What a Costco credit card is and who issues it
Costco offers two credit cards: the Costco Anywhere Visa Card by Citi and the Costco Anywhere Visa Card for American Express members. Both are issued by Citi and Visa, not by Costco itself. The cards work at Costco warehouses, Costco.com, and at any merchant that takes Visa or American Express.
The main difference is which payment network backs the card. The Visa version works everywhere Visa is accepted. The American Express version works at American Express merchants and at Costco locations. You cannot hold both cards at the same time — you must choose one.
Both cards come with an annual fee, which Costco members pay whether they use the card or not. The fee is the same amount as a Costco Gold Star membership, so if you already have a membership, the card's annual cost is the difference between the Gold Star and Executive membership tiers.
Key Takeaways
- Costco credit cards are issued by Citi and Visa or American Express, not by Costco, and you explore through Citi's website or in the warehouse.
- Both cards charge an annual fee that aligns with Costco membership levels, so the true cost depends on which membership tier you already hold.
- The Visa card works everywhere Visa is accepted; the American Express card works at American Express merchants and Costco locations only.
- Cardholders earn cash back on Costco purchases and on gas, travel, and dining outside the warehouse, with rates varying by category.
- You must be a Costco member to hold a Costco credit card, and the card requires a separate credit check from Citi.
how the process works for a Costco credit card
You can explore online through Citi's website or in person at your Costco warehouse. To explore online, visit the Citi website, select the Costco card you want (Visa or American Express), and enter your personal information, Social Security number, and income. Citi will run a hard credit inquiry, which temporarily lowers your credit score by a few points.
You must be a Costco member to hold the card. If you are not yet a member, you can join at the warehouse or online before or at the same time as your card process. The process takes about 10 minutes online and you will know whether you are approved within seconds or within a few days, depending on Citi's review process.
If you explore in the warehouse, a Costco employee can walk you through the form on a tablet. This route is useful if you have questions or prefer to speak with someone in person. The approval timeline is the same as online.
What you earn back on purchases
Both Costco cards offer cash back in different categories. At Costco and Costco.com, you earn 2% cash back on all purchases. On gas (up to $7,500 per year, then 1% after that), travel, and dining, you earn 1% to 2% depending on the card and category. On all other purchases, you earn 1% cash back.
Cash back is paid once a year as a Costco Shop Card, which is a certificate you can use at Costco warehouses or online. You cannot convert it to cash or transfer it to a bank account. If you do not spend the full amount before it expires, you lose the unused balance.
The cash back rate at Costco is higher than most other rewards cards, which is why the card appeals to frequent Costco shoppers. However, the annual fee means you need to spend enough at Costco to earn back more than the fee costs, or the card will cost you money overall.
Annual fees and membership costs
The Costco Visa card annual fee is currently $65. The Costco American Express card annual fee is $120. These fees are charged to your card every year on your membership renewal date.
If you hold a Gold Star membership (the standard tier), the Visa card's fee is the difference between Gold Star and Executive membership. If you hold an Executive membership, the Visa card's fee is the full $65. The American Express card always costs $120 regardless of your membership tier.
To break even on the card, you need to earn enough cash back to cover the annual fee. At 2% cash back on Costco purchases, you would need to spend $3,250 per year on the Visa card to earn $65 back. If you spend less than that, the card costs you money.
How to use your card and manage your account
Once approved, your physical card arrives in the mail within 7 to 10 business days. You can use it when ready at Costco warehouses and online at Costco.com. Outside Costco, use it like any other credit card at merchants that accept Visa or American Express.
You can manage your account online through Citi's website or the Citi mobile app. You can view your balance, make payments, set up autopay, and read statements. Payments are due on the date shown on your statement, usually 21 to 25 days after your statement closes.
If you want to cancel the card, contact Citi directly by phone or through your online account. Canceling the card does not cancel your Costco membership — they are separate accounts. Your membership continues until its renewal date unless you cancel it separately at the warehouse or online.
Comparing the Visa and American Express cards
| Feature | Costco Visa Card | Costco American Express Card |
|---|---|---|
| Annual Fee | $65 | $120 |
| Cash Back at Costco | 2% | 2% |
| Cash Back on Gas | 2% (up to $7,500/year) | 2% (up to $7,500/year) |
| Cash Back on Travel | 2% | 3% |
| Cash Back on Dining | 1% | 3% |
| Cash Back on Other Purchases | 1% | 1% |
| Where It Works | Everywhere Visa is accepted | American Express merchants and Costco |
The American Express card offers higher cash back rates on travel and dining, but costs $55 more per year and works at fewer merchants. The Visa card is more flexible outside Costco because Visa is accepted almost everywhere, but offers lower rewards on travel and dining.
Choose the Visa card if you use your card outside Costco frequently or value the wider acceptance. Choose the American Express card if you travel or dine out often and want higher rewards in those categories, and you are comfortable using it only at American Express merchants outside Costco.
What happens if you close your Costco membership
If you cancel your Costco membership, Citi will close your credit card account. You will not be able to use the card, and Citi will no longer charge the annual fee. Any remaining cash back balance on your Shop Card will be forfeited.
If you rejoin Costco later, you can reapply for the credit card, but you will go through the full process process again. Citi will run another credit check.
Frequently Asked Questions
Can I use my Costco credit card outside the warehouse?
Yes. The Visa card works at any merchant that accepts Visa. The American Express card works at merchants that accept American Express. Both cards work at Costco.com. Outside Costco, you earn 1% to 2% cash back depending on the card and purchase category.
What if I do not spend enough to earn back the annual fee?
The card will cost you money. If you spend less than $3,250 per year at Costco on the Visa card, you will not earn enough cash back to cover the $65 annual fee. In that case, a regular Costco membership without a credit card is cheaper.
How long does it take to receive my card after approval?
Your physical card arrives in the mail within 7 to 10 business days after approval. You can use the card at Costco warehouses and online before the physical card arrives if Citi provides a digital card number in your account.
Can I hold both the Visa and American Express Costco cards at the same time?
No. Citi allows you to hold only one Costco credit card. If you want to switch from one to the other, you must cancel the first card before explore for the second.
What if my Costco membership expires while I have the credit card?
Citi will close your credit card account if your membership lapses. You will not be charged the annual fee once the card is closed, but you will lose any unused cash back balance on your Shop Card.