The credit cards I typically review focus on earning airline miles, hotel points, or transferable points like Chase Ultimate Rewards, Citi ThankYou Points, or AMEX Membership Rewards. However, there’s another category worth exploring—cash back cards.
For many people, Costco has become a go-to for groceries, supplies, and more. Warehouse clubs like Costco usually don’t code as “grocery” for bonus categories on most cards, making the Costco Anywhere Visa® Card by Citi a compelling option for frequent Costco shoppers.
This card stands out in the cash back card market, offering up to 5% back in certain categories—more than the usual 1.5% to 2% most cards provide. Let’s break down what makes this card worth considering.
Costco Anywhere Visa® Card by Citi
Annual Fee
- No annual fee if you have a Costco membership. Costco memberships start at $65 per year (plus tax) for a Gold Star membership.
Spending Bonus Categories
The Costco Anywhere Visa offers competitive cash back rates:
- 5% cash back on gas at Costco, and 4% cash back on other eligible gas and EV charging worldwide, on the first $7,000 in combined purchases per year, then 1% thereafter.
- 3% cash back on restaurants and eligible travel purchases worldwide.
- 2% cash back on all purchases from Costco and Costco.com.
- 1% cash back on all other purchases.
Why this card stands out:
- The cash back on gas applies to Costco Gas, which is excluded from many other credit card bonus categories.
- The travel category generally includes things like airfare, hotels, car rentals, cruise lines, and Costco Travel. However, some purchases may not qualify, depending on how the merchant codes the transaction. If your definition of “travel” is broader, consider a card like the AMEX Green Card, which has a wider travel category.
Rewards Redemption Process
The card’s cash back system works a bit differently:
- Rewards are issued annually as a credit card reward certificate after your February billing cycle.
- The certificate can be redeemed for cash or merchandise at any U.S. Costco location, including Puerto Rico.
- Important deadline: The reward certificate must be redeemed in person by December 31 of the year it’s issued, or it expires.
If you’re a frequent Costco shopper, this system aligns well with regular visits. For those who shop at Costco only occasionally, the once-a-year redemption might be less convenient.
No Foreign Transaction Fees
The Costco Anywhere Visa has no foreign transaction fees, making it an excellent choice for international purchases. You can take full advantage of the 3% cash back on dining and travel globally without worrying about extra charges—a rare benefit for a card with no annual fee.
Additional Considerations
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- Sign-Up Bonus: Unlike many rewards cards, the Costco Anywhere Visa doesn’t offer a sign-up bonus. This card is for long-term savings rather than an upfront perk.
- Comparing it to a points card: The Costco Anywhere Visa earns 3% cash back on dining, which is simple and predictable. A card like the Chase Sapphire Preferred earns 3x Chase Ultimate Rewards points on dining. Those points can be worth more than 3% back if you redeem them well (especially via travel partners), but the Preferred has a $95 annual fee. If you want straightforward value with no annual fee beyond your Costco membership, the Costco card is the easy choice—if you want transferable points and are willing to pay a modest fee, the Preferred is a cleaner comparison than a premium card.
Final Thoughts
If Costco is a regular part of your shopping routine, the Costco Anywhere Visa® Card by Citi is one of the best cash back options available. With strong bonus categories, no annual fee (with membership), and no foreign transaction fees, it’s a standout choice for gas, dining, and Costco purchases.
However, the card’s rewards redemption process, requiring an in-person visit to Costco, may be inconvenient for occasional shoppers. Make sure the card fits your spending habits and redemption preferences.
Thanks to Mary B. for the heads up about the perks of having the Costco Anywhere Visa card.
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