Costco Credit Card Benefits: If you’re a frequent shopper at Costco, you’ve probably heard about the Costco Anywhere Visa® Card by Citi. This credit card is exclusively available to Costco members and offers some of the best cashback rewards in the market, especially on gas, dining, travel, and Costco purchases.
But is it really worth getting? This guide will break down everything you need to know about the Costco credit card benefits so you can decide if it’s the right fit for your spending habits. From cashback rewards to travel perks, we’ll cover every detail to help you make the most of this card.
Understanding the Costco Anywhere Visa® Card by Citi
The Costco Anywhere Visa® Card is issued by Citi Bank and serves as both a credit card and Costco membership card. This means that instead of carrying multiple cards, you can simply use your Costco credit card as proof of membership.
Key Facts:
- Issuer: Citi Bank
- Annual Fee: $0 (requires an active Costco membership)
- Accepted Locations: Anywhere Visa is accepted
- APR: Varies based on creditworthiness
- Credit Score Needed: Good to excellent (typically 700+)
How to Apply
To get the Costco credit card, you need to:
- Be a Costco Member: Only active members are eligible.
- Apply Online or In-Store: You can apply on Citi’s website or at a Costco location.
- Pass a Credit Check: A good credit score is required for approval.
Cashback Rewards Program
One of the biggest reasons to get the Costco Anywhere Visa® Card is its cashback rewards program. The card offers generous cashback percentages in multiple spending categories.
Cashback Breakdown:
- 4% on eligible gas purchases (up to $7,000 per year, then 1%)
- 3% on restaurants and travel
- 2% on Costco and Costco.com purchases
- 1% on all other purchases
The cashback you earn is issued annually as a reward certificate, which can be redeemed at Costco for merchandise or cash.
4% Cashback on Eligible Gas Purchases
The Costco credit card excels in gas rewards, offering 4% cashback on eligible gas purchases worldwide.
Where You Earn 4% on Gas:
- Gas stations (including Costco gas)
- Major fuel brands
- Select convenience store pumps
Annual Limit:
- 4% applies up to $7,000 per year
- After that, you earn 1% cashback on gas
If you spend $500/month on gas, you’d earn $240 per year in cashback—one of the highest gas cashback rates available!
3% Cashback on Restaurants and Travel
Another great benefit is 3% cashback on dining and travel purchases. Whether you love eating out or frequently travel, this perk helps you save.
Qualifying Categories:
- Restaurants: Fast food, fine dining, coffee shops, and bars
- Travel: Hotels, flights, car rentals, cruises, and travel agencies
This makes the Costco credit card an excellent choice for frequent travelers.
2% Cashback on Costco Purchases
Unlike most store-branded credit cards, the Costco Visa doesn’t limit cashback to just Costco purchases. However, it does reward members with 2% cashback when shopping at Costco warehouses or Costco.com.
Why This is Valuable:
- 2% cashback stacks with the Costco Executive Membership (which offers 2% back)
- Effective cashback rate can reach 4% on Costco purchases
Pro Tip: If you use the Costco Anywhere Visa alongside an Executive Membership, you could earn hundreds of dollars back annually just from Costco purchases.
1% Cashback on All Other Purchases
For everything else, you’ll earn 1% cashback, making this card a solid all-around spending option. However, if you frequently shop in categories not covered by the higher cashback rates, you might consider pairing this card with a flat-rate cashback card like the Citi Double Cash (2% on all purchases).
No Annual Fee (With Costco Membership)
One of the biggest perks is that this card has no annual fee, but there’s a catch—you must maintain an active Costco membership.
Membership Requirements:
- Basic Membership: $60/year
- Executive Membership: $120/year
While the card itself doesn’t cost extra, if you ever cancel your Costco membership, you’ll lose access to the credit card.
Foreign Transaction Fees: None
For travelers, the Costco credit card has no foreign transaction fees, making it an ideal companion for international trips.
Many other cashback credit cards charge 3% foreign transaction fees, so this benefit alone can save frequent travelers a lot of money.
Additional Perks and Protections
Beyond cashback, the Costco Anywhere Visa® Card by Citi includes valuable purchase protections and travel benefits that add even more value. Here’s a look at some of the lesser-known but equally important perks of this credit card.
1. Purchase Protection
- Covers eligible items purchased with the card against damage or theft for a limited time.
- Coverage duration: 90-120 days from the purchase date.
- Claim limits vary, so check Citi’s terms for specific coverage.
2. Extended Warranty
- Automatically extends the manufacturer’s warranty on eligible items.
- Adds 24 months to warranties of five years or less.
- This is especially useful for electronics, appliances, and gadgets.
3. Travel Accident Insurance
- Provides coverage for accidental death or serious injury when travel is booked using the Costco credit card.
- Covers air, train, ferry, and bus tickets.
- Great peace of mind for frequent travelers.
4. Car Rental Insurance
- Offers collision damage waiver (CDW) coverage when renting a car using the card.
- Covers damage due to theft or collision.
- Must decline the rental company’s insurance to qualify.
- Works worldwide, but some countries and vehicle types may be excluded.
These extra benefits make the Costco Visa a great everyday card for both shopping and travel.
How to Redeem Costco Credit Card Rewards
The Costco credit card doesn’t issue monthly cashback payouts like other cashback cards. Instead, it provides a single reward certificate once per year.
How It Works:
- Cashback accumulates throughout the year.
- At the end of your February billing cycle, Citi issues a reward certificate.
- The certificate is redeemable at any Costco warehouse for merchandise or cash.
- If you choose cash, the redemption is only available in-store (not online).
- The certificate expires on December 31 of the year it was issued.
Important:
- If you close your credit card account before receiving your rewards certificate, you lose all earned cashback.
- The rewards cannot be transferred or used outside of Costco.
While this redemption system is simple, it lacks flexibility compared to other cashback credit cards that offer statement credits, direct deposits, or travel redemptions.
Comparing Costco Anywhere Visa® to Other Credit Cards
The Costco credit card is a great choice, but how does it compare to other store-branded and cashback credit cards?
Costco Credit Card vs. Amazon Prime Rewards Visa
| Feature | Costco Anywhere Visa® | Amazon Prime Rewards Visa |
|---|---|---|
| Gas Cashback | 4% (up to $7,000/yr) | 2% |
| Dining Cashback | 3% | 2% |
| Travel Cashback | 3% | 0% |
| Store Purchases Cashback | 2% at Costco | 5% at Amazon & Whole Foods |
| Foreign Transaction Fees | None | None |
| Annual Fee | $0 (with Costco membership) | $0 (with Prime membership) |
Costco Credit Card vs. Sam’s Club Mastercard
| Feature | Costco Anywhere Visa® | Sam’s Club Mastercard |
|---|---|---|
| Gas Cashback | 4% (up to $7,000/yr) | 5% (up to $6,000/yr) |
| Dining Cashback | 3% | 3% |
| Travel Cashback | 3% | 1% |
| Store Purchases Cashback | 2% at Costco | 1% at Sam’s Club |
| Foreign Transaction Fees | None | None |
| Annual Fee | $0 (with Costco membership) | $0 (with Sam’s membership) |
Overall, the Costco Visa outperforms competitors in gas and travel rewards, but Amazon’s card wins for online shopping.
Pros and Cons of the Costco Credit Card
Like any credit card, the Costco Anywhere Visa® Card by Citi has both advantages and drawbacks.
Pros:
✅ High cashback rates (4% on gas, 3% on dining/travel).
✅ No annual fee (with a Costco membership).
✅ No foreign transaction fees (great for international travel).
✅ Additional perks (purchase protection, extended warranty, travel insurance).
✅ Accepted anywhere Visa is accepted (not limited to Costco).
Cons:
❌ Cashback redemption is only once per year.
❌ Rewards are only redeemable at Costco.
❌ Requires a Costco membership ($60–$120 per year).
❌ No introductory bonus or 0% APR promotion.
❌ No flexible redemption options like statement credits or travel points.
This card works best for loyal Costco shoppers who spend a lot on gas, dining, and travel.
How to Maximize Your Costco Credit Card Benefits
Want to get the most out of your Costco credit card? Follow these tips and strategies.
1. Use the Card for Gas, Dining, and Travel
- The highest cashback categories (4% and 3%) are the best way to maximize rewards.
- Use a different card for categories with better cashback elsewhere (e.g., Amazon or grocery stores).
2. Combine It with the Costco Executive Membership
- The Executive Membership ($120/year) gives 2% cashback on Costco purchases.
- Stacking the Executive Membership with the Costco credit card means 4% cashback total on Costco purchases.
3. Avoid Carrying a Balance
- The card’s APR can be high, so pay your balance in full each month.
- Interest charges will cancel out any cashback rewards earned.
4. Plan Your Redemption Wisely
- Since rewards are issued once per year, time big purchases for after you receive your certificate.
- If you don’t need merchandise, redeem for cash at the Costco customer service desk.
Following these strategies will help you earn and redeem the most rewards possible.
FAQs about Costco Credit Card Benefits
What are the key benefits of a Costco credit card?
The Costco credit card offers several attractive benefits including cash back on purchases, especially higher percentages on gas, dining, and travel. Cardholders also enjoy no annual fee with their paid Costco membership and extended warranty on purchases, making it a valuable choice for frequent shoppers.
Can I use my Costco credit card outside of Costco?
Yes, the Costco credit card can be used anywhere Visa is accepted, which includes a wide range of retailers and services worldwide. This makes it a convenient option for everyday use, not just at Costco stores.
Does the Costco credit card offer travel benefits?
Indeed, the Costco credit card includes excellent travel benefits such as worldwide travel accident insurance and rental car insurance. Additionally, cardholders receive travel and emergency assistance, providing peace of mind while traveling.
How does the cash back on the Costco credit card work?
Cardholders earn cash back on all their purchases in the form of an annual reward coupon, which can be redeemed for cash or merchandise at Costco stores. The percentages vary by category, with gas, dining, and travel often earning the highest cash back.
Are there any special promotions for new Costco credit card members?
New Costco credit card members occasionally have access to special promotions such as bonus cash back on certain purchases or introductory APR offers. These promotions can vary and are typically time-sensitive, so it’s a good idea to check the latest offers when applying.
Final Thoughts
The Costco Anywhere Visa® Card by Citi is a powerful cashback credit card for Costco members who spend a lot on gas, dining, travel, and Costco purchases.
✅ Best for:
- Regular Costco shoppers
- High gas spenders
- Frequent travelers and diners
❌ Not ideal for:
- People who don’t shop at Costco
- Those who prefer monthly cashback payouts
- Cardholders who want flexible redemption options
If you’re a Costco member and use your card strategically, you could easily earn hundreds of dollars in cashback per year—making it a valuable financial tool.
