Exclusively for Costco members, the Costco Visa card offers the opportunity to earn cash-back rewards with every purchase. Offered by Citigroup, there are two options available: a personal credit card or a business credit card.
There is no annual fee associated with this line of credit with a paid Costco membership.
What Are the Benefits of the Costco Visa Card?
Citi offers the Costco Visa card with a competitive APR, potential introductory offers, and low fee structures. The standard variable APR is currently 16.24%, while the APR for cash advances is currently 22.99%. There is a foreign purchase fee of 3% of the total amount purchased.
These other benefits also apply to every card holder:
- Use it as your membership identification. When you have the Costco Visa card, you can use it as your membership ID for entry.
- Earn cash back rewards. All purchases earn rewards when you use the Costco Visa, with an emphasis on earning more cash back when making a purchase at a Costco-branded location.
- It is accepted anywhere Visa is accepted. A new Costco Visa can be used for purchases anywhere in the world, as long as the merchant accepts Visa-branded cards.
Some new account holders may qualify for a 0% APR on all purchases for up to 7 months from the opening of their account. If this introductory offer is applied, the standard APR would apply to purchases after the introductory period on all balances remaining and any new purchases made.
When you do earn rewards with this credit card opportunity, they will accumulate over the course of a year. Citi will issue a credit card reward certificate in February of each year to reflect earnings from the last annual cycle. That certificate must be redeemed prior to its expiration date to be valid.
The certificate is good for Costco Cash Rewards, which means the cash back opportunity must be used at a Costco location which will accept it. It can be redeemed for merchandise or for cash.
How Much Cash Back Can I Earn with the Costco Visa Card?
Citi and Costco have come together to create a tiered program of cash back rewards that will help customers maximize their spending power while shopping at their local warehouse and other company branded services like Costco Travel and Costco Tire Center locations.
The best cash back rewards with the Costco Visa card involve fuel. You will earn 4% cash back on eligible fuel around the world, including gasoline purchased at Costco locations. The 4% reward applies to the first $7,000 in fuel purchased over the annual period. A 1% cash back reward applies thereafter.
These additional cash back rewards are also available with this credit card opportunity.
- 3% cash back can be earned on eligible travel purchases and for restaurant purchases.
- 2% cash back can be earned on all other purchases from Costco or their website.
- 1% cash back is earned on all other purchases.
Some location-based purchases are considered a “non-qualifying purchases.” Fuel purchased from a grocery store or convenience store, for example, earns 1% cash back instead of 4%. Bakeries and café locations inside department stores earn 1% cash back instead of 3%.
Citi determines what the reward will be based on the merchant classification code that is assigned to the location. If you’re unsure of what your reward level will be for a purchase, ask the merchant for their classification and then contact Citi to determine if it qualifies.
Key Points to Know About the Costco Visa Rewards Card
- If the line of credit is closed for any reason, then any rewards earned are considered forfeit.
- A penalty APR of 29.99% applies to this account if a payment is returned or a late-payment is made.
- The Costco Cash Rewards have no cash value until they are redeemed at a warehouse.
- Rewards of less than $1 will not be issued.
- Certain transactions do not qualify as a purchase, including lottery tickets, gaming chips, balance transfers, cash advances, and account fees.
This information applies to the Costco Business Visa Signature card and the personal Costco Visa card.
Costco and Citi have teamed together to provide a competitive cash back rewards program. Although there are several structural tiers, all purchases earn at least 1% back in rewards. Some purchases qualify for up to 4% back. Purchases from Costco earn 2% cash back, so it is a good option for customers who primarily shop at their local warehouse.
For more information or to apply, first be sure to have your Costco membership number available. You can then call 1-800-970-3019 or visit this site to complete the process: https://www.costco.com/credit-card.html