What the Costco Citi Card does and who should consider it
The Costco Citi Visa is a co-branded card issued by Citi that gives you cash back on purchases, but only if you shop at Costco or use Costco Gas. You earn 2% cash back on Costco purchases and gas, 1% on travel booked through Costco Travel, and 1% on all other purchases. The card has an annual fee of $65, which Citi charges once per year on your account anniversary.
This card makes sense if you already have a Costco membership and spend enough there to earn back more than $65 in cash rewards each year. If you spend less than $6,500 annually at Costco, the rewards won't cover the fee. The card is not useful for everyday shopping outside Costco — the 1% cash back is lower than many other cards offer with no annual fee.
You must have a Costco membership to open this card, and you must keep the membership active to use the card. If your membership lapses, you can still use the card for non-Costco purchases, but you lose the higher cash back rates that make the card worthwhile.
Key Takeaways
- The card earns 2% cash back at Costco and Costco Gas, 1% on Costco Travel bookings, and 1% everywhere else, but charges $65 per year.
- You need an active Costco membership to open the card and to earn the higher cash back rates.
- The card pays for itself only if you earn more than $65 in annual cash back, which typically requires spending at least $6,500 per year at Costco.
- Cash back is paid as an annual reward certificate that you can use only at Costco, not as a statement credit or direct deposit.
- The card has no foreign transaction fees, which is useful if you travel internationally, but Costco's travel booking service is limited compared to other options.
How cash back works and when you receive it
Cash back on the Costco Citi card is not paid monthly or quarterly. Instead, Citi calculates your total cash back once per year and issues it as a Costco Cash reward certificate. This certificate arrives by mail or email and can be used only to pay for purchases at Costco warehouses or on Costco.com. You cannot convert it to cash, transfer it to another person, or use it at Costco Gas stations.
The reward certificate is valid for two years from the issue date. If you do not use it within that window, it expires and you lose the value. This is different from cash back cards that credit your statement when ready — you have to remember to use your certificate before it expires, and you have to spend it at Costco.
If you close the card before your annual reward certificate is issued, you forfeit any cash back you earned that year. Citi does not pay out cash back if you cancel the card mid-cycle.
Annual fee, interest rates, and other costs
The $65 annual fee is charged once per year on your account anniversary — the date you opened the card. There is no way to waive this fee or reduce it. If you want to keep the card, you pay the full amount every year.
The card carries a variable purchase APR that changes based on the prime rate. The exact APR depends on your credit score and credit history. Citi does not publish a single rate; you will see your rate in your cardmember agreement after you open the account. If you carry a balance, you pay interest on that balance at your APR until it is paid off.
There are no foreign transaction fees, so you can use the card internationally without paying an extra percentage on top of the purchase price. However, your bank or card issuer may still charge currency conversion fees depending on how the transaction is processed.
Rewards that do not count toward cash back
Not every purchase earns the advertised cash back rate. Balance transfers, cash advances, and fees do not earn any cash back. If you transfer a balance from another card to the Costco Citi card, that transfer amount earns 0% cash back.
Purchases made outside the United States, Puerto Rico, and US Virgin Islands earn only 1% cash back, even if they are made at Costco locations. This matters if you travel to Canada or Mexico and shop at Costco there — you earn the lower rate.
Costco membership fees themselves do not earn cash back. When you renew your Costco membership, that payment does not count toward your annual cash back total.
How to open the card and what you need
You open the Costco Citi card through Citi's website or by visiting a Costco warehouse. You will need your Social Security number, a government-issued ID, and proof of your current Costco membership. Citi will check your credit report to decide whether to approve you and what interest rate to offer.
The process takes about 10 minutes online. Citi usually tells you within minutes whether you are approved, denied, or pending review. If you are approved, your card arrives by mail within 7 to 10 business days. You can use it at Costco when ready once it arrives, but you cannot use it online until it is activated.
If you already have a Citi card, opening the Costco Citi card counts as a new account, which may lower your credit score temporarily. Each new credit card process triggers a hard inquiry on your credit report, which can reduce your score by a few points for several months.
When to close the card and what happens to your rewards
If you decide the card is not worth the $65 annual fee, you can close it at any time by calling Citi's customer service number on the back of your card. There is no penalty for closing the card early, and you do not have to pay the annual fee again if you close it before your next anniversary date.
However, if you close the card before your annual reward certificate is issued, you lose all the cash back you earned that year. If your anniversary date is coming up soon, it may be worth keeping the card open long enough to receive your certificate, then closing it afterward.
If you close the card and later want to reopen it, Citi may treat it as a new process, which triggers another hard inquiry. Some cardholders downgrade to a different Citi card instead of closing, which avoids the inquiry but may not eliminate the annual fee depending on the card they switch to.
How this card compares to other Costco payment options
Costco also accepts the Costco Anywhere Visa card issued by American Express. That card earns 2% cash back at Costco and gas, 3% on travel booked through Costco Travel, and 1% elsewhere, with a $120 annual fee. The higher fee and higher travel rate make it better for people who book travel through Costco frequently, but worse for people who only shop for groceries.
If you do not want an annual fee, you can use any Visa or Mastercard at Costco, but you earn no bonus cash back. A general-purpose cash back card with no annual fee might earn 1.5% to 2% on all purchases, which could be better than the Costco Citi card if you do not spend enough at Costco to justify the $65 fee.
Costco also accepts Discover, American Express, and some debit cards. If you use a rewards card from another issuer, you earn whatever that card offers — typically 1% to 2% cash back depending on the card — with no Costco-specific bonus.
Frequently Asked Questions
Can I use the Costco Citi card outside Costco?
Yes, you can use it anywhere Visa is accepted. However, you earn only 1% cash back on non-Costco purchases, which is lower than many other cards offer with no annual fee. The card is designed for Costco shopping, so using it elsewhere defeats the purpose of paying the $65 annual fee.
What happens to my cash back if I let my Costco membership expire?
Your existing reward certificates remain valid and can still be used at Costco. However, you will no longer earn the 2% cash back rate on new Costco purchases — you will earn only 1% on all purchases. You should renew your membership if you want to keep earning the higher rate.
Can I get my cash back as a statement credit instead of a Costco certificate?
No. Citi issues all cash back as a Costco Cash reward certificate that can be used only at Costco. You cannot convert it to cash, deposit it to a bank account, or use it outside Costco warehouses and Costco.com.
Does the annual fee get charged even if I do not use the card?
Yes. The $65 annual fee is charged on your account anniversary regardless of whether you used the card that year. If you do not plan to use it, you should close the account before your anniversary date to avoid the charge.
How long does it take to receive my reward certificate?
Citi typically issues your annual reward certificate within 30 days of your account anniversary. It arrives by mail or email depending on your account settings. The certificate is valid for two years, so you have time to use it, but you should not wait until the last month to spend it.