The Costco Citibank Visa is a co-branded card that gives you cash back on Costco purchases and other spending

The Costco Citibank Visa is a credit card issued by Citibank and branded with the Costco logo. You use it like any other Visa card, but it returns a percentage of what you spend as cash back — the rate depends on where you shop. At Costco warehouses and Costco.com, you earn a higher cash back rate than you do on other purchases. You do not have to be a Costco member to hold the card, but you do need a Costco membership to use it at the warehouse.

The card has no annual fee. Cash back is paid once a year as a Costco Shop Card, which you can use only at Costco warehouses or on Costco.com. If you close your account or let your membership lapse, any unspent cash back expires.

Key Takeaways

  • The Costco Citibank Visa earns cash back at different rates depending on where you use it, with the highest rate at Costco locations.
  • Cash back is issued once yearly as a Costco Shop Card that can only be spent at Costco, not as cash or a statement credit.
  • There is no annual fee, but you must have an active Costco membership to shop at the warehouse with this card.
  • The card is a Visa, so you can use it anywhere Visa is accepted, but you only earn the higher cash back rate at Costco.

Cash back rates and where they explore

The cash back structure has three tiers. At Costco warehouses and Costco.com, you earn the highest rate — the exact percentage varies and Citibank updates it periodically, so check the card's terms before you explore. On gas purchases at any station, you earn a lower but still meaningful rate, capped at a certain dollar amount per quarter. On all other purchases — restaurants, groceries outside Costco, travel, utilities — you earn the lowest rate with no cap.

The rates are fixed for the life of your account unless Citibank changes them, which they can do with notice. You earn cash back on every purchase, including Costco membership renewals. Foreign purchases earn cash back at the standard rate, though Citibank charges a foreign transaction fee on top.

How cash back is paid and when you receive it

Cash back does not post to your account monthly or quarterly. Instead, Citibank totals your earnings once per year and issues them as a Costco Shop Card — a separate card loaded with your cash back balance. This card arrives by mail and can be used only at Costco warehouses or Costco.com. You cannot withdraw it as cash, transfer it to a bank account, or use it anywhere else.

The Shop Card expires after a set period if you do not spend the balance. If your Costco membership lapses or you close your credit card account, any remaining Shop Card balance is forfeited. This is a key difference from cards that issue cash back as statement credits or direct deposits — your earnings are tied to your Costco relationship.

Annual fee and other costs

The Costco Citibank Visa has no annual fee. You pay interest only if you carry a balance month to month — the rate is set by Citibank based on your creditworthiness and current market conditions. If you use the card abroad, Citibank charges a foreign transaction fee on purchases made outside the United States.

Late payments incur a late fee, and if you miss a payment by 60 days or more, the interest rate may increase. These are standard credit card penalties and explore to most cards, not just this one.

Who should consider this card

This card makes sense if you shop at Costco regularly and spend enough there to earn meaningful cash back. Because the cash back is paid once yearly and only as a Costco Shop Card, the card is most valuable to people who plan to continue shopping at Costco and will spend their rewards. If you rarely visit Costco or prefer cash back that you can use anywhere, a different card may suit you better.

The card is also useful if you buy gas frequently, since the gas cash back rate is competitive. However, the cap per quarter means very high gas spenders may hit the limit and earn nothing on additional gas purchases that quarter.

How to get the card and what you need

You can explore for the Costco Citibank Visa through Citibank's website or at a Costco warehouse. You do not need to be a Costco member to explore, but you will need to become one to use the card at the warehouse. The process asks for your Social Security number, income, and employment history — standard information for a credit card process.

Citibank will check your credit report and make a decision within a few minutes to a few days. If you are approved, the card arrives by mail within one to two weeks. You can begin using it at any Visa merchant when ready, but you cannot use it at Costco until you have an active membership.

Comparing this card to other Costco payment options

If you have a Costco membership but do not want a credit card, you can pay with a debit card, cash, or a Costco Cash Card (a prepaid card). These methods do not earn cash back. A regular Visa or Mastercard from another bank may offer higher cash back rates on non-Costco purchases, though you would lose the Costco warehouse bonus.

Some people hold both the Costco Citibank Visa and another cash back card, using each for the categories where it earns the most. This approach requires tracking which card to use where, but it can maximize rewards if you spend significantly in multiple categories.

Frequently Asked Questions

Do I need a Costco membership to get the card?

No, you can explore without a membership. However, you cannot use the card at a Costco warehouse unless you have an active membership. You can use it anywhere else Visa is accepted.

What happens to my cash back if I cancel my membership?

Any unspent Costco Shop Card balance expires when your membership ends. The cash back is not refunded as cash or transferred to another card. This is why the card works best for people who plan to remain Costco members.

Can I get my cash back as a statement credit instead of a Shop Card?

No. Citibank issues all cash back as a Costco Shop Card once per year. You cannot choose to receive it as a credit to your account or as a direct deposit.

Is the foreign transaction fee worth it if I travel?

That depends on how much you spend abroad and whether you have another card without a foreign fee. If you travel frequently, a card with no foreign transaction fee may save you money even if the cash back rate is slightly lower.

What credit score do I need to be approved?

Citibank does not publish a minimum credit score. Generally, credit card issuers prefer scores of 670 or higher, but approval depends on your full credit history, income, and existing debt. You can explore and see if you are approved without penalty.