Posted by William Charles on January 22, 2016
Credit Card Review

Published on January 22nd, 2016 | by William Charles

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New Citi Costco Visa Personal & Business Card Reviews

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!)

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.



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acersx
acersx

Isn’t 4% the best year-round rate on gas? Are there any other cards that currently offer this rate? Also, do you have any additional information on the exclusions? Don’t most gas stations have an attached convenience store?

“4% on the first $7,000 of gas, 1% thereafter (includes Costco gas stations but excludes superstores, supermarkets, convenience stores, and warehouse club)”

y
y

Yes, there are several cards that are 5% cashback on gas

XP1
XP1

No, 4% is not the best. 5% is the gold standard.

acersx
acersx

Sure, 5% as a quarterly category bonus, but where can you get 5% everyday year-round?

XP1
acersx
acersx

Thanks!

Steven
Steven

Chase Ink has 5% at gas stations all the time.

Bob Lani
Bob Lani

Not all the time, only once a quarter. started jan 1 2016 ended march 31st 2016, same goes for discover card

RF
RF

“Isn’t 4% the best year-round rate on gas”

penfed visa is a “5%” card, but realistically it’s about 4.25% when you cash it in for gift cards (including visa prepaid debit card).

Dan
Dan

Or the Citi DoubleCash is another great 2% card. People seem to always forget about that one. I prefer it over the Fidelity card because you don’t need to have a Fidelity account.

Sean
Sean

I think the only problem is Citi DoubleCash is a Mastercard, which cannot be used in Costco.

Bort
Bort

The DoubleCash is a Mastercard, though.Sounds like Costco will only accept Visa.

XP1
XP1

There is nothing wrong with having a Fidelity account. Not a big deal.

Ryan
Ryan

If I currently have the Amex Costco card how do I opt out of receiving the Citi card automatically? Do I need to close an account and does that hurt my credit?

anthonyjh21
anthonyjh21

I need to find out about this as well. Unless the age of account transfers I have zero interest in obtaining a card that’ll never be used, even if there isn’t a hard pull (but still adds to # of cc I avg age of accounts).

kraja
kraja

costco accepts only visa. doublecash is a amastercard afaik

Bellevuemike
Bellevuemike

There’s some confusion here.

Costco gives you back a percentage of all your Costco purchases dependent on your membership. This happens annually and it comes in the form of a Costco certificate to be redeemed in store for merchandise or cash.

The Amex Costco credit card gives a percentage back in the form of cash earned monthly that can be used at any time. This is in addition to Costco’s earned percentage back that you get once per year.

I fully expect the Citi Visa to earn the 1% to be used at any time in the form of cash back.

The only advantage to having the card (aside from all the issues, both positive and negative for some around having a Citi Visa), and for me it’s worth it, is that the credit card acts as your membership card. Meaning that I don’t have to carry TWO cards in an already George Costanza exploding wallet. I do about $2K at Costco per year. Giving up another 1% of that per year in order to have a less annoying wallet is worth it. Of course, it’s a matter of time before there’s no plastic…………

Issaquahjoel
Issaquahjoel

You are cutting your cash back in half going from 2% to 1%.

John
John

You are incorrect on the gas rate being worse than others. You can’t compare it to other cards as most gas cards exclude warehouse gas. 3% is probably the best you can get for warehouse gas.

A better analysis would be compare earning 3%/1% at Costco or a straight 2% with another Visa card. I mainly buy gas there so I am leaning towards the Costco visa.

I think the 4% sounds really good and now I need to get a Costco business membership.

aaron
aaron

With this new Costco card earning 1% back on Costco purchases, combined with an executive membership which earns 2% back, you’re effectively earning 3% back on all Costco purchases (and 4% on gas).

Kent C
Kent C

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.

Carlos
Carlos

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.

Trevor
Trevor

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.

aaron
aaron

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.

Trevor
Trevor

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%.

trackback

[…] or Mid-Summer. Costco originally planned to start accepting only Visa cards on April 1st and the Citi co-branded cards to launch officially on the same date. It looks like this extension is due to the complicated nature of the switch between Citi & […]

trackback

[…] or Mid-Summer. Costco originally planned to start accepting only Visa cards on April 1st and the Citi co-branded cards to launch officially on the same date. It looks like this extension is due to the complicated nature of the switch between Citi & […]

Tianpox
Tianpox

so what about boa cash rewards card. I have no idea that we can earn 2% CB when shopping Costco. I hope so.

Trevor
Trevor

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

Tom
Tom

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?

Denis Wagner
Denis Wagner

Does Citi Cards keep track of rewards checks being redeemed?
My 2017 rewards check seems to be lost.
Thanks
Denis

Chuck

I’m pretty sure they’d work something out if you called them about this issue.

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