The Costco credit card pays you back in two ways: cash rewards on purchases, and warehouse member benefits you can't get any other way
The Costco Anywhere Visa Card by Citi gives you cash back on what you spend, but the real advantage is that it's the only card that unlocks Costco's fuel discount and extends your warehouse membership benefits. You don't need to be a Costco member to open the card, but you do need the card to get the fuel discount — and that discount alone saves most households $200 to $400 a year.
The card works like a standard rewards card: you earn a percentage of each purchase back as cash, which Costco calls an "annual reward." The percentage varies by category. But unlike most rewards cards, this one is tied directly to your warehouse membership. That connection is what makes it different from a generic cash-back card.
Key Takeaways
- The Costco Anywhere Visa Card is the only way to get Costco's fuel discount, which typically saves $0.05 to $0.15 per gallon depending on the week.
- You earn cash back on all purchases — 4% at gas stations, 3% on travel, 2% at Costco and Costco.com, and 1% everywhere else — paid once a year as a Costco Shop Card.
- The card extends your warehouse membership benefits to family members who are cardholders, even if they don't have their own membership card.
- There is an annual fee of $65, which is separate from your warehouse membership fee, so you pay both if you want the card.
- The cash back is paid as a Costco Shop Card that you can only use at Costco, not as cash or points you can transfer elsewhere.
How the cash back actually works
Costco's rewards are straightforward but have one catch: you get paid once a year, not monthly or quarterly. Every January, Costco calculates what you earned and sends you a Shop Card — a prepaid card loaded with your rewards balance. You can use it only at Costco warehouses and Costco.com.
The earning rates are: 4% on gas at any station (not just Costco), 3% on travel purchases like flights and hotels, 2% on everything you buy at Costco and Costco.com, and 1% on all other purchases. If you spend $5,000 a year at Costco, you'd earn $100 in rewards. If you also fill up at Costco gas stations regularly, you could earn another $100 to $150 depending on your driving.
The annual payout matters because it changes how you think about the card. You don't see rewards accumulate in real time. You get one lump sum once a year, which means you need to remember to use it before it expires (Costco Shop Cards don't expire, but you might forget you have it).
The fuel discount is the real money saver
Costco's fuel discount is available only to Costco Anywhere Visa cardholders. Every week, Costco sets a fuel price for members, and cardholders get a discount on top of that — usually $0.05 to $0.15 per gallon cheaper than the posted price. The discount changes weekly and varies by location, but it's always there.
If you drive 12,000 miles a year in a car that gets 25 miles per gallon, you buy about 480 gallons of gas annually. At a $0.10 per gallon discount, that's $48 a year. At $0.15 per gallon, it's $72. Over five years, that's $240 to $360 in fuel savings alone — enough to cover the card's annual fee several times over if you're a regular Costco gas customer.
The discount stacks with Costco's already-low fuel prices. Costco prices gas lower than most competitors to begin with, so the cardholder discount on top of that is significant. You can't get this discount with a regular Costco membership card or any other card.
Membership benefits that travel with the card
When you open a Costco Anywhere Visa Card, your household members who are also cardholders can use the card to shop at Costco even if they don't have their own membership card. This is different from a regular membership, where each person needs their own card to enter the warehouse.
If you have a Gold Star membership (the basic tier) and your spouse gets a Costco Visa Card, your spouse can shop with you using just the credit card. This is useful if one person in the household does most of the shopping — they can use the card to shop alone without needing a separate membership card. However, only the primary cardholder gets the annual reward; household cardholders don't earn separate rewards.
The annual fee and whether it pays for itself
The Costco Anywhere Visa Card costs $65 per year. This is on top of your Costco membership fee, which is $65 for Gold Star or $130 for Executive. You pay both fees separately — the card fee doesn't replace your membership fee.
Whether the card pays for itself depends on how much you spend and where. If you buy $3,250 or more at Costco in a year, your 2% cash back covers the $65 fee. If you also use Costco gas regularly, the fuel discount alone often covers the fee. But if you rarely shop at Costco or never use the gas station, the card might not make financial sense.
The card is most valuable for households that visit Costco weekly, use the gas station, and travel occasionally. For light Costco shoppers, a standard cash-back card with no annual fee might save more money.
What the card does not do
The Costco Visa Card is not a general-purpose rewards card. Your cash back is locked into Costco — you can't transfer it to another account, redeem it as cash, or use it anywhere else. The Shop Card it comes on works only at Costco warehouses and Costco.com.
The card also doesn't waive Costco's membership fee. You need both the card and a membership to shop. And unlike some premium credit cards, the Costco card doesn't include travel insurance, purchase protection, or other perks beyond the fuel discount and cash back.
How to decide if the card makes sense for you
Start with your actual Costco spending. Pull up your last year of Costco receipts or credit card statements and add up what you spent at Costco. Multiply that by 2% — that's your annual cash back. Then estimate your gas spending at Costco. If the total is more than $65, the card breaks even on fees alone.
Next, consider convenience. If you already have a Costco membership and shop there regularly, adding the card is straightforward — you explore through Citi's website or in the warehouse. If you don't have a membership yet, you can open the card first, which gives you warehouse access through the card itself.
If you have a different rewards card that gives you higher cash back on gas or travel, compare the total. Some cards offer 3% or 4% cash back on gas everywhere, not just at Costco, and that cash can be used anywhere. The Costco card's advantage is the fuel discount and the 4% gas rewards, but only if you're buying gas at Costco specifically.
Frequently Asked Questions
Do I need a Costco membership to get the card?
No. You can open the Costco Anywhere Visa Card without a membership. The card itself gives you warehouse access. However, if you want to keep shopping at Costco long-term, you'll eventually need to pay for a membership, because the card access is tied to the card itself — if you close the card, you lose warehouse access.
Can I use the card outside of Costco?
Yes. The Costco Visa Card works everywhere Visa is accepted. You earn 1% cash back on non-Costco purchases, 4% at gas stations, and 3% on travel. But your cash back is paid as a Costco Shop Card, so you can only spend the rewards at Costco.
What happens to my cash back if I don't use it?
Costco Shop Cards don't expire, so your rewards stay on the card indefinitely. You can use them whenever you shop at Costco. However, if you close your card or membership, Costco may not honor an old Shop Card, so it's best to use your rewards within a year or two of receiving them.
Can my family members earn their own cash back?
No. Only the primary cardholder earns rewards. If your spouse or adult child has a Costco Visa Card as a household cardholder, they can shop at Costco using that card, but all rewards go to the primary account. Each person would need their own primary card to earn separate rewards.
Is the Costco card better than a regular cash-back card?
It depends on your spending. The Costco card's 2% back at Costco and fuel discount are strong if you shop there regularly. But if you prefer a card with no annual fee or one that lets you use rewards anywhere, a standard 2% cash-back card might be better. Compare your actual spending before deciding.