Costco Credit Card Cash Back: What You Earn and How It Works

How Costco Credit Card Cash Back Works

Costco sells its store brand credit cards through two partners: Capital One and Citi. The cash back structure depends on which card you carry and whether you shop at Costco warehouses, on Costco.com, or elsewhere. Both programs reward members with a percentage of purchases returned as statement credits, deposits, or checks, but the rates and categories differ enough that the right choice depends on where and how you spend.

Cash back is earned on qualifying purchases, meaning the full purchase amount minus taxes, shipping, and fees when applicable. Most categories apply at the point of sale, and rewards typically post within a billing cycle. Redemption thresholds and options vary by issuer, and rates can change when issuers update their programs, so checking the latest terms on the issuer website remains important.

Current Cash Back Rates by Card

The two main cards for U.S. members have distinct earning structures:

• Costco Anywhere Visa by Citi: 4% on gas and restaurant purchases, 3% on groceries and pharmacy, 2% on travel, and 1% on all other purchases.
• Costco Mastercard by Capital One (U.S. branded): 2% on all purchases at Costco and on Costco.com, 1% on purchases made anywhere else.

Note that the Capital One Costco card replaced the former Citibank Costco card for new Costco memberships in the United States, while the Citi Visa remains an existing card for current holders. Canadian and other international Costco cards operate under separate terms.

Redemption Options and Limits

Redemption rules differ by issuer:

• Citi Costco Visa: Cash back can be redeemed as a statement credit, direct deposit to a bank account, or paper check. There is no annual cap on cash back earnings for this card.
• Capital One Costco Mastercard: Rewards can be redeemed as a statement credit, direct deposit, check, or gift card. Capital One may set redemption thresholds, and rewards do not expire as long as the account remains open.

Always confirm current redemption methods and any caps with the issuing bank, as these details can change with program updates.

Additional Benefits Beyond Cash Back

Cash back is only one part of each card's value. Both cards typically include a secondary purchase protection and return protection feature, which can reimburse eligible purchases that are damaged, stolen, or not accepted for return at the store. The Capital One Costco Mastercard includes a 10% discount on Costco purchases and shipping fees at checkout on Costco.com for cardholders, a benefit not available on the Citi Visa.

Neither card charges an annual fee at the time of writing, which makes the cash back rates and benefits straightforward to evaluate against spending habits. The Citi Visa also offers an introductory APR on purchases for new cardholders, though terms vary and can change.

Which Costco Card Cash Back Is Right for You

The best card depends on your shopping mix. If you spend heavily at Costco warehouses and online, the Capital One Mastercard gives a flat 2% on those purchases with no need to track categories. If you spend on gas, dining, and pharmacy outside of Costco, the Citi Visa earns higher rates in those categories.

Key Considerations Before Applying

Eligibility depends on the issuer's credit requirements. The Capital One Costco Mastercard requires a Costco membership, and approval is based on standard credit review. The Citi Visa is also tied to a Costco membership for the store-branded version, while some Citi Costco cards may be available outside the warehouse channel. Rewards earn rates and benefits described here reflect publicly available information and can be updated by the issuers; confirm current terms before applying.