What the Costco Visa card is and how to use it

The Costco Anywhere Visa Card is a credit card issued by Citi that you can use at Costco warehouses, Costco.com, and anywhere else Visa is accepted. Unlike a store card that only works at one retailer, this is a real Visa — you get the same acceptance as any other Visa card, plus extra rewards when you spend at Costco.

You do not need a Costco membership to carry the card, but you do need one to shop at Costco warehouses. If you have both, the card gives you cash back on purchases: 2% at Costco warehouses and Costco.com, 1% on gas (up to $110 per year, then 0%), and 1% on all other purchases. You earn no rewards on purchases outside Costco unless you count that 1% catch-all rate.

The card costs $0 per year — there is no annual fee. You pay interest on any balance you carry, just like any other credit card. The card is not a membership substitute; it is a payment method that stacks rewards on top of a membership you already have or plan to get.

Key Takeaways

  • The Costco Visa earns 2% cash back on Costco warehouse and online purchases, 1% on gas, and 1% everywhere else, with no annual fee.
  • You must have a Costco membership to shop at warehouses, but the card itself does not require membership.
  • Cash back rewards post to your Citi account as a statement credit or can be redeemed as a check, and do not expire.
  • The card is a Visa accepted anywhere, not a store card limited to Costco locations.
  • Interest rates and approval odds depend on your credit score, just as they do with any credit card.

How cash back rewards work on the Costco Visa

Every dollar you spend at a Costco warehouse or on Costco.com earns 2 cents back. Every dollar on gas earns 1 cent back, but only up to $110 per year — after that, gas purchases earn 0%. Every dollar everywhere else earns 1 cent back. These rewards are not points that expire or require redemption; they are actual cash back.

Rewards post to your Citi account as a statement credit once per year, usually in January. You can also request a check instead. If you never redeem them, they stay in your account indefinitely — there is no expiration date. Many cardholders let rewards accumulate and then cash them out once a year or every few years.

The 2% rate at Costco is higher than most general-purpose credit cards offer, but only at Costco. If you spend heavily on groceries outside Costco or on other categories, other cards may earn more overall. The 1% catch-all rate is competitive but not exceptional — many cards offer 1.5% or 2% on all purchases with no category limits.

Who should get this card and who should skip it

The Costco Visa makes sense if you already have a Costco membership and spend enough there to make the 2% rate worth tracking. If you spend $3,000 per year at Costco, you earn $60 in cash back. If you spend $10,000 per year, you earn $200. The card costs nothing, so even small amounts of spending add up over time.

The card is less useful if you do most of your grocery shopping elsewhere or if you rarely visit Costco. The 1% rate on non-Costco purchases is not compelling compared to cards that offer 1.5% or 2% on everything. You would be better served by a flat-rate card if Costco is not your primary shopping destination.

If you do not have a Costco membership and do not plan to get one, this card has no advantage over a standard Visa. You would earn only the 1% catch-all rate, which is available on many other cards with no membership requirement.

How to get the Costco Visa and what happens next

You can request the card through Costco.com or by asking at the membership desk in any warehouse. Citi handles the actual approval. You will need to provide your Social Security number, date of birth, address, and income information — the same details any credit card company asks for.

Approval depends on your credit score, payment history, and debt-to-income ratio, just like any other credit card. There is no separate Costco approval process; Citi makes the decision using their standard underwriting. If you are denied, Citi will tell you why, and you can contact them to discuss it.

If you are approved, the card arrives in the mail within 7 to 10 business days. You can set up it online or by phone. Once activated, you can use it at any Costco warehouse (with a membership), on Costco.com, or anywhere Visa is accepted. Your first rewards statement will arrive in January of the following year.

Comparing the Costco Visa to other warehouse and grocery cards

The main competitor is the American Express Costco card, which earns 3% at Costco warehouses, 2% at gas stations and restaurants, and 1% everywhere else. American Express is not accepted as widely as Visa, but if you shop only at Costco and use gas stations and restaurants regularly, the higher rates may offset that limitation. American Express also charges an annual fee ($65 for the standard version, $130 for the premium version), while the Costco Visa is free.

Outside Costco, cards like the Chase Freedom Unlimited (1.5% on everything) or the Citi Double Cash (2% on everything) earn more on non-Costco purchases. If you split your spending between Costco and other retailers, one of these flat-rate cards might earn more overall, even though they do not beat the Costco Visa's 2% at Costco.

The choice depends on where you spend most of your money. If Costco is your primary grocery and household goods destination, the Costco Visa's 2% rate and zero annual fee make it hard to beat. If you spread spending across multiple retailers, a flat-rate card may earn more.

Interest rates, fees, and what to watch out for

The Costco Visa has no annual fee, no foreign transaction fees, and no balance transfer fees. The interest rate (called the APR, or annual percentage rate) varies based on your credit score and current market rates. Citi publishes a range, but your actual rate depends on your individual credit profile. You can ask what rate you will receive before you accept the card.

If you carry a balance from month to month, you will pay interest on that balance. The cash back you earn (1% to 2%) is much smaller than the interest you will pay (typically 15% to 25% APR). This means the card only makes financial sense if you pay off the full balance every month. If you cannot do that, the interest will erase any rewards you earn.

There are no hidden fees for late payments beyond standard credit card penalties. Citi charges a late fee if you miss a payment, and your interest rate may increase if you are 60 days late. These are standard credit card terms, not unique to the Costco card.

How rewards affect your taxes and credit score

Cash back rewards are not taxable income. The IRS does not count them as income because they are treated as a reduction in the price you paid, not as a separate payment to you. You do not report them on your tax return, and Citi does not send you a 1099 form for them.

Using the card responsibly — paying on time and keeping your balance low — will help your credit score over time. Credit scoring models reward on-time payment history and low credit utilization (the percentage of your credit limit you are using). If you miss payments or carry a high balance, your score will drop, and the damage will outweigh any rewards you earn.

Opening a new credit card temporarily lowers your score because it creates a hard inquiry and lowers your average account age. This effect is usually small and fades within a few months. If you plan to explore for a mortgage or car loan soon, you may want to wait a few months after opening the card before you explore.

Frequently Asked Questions

Do I need a Costco membership to get the card?

No. You can get the Costco Visa without a membership. However, you cannot use it to shop at Costco warehouses without one. If you want to use the card at a warehouse, you will need to buy a membership separately. The card itself is free; the membership costs extra.

Can I use this card outside of Costco?

Yes. It is a regular Visa, so you can use it anywhere Visa is accepted — restaurants, gas stations, online retailers, and so on. You will earn 1% cash back on those purchases, which is lower than the 2% you earn at Costco. Other cards may earn more on non-Costco purchases.

What happens to my rewards if I cancel the card?

Your accumulated cash back does not disappear when you cancel. You can redeem it before you cancel, or Citi will hold it in your account and you can request it later. Rewards do not expire, so you can let them sit for years if you want.

Is the Costco Visa better than the American Express Costco card?

It depends on where you spend money. The American Express card earns higher rewards at Costco (3% vs. 2%) but costs $65 or $130 per year and is not accepted everywhere. The Visa is free and accepted everywhere but earns less at Costco. If you shop at Costco frequently and do not mind the annual fee, American Express may earn more. If you want simplicity and no fees, the Visa is the better choice.

What credit score do I need to get approved?

Citi does not publish a minimum credit score for the Costco Visa. Generally, credit card approval is easier with a score of 670 or higher, but approval is possible with lower scores depending on other factors like income and payment history. If you are denied, you can contact Citi to ask why and whether you can reapply later.