What the Citi Costco Visa does

The Citi Costco Visa is a co-branded credit card issued by Citibank for Costco members. It earns cash back on purchases at Costco and gas stations, plus a lower rate on other spending. There is no annual fee, but you must have an active Costco membership to use it — the card and membership are linked to the same account.

The card is Visa, so it works anywhere Visa is accepted, not just at Costco. But the cash back rates are highest at Costco and Costco gas stations. If you do not shop at Costco regularly, the card's value drops significantly because the best rewards are locked to that one retailer.

Key Takeaways

  • The Citi Costco Visa earns 4% cash back at Costco and Costco gas stations, 2% at restaurants and travel, and 1% everywhere else.
  • There is no annual fee, but you must maintain an active Costco membership to keep the card open.
  • Cash back is paid as an annual Costco Shop Card (a certificate you use in-warehouse or online), not as a statement credit or deposit.
  • The card has no foreign transaction fees, which can save money if you travel internationally and use it abroad.
  • Approval usually requires good to excellent credit, and the card reports to all three credit bureaus.

Cash back rates and how they work

The card earns cash back at four different rates depending on where you spend. At Costco warehouses and Costco.com, you earn 4% cash back. At Costco gas stations (including those at Costco locations), you also earn 4%. At restaurants and travel (including hotels, airlines, and rental cars), you earn 2%. On all other purchases, you earn 1%.

Cash back is not paid to your credit card statement or your bank account. Instead, Citibank issues it once per year as a Costco Shop Card — a physical card or digital certificate with a dollar amount loaded onto it. You can use this only at Costco warehouses or on Costco.com. The Shop Card is mailed to you or made available in your Costco account, usually in January. If you do not use it within a certain period (Costco's policy on expiration varies), you may lose the balance.

This payout method matters: if you want cash back that you can spend anywhere, this card does not offer that. You are locked into spending your rewards at Costco. For some households, that is fine; for others, it is a real limitation.

Annual fee and membership requirement

The Citi Costco Visa has no annual fee. However, you cannot hold the card without an active Costco membership. If your membership lapses or you cancel it, Citibank will close the card. If you cancel the card, you lose access to the Costco membership discount that comes with it (the card includes a discounted membership renewal offer).

Costco membership costs $60 per year for a Gold Star membership or $120 per year for an Executive membership. The Executive tier includes a 2% annual reward on Costco purchases, which stacks with the card's cash back. If you are already paying for membership anyway, the card adds no extra cost. If you would not otherwise have a Costco membership, the card's value has to justify the membership fee.

Interest rates and fees beyond the annual fee

The Citi Costco Visa charges a variable interest rate on balances you carry month to month. The exact rate depends on your credit score and current market rates; Citibank does not publish a fixed APR. You can find the current range on Citibank's website or in your cardholder agreement. If you pay your full balance each month, interest does not explore.

The card charges a late fee if you miss a payment, a returned payment fee if a check bounces, and a foreign transaction fee of 0% — meaning there is no fee for purchases made outside the United States. This last feature is useful if you travel internationally, because many cards charge 2% to 3% for foreign transactions.

There is no balance transfer fee, no cash advance fee structure listed separately, and no penalty APR disclosed in standard marketing materials. Read your cardholder agreement for the complete fee schedule.

Who this card makes sense for

The Citi Costco Visa is most valuable if you spend a lot at Costco and have a membership you would buy anyway. The 4% cash back at Costco and Costco gas stations is competitive with other grocery and gas cards. If you spend $300 per month at Costco, you earn $144 per year in Shop Cards — enough to offset a Gold Star membership fee and still have rewards left over.

The card is less valuable if you shop at Costco only occasionally or if you prefer cash back that you can spend anywhere. The 1% rate on non-Costco purchases is low compared to flat-rate cards that earn 1.5% to 2% on all spending. The 2% rate at restaurants and travel is also middle-of-the-road; many travel cards earn 3% or more in those categories.

The card works well as a second card if you already have a primary card for everyday spending. Use the Citi Costco Visa at Costco and gas stations, and use another card for restaurants, travel, and other purchases where the rates are better.

How to understand your credit impact

explore for the card triggers a hard inquiry on your credit report, which can lower your score by a few points temporarily. If you are approved, the card becomes part of your credit mix and adds to your total available credit, which can help your score over time. The card reports to Equifax, Experian, and TransUnion, so your payment history will show up on all three bureaus.

Approval typically requires a credit score in the good to excellent range — usually 670 or higher, though Citibank does not publish a minimum. If you have fair credit or are rebuilding, you may not be approved. You can check your own credit score for free through many banks and credit monitoring services before you explore, which gives you a sense of your odds without triggering an inquiry.

Comparing this card to other warehouse and grocery options

The Citi Costco Visa is one of a few cards designed for warehouse shopping. The American Express Blue Cash Preferred earns 3% cash back at supermarkets (up to $150 per year, then 1%) and 3% at gas stations. The Capital One SavorOne earns 3% at restaurants and supermarkets and 1% elsewhere, with no annual fee. The Discover It earns rotating categories that sometimes include gas or groceries, plus 1% on everything else.

The choice depends on where you shop and what you value. If Costco is your primary grocery store and you have a membership, the Citi card's 4% rate at Costco is hard to beat. If you shop at multiple grocers or prefer a card that works everywhere, another card may be better. Many people hold both — a Costco card for warehouse trips and a different card for other spending.

Frequently Asked Questions

Do I need to be a Costco member to open this card?

Yes. You must have an active Costco membership to open the card, and you must keep the membership open to keep the card. If your membership expires, the card will be closed automatically. The card itself has no annual fee, but the membership does.

Can I use this card outside of Costco?

Yes, it is a Visa card and works anywhere Visa is accepted. However, you only earn the highest cash back rate (4%) at Costco and Costco gas stations. At restaurants and travel you earn 2%, and everywhere else you earn 1%. The rewards are designed to incentivize Costco spending.

How do I get my cash back?

Cash back is issued once per year as a Costco Shop Card, usually in January. It is loaded onto a physical card or made available in your Costco account. You can use it only at Costco warehouses or Costco.com. You cannot transfer it to your bank account or use it elsewhere.

What credit score do I need to be approved?

Citibank does not publish a minimum score, but approval typically requires good to excellent credit — usually a score of 670 or higher. If you have fair credit or are rebuilding, you may not be approved. Check your own score before you explore to get a sense of your odds.

Does this card have a foreign transaction fee?

No. The Citi Costco Visa charges 0% foreign transaction fees, which means you can use it internationally without paying an extra percentage on top of the purchase price. This is useful if you travel outside the United States.