Few retailers inspire such strong customer loyalty as Costco.
But is it smart for Costco members to sign up for the Costco Anywhere Visa® Card by Citi to maximize their savings? After all, store credit cards are not always the best option because they can have less-than-stellar terms and rewards.
Here are five important things to know about the Costco Anywhere Visa Card's benefits and drawbacks to help you decide whether it is right for you.
The Costco Anywhere Visa® Card by Citi is a valuable card to pair with a Costco membership, but the rewards program is more restrictive than what you get with a typical cash-back card.
- High rewards rates for gas/EV charging and travel
- No foreign transaction fees
- Restrictive rewards that you can only cash out once per year
- Requires a paid Costco membership
- No welcome bonus
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Discover one of Citi's best cash back rewards cards designed exclusively for Costco members
- Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
- 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel.
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
- No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
Balance transfer fee
5% of each balance transfer; $5 minimum
Foreign transaction fee
None
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It has multiple rewards categories
Store credit cards typically don't rank among the best credit cards, but the Costco Anywhere Visa Card is an exception for certain purchases.
The Costco Anywhere Visa earns the following on eligible purchases:
- 5% cash back on gas at Costco
- 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter
- 3% cash back on restaurants and eligible travel purchases, including Costco Travel
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
Unfortunately, the card doesn't currently offer a welcome bonus, so you can't earn a big chunk of rewards upfront.
Costco purchases don't earn the highest cash-back rate
Though this card is co-branded with Costco, purchases at Costco and Costco.com only earn 2% cash back.
While this may seem rather low, if you frequently shop at Costco for groceries, it can still help you maximize your savings. Many cards that offer bonus rewards for grocery shopping exclude warehouse clubs like Costco. Also, keep in mind that Costco only accepts credit cards issued by Visa for in-store purchases, so you can't use American Express, Mastercard or Discover credit cards.
The Costco Anywhere Visa Card is still a good option for Costco purchases with 2% cash back. However, other cards offer the same return at Costco and have more flexible rewards. The Wells Fargo Active Cash® Card is a no-annual-fee Visa card that offers 2% cash rewards on all eligible purchases.
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.
- High, unlimited flat-rate return on purchases
- Intro APR on purchases and qualifying balance transfers
- Lower introductory balance transfer fee
- Up to $600 of cell phone protection against damage or theft (subject to a $25 deductible)
- Charges a 3% foreign transaction fee
- Balance transfer fee increases to 5% of each transfer (minimum $5) after 120 days
- Limited redemption options unless you pair it with a Wells Fargo card that allows point transfers
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $100 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.74%, 24.74%, or 28.74% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don't expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Balance Transfer Fee
3% intro for 120 days from account opening, then up to 5%, min: $5
Foreign Transaction Fee
3%
You can only collect rewards once a year
The cash back you earn with the Costco Anywhere Visa Card is provided via an annual reward certificate once your February billing statement closes. To redeem the certificate for a check or merchandise, you have to head to a Costco location in the U.S. or Puerto Rico. That may come as an unexpected surprise if you didn't read the fine print, as most other credit cards allow you to redeem rewards online, typically within one billing cycle of earning them.
You have to be a Costco member
While the card itself has no annual fee, cardholders must have a Costco membership, which starts at $65 a year for Gold Star and Business levels, then doubles in price to $130 a year for an Executive membership.
If you're already a Costco member, this isn't really an added cost. But if you're considering this card and already have a membership with BJ's or Sam's Club, you may think twice about adding the cost of another warehouse club membership.
Don't forget, with an Executive membership, you earn 2% back on eligible Costco and Costco.com purchases. The extra rewards stack with what you earn with the Costco Anywhere Visa, so you can accumulate up to 4% back at Costco and Costco.com and 5% back on Costco Travel bookings.
The card offers helpful perks for travelers
Aside from the solid 3% return on travel purchases, travelers can benefit from the other perks, including travel and emergency assistance, roadside assistance and worldwide car rental insurance.
Additionally, there are no foreign transaction fees, so purchases made outside the U.S. won't incur the typical 3% charge. This can add up to substantial savings if you regularly travel abroad.
For more details on the card's benefits and perks, see our review of the Costco Anywhere Visa Card.
Pros and cons of the Costco Anywhere Visa card
- No annual fee: There's no yearly charge for holding the card.
- Excellent return on gas and EV charging purchases: The card earns high cash-back rates on gas purchased from Costco but also standard gas and EV charging stations
- Costco membership required to apply: You need to be a Costco member to apply and be approved for the card.
- Restrictive rewards: You'll receive an annual reward certificate once your February billing statement closes each year.
FAQs
Is the Costco Anywhere Visa Card hard to get?
In addition to requiring a Costco membership, you'll typically need an excellent credit score to qualify for the Costco Anywhere Visa. An excellent FICO Score is 740 or higher, so this card can be harder to get if you have a weaker credit score.
Can a Costco Anywhere Visa Card be used anywhere?
Yes, as the name suggests, the Costco Anywhere Visa can be used anywhere Visa cards are accepted. However, it earns Costco rewards, which can only be redeemed through Costco.
What cards does Costco not accept?
The only credit cards Costco accepts for in-store purchases are Visa cards. You can't use credit cards that operate on other payment networks, such as Mastercard, Discover or Amex. However, for online purchases at Costco.com, you can use Visa or Mastercard credit cards. Costco also accepts most PIN-based debit cards.
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