The Citi Costco Visa personal and business cards have finally launched. Here is our unbiased review of the cards (remember we don’t use affiliate links on credit cards!)
Contents
Card Basics
Citi isn’t changing the rewards structure on these cards at all from what American Express previously/currently offers. The cards will be as follows:
Personal
- No annual fee (you do need Costco membership though)
- No foreign transaction fee (beginning January 25, 2018)
- 4% on the first $7,000 of gas, 1% thereafter (includes Costco gas stations but excludes superstores, supermarkets, convenience stores, and warehouse club)
- 3% on travel and at US restaurants
- 2% on Costco purchases
- 1% cash back on all other purchases
Business
- No annual fee (you do need Costco membership though)
- No foreign transaction fee (beginning January 25, 2018)
- 4% on the first $7,000 of gas, 1% thereafter (includes Costco gas stations but excludes superstores, supermarkets, convenience stores, and warehouse club)
- 3% on travel and at US restaurants
- 2% on Costco purchases
- 1% on all other purchases
Redeeming Rewards
As far as I know you can only redeem your rewards on an annual basis at Costco, the reward year starts in February and ends after twelve billing cycles.
Is This The Best Card For Costco Purchases?
This card earns 2% back for Costco purchases. At the moment several credit cards are earning at higher rates on warehouse club purchases, but starting next year I expect that to lessen. Of course there are other cards that earn 2%+ cash back on all purchases that might be worth considering. There are multiple other cards that earn at a high rate on gas purchases as well.
Our Verdict
Unless this card comes with a big sign up bonus (and I very much doubt it will) owning this card won’t make any sense what so ever. I have no doubt Citi will get a lot of people signing up for this card due to the strong Costco brand, but in reality you should be giving this card a wide berth.
View Comments (40)
I wouldn't want this credit card now. They don't help me when someone charged my card illegally. One of their staff in the dispute center even told me to give up my money. It is over $17K. I have just a part-time job. I need money to live. I am very sad.
I think for people who are trying to manage their 5/24 status, the business version of this card isn't bad for gas.
Isn't the real benefit of this card that you get an extra two years warranty on most electronics purchased from Costco? This is in addition to the two year warranty provided to all Costco members making it a four year warranty.
Agreed!
Verdict:
"The fact that this card will continue to earn only 1% on Costco purchases is somewhat absurd..."
But isn't it 2% on Costco? I mean, isn't that what you listed several times? It's just 1% on everything else.
They changed the rewards structure so it earns 2x now.
It has been 2% unlimited cash back on the Citi card since launch. You also get another 2% for having an executive membership. If you have both it is 4% on Costco purchases.
Yes, this review was before the card was officially launched.
Does Citi Cards keep track of rewards checks being redeemed?
My 2017 rewards check seems to be lost.
Thanks
Denis
I'm pretty sure they'd work something out if you called them about this issue.
What are the fraud alerts provided by this new Citi card? With AMEX, you get a text and/or email when you make an on line or telephone purchase. Will the new Costco Visa card due the same?
Yes it does.
so what about boa cash rewards card. I have no idea that we can earn 2% CB when shopping Costco. I hope so.
If you have the Costco Citi Visa it is 2% cash back in February every year. If you also have the Costco Executive Membership it is another 2% cash back in February in a separate reward. That makes a total of 4% cash back for purchases from Costco Wearhouse and Costco.com
Does it work for Costco gas too? For most gas bonus cards, Costco codes as warehouse, rather than gas, so you'd lose out on any bonus.
Yes, it works at Costco as well. That is one of the things they advertise with the card is that gas, including Costco Gas is 4%.
Geeze if you want to use a card for gas discounts then use the Sunoco its .15 cents off every gallon of ultra and that right now is about 10% off here in Jersey or .5 off a gallon of regular thats about 4% give or take.
But its forever.
Our cars suggest super or I would get the regular.
There isn't a Sunoco (that I have found) in Southern California. Costco Gas is the least expensive good quality gas around. Arco is about the same price (usually at least a few cents more) but ... I like not repairing my car every few thousand miles. The only difference is not the price.
It's true about the additional cash back from membership not mentioned in the post. I think the membership bonus will come regardless of what Visa card you use to pay. BofA travel rewards Visa pays 1.5 on any purchase redeemable for travel. You could use that at Costco (don't use for gas at Costco), present your Citi Visa first for ID, they'll punch your member # in, then you can opt to pay with any other Visa. At least that's the way it works now with Amex.