If you shop at Costco, you might assume or have been told that the Costco Visa is the best card to use. However, that card has some serious drawbacks. Notably, the card only earns as much in rewards as many other cards with better benefits and the Costco Visa makes you wait until your February statement cycle to cash your rewards. If you’re a frequent Costco shopper, in most cases, you can earn more rewards and get them faster with other cards.
Here are the card’s we’d recommend using at Costco:
| Card | Rewards at Costco | |
|---|---|---|
 | Venmo Visa | 3% in your eligible top spending category each month. Grocery category includes wholesale clubs. Annual fee: $0 |
 | AAA Daily Advantage Visa Signature® Credit Card Review | 3% at wholesale clubs until you earn $500 in rewards in bonus categories during the calendar year, then 1% Annual fee: $0 |
 | Ink Business Premier® Credit Card Review Welcome Bonus | 2.5% cash back on large purchases of $5,000 or more 2% cash back on other purchases. Annual fee: $195 |
 | TD Double Up℠ Credit Card Review | 2% cash back on purchases. Annual fee: $0 |
 | Wells Fargo Active Cash® Card Review | 2% cash back on purchases. Annual fee: $0 |
 | PNC Cash Unlimited® | 2% cash back on purchases. Annual fee: $0 |
 | U.S. Bank Smartly™ Visa Signature® Card Review | 2% cash back everywhere. Up to 4% cash back on $10k of spending each billing cycle with a 100k+ banking relationship. Annual fee: $0 |
 | Fidelity® Rewards Visa Signature® Credit Card | 2% cash back everywhere when deposited into an eligible Fidelity account. Annual fee: $0 |
 | Costco Anywhere Visa® Card | 5% on gas at Costco until you spend $7,000/year in gas category purchases, then 1%. 2% on all other purchases at Costco and Costco.com. Rewards are earned as an annual certificate, issued in February. Annual fee: $0 |
 | Costco Anywhere Visa® Business Card | 5% on gas at Costco until you spend $7,000/year in gas category purchases, then 1%. 2% on all other purchases at Costco and Costco.com. Rewards are earned as an annual certificate, issued in February. Annual fee: $0 |
 | Bank of America® Customized Cash Rewards credit card | Up to 3% (5.25% with banking relationship) in a category you choose, including online shopping. Annual fee: $0 |
The problem with the Costco Visa: How rewards are issued
I think that the rewards offered on the Costco Visa are fine for a warehouse club. Warehouse club margins are likely very thin, so it probably doesn’t make sense for Costco to offer more than 2% rewards on purchases within Costco. And—credit where it’s due—the Costco Visa does award relatively generous rewards on gas.
My issue withe the Costco Visa is how the rewards are issued. While most cards will let you cash out your rewards at any time, with the Costco Visa, you get an annual rewards certificate. This means you must wait until your February statement to get your rewards. Worse, the certificate is only redeemable at U.S. Costco warehouses. That’s a lot of hoops to jump through, when you can easily earn 2% cash back rewards and redeem instantly for a statement credit online, any time, with a bunch of other cards.
Since Citi is able to issue rewards instantly on its other cards, this seems to be a deliberate choice on Costco’s part. Maybe they get breakage on rewards from card cancellations or people forgetting to redeem their paper certificates? Whatever the reason, it makes the card less attractive for regular Costco purchases than many, many other cards.
More on the best cards to use at Costco
Here’s a bit more on the best cards to use at Costco.
Venmo Credit Card
The Venmo Credit Card can give you an excellent rate of cash-equivalent rewards in useful categories like groceries (including wholesale clubs), gas, ongoing bills, and more. The key to maximizing the card’s rewards is using the card solely for one category.
To get the Venmo Credit card, you must apply for the card through the Venmo app.
Rewards
- 3% cash back on your top eligible spending category
- 2% on the nest category
- 1% everywhere else.
Eligible categories include:
- Travel. (Airlines, hotels, motels, and resorts; plus cabins, cruises, cottages, hostels, and more.)
- Groceries (Convenience stores, bakeries and delis, wholesale clubs, and more.)
- Bills & Utilities (Phone and internet, streaming services, electric, gas, water and more.)
- Dining & Nightlife (Restaurants, carry out, drive-throughs and delivery; plus, bars and liquor stores.)
- Entertainment (Movie theaters, concerts, game stores, books, amusement parks, music stores, and more.)
- Health & Beauty (Drug stores, pharmacies, sports and recreation facilities, and more.)
- Gas (Service stations that sell engine fuel.)
Rewards can be redeemed as a cash credit into your attached Venmo account.
Benefits
The Venmo Credit Card does not offer any substantive benefits that we know about.
Rates and fees
- Annual fee: $0
- Foreign transaction fee: None
AAA Daily Advantage Visa Signature Credit Card
3% cash back at warehouse clubs (plus several other useful categories) makes the AAA Daily Advantage Visa Signature® Credit Card a great pick for Costco. Just be aware of the $500/year cap on bonus rewards.
AAA Daily Advantage Visa Signature® Credit Card welcome offer
Welcome offer: Receive a $100 statement credit after you spend $1,000 on your card in the first 90 days of account opening.
This bonus is awarded as a statement credit.
Annual fee: $0
Rewards
After earning $500 cash back in the following categories in a calendar year, you will earn 1% cash back in these categories for the remainder of the calendar year:
- 5% on grocery store purchases.
- 3% at gas stations.
- 3% at wholesale clubs.
These categories are not subject to reward caps:
- 3% on electric vehicle charging.
- 3% on pharmacy purchases.
- 3% on AAA purchases.
- 1% on other purchases.
Rewards are earned as cash back.
Benefits
The AAA Daily Advantage Visa Signature® Credit Card does not have any benefits of note.
Rates and fees
- Annual fee: $0
- Foreign transaction fee: 0%
Ink Business Premier® Credit Card
If you’re buying in bulk at Costco and making $5,000+ purchases, the [ink_premier] can get you the most uncapped cash back rewards.
Ink Business Premier® Credit Card welcome offer
Welcome offer: Earn $1,000 Bonus Cash Back After you spend $10,000 on purchases in the first 3 months after account opening.
Unlike the other Chase Ink cards, this card’s bonus is earned as points that can only be redeemed for cash back. This card’s points are not transferrable to other cards.
Annual fee: $195
Rewards
- 2.5% on large purchases of $5,000 or more.
- 2% on all other business purchases.
Rewards are earned cash back.
Benefits
Consumer insurance benefits
- Purchase protection.
- Extended warranty protection.
- Cell phone protection.
Travel insurance benefits
- Auto rental collision damage waiver.
- Travel and emergency assistance services.
Rates and Fees
- Annual fee: $195
- Foreign transaction fee: None
TD Double Up℠ Credit Card
Annual fee: $0
Foreign transaction fee: 3%
All information about the TD Double Up℠ credit card has been collected independently by cardsandpoints.com.
The TD Double Up℠ credit card is a great option for a 2% cash back credit card available with no annual fee. Unfortunately, you can only get the card if you live within TD Bank’s U.S. service area.
Sign-up bonus
Best sign-up bonus: Earn $150 Cash Back in the form of a statement credit when you spend $1,000 within the first 90 days after account opening
This bonus is earned as a statement credit.
Rewards
Earn unlimited 2% cash back on all eligible purchases.
Rewards are earned as cash back rewards.
Benefits
Consumer insurance benefits
- Cell phone protection.
- Purchase security.
Travel insurance benefits
- Lost luggage reimbursement.
- Travel and emergency assistance services.
- Roadside dispatch.
- Travel accident insurance.
Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card offers unlimited 2% cash back with no annual fee, with a limited set of benefits that includes cellular telephone protection.
Wells Fargo Active Cash® Card welcome offer
Offer: Earn a $200 cash rewards bonus when you spend $500 in purchases in the first 3 months.
This bonus is earned as additional cash rewards.
Annual fee: $0
Rewards
Earn unlimited 2% cash rewards on purchases.
Rewards are earned as cash back, but can be transferred to an Autograph Journey℠ card, where they become transferrable points.
Benefits
Consumer insurance benefits
- Cellular telephone protection.
$600 of coverage, subject to a $25 deductible
Travel insurance benefits
- Auto Rental Collision Damage Waiver.
Secondary coverage within the U.S. - Travel and Emergency Assistance Services.
- Roadside Dispatch®.
Rates and fees
- Annual fee: $0
- Foreign transaction fee: 3% of each transaction converted to U.S. dollars.$600 of coverage, subject to a $25 deductible
U.S. Bank Smartly™ Visa Signature® Card
The U.S. Bank Smartly™ Visa Signature® Card is a new offering that promises up to 4% cash back for customers who hold over $100,000 of assets with U.S. Bank.
Rewards
Unlimited 2% cash back on every purchase.
Up to an additional 2% cash back if you have a U.S. Bank Smartly® Savings account and hold a significant amount of deposits with U.S. Bank. Qualifying deposits include balances in U.S. Bank deposit, trust, and investment accounts.
- Earn a total of 2.5% with a qualifying balance between $5,000 and $49,999.
- Earn a total of 3% with a qualifying balance between $50,000 and $99,999.
- Earn a total of 4% with a qualifying balance of $100,000 or more.
Rewards are earned as points which must be redeemed as a credit into an eligible U.S. Bank deposit account if you want to get the full amount of cash back.
Benefits
The U.S. Bank Smartly™ Visa Signature® Card does not advertise any significant benefits beyond its cash back.
Rates and fees
Annual fee: $0
Costco Anywhere Visa® Card
Annual fee: annual_fees
Foreign transaction fee: foreign_transaction_fee
All information about the Costco Anywhere Visa® Card by Citi has been collected independently by cardsandpoints.com.
The Costco Anywhere Visa® Card by Citi offers 2% rewards at Costco and Costco.com, plus 5% on gas at Costco and 4% on eligible gas and EV charging, up to $7,000 per year, but it is far from the best card to use at Costco.
Sign-up bonus
Best sign-up bonus: The Costco Anywhere Visa® Card does not currently offer a new cardmember welcome bonus.
Learn how to apply.
When Costco offers a new cardmember bonus, it is usually earned as a statement credit. Be aware that the rewards on this card are granted as a certificate that is issued once a year and must be cashed at a Costco warehouse.
Costco and Citi have occasionally offered a (small) new cardmember bonus on this card. See our coverage of the Costco Visa sign-up bonuses for details.
Rewards
- 5% on gas at Costco and 4% on eligible gas and EV charging for the first combined $7,000 spent per year. 1% thereafter.
- 3% at restaurants.
- 3% on eligible travel, including Costco travel.
- 2% on all other purchases at Costco and Costco.com.
- 1% on other purchases.
Rewards are marketed as cash back, but you will only receive your rewards once a year as a paper rewards certificate.
In your February billing statement, you will receive a reward certificate for your accumulated rewards. This reward certificate is redeemable at U.S. Costco warehouses for cash or merchandise.
Benefits
Consumer insurance benefits
- Purchase protection.
Travel insurance benefits
- Worldwide car rental insurance.
- Travel accident insurance.
- Travel and emergency assistance services.
Costco Anywhere Visa® Business Card
Annual fee: $0
Foreign transaction fee: None.
All information about the Costco Anywhere Visa® Business Card by Citi has been collected independently by cardsandpoints.com.
The Costco Anywhere Visa® Business Card by Citi offers small business owners 2% rewards at Costco and Costco.com, plus 5% on gas at Costco and 4% on other eligible gas and EV charging, up to $7,000 per year. But there are several other cards that offer better rewards at Costco.
Sign-up bonus
Best sign-up bonus: The Costco Anywhere Visa® Business Card does not currently offer a new cardmember welcome bonus. Learn how to apply.
When Costco offers a new cardmember bonus on the Business Visa, it is usually earned as a statement credit. Be aware that the rewards on this card are granted as a certificate that is issued once a year and must be cashed at a Costco warehouse.
Costco and Citi have occasionally offered a (small) new cardmember bonus on this card. See our coverage of the Costco Business Visa sign-up bonuses for details.
Rewards
- 5% on gas at Costco and 4% on eligible gas and EV charging for the first combined $7,000 spent per year. 1% thereafter.
- 3% at restaurants.
- 3% on eligible travel, including Costco travel.
- 2% on all other purchases at Costco and Costco.com.
- 1% on all other purchases.
Rewards are marketed as cash back, but you will only receive your rewards once a year as a paper rewards certificate.
In your February billing statement, you will receive a reward certificate for your accumulated rewards. This reward certificate is redeemable at U.S. Costco warehouses for cash or merchandise.
Benefits
Consumer insurance benefits
- Purchase protection.
Travel insurance benefits
- Worldwide car rental insurance.
- Travel accident insurance.
- Travel and emergency assistance services.
Bank of America® Customized Cash Rewards credit card
The Bank of America® Customized Cash Rewards credit card offers up to 3% cash back rewards in a category you choose—and up to 5.25% cash back if you’re a Preferred Rewards member with Platinum or higher status.
Bank of America® Customized Cash Rewards credit card welcome offer
Welcome offer: Earn 6% cash back for the first year from account opening in your choice category. Plus, get a $200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days of your account opening.
This bonus is earned as cash back rewards.
Annual fee: $0
Rewards
- 3% in the category of your choice.
- 2% at grocery stores and wholesale clubs.
- 1% on all other purchases.
You’ll earn 3% and 2% rewards on the first $2,500 in combined purchases each calendar quarter in the 3% and 2% bonus categories. Earn 1% cash back on these purchases thereafter.
Rewards are earned as cash back. If you have Bank of America Preferred Rewards, you’ll receive additional rewards based on your rewards multiplier of up to 1.75. Your rewards multiplier is based on your relationship with Bank of America and Merrill.
3% choice categories
Choose one of the following categories to earn 3% cash back:
- Gas and EV charging stations.
- Online shopping, including cable, internet, phone plans, and streaming.
- Dining.
- Travel.
- Drug stores and pharmacies.
- Home improvement and furnishings.
You can change your choice category once each calendar month. You’ll earn 3% and 2% rewards on the first $2,500 in combined purchases each calendar quarter in the 3% and 2% bonus categories. Earn 1% cash back on these purchases thereafter.
Benefits
Consumer insurance benefits
- Extended Warranty Protection.
Travel insurance benefits
- Travel and Emergency Assistance Services.
- Roadside Dispatch.
Rates and fees
- Annual fee: $0
- Foreign transaction fee: 3% of the U.S. dollar amount of each transaction
A few more things to know about earning rewards at Costco
Costco Executive Membership rewards and your Costco credit card
If you have an Executive Membership, you’ll earn 2% rewards, up to $1,000 each year, on most purchases at Costco, Costco.com, and Costco Travel. These rewards get issued as a certificate that comes with your membership renewal notice and looks a lot like the reward certificate you receive if you use a Costco credit card.
But it’s important to remember that your credit card rewards and your Executive Membership rewards are separate. You will earn your 2% Executive Membership rewards even if you pay with a non-Costco credit card. That means you can feel free to use another card that offers better rewards or better benefits without losing out on the rewards you earn as an Executive member.
Costco is not a supermarket or grocery store.
If you have a card that earns bonus cash back on groceries or purchases at supermarkets, don’t expect that card to earn elevated rewards at Costco. Credit card transactions are processed with a Merchant Category Code that identifies the type of merchant and charges from Costco will likely be identified as charges made at a warehouse club, rather than a grocery store. Many grocery rewards cards explicitly exclude Costco by name in their reward terms.
More on YouTube: How I use the best cards at Costco to get up to 7.25% total rewards at Costco
Bottom line: The Costco card isn’t the best choice most of the time.
If you’re a Costco member (who buys gas) you should probably have either the Costco Anywhere Visa® Card or Costco Anywhere Visa® Business Card in your wallet. And you should use one of those cards when you’re filling up on gas at Costco.
But if you’re using those cards at Costco online or in-store, you’re likely leaving money on the table. Adding the AAA Daily Advantage or another one of our picks to your wallet is likely to substantially increase the amount of cash back you earn.
