Costco offers two credit cards, and which one makes sense depends on how much you spend and where

Costco has two co-branded credit cards, both issued by Citi: the Costco Anywhere Visa Card for Costco members, and the Costco Anywhere Visa Business Card for business members. The consumer card works at Costco warehouses, Costco.com, gas stations, restaurants, and travel purchases. The business card works the same way but is designed for business spending. Neither card charges an annual fee, but both require an active Costco membership to use.

The cards earn cash back on purchases, but the rate depends on where you spend. At Costco warehouses and Costco.com you earn 2%, at gas stations and restaurants you earn 2%, and on all other purchases you earn 1%. You receive your cash back once a year as a Costco Shop Card — a certificate you can use only at Costco. There is no option to receive cash back as a statement credit or direct deposit.

The main trade-off is straightforward: you get no annual fee and no foreign transaction fees, but you also get no sign-up bonus and no points that transfer to airlines or hotels. If you spend heavily at Costco, the 2% back on warehouse purchases and gas can add up. If you spend most of your money outside Costco, the 1% catch-all rate is lower than many other cards.

Key Takeaways

  • The Costco Anywhere Visa Card has no annual fee and earns 2% cash back at Costco warehouses and Costco.com, 2% at gas stations and restaurants, and 1% everywhere else.
  • Cash back is issued once per year as a Costco Shop Card that can only be spent at Costco, not as a statement credit or bank transfer.
  • You must have an active Costco membership to open or use the card; if your membership lapses, your card becomes unusable.
  • The card has no foreign transaction fees, which can save money on international travel, but it offers no sign-up bonus or points that transfer to other programs.
  • A business version exists for Costco business members, with the same cash back structure and no annual fee.

How the cash back works and when you receive it

Cash back on the Costco card accumulates throughout the year and is paid out once annually as a Costco Shop Card. The Shop Card is a physical certificate with a dollar amount printed on it. You use it like a gift card at any Costco warehouse or on Costco.com. It does not expire, but it can only be spent at Costco — you cannot convert it to cash, transfer it to your bank account, or use it elsewhere.

The timing of your payout depends on when your card anniversary date falls. Costco typically issues Shop Cards in the month following your card anniversary. If your card anniversary is in March, you would receive your Shop Card in April. The amount on the card reflects all cash back earned in the 12 months prior to your anniversary date.

This structure means the card is most valuable if you shop at Costco regularly and can use the full amount of your Shop Card before it sits unused. If you rarely visit Costco or spend very little there, the cash back may accumulate slowly and feel less rewarding than a card that pays cash directly to your bank account.

Membership requirement and what happens if it lapses

You cannot open a Costco credit card without an active Costco membership, and you cannot use the card if your membership expires. Costco membership costs $60 per year for a Gold Star membership (the basic tier) or $120 per year for an Executive membership. If you let your membership lapse, your credit card becomes inactive and cannot be used for purchases, even if the card itself is not expired.

If you plan to cancel your Costco membership, you should plan to stop using the card before that happens. Conversely, if you already have the card and your membership is about to expire, you will need to renew your membership if you want to keep using it. This creates an ongoing cost beyond the card itself — you are paying for membership access in order to use the card.

Some people find this worthwhile because they shop at Costco regularly anyway and the membership cost is justified by the savings on bulk purchases. Others find the membership requirement makes the card less flexible than a card that works everywhere without preconditions.

Comparing the Costco card to other cash back options

The Costco card's 2% back at Costco is competitive with other cards if you spend a lot there, but it falls behind on general spending. Many cards offer 2% cash back on all purchases with no annual fee — the Citi Double Cash card and the Capital One Quicksilver are common examples. Those cards pay cash back directly to your statement or bank account, not as a store certificate.

The Costco card's advantage is the 2% at gas stations and restaurants, which some other flat-rate cards do not offer. If you buy gas at Costco and eat out frequently, those categories can add value. The lack of foreign transaction fees is also useful for international travel, whereas many other cards charge 3% on foreign purchases.

The disadvantage is the membership requirement and the fact that cash back is locked into Costco spending. If you travel internationally, use a different warehouse club, or prefer the flexibility of cash back that goes to your bank account, another card may be a better fit. The decision comes down to how much of your annual spending happens at Costco and whether the membership cost is already justified by your shopping habits.

How to open the card and what documents you need

You open a Costco credit card through Citi, not through Costco itself. You can explore online at Citi's website or in person at a Costco warehouse during membership services hours. You will need your Costco membership number, a Social Security number, and a government-issued ID. The process takes about 10 minutes online.

Citi will run a hard inquiry on your credit report, which temporarily lowers your credit score by a few points. You do not need a perfect credit score to be approved, but Citi typically approves applicants with a score of 670 or higher. If you are denied, you can ask Citi for the reason and reapply after addressing it, though you should wait at least a few months to avoid multiple hard inquiries in a short time.

Once approved, your physical card arrives in the mail within 7 to 10 business days. You can use the card when ready for online purchases if Citi provides a temporary card number. At the warehouse, you will need to present your physical card or use your membership number to link the card to your account.

Annual fees, interest rates, and other costs

The Costco Anywhere Visa Card has no annual fee, which is a significant advantage over many premium cash back cards. There is also no foreign transaction fee, so you can use it internationally without paying an extra 3% on top of the purchase price. These two features alone save money for people who travel or spend on international websites.

The card's interest rate on unpaid balances is variable and depends on your creditworthiness. Citi typically offers rates between 16% and 24% APR for this card, though your actual rate will be disclosed in your approval letter. If you carry a balance, the interest charges will quickly exceed any cash back you earn, so the card is most valuable if you pay off the full balance each month.

There are no other hidden fees — no late fees beyond what federal law allows, no over-limit fees, and no inactivity fees. The only ongoing cost beyond the card itself is your Costco membership renewal each year.

Business card differences and when to use it

The Costco Anywhere Visa Business Card works the same way as the consumer card but is designed for business spending. It earns 2% cash back at Costco warehouses and Costco.com, 2% at gas stations and restaurants, and 1% everywhere else. It also has no annual fee and no foreign transaction fees. The cash back is issued as a Costco Shop Card once per year, just like the consumer card.

The main difference is that the business card is tied to a Costco business membership rather than a regular membership. A Costco business membership costs $110 per year for the basic tier and $220 per year for the Gold Star Executive tier. You must have a business membership to open the business card, and your membership must remain active to use it.

The business card also reports to business credit bureaus in addition to personal credit bureaus, which can help build your business credit profile if you are a sole proprietor or small business owner. However, the card is still a personal liability — you are responsible for the balance, not your business entity.

Frequently Asked Questions

Can I use the Costco card outside of Costco?

Yes. The card works at any merchant that accepts Visa, including restaurants, gas stations, online retailers, and travel websites. You earn 2% cash back at gas stations and restaurants, and 1% on all other non-Costco purchases. The card does not restrict where you can spend it.

What happens to my cash back if I don't spend it before the next year?

Your Shop Card does not expire, so unused cash back stays on the card indefinitely. You can combine multiple Shop Cards if you have more than one card, and you can use them on future shopping trips. However, the cash back cannot be converted to cash or transferred to your bank account.

Does the Costco card help build credit?

Yes, like any credit card, the Costco card reports your payment history to the three major credit bureaus. Making on-time payments and keeping your balance low relative to your credit limit will improve your credit score over time. Missing payments or carrying a high balance will damage it.

Can I get the card without a Costco membership?

No. Costco requires an active membership to open the card and to use it. If your membership lapses, the card becomes inactive. You must renew your membership to reactivate the card.

Is there a sign-up bonus?

The Costco card does not offer a sign-up bonus. You begin earning cash back on your first purchase. Other cards often offer bonuses like $200 cash back after spending $500 in the first three months, but the Costco card does not.