Americans love to shop at Costco. The retailer offers plenty of ways to save, and the samples aren’t too bad either. Beyond the savings, savvy credit card users know they can get more value with the right rewards credit card. Choosing the best credit card for Costco matters. The wholesale club only accepts Visa in-store, and Executive members can stack rebates with rewards, but the store doesn’t qualify for the bonus grocery category. Read on to learn the best card to use at Costco, how to pair rebates with rewards, and strategies to reap more out of your membership.
Our top picks for the best credit card for Costco
Citi is a CardRatings advertiser.
➤ SEE MORE:Best credit cards for wholesale clubs
What makes Costco different from other retailers
Costco differs from other retailers because it accepts only certain credit cards. If your wallet is full of cards, you may be disappointed to learn you can’t use them all to pay.
Costco only accepts Visa credit cards
Visa is the only credit card members can use in-store and at Costco gas stations. If you have a favorite rewards card that runs on Mastercard, Discover, or American Express, you can’t use it.
If you shop on Costco.com, Mastercard is an option, though. However, if you plan to shop mostly in-store or buy gas, focus on Visa-issued cards to earn rewards.
Costco purchases don’t code as groceries
It’s common for rewards cards to offer elevated bonus rates on grocery purchases. However, because issuing banks treat wholesale clubs separately from standard grocery stores or supermarkets, these purchases typically won’t trigger those higher grocery bonus rates.
As a result, warehouse purchases usually earn at the card’s standard default rate (such as 1% cash back or 1 point per dollar spent). Even with cards that feature rotating quarterly bonus categories, purchases will still earn at the base rate unless the issuer explicitly names wholesale clubs as an active qualifying category for that quarter.
Costco Executive membership stacks with card rewards
If you opt for the $130 Executive membership, you earn an annual 2% rebate on qualifying purchases, up to $1,250. Costco pays the rebate via check, and you can use it in-store to make purchases.
Despite the added cost of the upgrade, it lets you pair rebates with credit card rewards. If you have a Visa card that pays 3x points on Costco purchases, for example, you can effectively earn 5% on Costco purchases.
Costco Anywhere Visa® Card by Citi— the co-branded option
The Costco Anywhere Visa® Card by Citi is worth considering if you’re a Costco fan. It’s a co-branded credit card that offers some attractive features.
How the rewards structure works
If you want one credit card for Costco and everyday purchases, the Costco Anywhere Visa® is compelling. Its earnings include:
- 5% on gas at Costco
- 4% on qualifying gas and EV charging
- 3% at restaurants and eligible travel
- 2% on all other Costco purchases, both in-store and online
- 1% on all other purchases
There’s no annual fee, but Costco membership is required. You can combine it with an Executive membership to earn more.
The 5% rewards on gas make this card one of the strongest choices for people who want to earn on gas purchases. The 2% back on most other purchases is nice, too, but other cards may be as good, if not better, for Costco purchases.
The redemption catch
Despite the Costco Anywhere card’s noteworthy rewards structure, it has one significant drawback. The card pays out cash back rewards annually, in the first quarter, as a rewards certificate.
You can use the certificate for in-store purchases or redeem it for cash. If you cancel your membership before the rewards are paid out for the year, you forfeit them.
If you love Costco, don’t foresee canceling your membership, and don’t mind a one-time payout each year, this may not matter. But if you want monthly payouts and no strings attached to your rewards, the card may not be worth it.
Who this card is right for
If you primarily fill up your car at Costco, the Costco Anywhere card may be the best credit card for Costco gas. Someone spending $200 per month can expect to earn $120 in annual rewards from gas purchases. That doesn’t include what you might earn from other spending categories.
Costco shoppers who value simplicity may also find the card appealing. It performs relatively well across various categories. If you want to optimize all your spending for rewards, you may have better options. That’s not to mention the limitations of the rewards payout.
Visa credit cards that can earn more than the Costco card
Although the Costco Anywhere Visa® is a strong offering, it’s not always the best credit card for Costco purchases. Other cards can offer better earnings.
When a 2% flat-rate card wins on general warehouse spend
If you don’t purchase Costco gas, a 2% flat-rate card can be a stronger choice. They don’t require category tracking, and you’ll likely receive rewards monthly.
The Capital One Venture Rewards Credit Card and Wells Fargo Active Cash® Card are two such options. Capital One offers an unlimited 2x miles on all purchases, and Wells Fargo features unlimited 2% cash back; you can earn either on purchases outside of Costco.
When Bank of America® Customized Cash Rewards wins
Bank of America® Customized Cash Rewards credit card is a strong choice for Costco shoppers because wholesale clubs are explicitly included in its 2% cash back category, earning elevated rewards up to $2,500 in combined quarterly purchases across that category, grocery stores, and your chosen 3% category (then 1%). Additionally, members enrolled in the BofA Rewards™ program can boost these earnings by 10% to 75% depending on their tier, raising the potential cash back at Costco to as much as 3.5%. The card also offers flexibility for Costco online purchases, as setting your 3% choice category to online shopping can yield higher rewards on qualifying Costco.com orders.
When Chase Sapphire Preferred® wins
Chase users may view the Chase Sapphire Preferred® Card as a compelling Visa option for Costco purchases. While warehouse purchases earn at the card’s standard base rate of 1x point per dollar spent, the true value comes from how those Ultimate Rewards® points can be redeemed. By transferring points to 1:1 travel partners such as airlines and hotel loyalty programs, points can yield significantly higher value per point, elevating your effective return on Costco warehouse spend closer to (or above) fixed cash-back alternatives.
Beyond warehouse checkout, the card aligns well with other typical Costco spending habits. Cardholders earn elevated points on gas and EV charging, travel bookings, and dining, while also benefiting from built-in travel protections — such as trip delay insurance and primary auto rental collision damage coverage — that aren’t standard on typical cash-back cards. For shoppers who prioritize flexible travel redemptions over flat cash-back certificates, the Sapphire Preferred® offers a way to turn everyday warehouse runs into travel rewards.
The two-card play
Identifying the best credit card to use at Costco isn’t always about using a single card. Using two cards together can create more value. Pairing the Costco Anywhere card with a card like Chase Sapphire Preferred® or Bank of America® Customized Cash Rewards lets you earn more on Costco Gas purchases without sacrificing flexibility to earn more for travel redemptions or cash back.
Ultimately, your strategy depends on the types of Costco purchases you make.
How to maximize your rewards on Costco purchases
Intentionality matters when you’re trying to earn more rewards on your spending. A few simple tips can help you get more value from both your Costco purchases and everyday needs.
Stack Executive membership rebate with card rewards
The $130 membership cost provides 2% back on qualifying purchases, for a maximum rebate of $1,250 annually. Combined with a 3% card, that’s 5% back on Costco spending, which is worth it for families spending over $6,500 annually at Costco.
Consider households spending $10,000 annually at Costco. They earn $200 from the Executive rebate plus $300 from a 3% cashback card, netting them $500 total.
Use the Costco card at Costco Gas — and a different card everywhere else
The co-branded card is the strongest choice for people who spend a lot on Costco gas and EV charging. You can earn 5% and 4%, respectively, on a combined $7,000 in annual spending.
There’s no need to use the card anywhere else. You can pair it with a card that pays more on purchases to get more out of your spending.
Pay attention to how Costco.com purchases are coded
The Citi co-branded card pays elevated rewards on Costco.com purchases. An overlooked strategy is that certain online purchases may code under broader online retail bonus categories rather than strictly as wholesale club spend.
This presents an opportunity to earn higher rewards by using specialized online shopping credit cards. While merchant coding can vary depending on the item and checkout method, testing a small purchase first is a great way to see if your card triggers a higher category bonus.
Book travel through Costco Travel with the right card
The co-branded earnings on Costco Travel are favorable at 3%, but using the Chase Sapphire Preferred® Card is the best credit card for Costco travel. It pays 5x on Chase Travel℠ bookings and 2x on other travel.
Thanks to transfer partners, you can often earn more with Chase Sapphire Preferred®. It also offers travel protections that the Costco Anywhere card doesn’t.
Frequently asked questions
Uncovering the best credit cards for Costco takes some work. These are questions readers have when searching for top choices.
