Costco Credit Card Benefits For Groceries

Last Updated on December 13, 2025 by Amrita Das

We’ve all stood in that checkout line, watching the total climb higher than expected. With food prices fluctuating and household budgets tightening, finding ways to claw back some value from your weekly grocery run has never been more important. For the millions of loyal shoppers who treat Costco as their primary pantry, the question isn’t just about bulk buying—it’s about how you pay for those bulk items.

Enter the Costco Anywhere Visa® Card by Citi. It’s often touted as a must-have accessory for the serious wholesale club member, promising to turn that towering cart of produce, proteins, and paper goods into cash back. But does it actually deliver when it comes to groceries? Or are you better off with a generic rewards card?

The answer lies in how you define “grocery shopping.” If your food strategy revolves around the warehouse floor, this card offers a compelling way to compound your savings. However, if you split your time between Costco and traditional supermarkets, the math gets a little more complicated.

This guide explores the nuts and bolts of the Costco Anywhere Visa®, specifically through the lens of a grocery shopper. We will break down the reward tiers, the redemption quirks, and the hidden benefits that could make—or break—the value for your household.

Table of Contents

The Core Grocery Benefit: Earning Inside the Warehouse

When analyzing this card for groceries, the most critical number to understand is 2%. That is the cash back rate for all purchases made at Costco and Costco.com.

2% Cash Back on Costco Purchases

Every time you swipe the card at the warehouse register, you earn 2% back on your total. This applies to almost everything in your cart: fresh produce, the famous rotisserie chickens, bakery items, frozen goods, and even household staples like detergent and vitamins.

While 2% might sound modest compared to some cards offering rotating 5% categories, its strength lies in consistency. There are no caps on how much you can earn in this category. Whether you are buying a gallon of milk or furnishing a new patio, the 2% rate remains constant.

For a family spending $500 a month on Costco groceries, that adds up to $120 back annually—effectively covering the cost of a basic Gold Star membership ($65) with money left over.

The “Double Dip” Strategy

The real magic happens when you pair this credit card with a Costco Executive Membership. The Executive level, which costs $130 annually, offers its own 2% reward on qualified Costco purchases.

Because these are two separate reward streams, they stack. When you pay for your Executive Membership purchases with the Costco Anywhere Visa® Card, you are effectively earning 4% back on your groceries.

2% from the Executive Membership
2% from the Credit Card
Total: 4% savings

This combined rate rivals some of the best premium grocery credit cards on the market, but with a catch: it is exclusive to the Costco ecosystem. If you are already committed to the warehouse lifestyle, this stacking effect is the single strongest argument for getting the card.

The “Other” Grocery Store Dilemma

Here is where the card requires a strategic pause. While it shines brightly inside the warehouse, its luster fades the moment you step into a Kroger, Safeway, or Whole Foods.

The Costco Anywhere Visa® earns just 1% cash back on all other purchases. This category includes traditional supermarkets, convenience stores, and independent grocers.

If you are the type of shopper who buys bulk items at Costco but relies on a local supermarket for fresh ingredients midweek, using this card for those trips leaves money on the table. Many no-fee cash back cards offer a flat 1.5% or 2% on all purchases, and specialized grocery cards can offer anywhere from 3% to 6% at U.S. supermarkets.

Therefore, this card should be viewed as a “Costco-only” grocery tool. To truly maximize your returns, you might need a two-card wallet strategy: the Costco card for warehouse runs and gas, and a different card for your local supermarket runs.

Fueling the Grocery Run: The Gas Perk

You can’t buy groceries if you can’t get to the store. For many families, the weekly Costco trip involves a bit of a drive, which brings us to the card’s most aggressive benefit: the fuel rewards.

The card offers 4% cash back on eligible gas and EV charging worldwide. This applies to:

Gas purchased at Costco stations.
Gas purchased at almost any other gas station (excluding superstores, supermarkets, and warehouse clubs other than Costco).

This 4% rate applies to the first $7,000 spent per year (then it drops to 1%). For the average driver, this cap is plenty high. If you fill up your tank on the way to grab your groceries, you are effectively reducing the cost of your trip.

Since gas is often a significant line item in a household budget, this perk acts as a subsidy for your logistics.

Consider the math: If you spend $3,000 a year on gas, the 4% return nets you $120. Combined with the rewards from your actual grocery purchases, the total cash back can become substantial quickly.

Dining Out: When You Don’t Feel Like Cooking

Even the most dedicated meal preppers order takeout sometimes. The Costco Anywhere Visa® offers 3% cash back on restaurants worldwide.

This category is surprisingly broad. It includes:

Fine dining establishments
Fast food joints
Cafes and lounges
Bars

It creates a nice ecosystem of food-related savings. You earn high rewards when you buy ingredients to cook (at Costco), and you earn high rewards when you decide to let someone else do the cooking.

Just keep in mind that buying lunch at a grocery store deli counter or a bakery inside a supermarket will likely code as “grocery” or “general merchandise,” netting you only 1% if it’s not at Costco.

Redemption System: Costco Credit Card Benefits For Groceries

Unlike many modern credit cards that let you redeem points for statement credits or direct deposits monthly, the Costco Anywhere Visa® has a very specific, old-school redemption method.

The Annual Certificate

You do not get your cash back immediately. Instead, your rewards accumulate throughout the year. Once your February billing statement closes, you receive an annual credit card reward certificate.

Where to Use It

This certificate is redeemable for cash or merchandise at U.S. Costco warehouses. You generally cannot redeem it online, and you cannot redeem it at the gas pump. You have to walk into the store.

The Single Transaction Rule

You must redeem the certificate in a single transaction. If you use it to buy merchandise and your purchase is less than the value of the certificate, you will receive the remaining balance in cash. If you just want the cash, you can take the certificate to the customer service desk or a register (depending on store policy) to cash it out.

Use It or Lose It

The certificate expires on December 31st of the year it is issued. If you close your credit card account before the certificate is issued in February, you forfeit all the rewards accrued during that year. This “golden handcuffs” feature is designed to keep you as a loyal member.

Hidden Protections for Your Purchases: Costco Credit Card Benefits For Groceries

When you are buying groceries, you rarely worry about theft or damage. But Costco sells more than just food. You might throw a new blender, a laptop, or a set of headphones into the cart alongside your produce. This is where the card’s purchase protections add value.

Damage & Theft Purchase Protection

If you buy an eligible item with your Costco card and it is damaged or stolen within 120 days of purchase (90 days for New York residents), you may be covered for repairs or a refund. This offers peace of mind when buying those higher-ticket “grocery” items that Costco is famous for.

No Foreign Transaction Fees

While not directly related to your local grocery run, this benefit is worth noting for travelers.

If you visit a Costco in Canada, Mexico, or the UK, or if you dine out while vacationing in Europe, you won’t be hit with the standard 3% foreign transaction fee that many other cards charge. Your 3% dining reward and 2% Costco reward follow you globally.

The Cost of Entry: Membership Fees

It is impossible to discuss the card’s value without addressing the elephant in the room: the membership fee.

Technically, the Costco Anywhere Visa® has no annual fee. However, you must have an active Costco membership to apply for and keep the card.

Gold Star Membership: $65/year
Executive Membership: $130/year

If you let your Costco membership lapse, your credit card account will be canceled. Therefore, the “cost” of the credit card is tied directly to your commitment to the club. If you are already paying for the membership because you love the store, the card is essentially free.

If you are getting the membership just to get the credit card, you need to ensure your cash back earnings exceed the $65 or $130 outlay.