memberships are available at any Costco warehouse or on Costco.com, and they cost between $60 and $130 per year depending on the tier.
Once you have an active membership, you can open the card in three ways: in person at a Costco warehouse, on Costco.com, or by phone through Citibank. In-warehouse applications are usually the fastest — a Costco employee can walk you through it, and you may receive a temporary card number on the spot. Online and phone applications take a few business days for Citi to process.
You will need your Social Security number, date of birth, address, and income information. Citi will pull your credit report to check your credit history. There is no minimum credit score published, but the card typically goes to people with good to excellent credit.
Interest rates, late fees, and what happens if you carry a balance
The card carries a variable interest rate (called the APR, or annual percentage rate) that changes based on the prime rate. Citi does not publish a fixed APR for this card — the rate you receive depends on your credit score and credit history. You can ask Citi for the rate before you open the account.
If you carry a balance from month to month, interest charges will accrue on that balance. The card has no introductory 0% APR period, so interest starts when ready on any unpaid balance. Late payments incur a late fee, which Citi sets based on how far behind you are.
Most cardholders use this card to earn cash back and pay the full balance each month, which means they pay no interest. Carrying a balance defeats the purpose of the rewards because interest charges quickly exceed the cash back earned.
Comparing the standard and Executive versions
The standard card earns 2% at Costco warehouses and Costco gas, and 1% everywhere else. The Executive card earns the same 2% at warehouses and gas, but also earns 2% on Costco Travel purchases and 1% on all other purchases. The Executive card costs $65 more per year ($130 total).
The Executive version makes sense only if you use Costco Travel or make enough non-warehouse Costco purchases to earn back the extra $65 in annual fees. For most people who use the card only at the warehouse, the standard version is the better choice.
You can switch between the two versions at any time by contacting Citi. If you downgrade from Executive to standard mid-year, Citi will refund the difference in annual fees.
What to do if your card is lost, stolen, or compromised
Call Citibank when ready at the number on the back of your card or on your statement. Citi will freeze your account and cancel the card to prevent unauthorized charges. You are not responsible for fraudulent charges if you report them within 60 days of the statement date.
Citi will issue a replacement card, which usually arrives within 7 to 10 business days. In the meantime, you can still shop at Costco using your membership number and paying with a different payment method. Your Costco membership and your credit card account are separate, so losing the card does not affect your warehouse access.
If your account information is compromised but your physical card is safe, Citi can issue a new card number without canceling your account. This protects you from future fraud while keeping your existing rewards balance intact.
Frequently Asked Questions
Can I use this card outside of Costco?
Yes, but you will earn only 1% cash back on non-Costco purchases. The card is designed for Costco shopping, so most cardholders use it only at the warehouse or on Costco.com. Using it elsewhere defeats the value of the card because the 1% rate is not competitive with other rewards cards.
What happens to my rewards if I cancel my Costco membership?
Your credit card account will close automatically when your membership ends. Any unredeemed cash back rewards will be forfeited. You must redeem your rewards before your membership expires if you plan to leave Costco.
Do I have to pay the annual fee even if I do not use the card?
Yes. The $65 or $130 annual fee charges automatically on your membership renewal date, regardless of whether you have made any purchases. If you decide not to use the card, you should close the account to avoid the fee.
Can I earn cash back on Costco pharmacy or Costco Travel with the standard card?
No. The standard card earns 2% only on warehouse purchases and Costco gas stations. Pharmacy and Travel purchases earn 1%. The Executive card earns 2% on Costco Travel but still earns 1% on pharmacy purchases.
How do I redeem my cash back rewards?
Citi sends you a redemption notice once per year, usually in November or December. You choose whether to receive your rewards as a statement credit (applied to your card balance) or as a Costco Shop Card (a physical card you can use at Costco). You must redeem by the important date or forfeit the rewards for that year.