What the Costco Credit Card Actually Gives You
Costco offers two credit cards: the Costco Anywhere Visa Card (for non-members and members who shop outside Costco) and the Costco Visa Card (for members only). Both cards earn cash back on purchases, but the rewards structure and who can use them differ significantly.
The Costco Visa Card, available only to Costco members, earns 4% cash back on gas at Costco stations, 3% at restaurants and travel, 2% at Costco warehouses, and 1% on all other purchases. The Costco Anywhere Visa Card earns 3% on restaurants and travel, 2% at Costco, and 1% everywhere else. Neither card charges an annual fee, which is unusual for warehouse-branded cards.
Cash back is paid as an annual reward certificate that arrives in your mailbox, not as points you can redeem when ready. This matters if you want to use rewards right away rather than waiting for the year to end.
Key Takeaways
- The Costco Visa Card requires a Costco membership and earns 4% back on Costco gas, 3% on restaurants and travel, 2% at the warehouse, and 1% elsewhere.
- The Costco Anywhere Visa Card works without membership but earns lower rates: 3% on restaurants and travel, 2% at Costco, and 1% on everything else.
- Both cards have no annual fee, but rewards come as a mailed certificate once per year, not as points you can use when ready.
- The card is worth considering if you spend regularly at Costco and use the gas station, but compare the rewards to other cards if you rarely visit the warehouse.
Costco Visa Card vs. Costco Anywhere Visa Card
The main difference is membership. If you hold a Costco membership, the Costco Visa Card gives you higher cash back rates, especially on gas. If you do not have a membership or shop at Costco infrequently, the Costco Anywhere Visa Card lets you earn rewards without paying the membership fee.
The Costco Visa Card's 4% gas reward is its strongest feature — Costco gas is already discounted for members, and the card stacks an additional 4% on top. If you fill up at Costco regularly, this alone can add up to $100 or more per year. The Costco Anywhere card caps gas rewards at 1%, which is why membership holders come out ahead.
Outside of Costco, both cards perform similarly. The 3% on restaurants and travel is competitive with other cash-back cards, though not exceptional. The 1% catch-all rate is standard.
How the Rewards Actually Work
Cash back does not post to your account monthly or quarterly. Instead, Costco calculates your total rewards once per year and mails you a certificate. You then bring that certificate to the warehouse or use it online to shop. If you do not use it within a set time, it expires.
This structure has a real drawback: you cannot use rewards when ready to pay down your balance or cover an emergency purchase. You have to wait for the certificate, then make a separate trip to the warehouse or log into your account to redeem it. Some people find this inconvenient; others see it as a way to avoid spending the rewards impulsively.
The certificate amount depends on your annual spending. Someone who spends $10,000 per year might receive a $150 to $200 certificate, depending on where those purchases fall across the different reward tiers.
Annual Fee and Other Costs
Neither Costco card charges an annual fee. This is a genuine advantage over many premium cash-back cards, which charge $95 to $550 per year. However, the Costco Visa Card requires a Costco membership, which costs $60 per year for a Gold Star membership or $120 for an Executive membership. The Executive membership includes a 2% reward on all Costco purchases, which can offset the higher membership fee if you spend enough.
There are no foreign transaction fees on either card, which is useful if you travel internationally. There is no sign-up bonus, so you do not get extra cash back for opening the card.
Who Should Get This Card
The Costco Visa Card makes sense if you are already a member and spend regularly at the warehouse. The 4% gas reward is the card's strongest case — if you fill up at Costco twice a month, you could earn $80 to $150 per year just on gas. Add in the 2% warehouse purchases and 3% on restaurants, and the rewards can easily exceed $200 to $300 annually for a typical household.
The card is less compelling if you rarely visit Costco or do most of your shopping elsewhere. A general cash-back card like the Chase Freedom Unlimited (which earns 1.5% on everything with no annual fee) or the Capital One SavorOne (which earns 3% on restaurants and entertainment) may serve you better.
The Costco Anywhere card is worth considering only if you want to shop at Costco occasionally without committing to a membership. The 2% warehouse reward is decent, but you lose the 4% gas benefit and the higher restaurant rate, so the total rewards are lower.
how the process works and What Happens Next
You can explore for either card on Costco's website or in the warehouse. The process takes a few minutes and asks for your name, address, income, and Social Security number. Costco runs a hard credit inquiry, which temporarily lowers your credit score by a few points.
Approval usually comes within minutes for applicants with good credit. If you are approved, you receive a temporary card number when ready that you can use online, and a physical card arrives in the mail within 7 to 10 business days. If you are denied, Costco will tell you why and you can reapply after addressing the issue (such as building credit or lowering existing debt).
Once you have the card, you can use it anywhere Visa is accepted, not just at Costco. This is important: you earn the higher rewards rates only at Costco, restaurants, travel, and gas stations. Everywhere else, you earn just 1%.
Comparing to Other Warehouse and Grocery Cards
Sam's Club offers the Sam's Club Mastercard, which earns 5% on gas (at Sam's Club), 3% on restaurants and travel, and 1% elsewhere — similar structure to Costco but with a higher gas rate. However, Sam's Club membership is also required, and the card is less widely accepted outside the warehouse.
For grocery shopping specifically, the Chase Freedom Flex earns 5% on groceries for the first year (then 1%), and the Amex Blue Cash Preferred earns 3% on groceries indefinitely. Neither requires a warehouse membership, but neither offers the same gas rewards as Costco.
If you shop at multiple stores and want a single card, a flat-rate cash-back card like the Chase Freedom Unlimited (1.5% everywhere) or the Citi Double Cash (2% everywhere) may be simpler, even if they earn less at Costco specifically.
Frequently Asked Questions
Can I use the Costco card if I do not have a membership?
Only with the Costco Anywhere Visa Card. The regular Costco Visa Card requires an active membership. If you want the higher rewards rates, you need to pay for membership.
What happens if I do not use my rewards certificate before it expires?
The certificate expires if unused within a set period (typically one year from issue). You lose the cash back. Check your certificate for the exact expiration date and plan to use it before then.
Does the card work outside the United States?
Yes, both cards are Visa cards and work internationally. There are no foreign transaction fees, so you can use the card abroad without extra charges. However, you only earn the higher rewards rates at Costco locations, restaurants, and travel purchases — not at other foreign merchants.
How does the Costco card affect my credit score?
The process triggers a hard inquiry, which may lower your score by a few points temporarily. Once approved, the card itself helps your score by adding to your available credit and giving you a new account with on-time payments. Carrying a balance and paying interest does not help your score — pay in full each month.
Is the Executive membership worth it if I get the card?
The Executive membership costs $60 more per year than Gold Star but includes a 2% reward on all Costco purchases. If you spend more than $3,000 per year at the warehouse, the 2% reward alone can cover the extra cost. Add in the card's rewards and the math often works out, but calculate your own spending first.