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If your mouth waters when you think of Costco’s rotisserie chicken and your pulse quickens when you think of the chain’s bulk deals, you might have considered applying for the Costco Anywhere Visa® Card by Citi.
While the card offers solid rewards for Costco and Costco.com purchases, where it truly shines is its generous cashback rate for gas purchases. It also offers a competitive cashback rate for dining and travel, making it a very well-rounded card.
- Costco Anywhere Visa® Card by Citi pros
- Costco Anywhere Visa® Card by Citi cons
- Compare it with the Bank of America® Cash Rewards credit card
- Is the Costco Anywhere Visa® Card by Citi worth it?
4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases
0% fee for transactions while traveling abroad
$0 annual fee
- Discover one of Citi's best cash back rewards cards designed exclusively for Costco members
- 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter
- 3% cash back on restaurants and eligible travel purchases
- 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
- The standard variable APR for Citi Flex Plan is 15.24%. Citi Flex Plan offers are made available at Citi's discretion.
See additional details for Costco Anywhere Visa® Card by Citi
Costco Anywhere Visa® Card by Citi pros
Generous rewards. Earn 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases. This is one of the best cashback rates for gas that we’ve found, based on our research of cards available through CompareCards, as well as top cards offered by major issuers. Be aware that certain gas purchases are considered non-qualifying purchases and will only earn 1% cash back instead of 4%, according to the card’s terms and conditions — this includes gas purchased at superstores, supermarkets, convenience stores, warehouse clubs other than Costco, and fuel used for non-automobile purchases.
Plus, earning 3% cash back on restaurants and travel purchases is competitive as well.
Travel and purchase benefits, including:
- Worldwide car rental insurance. Decline the rental company’s collision loss/damage insurance and be covered against theft or damage to a rental car when you pay with your card. Coverage in the United States is secondary (meaning it kicks in after your personal auto insurance does), while coverage in other countries is primary.
- Travel and emergency assistance. Services are available 24/7 for situations including emergency travel arrangements, travel issues, medical and legal referrals. The assistance is free, but you must pay for any services you use.
- Roadside assistance dispatch service. Get help sent directly to your location if you have car trouble anywhere in the U.S., Puerto Rico, or the U.S. Virgin Islands.
- Damage and theft purchase protection. Your card covers repairs or a refund if purchases made with your card are damaged or stolen within 120 days of purchase (90 days for New York residents).
- Extended warranty. This benefit extends the manufacturer’s warranty on purchases made with the card.
Additional Costco Anywhere Visa® Card by Citi benefits
No foreign transaction fee. The foreign transaction fee on this card is 0% — so you can use the card outside the U.S. without worrying about having an extra charge tacked onto every transaction you make.
This card serves as your Costco membership ID. When shopping at Costco and carrying this card, you don’t need any additional proof of membership.
Citi Entertainment. Get special access to tickets for events including concerts, sports games, dining experiences and more.
Costco Anywhere Visa® Card by Citi cons
Requires Costco membership. The annual fee for the Costco Anywhere Visa® Card by Citi is $0, but you do need to have a Costco membership to get this card. Membership tiers are as follows:
- Costco Gold Star: $60 annual membership fee.
- Costco Gold Star Executive: $120 annual membership fee.
- Costco Business: $60 annual membership fee.
- Costco Business Executive: $120 annual membership fee.
Spending limit on gas cash back. You’ll only earn 4% cash back on gas for the first $7,000 spent per year, then your rewards rate drops to 1% on gas. Hitting that $7,000 spending limit at the higher rate will net you $280 in cash back.
Rewards are distributed only once a year. Your cashback rewards are only distributed once a year, in the form of a reward certificate, after your February billing statement closes, and must be redeemed in-store. You have until Dec. 31 to use the certificate in a single transaction, either for merchandise or cash back. Rewards will be forfeited if you cancel your credit card or end your Costco membership. Compared with other cards that let you redeem rewards throughout the year, this might be a turn-off to potential cardholders.
Reward usage is limited. You’ll get your cash back as a reward certificate (unless you’ve earned more than $10,000 in a year, in which case Costco and Citi have the option of distributing your rewards in an alternative form such as a check or electronic transfer). Reward certificates can’t be redeemed at Costco.com or Costco Travel. You can redeem a certificate for cash back or merchandise, and if you only use a portion of it toward merchandise, the rest will be dispensed to you as cash. Note that some warehouses might not allow you to redeem your rewards for alcohol purchases, and that you won’t receive a reward certificate if you’ve accrued less than $1 of cash back.
Compare it with the Bank of America® Cash Rewards credit card
Another card that offers strong rewards on gas is the Bank of America® Cash Rewards credit card. Here’s how it compares with the Costco Anywhere Visa® Card by Citi:
Costco Anywhere Visa® Card by Citi vs. Bank of America® Cash Rewards credit card
|Costco Anywhere Visa® Card by Citi||Bank of America® Cash Rewards credit card|
|Rewards||4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases.||3% cash back in the category of your choice, 2% cash back at grocery stores and wholesale clubs for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases, 1% cash back on every purchase.|
|Sign-up bonus||None||$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.|
|Benefits||Worldwide car rental insurance.|
Travel and emergency assistance.
Roadside assistance dispatch service.
Damage and theft purchase protection.
|Preferred Rewards members earn 25% to 75% more cash back on every purchase. At its maximum, that could boost the 3% cashback rate to 5.25% and the 2% to 3.5%.|
|Foreign transaction fee||0%||3%|
|Regular purchase APR||15.24% (variable)||15.49% - 25.49% Variable APR on purchases|
When choosing a card to shop with at Costco, remember that in its warehouses, Costco only accepts Visa cards. Online, Costco accepts Visa, Mastercard and Discover cards, but it doesn’t accept American Express either in its stores or online.
The Bank of America® Cash Rewards credit card is available as both a Visa and a Mastercard, according to a Bank of America customer service representative — so if you want to use it at Costco, make sure to mark on your application that you prefer the Visa-branded version.
The Costco Anywhere Visa® Card by Citi offers a higher rewards rate on gas than the Bank of America® Cash Rewards credit card. However, the latter offers the flexibility to change your 3% cashback category as frequently as every month. Categories you can choose from include:
- Online shopping
- Drug stores
- Home improvement/furnishings
Bank of America defines the gas category in the card’s terms and conditions as “gas and fuel merchants include merchants whose primary line of business is the sale of automotive gasoline that can be purchased inside the service station or at the automated fuel pump and gasoline purchased at boat marinas, as well as fuel dealers whose primary line of business is the sale of heating oil, propane and other fuels, such as kerosene.”
Deciding which card would be better for your wallet depends on your spending habits, and whether gas is consistently one of your biggest budget items or if it changes from month to month. If it remains constant, the Costco Anywhere Visa® Card by Citi is a solid choice; if it fluctuates, the flexibility of the Bank of America® Cash Rewards credit card could better benefit you.
Is the Costco Anywhere Visa® Card by Citi worth it?
If you’re a big spender on gas and already have a Costco membership, this card is a great deal — 4% cash back on gas is hard to beat, and 2% back on your Costco and Costco.com purchases is solid. Plus, if you spend a lot on dining and travel, earning 3% cash back can net you a nice amount of rewards as well. But be warned, you do need to have excellent credit to have a good chance at being approved for the Costco Anywhere Visa® Card by Citi.