What the Costco Visa is and who issues it
The Costco Visa is a credit card issued by Citi (Citibank) that you can use both inside Costco warehouses and anywhere Visa is accepted. It is not a membership card — it is a separate credit card that requires you to hold an active Costco membership to open one. The card earns cash back rewards on Costco purchases and gas, and a lower rate on other spending.
Citi handles the card account, billing, and customer service. Costco handles membership verification and decides which members can hold the card. You explore through Citi's website or in the warehouse, and Citi runs a credit check and makes the approval decision.
Key Takeaways
- You must have an active Costco membership before you can open a Costco Visa, and the card is only available to members in the United States.
- The card earns 2% cash back on Costco purchases and gas, 1% on all other purchases, with no annual fee.
- Cash back is issued as an annual Costco Cash certificate that you can use only at Costco warehouses or Costco.com.
- Citi approves or denies the process based on your credit history, not Costco, so your credit score and report matter.
- You can use the card outside Costco anywhere Visa is accepted, but you earn the higher cash back rate only on Costco and gas purchases.
Cash back rates and how you receive rewards
The Costco Visa earns 2% cash back on all Costco warehouse purchases (including gas at Costco pumps) and 1% cash back on all other purchases made anywhere Visa is accepted. There is no annual fee, no cap on how much cash back you can earn, and no expiration date on the rewards themselves.
Cash back is not deposited to your bank account or credited to your card statement. Instead, Citi issues it once per year as a Costco Cash certificate — a physical or digital voucher that you can spend only at Costco warehouses or on Costco.com. The certificate arrives by mail or email, usually in January, and is valid for one year from the issue date. If you do not use it within that year, it expires.
You cannot convert Costco Cash to a statement credit, transfer it to another member, or use it to pay your card bill. It functions as store credit only.
Membership requirements and how to open an account
You must hold an active Costco membership — Gold Star, Executive, or Gold Star Executive — to open a Costco Visa. If your membership lapses, you can no longer use the card, though Citi will not automatically close it. You are responsible for keeping your membership current.
To open the card, you can explore online through Citi's website, through Costco.com, or in person at a Costco warehouse. You will need your Social Security number, date of birth, current address, and annual income. Citi will pull your credit report and make a decision within minutes to a few days. If approved, the physical card arrives by mail in 7 to 10 business days.
If you are denied, Citi will tell you the reason — usually a low credit score, recent negative marks on your credit report, or too many recent credit inquiries. You can reapply after addressing those issues, but there is no set waiting period.
Using the card inside and outside Costco
Inside Costco warehouses, the Costco Visa is the only credit card accepted. Costco does not accept Visa cards from other banks, Mastercard, American Express, or Discover. If you do not have the Costco Visa, you can pay with debit card, PIN-based Visa debit, cash, or checks. This means if you want to earn cash back on your Costco purchases, the Costco Visa is your only credit card option at the warehouse.
Outside Costco, you can use the card anywhere Visa is accepted — restaurants, gas stations, online retailers, utilities, and other merchants. However, you earn only 1% cash back on these purchases, not the 2% you earn at Costco. The card carries no foreign transaction fees, so you can use it internationally, though the 1% rate still applies.
The card has no spending limits, no rotating categories, and no bonus categories beyond Costco and gas. Every purchase earns either 2% or 1% depending on where you spend.
Annual fees, interest rates, and card terms
There is no annual fee for the Costco Visa. You pay nothing to hold the card, regardless of how much or how little you spend.
The card carries a variable interest rate (APR) that changes based on market conditions and your creditworthiness. Citi does not publish a single rate; your rate depends on your credit score and credit history at the time of approval. You can see your rate in your card agreement or by logging into your Citi account online.
If you carry a balance, you pay interest on that balance at your APR. If you pay your full statement balance by the due date each month, you pay no interest. The card offers no 0% introductory period or balance transfer options.
What happens if your membership ends or you close the card
If your Costco membership expires and you do not renew it, your Costco Visa remains active, but you can no longer use it at Costco warehouses. You can still use it outside Costco, but you lose the 2% cash back on Costco purchases. Many members close the card rather than keep a card that no longer earns the higher rate.
If you close the card, any Costco Cash certificate you have already earned remains valid until its one-year expiration date. You can still use it at the warehouse or online. Citi will close the account and stop charging any fees.
If Citi closes the card due to inactivity or other reasons, you will receive notice by mail. You can reapply once you understand why it was closed.
How the Costco Visa compares to other warehouse credit cards
Costco does not offer a card through any other issuer. The Costco Visa is the only credit card branded with Costco's name and the only card that earns 2% cash back on Costco purchases. If you shop at Costco and want to earn rewards on those purchases, this is the card that does it.
If you shop at Sam's Club, they offer the Sam's Club Mastercard through Synchrony Bank, which earns 5% cash back on gas and 2% on Sam's Club purchases. If you shop at Walmart, they offer the Walmart+ card through Capital One, which earns 2% cash back on Walmart purchases. Each warehouse has its own card with its own issuer and rewards structure.
Outside of warehouse shopping, the Costco Visa's 1% cash back on other purchases is standard for no-annual-fee cards. Many general-purpose cards earn 1.5% or 2% on all purchases, which would be better if you spend more outside Costco than inside it.
Frequently Asked Questions
Can I use the Costco Visa if I do not have a Costco membership?
No. You must have an active Costco membership to open the card, and if your membership lapses, you cannot use the card at Costco warehouses. You can use it outside Costco, but you lose the 2% cash back rate that makes the card valuable.
What if I want to add an authorized user to my Costco Visa?
Citi allows you to add authorized users to your account. The authorized user receives their own card and can make purchases, but all charges go to your account and you are responsible for the full balance. Authorized users also earn cash back at the same rates as the primary cardholder.
Can I use Costco Cash to pay my credit card bill?
No. Costco Cash is store credit only and can be used only to buy items at Costco warehouses or on Costco.com. You cannot use it to pay your Citi card bill or convert it to a statement credit.
What is the credit score I need to be approved for the Costco Visa?
Citi does not publish a minimum credit score. Approval depends on your full credit history, not just your score. Generally, applicants with scores of 650 or higher have better approval odds, but Citi reviews each process individually and may approve or deny based on other factors like income and recent credit inquiries.
Does the Costco Visa work at Costco locations outside the United States?
The Costco Visa is issued only to U.S. residents and works at U.S. Costco warehouses and online at Costco.com. It is not available in Canada, Mexico, Japan, or other countries where Costco operates. Those locations have their own card programs.