Costco Anywhere Visa Card: 6 Things You Need to Know

The Costco Anywhere Visa Card by Citi is obviously made with the namesake retailer’s premium membership in mind, but its benefits extend far beyond your local Costco warehouse. There are impressive cashback opportunities, no annual fee, and lots of other valuable perks. It's a card that can add some real value to your day-to-day purchases.

In this review, we will take a closer look at five Costco credit card benefits and some of its drawbacks to give you a better understanding of whether this is the right plastic to carry in your wallet.

Rewards Program: Maximizing Everyday Purchases

One of the more notable Costco visa benefits is its competitive rewards structure. Gas purchases, including but not limited to Costco gas stations worldwide, will give you a 4% cashback. That makes the card particularly appealing to commuters and road trippers who stand to make as much as $280 a year in cashback just on gas purchases alone, provided the total gas spending stays under $7,000 annually. Once you hit that limit, the cashback rate drops to 1%, which is still a benefit many credit cards don't offer.

The card also has 3% cash back on restaurant and travel-related purchases. This bonus is probably what makes the offer so popular.

Sure enough, you’ll also receive 2% cashback on all purchases made at Costco or through Costco.com. While that may not seem as high as some of the other categories on this card, it can add up very fast for those who make a habit of shopping at Costco, especially if you're purchasing in bulk or high-dollar items like appliances and electronic gear.

Every other purchase falls into the generic 1% cash back category, thus still providing cardholders an opportunity to earn on a wide array of spendings.

The Membership Requirement: Who is Eligible?

The Costco Anywhere Visa Card is available only to current Costco members. While the actual Costco credit card annual fee is zero, one does need to have a Costco membership to keep the account open. The basic Costco membership runs $65 a year, while those who upgrade to an Executive Membership, which offers access to premium perks like 2% rewards on most Costco purchases, have to pay $130 annually. This may be a drawback for people who do not frequent Costco enough to justify membership.

However, if you are a Costco member anyway, you get all the Costco Anywhere Visa benefits for basically free. Besides, if you shop often enough at the store, the cashback can make up for the membership cost.

Rewards Redemption: When and How You Get Your Costco Credit Card Cash Back

While most credit cards allow you to redeem cashback after reaching a certain threshold, Costco Anywhere Visa does things a little differently. Cashback rewards are redeemed once a year in the form of a certificate, which cardholders receive once their February billing statement closes. This certificate can only be used at Costco locations for merchandise or cash.

The annual redemption policy may be a serious limitation for some cardholders, especially compared to cards with monthly or on-demand cashback redemptions. Still, it can work for the users who don’t mind waiting for a large end-of-the-year reward. One popular strategy is to make major purchases at Costco right after you get your certificate, so you can use the cashback to help offset the cost.

If the total amount of cashback is higher than $10,000, Citi and Costco may use alternative methods of distributing your award (an e-transfer or a check), which is provided at their discretion.

Travel Benefits of Costco Credit Card

Besides a classic cashback feature, Costco Anywhere Visa Card has varied travel perks that can make it an outstanding companion to have on the go. Perhaps the most important benefit that cardholders could receive while traveling abroad is no foreign transaction fee, and the Costco card offers just that. Most credit cards charge 1-3% on purchases in foreign currencies, but with the Costco Visa, you won't pay this surcharge when using the card abroad. Also, the card offers travel accident and car rental insurance so you can enjoy your travels without having to worry about potential accidents.

Security: Safeguarding Your Card

The Costco credit card protects your financial information from potential breaches, just like any other. The card’s most important security tool is Citi Quick Lock, which allows you to lock your card instantly in the event of loss or theft. This way, no unauthorized transactions could take place while you are searching for your card or waiting for a replacement. Quick Lock is easily accessible through Citibank's online account center or via the mobile app.

In addition to the Citi Quick Lock, the card offers purchase protection for eligible purchases made with it. In the event that such a purchased item is either damaged or stolen, coverage may be available for as long as 120 days (90 days for New York residents). This feature adds some security to your high-value purchases, which is always a plus.

Potential Downsides: What to Watch Out For

Despite all the Costco Anywhere Visa rewards we’ve discussed, it’s not a card for everyone. Some might dislike redeeming cash back just once a year. If you want flexibility in how you can redeem your bonuses, this card isn't for you. In addition, since this card requires an active Costco membership, it is next to useless for those who do not shop very frequently at this provider.

Another factor is the limit on gas rewards. While 4% cashback on gas sounds brilliant, it's limited to the first $7,000 spent each calendar year. After that, all gas purchases will have only 1% cashback, which is considerably lower than most other gas-specific cards available today.

If you’d like to learn more about other credit cards you’re eligible for, we’ve gathered some articles for you here.

Conclusion

The Costco Anywhere Visa Card is one of the finest options for maximizing rewards on everyday purchases for the retailer’s premium members. It offers extensive and relatively high cash back, and some added travel benefits, making it one of the most versatile and rewarding company-specific options out there. At the same time, there is no such thing as a perfect credit card, and some drawbacks — like the annual rewards redemption process — are also there. Ultimately, if you are an avid shopper at Costco, this card will definitely allow you to save a lot.