The Quick Version
- Costco warehouses and gas pumps accept only Visa credit cards, so most rewards cards are off the table before you compare a single rate.
- The Costco Anywhere Visa Card by Citi fits that rule, has no annual fee for members, and earns its best rates on gas, restaurants, and travel — not on the warehouse cart itself.
- In-warehouse purchases earn just 2%, which a plain flat-rate 2% Visa matches, and rewards arrive once a year as a certificate you redeem at a Costco warehouse.
- Heavy Costco shoppers often do best carrying both: the Costco card for its bonus categories and a 2% card for warehouse goods and everyday spending.
If you shop at Costco and want a card that pays you back, the practical answer is the Costco Anywhere Visa Card by Citi — but the reason has as much to do with what Costco won’t accept as with what the card earns. Costco takes only Visa credit cards in its warehouses and at its gas pumps, which rules out most rewards cards before you compare a single rate. The Costco Anywhere Visa fits that rule, carries no annual fee for members, and earns its strongest rates on the things Costco shoppers actually buy: gas, restaurants, and travel. This guide covers what it earns, where it falls short, and when pairing it with a flat-rate card earns you more.
Costco Only Takes Visa
Before comparing rewards, understand the constraint that shapes every choice here: inside a Costco warehouse and at a Costco gas pump, the only credit cards accepted are Visa. Mastercard, American Express, and Discover are not accepted in-store. Costco.com is the exception — it also takes Mastercard online — but for the bulk of spending that happens in the warehouse and at the pump, a non-Visa rewards card simply will not run.
That single rule narrows the field. A cash-back Mastercard or an Amex with strong everyday rates is irrelevant at the register, no matter how good it looks on paper. So the real question is not "what is the best cash-back card?" but "what is the best Visa to carry for Costco?"
What the Costco Anywhere Visa Earns
The Costco Anywhere Visa Card by Citi is built around that question. It earns 5% cash back on gas bought at Costco and 4% on other eligible gas and EV charging, on the first $7,000 of combined gas spending each year, then 1% after that. It also earns 3% on restaurants and eligible travel, 2% on purchases from Costco and Costco.com, and 1% on everything else.
| Category | Cash Back | Notes |
|---|---|---|
| Gas at Costco | 5% | Combined $7,000/yr gas cap, then 1% |
| Other gas and EV charging | 4% | Counts toward the same $7,000 cap |
| Restaurants and eligible travel | 3% | Includes Costco Travel |
| Costco and Costco.com purchases | 2% | The warehouse cart itself |
| Everything else | 1% | Anywhere Visa is accepted |
There is no annual fee, though you need an active Costco membership to hold the card. Since you are already paying for the membership to shop there, the card itself adds no cost.
The Catch: 2% In-Warehouse and a Once-a-Year Payout
Two details matter before you treat this as a pure rewards win.
First, your in-warehouse Costco purchases — the groceries, bulk goods, and household items that make up most Costco trips — earn 2%, not a headline rate. That is fine, but it is not exceptional; several no-annual-fee cards match or beat 2% on general spending. The card’s standout rates are reserved for gas, dining, and travel, not the warehouse run itself.
Second, you do not get cash back as a running statement credit. Citi issues your rewards once a year as a certificate in your February billing statement, which you redeem for cash or merchandise at a U.S. Costco warehouse, and it expires on December 31 of the year it is issued. If you rarely set foot in a warehouse between statements, or you close the account mid-year, that structure can cost you rewards you have already earned.
When a Flat-Rate Visa Earns More
Because in-warehouse purchases earn only 2%, a flat-rate 2% Visa earns the same on your Costco grocery run — and 2% everywhere else, versus the Costco card’s 1% on non-bonus spending. If most of your Costco spending is warehouse merchandise and you don’t buy much gas there, a simple 2% Visa can be the better single card.
The Costco card pulls ahead when you buy gas at Costco, eat out, or travel. At 5% on Costco gas and 3% on restaurants and travel, it beats a flat 2% card by a wide margin in those categories. The strongest setup for heavy Costco shoppers is often both cards: the Costco Anywhere Visa for gas, dining, and travel, and a flat-rate card for the warehouse cart and everyday spending outside Costco. Our guide to building a two-card combo covers how to split spending between cards without overcomplicating it.
A Year of Costco Spending, Costed Out
Take a household that spends $3,000 a year on gas at Costco, $4,000 on restaurants and travel, and $6,000 on warehouse groceries and goods. On the Costco Anywhere Visa, that works out to:
| Spending | Amount | Rate | Cash Back |
|---|---|---|---|
| Gas at Costco | $3,000 | 5% | $150 |
| Restaurants and travel | $4,000 | 3% | $120 |
| Warehouse purchases | $6,000 | 2% | $120 |
| Total | $13,000 | — | $390 |
That is $390 a year in rewards with no annual fee. Run the same $6,000 of warehouse spending on a flat 2% card and you still earn $120 there — identical — but you would give up the $150 and $120 the Costco card earns on gas and dining unless you carried both. The gap is almost entirely in the bonus categories, which is exactly why the gas rate is the card’s best argument. Keep the $7,000 combined annual gas cap in mind: spend past it and the rate drops to 1%, so very high fuel spenders see the 5% and 4% rates only up to that ceiling.
Picking the Right Card for How You Shop
Start with how you actually use Costco. If you fuel up at Costco pumps, eat out, or book travel, the Costco Anywhere Visa earns rates a general card can’t match, and it costs nothing beyond the membership you already pay for. If your Costco spending is mostly warehouse merchandise and you fill up elsewhere, a flat-rate 2% Visa is simpler and just as rewarding on those purchases. Many regular shoppers land on carrying both. For more on squeezing the most from the cards you already hold, see how to maximize credit card rewards across categories. Whichever route you pick, confirm the current rates and terms on the issuer’s site before applying, since card details change.
Frequently Asked Questions
Yes. The card is available only to Costco members with an active membership, and you need your membership ID to apply. The card’s value is also tied to the warehouse: the best rates and the once-a-year reward redemption both assume you are shopping at Costco.
Yes. Costco accepts any Visa credit card in its warehouses and at its gas pumps, not just the Costco-branded one. Mastercard, American Express, and Discover are not accepted in-store, though Costco.com also takes Mastercard online. So you can carry a different Visa for Costco if its rewards suit you better.
Citi issues your rewards once a year as a certificate in your February billing statement. You redeem it for cash or merchandise at a U.S. Costco warehouse, and it expires on December 31 of that year. There is no monthly statement credit, so plan a warehouse visit to cash it in before it expires.
It depends on the category. It earns 3% on restaurants and eligible travel and 4% on most gas, which is competitive wherever those purchases happen. But it earns only 1% on general spending that isn’t gas, dining, travel, or Costco, so a flat-rate 2% card is the better everyday option for non-bonus purchases.