Costco Credit Card Review: A Strong Choice for Gas, Travel and Costco Spending

Costco Credit Card Benefits

For those who already have a Costco membership or are looking to get one, the Costco Visa Card by Citi is a simple way to earn cash back.

High Cash Back on Gas and EV Charging

One of the biggest Costco Visa perks is its high gas rewards rate. Cardholders can earn 5% cash back on gas at Costco, and 4% cash back on other eligible gas and EV charging purchases. You’ll earn these rates on up to $7,000 in combined category spending per year; after that, you’ll earn 1%.

While you may have to wait a little longer to fill up at Costco than at other gas stations, the 5% cash back is worth it. And if you aren’t close to a Costco or don’t want to wait if it’s busy, the card still gets you 4% cash back on other eligible gas purchases, up to spending limits.

This is the number one reason I use and carry the Costco Card beyond our in-store purchases: it’s hard to beat earning up to 5% cash back on gas.

Bonus Cash Back on Costco, Travel and Dining Purchases

For those who already have a Costco membership or are looking to get one, the Costco Visa is a simple way to earn cash back. The card earns 2% cash back on in-store and online purchases at Costco.com. It’s an easy way to earn more money on the things you already stock up on.

In addition, the card earns 3% cash back at restaurants and on eligible travel purchases, including Costco Travel.

Doubles as a Membership Card

Costco members know that in order to enter a Costco warehouse store, you must present your Costco membership card. The nice thing about the Costco Visa is that it doubles as your membership card, so you can just flash the back of your card as you enter. As a Costco member and credit card holder, I find it quite convenient to carry only one card to Costco.

No Annual Fee or Foreign Transaction Fees

The Costco Visa is a no-annual-fee credit card, but you will need an active Costco membership to qualify.

It’s also a decent card for international travel, because it doesn’t charge foreign transaction fees. Many no-annual-fee cards tack on up to 3% in foreign transaction fees when you make purchases abroad, so if you travel overseas often, this card could save you money.

Travel and Purchase Coverage

The Costco Visa comes with a modest range of travel and purchase protections, including:

• Car rental insurance (secondary in the U.S.)
• Worldwide travel accident insurance
• Roadside dispatch
• Purchase protection against damage and theft
• Travel and emergency assistance services

Costco Credit Card Drawbacks

No Welcome Bonus

Many of the best cash-back credit cards offer a welcome bonus after you spend a certain amount in the first few months of account opening. The Costco Visa doesn’t come with a welcome offer, putting it at a disadvantage compared to similar cards.

High Gas Earning Rates Are Capped

The Costco Visa caps its 5% cash back on Costco gas and 4% back on other gas and EV charging to a combined $7,000 in purchases per year. After you reach the limit, you’ll earn just 1% back.

For average consumers, the spending cap might not be an issue, but if you’re a heavy commuter or road warrior, this could be limiting.

Rewards Aren’t Flexible

One major downside of the Costco Visa’s cash back is that it comes as a physical certificate in February of each year, which must be redeemed in-store. This requires you to open your mail, keep the certificate, and remember to bring it with you to redeem your cash back.

This can sometimes be a deterrent for people who want the ease of earning that is automatically entered into their bank or credit card account. There are times I’ve gone to Costco hoping to use my rewards certificate, only to realize I’d left it at home and have to remember to bring it the next time I shop.

If you’re looking for more flexibility in redeeming cash back, you may want to look for a different credit card.

Rewards Expire

Unfortunately, the Costco reward certificate received in February does expire on Dec. 31 of the year it was issued. While this may not be an issue for most, those who tend to lose track of things or don’t frequent Costco stores frequently may have trouble using their rewards in time.

Who Is the Costco Anywhere Visa Credit Card Best For?

The Costco Anywhere Visa Card by Citi is perfect for Costco lovers who are frequent online or in-person shoppers and who also love filling their gas tanks at Costco gas stations. It’s an easy way to earn more cash back on purchases in both of these areas. Those who like to dine out or travel (or both!) can also earn 3% in either category.

Those who aren’t frequent Costco shoppers can rest easy knowing it has no annual fee, so even occasional purchases in-store or online can still be worth it. It’s also important to note that the elevated earnings at gas stations aren’t limited to Costco.

Finally, those who want to book travel, either independently or through Costco.com, will be happy to know they earn 3% cash back on eligible travel purchases. Even outside of gas, dining, and travel, the Costco Visa earns 1% cash back on all other purchases.

Is It the Right Card for You?

The Citi Costco Visa Card may be right for you if:

• You are a Costco member or planning to become one
• You like the idea of earning bonus cash back on your in-store or Costco.com purchases
• You’d like to earn up to 5% cash back on gas or EV charging expenditures
• You don’t want to pay an annual fee
• You plan to use the card for travel purchases

Alternatives to the Costco Citi Card

For those who like the idea of the Costco Visa but aren’t Costco members and don’t plan to become one, these other Citi credit cards could be a better fit:

• Citi Double Cash® Card: The Citi Double Cash Card, an advertising partner, earns 1% back on purchases and 1% back on payments, for a total of 2% cash back (earned as Citi ThankYou® points). This 2% cash back credit card comes with a respectable welcome bonus: Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
• Citi Strata℠ Card: For those who love to travel, the Citi Strata, an advertising partner, offers 5x points on hotels, car rentals and attractions booked through Citi Travel, 3x points at supermarkets and on select transit, gas, and EV charging stations, 3x points on an eligible “self-select category” you choose, 2x points at restaurants, and 1x points on other spending. It also offers a welcome bonus: Earn 20,000 bonus Points after spending $1,000 in the first 3 months of account opening.