Both families and small businesses can benefit from Costco memberships that go well beyond the annual fee. Currently, the ability to receive a large number of items at once and save them at the same time is especially appreciated. Costco Warehouse Club is unique in that it does not accept all types of credit cards. Costco does not accept MasterCard or American Express in-store. So if you want to use a credit card, it has to be Visa.
Costco has partnered with Citibank to offer Citi*’s Costco Anywhere Visa® Card. The Citi Costco Credit Card gives you specific benefits on Costco services and products. So if you spend a lot of time or money at your local Costco, this card might be for you.
At first glance
- 4% cash back on the first $7,000 per year on qualifying gas, 1% cash back on subsequent purchases, 3% cash back on dining and qualifying travel purchases, 2% cash back on all other Costco and Costco.com purchases, and all other purchases1 % other purchases
- Use your Costco Anywhere Visa Card as your Costco Member ID
- No annual fee for Costco paid membership
- Rewards are paid annually and can be redeemed for cash or merchandise at Costco U.S. locations.
Costco members can use Citi’s Costco Anywhere Visa Card to earn 4% cash back on eligible gas, the first $7,000 per year, then 1%, 3% cash back on restaurant and eligible travel purchases, and 2% on all other items Cash Back 1% cash back on all purchases at Costco and Costco.com and all other purchases. Citi and Costco define an eligible gas station as a gas station, and Visa classifies it as a gas station. The Rewards Program terms and conditions state: “Certain ineligible purchases. You will only receive 1% cash back on gas purchased at supermarkets, convenience stores and warehouse clubs other than Costco, or fuel for non-automotive purposes, Instead of 4%.” If you go to a Visa-classified gas station as a convenience store, you only get 1% cash back.
The Costco card offers more dining expenses and cash back on eligible travel. Types of travel purchases that earn extra cash back include airline tickets, rental cars, cruises, Costco Travel purchases, hotels and travel agents. Earn only 1% on all travel purchases that do not qualify for additional cash back, such as timeshares, campgrounds, B&Bs, trains, and other commuter transportation. The same concept applies to restaurants; you only make 1% at bakeries, restaurants, and cafes in department stores, grocery stores, and other warehouse clubs.
Get 2% off your purchases at Costco and Costco.com with your Citi Costco Visa Card. The card will earn 1% cash back on all other purchases that do not fall into one of the above categories.
A major downside to Costco Anywhere Visa is the hassle required to redeem rewards. After your February statement, you have until December 31 to redeem the previous year’s Cash Rewards earnings. For example, if you earned your cashback in 2021, you can redeem it between March 2022 and December 2022.
Your earnings will be sent to you as a voucher that you can redeem at your local Costco warehouse. If you cancel your Costco membership, the card will be automatically cancelled. This means you will lose your cash back rewards, so keep this in mind before considering canceling your Costco membership or Costco visa.
To determine the potential of the Citi Costco Anywhere Visa Card Cash Rewards, we need to look at the bonus categories and calculate how much U.S. households are likely to spend in those areas. Eragoncred uses data from various government agencies to determine basic income and average spending for each category. 70% of wage-earning households bring in $100,172 per year, and our payout is based on that number.
Estimates that our sample home spends $2,687 on gas, so the annual cash outlay is $107.48. The $7,591 the family spends on travel and dining will convert to $227.73 in cash back, the $2,456 Costco members spend on annual Costco purchases will convert to $49.12, and the remaining $13,676, which can be reasonably withdrawn from a credit card, will receive $136.76 USD cash back. That means the Citi Costco Anywhere Visa Card will earn a total of $521.09 in cash back per year.
More card benefits
The card offers basic Visa benefits, including:
ID Navigator Identity Theft Protection: Sign up for this free service from Norton LifeLock and get credit monitoring and support if your identity is at risk.
Cardholder Reference Service: If you have any questions about your account, you can contact a Visa representative 24/7.
Lost or Stolen Card Assistance: You can report your lost or stolen card 24 hours a day, 7 days a week. If necessary, Visa will work with you and your card issuing bank to suspend your lost account, reissue a new card, and/or arrange for emergency redemption.
- Regular APR: 16.74% variable
- Purchase introductory APR: Not applicable
- Introduction to Balance Transfer APR: N/A
- Annual fee: $0
- Balance transfer fee: 5% of each balance transfer; minimum $5.
- Cash Advances: 5% of each cash advance; minimum $10
- Foreign purchase transaction fee: none.
How the cards are stacked
Citi* Costco Anywhere Visa® Card and other Warehouse Club Cards
My BJ’s Perks® Mastercard®* offers higher yields, 5% cash back on Perks Elite, 3% cash back on Perks Plus, dining out on most In-Club and BJs.com purchases Get 2% cash back on gas with non-BJs, and 1% cash back everywhere else. However, BJ’s gets a $0.10 rebate per gallon of gas. At the elite level, cardholders get the same gas price and the same cash back on non-BJ gas.
Sam’s Club® Mastercard® cardholders receive .
Even online department stores like Amazon and their Amazon Prime Rewards Visa Signature Card* offer a little more perks than Costco Anywhere Visa, like 5% bonus cash back at Amazon.com and Whole Foods Market, plus eligible Prime Membership, get 2% cash back at restaurants, gas stations and drugstores, and 1% on all other purchases.
Costco Anywhere Visa® Card by Citi* and Citi® Double Cash Card
The Citi® Double Cash Card offers cardholders 2% cash back on all purchases – 1% on purchases and an additional 1% on withdrawals – regardless of purchase category. Plus, the cash back is unlimited. The only missing feature is that Costco enthusiasts don’t realize the potential rewards of using the card for them as Costco customers. For one thing, Citi Double Cash is a Mastercard, while Costco only accepts Visa.
Citi*’s Costco Anywhere Visa® Card and Bank of America® Custom Cash Rewards Credit Card
Then there’s the Bank of America® Customized Cash Rewards Credit Card, which offers 3% cash back in eligible categories of your choice and 2% cash back at grocery stores and wholesale clubs (in select categories/grocery/wholesale clubs) Consolidated quarterly purchases up to $2,500). ) and unlimited 1% discount on all other purchases. If there is no spending limit, the Cash Rewards Card will win that game. On the surface, the Citi Costco Anywhere Visa credit card may be the better option for most households because it has fewer restrictions in fewer spending categories.
Is this card right for you?
The Costco Anywhere Visa Card is ideal for loyal and long-term Costco members. It offers the highest cash back rate on Costco gas and also offers competitive cash back rates on in-store and online purchases.
The main downside is that your rewards are only redeemed once a year. Most people will benefit from withdrawing their income as soon as possible so that it can be used. You also lose these rewards if you close your card or cancel your Costco membership before the annual rewards certificate is issued.
The second downside is that the card isn’t for commuters, as it doesn’t offer a reward category for transportation-related services that aren’t purchased at the gas station. So if you want extra rewards on trains, ferries, and buses, a Costco credit card might not be the best choice. Pay attention to where you actually shop so you can see if you can get the most rewards in categories other than Costco purchases.
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