What the Costco Citibank Visa Card is and who should consider it

The Costco Citibank Visa Card is a rewards card issued by Citibank that you can use both inside Costco warehouses and anywhere else Visa is accepted. The card gives you cash back on purchases — the rate depends on where you shop. Inside Costco, you earn 2% cash back on gas, 2% on restaurants and travel, and 1% on everything else. Outside Costco, you earn 1% cash back on all purchases. There is an annual fee of $65, which Costco members pay when they renew their membership or add the card to an existing membership.

This card makes sense if you shop at Costco regularly, spend money on gas or dining out, and want a single card that rewards both warehouse and everyday purchases. It does not make sense if you rarely visit Costco, already have a rewards card with a higher cash-back rate, or want to avoid annual fees. The card is only open to Costco members, so membership is a separate cost to consider.

Key Takeaways

  • The Costco Citibank Visa Card charges a $65 annual fee and returns cash back at rates that vary by purchase type — 2% at Costco gas stations and restaurants, 1% everywhere else at Costco, and 1% on all non-Costco purchases.
  • You must be a Costco member to hold this card, and the annual fee is collected when you renew your membership or add the card to an existing account.
  • Cash back is deposited into your Costco Cash account once a year, usually in December, and can only be spent at Costco or on the Costco website.
  • The card has no foreign transaction fees, which can save money if you travel internationally, but it offers no introductory 0% APR period or sign-up bonus.
  • You can compare this card to other rewards cards by calculating your annual cash back minus the $65 fee to see whether you come out ahead.

How cash back works and when you receive it

Cash back on the Costco Citibank Visa Card is not when ready. Instead, Citibank tracks your purchases throughout the year and deposits your total cash back into your Costco Cash account once annually, typically in December. You then spend that Costco Cash like a gift card at any Costco warehouse or on Costco.com. If you do not spend it by the end of the following year, it expires.

This is different from cards that deposit cash back to your bank account or credit card statement each month. The once-yearly payout means you cannot use your cash back when ready, and you must plan to spend it at Costco. If you prefer cash back that you can use anywhere, this card is not the right fit.

Annual fee and whether it pays for itself

The $65 annual fee is the largest cost of this card. To break even, you need to earn at least $65 in cash back per year. At a 1% rate on non-Costco purchases, that means spending $6,500 annually outside Costco. At a 2% rate on Costco gas and restaurants, you need $3,250 in spending on those categories.

Most Costco members who use the card for gas and groceries earn enough cash back to cover the fee. However, if you spend less than $3,000 to $4,000 per year at Costco, or if you rarely buy gas there, the fee may not be worth it. Calculate your own spending: add up what you spent at Costco in the past year, explore the cash-back rates to each category, and subtract $65. If the result is positive, the card pays for itself.

Interest rates, late fees, and other costs

The Costco Citibank Visa Card charges a variable interest rate (APR) on balances you do not pay in full each month. The exact rate depends on your credit score and current market conditions, but Citibank typically offers rates between 16% and 24% APR. There is no introductory 0% APR period, so interest begins accruing when ready if you carry a balance.

Late payment fees are $39 for the first late payment and $39 for subsequent late payments within six months. If you miss a payment by more than 60 days, your APR may increase to a penalty rate. The card has no annual fee beyond the $65 membership fee, no foreign transaction fees (useful for international travel), and no balance transfer fee if you transfer a balance from another card.

How this card compares to other Costco payment options

Costco members can pay with the Costco Citibank Visa Card, a regular Visa or Mastercard, an American Express card (at Costco only, not online), or cash. If you use a non-Costco rewards card instead, you might earn a higher cash-back rate — many cards offer 2% to 5% back on groceries or gas. However, those cards may have their own annual fees, and you would lose the 2% Costco gas reward.

The Costco Citibank Visa Card is most competitive if you spend heavily on Costco gas and restaurants. If you primarily buy groceries and household items at Costco, a general 2% cash-back card with no annual fee might save you money. Compare your expected annual cash back from each card, subtract any annual fees, and choose the card that leaves you with the most money in your pocket.

Credit score impact and how to use the card responsibly

Opening a new credit card temporarily lowers your credit score because Citibank performs a hard inquiry into your credit report. Your score typically recovers within a few months. Over time, using the card responsibly — paying your full balance each month and keeping your credit utilization low — can help your score recover and improve.

To avoid interest charges and late fees, pay your full statement balance by the due date each month. Set up automatic payments from your bank account if you tend to forget. Do not spend more just because you earn cash back; the 1% or 2% reward is only valuable if you were going to make that purchase anyway. Treat the card like any other payment method, not as a reason to increase your spending.

How to open an account and what happens next

You can request the Costco Citibank Visa Card in person at your local Costco warehouse, on the Costco website, or by calling Citibank directly. You will need to provide your Social Security number, date of birth, income, and employment information. Citibank will check your credit and make a decision within minutes to a few days.

If you are approved, your card arrives in the mail within 7 to 10 business days. The $65 annual fee is charged to your Costco membership account at that time or when you renew your membership. You can begin using the card when ready once it arrives. If you are denied, Citibank will send you a letter explaining why, and you can request a copy of your credit report to see what factors affected the decision.

Frequently Asked Questions

Can I use this card outside of Costco?

Yes. The Costco Citibank Visa Card is a Visa card, so you can use it anywhere Visa is accepted — restaurants, gas stations, online retailers, and more. However, you only earn 1% cash back on non-Costco purchases, compared to 2% on Costco gas and restaurants. The cash back still goes into your Costco Cash account and can only be spent at Costco.

What if I cancel my Costco membership?

Your card remains active, but you lose the higher cash-back rates at Costco. You would earn only 1% cash back on all purchases, which makes the $65 annual fee much harder to justify. Most cardholders cancel the card if they cancel their Costco membership.

Do I earn cash back on the annual fee itself?

No. The $65 annual fee does not earn cash back. You only earn rewards on actual purchases made with the card.

Can I use Costco Cash to pay my credit card bill?

No. Costco Cash can only be used to buy items at Costco or on Costco.com. You must pay your credit card bill with a bank account, check, or another payment method.

What is the credit limit for this card?

Citibank does not publish a standard credit limit. Your limit depends on your credit score, income, and credit history. You can request a credit limit increase after you have held the card for several months and made on-time payments.