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The best credit cards for Costco shopping: You can do better than the Costco credit card!

The heavily-promoted Costco Anywhere Visa® Card is great for gas and is a decent card for rewards on travel purchases, you might be surprised that other cards earn better rewards at Costco and on Costco.com.

Here are the best cards to use for your Costco purchases in-store and online.

Overview: The best cards to use at Costco

U.S. Bank Altitude® Reserve Visa Infinite® Card card artBest rewards at Costco in-store: U.S. Bank Altitude® Reserve Visa Infinite® Card.
3% cash back or 4.5% travel rewards, purchase protection, extended warranty, $400 annual fee.
Bank of America® Customized Cash Rewards credit card artBest at Costco.com: Bank of America® Customized Cash Rewards credit card.
Up to 2% base cash back at wholesale clubs (including Costco), and up to 3% at Costco.com, extended warranty, no annual fee.
AAA Daily Advantage Visa Signature® Credit Card card artBest no-annual-fee cash back in Costco warehouses: AAA Daily Advantage Visa Signature Credit Card
3% cash back at wholesale clubs (rewards cap applies), no annual fee.
Costco Anywhere Visa® Card by Citi card artBest for Costco gas: Costco Anywhere Visa® Card by Citi.
4% on up to $7,000 of gas each year, then 1%, plus 2% rewards at Costco and Costco.com, no annual fee.
Best for Costco gas for small business owners: Costco Anywhere Visa® Business Card by Citi.
4% on up to $7,000 of gas each year, then 1%, plus 2% rewards at Costco and Costco.com, no annual fee.
Ink Business Premier® Credit Card card artBest for cash back on large purchases for small business: Ink Business Premier® Credit Card
2.5% cash back on purchases of $5,000 or more, 2% on other purchases, extended warranty, $195 annual fee.

How we picked: Our considerations and criteria

Choosing the best card to use at Costco comes down to whether you are using your card online, in a warehouse club, or at Costco Gas, and what types of purchases you are making. Some cards are better for consumables, others are better for durable goods, and others are better for large purchases. Here’s what we considered:

  • Costco only accepts Visa credit cards in stores and at Costco.com doesn’t accept Discover or American Express. We don’t include cards that you can’t use at Costco. Learn more about the payment methods accepted at Costco.
  • Cash back rewards. In most cases, Costco shoppers want cash back rewards. We feature cards that offer at least 2% cash back rewards, since that’s the baseline set by Costco’s branded cards.
  • Extended warranty and purchase protection. Costco’s branded credit cards no longer offer an extra year of extended warranty. That may not matter for groceries, but it certainly matters if you purchase a refrigerator or laptop. For purchases where it matters, we want an extended warranty.
  • Ease of using rewards. The Costco-branded credit cards issue their rewards as a paper certificate once a year that must be cashed in-store at Costco. All other things equal, we’d rather have cash back rewards that we can access at any time.

The best credit cards to use at Costco

Best rewards at Costco in-store: U.S. Bank Altitude® Reserve Visa Infinite® Card.

U.S. Bank Altitude® Reserve Visa Infinite® Card card art
U.S. Bank Altitude® Reserve Visa Infinite® Card

By a wide margin, you’ll get the most rewards in Costco warehouses if you use the U.S. Bank Altitude® Reserve Visa Infinite® Card and pay with a mobile wallet like Apple Pay or Google Pay.

The card earns 3x points, effectively 3% cash back or 4.5% toward travel, when you use it with your phone’s tap-to-pay feature at checkout. If you redeem your points for cash back, that’s 50% more rewards than you’ll get with the Costco credit cards, and if you redeem for travel, you’re getting 2.5 times the rewards you’d get with your Costco card.

Costco’s credit card won’t get you an extra year of warranty, but the Altitude Reserve offers both extended warranty and purchase protection benefits, making it a great choice to use for every Costco purchase in-store.

Learn more about the card in our review of the U.S. Bank Altitude® Reserve Visa Infinite® Card.

U.S. Bank Altitude® Reserve Visa Infinite® Card card art

Annual fee: $400
Foreign transaction fee: None

All information about the U.S. Bank Altitude® Reserve Visa Infinite® card has been collected independently by cardsandpoints.com.

The U.S. Bank Altitude® Reserve Visa Infinite® offers the most rewards at Costco in-store, plus it gives you the extended warranty and purchase protection benefits that Costco stripped from its own store-branded cards several years ago.

Sign-up bonus

Earn 50,000 bonus points worth $750 on travel. Just spend $4,500 in eligible net purchases in the first 90 days. Learn how to apply.

Rewards

  • 5x points on prepaid hotels and car rentals booked directly in the Altitude Rewards Center.
  • 3x points on mobile wallet spending with Apple Pay®, Google Wallet, and Samsung Pay.
  • 3x points on eligible travel purchases.
  • 1x points on all other eligible purchases.

Rewards are earned as Altitude Rewards points.

Altitude Rewards points can be redeemed for cash back at 1 cent per point or used to book travel through the Altitude Rewards center at 1.5 cents per point. You can also redeem your points against travel purchases through Real Time Rewards at 1.5 cents per point.

Benefits

Consumer insurance benefits
  • Extended warranty protection.
  • Purchase security.
  • Return protection.
  • Personal identity theft protection.
Travel insurance benefits
  • Auto rental collision damage waiver.
  • Lost luggage reimbursement.
  • Travel accident insurance.
  • Emergency evacuation and transportation.
  • Trip cancellation/interruption coverage.
  • Trip delay reimbursement.
  • Travel and emergency assistance services.
Travel benefits
  • Airport lounge access. Complimentary Priority Pass™ Select membership with 8 free visits annually.
  • TSA PreCheck or Global Entry statement credit.
Partner benefits and statement credits
  • $325 annual statement credit for eligible travel and dining purchases.
  • Free Shipt membership until 12/31/24 with enrollment. After free membership expires, you are automatically enrolled in an annual Shipt membership at then-current prices until you cancel.

Best at Costco.com: Bank of America® Customized Cash Rewards credit card.

Bank of America® Customized Cash Rewards credit card art
Bank of America® Customized Cash Rewards credit card

If you choose online shopping as your 3% category with the Bank of America® Customized Cash Rewards, you can earn 3% cash back at Costco.com. (And we have the data points to prove it!)

With the Customized Cash, you get a base 2% cash back rewards on warehouse club purchases, including Costco. Plus you’ll get 3% base cash back rewards in the category you choose. If you select online retail purchases as your choice category, that means 3% cash back at Costco.com.

Increased cash back rewards are limited to $2,500 in spending each quarter across the card’s 2% and 3% categories. After you spend $2,500, you’ll earn 1% on subsequent purchases through the end of the quarter.

But you can earn even more with the card if you have Platinum Honors or higher status in the Bank of America Preferred Rewards program. The Preferred Rewards bonus multiplier can turn the card’s rewards at warehouse clubs into 3.5% cash back and the rewards and a whopping 5.25% cash back for your choice category (including online retail purchases.)

Learn more about the Bank of America Preferred Rewards or read our review of the Customized Cash card.

Bank of America® Customized Cash Rewards credit card art

Annual fee: annual_fees
Foreign transaction fee: foreign_transaction_fee

All information about the Bank of America® Customized Cash Rewards Credit Card has been collected independently by cardsandpoints.com.

The Bank of America® Customized Cash Rewards Credit Card can offer up to 3% cash back rewards at Costco.com when you select online shopping as your choice category. And this gets boosted up to 5.25% cash back if you’re a Preferred Rewards member with Platinum or higher status.

Sign-up bonus

bonus_miles_full Learn how to apply.

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.

Best no-annual-fee cash back in Costco warehouses: AAA Daily Advantage Visa Signature Credit Card

AAA Daily Advantage Visa Signature® Credit Card card art
AAA Daily Advantage Visa Signature® Credit Card

Not too many people talk about the AAA Daily Advantage Visa Signature® Credit Card, but it offers better cash back rewards than the Costco Visa on all Costco purchases other than gasoline.

The card earns 3% cash back on purchases made in a bunch of bonus categories, including warehouse clubs, plus 1% cash back on all other purchases. The catch is that the rewards you earn in bonus categories are capped at $500/year. After earning $500 in rewards in the card’s 3% and 5% bonus categories, you’ll earn 1% on all of your purchases for the remainder of the year.

If you use the card only for Costco purchases, you’ll be able to spend about $16,700 during the year before hitting the rewards cap.

We believe that the card comes with an extended warranty, but have been unable to independently confirm this.

AAA Daily Advantage Visa Signature® Credit Card card art

Annual fee: $0
Foreign transaction fee: 0%

All information about the AAA Daily Advantage Visa Signature® Credit Card has been collected independently by cardsandpoints.com.

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.

Welcome offer

Receive a $100 statement credit after you spend $1,000 on your card in the first 90 days of account opening. Learn how to apply.

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

As a Visa Signature® card, the AAA Daily Advantage Visa Signature® Credit Card is likely to include several useful benefits, but we have been unable to independently verify the benefits offered on this card.

Best for Costco gas: Costco Anywhere Visa® Card by Citi

Costco Anywhere Visa® Card by Citi card art
Costco Anywhere Visa® Card by Citi

Somewhat surprisingly, the Costco Anywhere Visa® Card does not offer great rewards at Costco and Costco.com. But it does offer 4% back on up to $7,000 of gas purchases each year, including at Costco.

This makes the card one of the best credit cards for gas purchases. But the card’s rewards come with a catch. Unlike other cards, which generally let you redeem your rewards whenever you want, the rewards you earn on the Costco Anywhere Visa® Card come once a year as a rewards certificate after your February statement closes. And the rewards certificate must be redeemed in-person at Costco.

The hoops you have to jump to redeem your rewards, plus the fact that the Costco Visa doesn’t offer an extended warranty, means that our other picks are better for your non-gas Costco purchases.

Read more in our review of the Costco Anywhere Visa card and learn about what extended warranty benefits you can expect from Costco.

Costco Anywhere Visa® Card by Citi card art

Annual fee: $0
Foreign transaction fee: None

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 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: Earn a $75 statement credit after spending $1,500 within the first 3 months of account opening. Offer valid 10/3/24 – 10/27/24.

Learn how to apply.

This bonus is earned as a statement credit.

Rewards

  • 4% on eligible gas and EV charging for the first $7,000 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.

Best for Costco gas for small business owners: Costco Anywhere Visa® Business Card by Citi

Like its personal card counterpart, the Costco Anywhere Visa® Business Card offers only rewards that match a 2% cash back credit card at Costco and Costco.com. The bright spot in the card’s rewards scheme is that it offers 4% back on up to $7,000 of gas purchases each year, including at Costco.

For small business owners, this is an ideal card for gas purchases. But the card’s rewards come with a catch. Unlike other cards, which generally let you redeem your rewards whenever you want, the rewards you earn on the Costco Anywhere Visa® Card come once a year as a rewards certificate after your February statement closes. And the rewards certificate must be redeemed in-person at Costco.

The hoops you have to jump to redeem your rewards, plus the fact that the Costco Visa doesn’t offer an extended warranty, means that our other picks are better for your non-gas Costco purchases.

Read more in our review of the 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 4% on 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: Earn a $75 statement credit after spending $1,500 within the first 3 months of account opening. Offer valid 10/3/24 – 10/27/24.

Learn how to apply.

This bonus is earned as a statement credit.

Rewards

  • 4% on eligible gas and EV charging for the first $7,000 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.

Best for cash back on large purchases for small business: Ink Business Premier® Credit Card

Ink Business Premier® Credit Card card art
Ink Business Premier® Credit Card

If you’re a small business owner buying in bulk—meaning you’re dropping $5,000 in single transaction—at Costco, then you can get maximum cash back rewards with the Ink Business Premier® Credit Card.

Yes, you could get more rewards in-store with the U.S. Bank Altitude® Reserve Visa Infinite® Card, but you may prefer to put your business transactions on a small business card. Plus, you’ll get the 2.5% rewards on large purchases online where you can’t use your phone’s tap to pay feature.

The card also offers an extended warranty benefit to protect your business purchases.

Learn more in our overview of the Ink Premier® Credit Card.

Ink Business Premier® Credit Card card art

Annual fee: annual_fees
Foreign transaction fee: foreign_transaction_fee

If you’re buying in bulk at Costco and making $5,000+ purchases, the Ink Business Premier® Credit Card can get you the most uncapped cash back rewards.

Sign-up bonus

Best bonus online: bonus_miles_full

Learn how to apply.

This bonus is earned as cash back, not Ultimate Rewards® points like the other Chase Ink cards.

Rewards

  • 5% on Lyft rides through March 2025.
  • 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
Travel insurance benefits

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

Frequently asked questions

Can I use an Amex at Costco?

No. You cannot use an Amex card online or in-store for Costco purchases. In 2016, the partnership between Amex and Costco ended. Today, Citibank issues the Costco cobranded card as a Visa.

Does Costco take Apple Pay?

Yes. Costco accepts Apple Pay in its warehouses and at Costco gas stations. Although Costco lists Apple Pay as an accepted payment method on its website, when we last tested this, we could not check out using Apple Pay at Costco.com or in the Costco app.

Can I use Discover at Costco?

No. Costco does not accept Discover cards for purchases in its warehouses and it stopped taking Discover cards on its website several years ago. We have a separate article on payment methods accepted at Costco.

Does Chase Freedom ever offer 5% at Costco?

The Chase Freedom and Chase Freedom Flex have historically offered wholesale clubs as a 5% rotating category in the past. Check our our article on the Chase Freedom categories for the current categories on these cards.

About the author

  • Photo of Aaron Hurd, credit card and travel rewards expert.

    Aaron Hurd is a credit card, travel rewards, and loyalty program expert. Over the past 15 years, he has authored over a thousand expert contributions published by leading outlets including WSJ, TIME, Newsweek, Forbes, NerdWallet, The Points Guy, Bankrate, CNET, and many others. He has also served in consulting roles for many of these same outlets, designing content strategy, hiring teams of teams of editors and contributors, developing thought-leadership pieces, and ghost-editing for senior editors. Aaron is well-known in the miles and points community and regularly presents about travel rewards at conferences like the Chicago Seminars and Minnebar. Aaron has enjoyed the game of optimizing credit card rewards since getting his first credit card shortly after he turned 18. He started learning about credit cards and travel rewards from the (now defunct) FatWallet Finance forums and FlyerTalk. He holds more than 40 open credit cards and has first-hand experience with almost every major credit card product.

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