Last Updated on December 18, 2025 by Amrita Das
Walking into a Costco warehouse is an experience unlike any other. Where else can you buy a diamond ring, a coffered ceiling, five pounds of peanut butter pretzels, and a $1.50 hot dog in a single trip? But for financial optimizers, the real thrill isn’t just the bulk savings—it’s maximizing the rewards on that receipt.
However, Costco throws a curveball that trip up many shoppers: their strict credit card acceptance policy. If you pull out a Mastercard, American Express, or Discover card at the warehouse register, you are going to be disappointed.
Choosing the right card for your Costco runs isn’t just about convenience; it’s about securing a return on your significant investment in household staples. Whether you are looking for top-tier gas rewards, flexible travel points, or simple cash back, there is a strategy for you.
Read More: How To Apply For A Costco Visa Credit Card?
The “Visa Only” Rule Explained: Best credit card for Costco shoppers
Before diving into specific card recommendations, it is vital to understand the payment landscape at Costco, as it dictates your options.
- In-Warehouse: Costco warehouses in the U.S. exclusively accept Visa credit cards. You cannot use Mastercard, Discover, or Amex credit cards at the physical registers.
- Gas Stations: Just like the warehouse, Costco gas pumps only accept Visa credit cards.
- Costco.com: The online store is more lenient. They accept Visa and Mastercard. However, they still do not accept American Express or Discover.
Because the bulk of spending usually happens inside the warehouse or at the pump, this guide focuses primarily on Visa cards.
Best credit card for Costco shoppers
The Official Choice: Costco Anywhere Visa® Card by Citi
For many members, the default choice is the co-branded card issued by Citi. It doubles as your membership ID and offers robust rewards designed specifically for the Costco ecosystem.
Why it wins
The strongest selling point of the Costco Anywhere Visa® Card by Citi is its gas multiplier.
- 4% on Gas: You earn 4% cash back on eligible gas and EV charging, including gas at Costco and other stations worldwide (up to $7,000 per year, then 1%).
- 3% on Travel & Dining: This includes restaurants and eligible travel purchases worldwide.
- 2% at Costco: You earn 2% back on purchases made at the warehouse and online at Costco.com.
- 1% Everything Else: All other purchases earn a standard 1%.
The drawbacks
While the earning rates are high, the redemption method is notoriously rigid. Your rewards are accumulated throughout the year and issued as a single credit card reward certificate in your February billing statement.
You must take this certificate to a Costco warehouse to redeem it for cash or merchandise. If you cancel your card or membership before February, you forfeit your rewards.
Additionally, while advertised as having “$0 Annual Fee,” you must maintain a paid Costco membership to hold the card.
The “Set It and Forget It” Pick: Wells Fargo Active Cash® Card
If you dislike tracking bonus categories or worrying about spending caps, the Wells Fargo Active Cash® Card is a top-tier contender.
It offers unlimited 2% cash rewards on purchases without category restrictions.
Simplicity is the primary selling point of the Wells Fargo Active Cash® Card. Unlike cards that require you to track rotating quarterly categories or cap your earnings after a certain spend amount, this card offers a flat 2% back on everything you buy.
Since Costco purchases rarely fall into high-reward categories on other cards, earning 2% is an excellent rate of return. Whether you are buying groceries, tires, furniture, or gas, you earn the same consistent reward rate.
Is there a sign-up bonus?
Yes, new cardholders can earn a $200 cash rewards bonus.
To trigger this bonus, you need to spend $500 in purchases within the first 3 months of opening the account. For frequent Costco shoppers, hitting that spending threshold is often incredibly easy—sometimes requiring just one or two trips to the warehouse. This effectively acts as a significant discount on your initial purchases.
How does the annual fee impact value?
There is no annual fee for this card.
You can carry the Wells Fargo Active Cash® Card without worrying about an annual cost eating into your rewards. This makes it a low-risk addition to your wallet, allowing you to keep it long-term to build your credit history without a yearly financial commitment.
The “Secret Weapon” for Power Users: U.S. Bank Altitude® Reserve
For those willing to optimize, the U.S. Bank Altitude® Reserve Visa Infinite® Card (often discussed by travel enthusiasts) is arguably the most lucrative card for Costco shoppers, even though it isn’t co-branded.
The Mobile Wallet Hack
Costco warehouses are equipped with NFC terminals that accept Apple Pay, Google Pay, and Samsung Pay. The U.S. Bank Altitude Reserve earns 3X points on eligible mobile wallet purchases.
Because you can tap your phone to pay at Costco, you automatically earn 3X points on your bulk buying. If you redeem those points for travel (via Real-Time Rewards), they are worth 1.5 cents each.
This effectively gives you a 4.5% return on Costco purchases, which is more than double the reward rate of the official Costco card.
Note: This card has a $400 annual fee, but it is largely offset by $325 in annual credits for travel and dining.
Best for Travel Lovers: Chase Freedom Unlimited®
Does Costco accept the Chase Freedom Unlimited®?
Yes, absolutely. The Chase Freedom Unlimited® is issued as a Visa card. This means it is fully accepted at Costco warehouses and gas stations nationwide.
Unlike Mastercard or Discover cards, you won’t face any issues at the checkout terminal. This compatibility is the first hurdle any card must clear to be considered a viable option for wholesale club members.
How much cash back do you earn on Costco purchases?
One of the trickiest parts of credit card rewards is that wholesale clubs like Costco are rarely included in standard “grocery” bonus categories. Most cards explicitly exclude them, meaning you usually default to a base reward rate of 1%.
The Chase Freedom Unlimited® solves this by offering an unlimited 1.5% cash back on all other purchases. Since Costco falls into this “everything else” category, you are effectively earning 50% more cash back on your bulk toilet paper, electronics, and rotisserie chickens than you would with a standard rewards card.
There is no cap on how much you can earn, making it ideal for large families or business owners who spend heavily at the warehouse.
What other bonus categories does the card offer?
While the 1.5% rate is great for Costco, the card shines even brighter when you stop for lunch or pick up a prescription on your way home. The card creates a “one-card solution” for your wallet by offering:
- 3% cash back on dining: This includes restaurants, takeout, and eligible delivery services.
- 3% cash back on drugstore purchases: A high rate for a common weekly expense.
- 5% cash back on travel: Specifically for travel booked through Chase.
By combining these high-percentage categories with the reliable 1.5% flat rate at Costco, you ensure that almost every swipe is generating significant value.
Is there an annual fee?
No. The Chase Freedom Unlimited® has a $0 annual fee. This is crucial for value-conscious shoppers. You do not have to calculate whether your cash-back earnings outweigh the cost of holding the card. Every dollar you earn in rewards stays in your pocket.
Best for Lower Spenders: Bank of America® Customized Cash Rewards
For shoppers who don’t spend thousands a month but want high returns, the Bank of America® Customized Cash Rewards Visa® credit card offers a unique structure.
The 2% Wholesale Club Category
This card automatically earns 2% cash back at grocery stores and wholesale clubs (including Costco). Additionally, you can choose a 3% category, such as gas or online shopping.
The Caveat
There is a quarterly spending cap of $2,500 on combined choice category/grocery/wholesale club purchases. If you spend roughly $800 or less per month at Costco and grocery stores combined, you can maximize this benefit without hitting the 1% drop-off rate.
Strategic Comparison: Which Card Fits You?
To help you decide, look at your spending habits outside of the warehouse.
Scenario A: The Commuter
If you spend a significant amount of money on gas and want a card that rewards you heavily for filling up, the Costco Anywhere Visa® by Citi is difficult to beat. The 4% return on gas is a market leader among no-annual-fee cards.
Scenario B: The Generalist
If you want one card to use for everything—bills, Costco, and random expenses—and you don’t want to think about points, the Wells Fargo Active Cash® is the winner. It guarantees you will never earn a measly 1%.
Scenario C: The Traveler
If you are comfortable using mobile wallets and want to subsidize your vacations, look at the U.S. Bank Altitude Reserve. Alternatively, if you are already in the Chase ecosystem, the Chase Freedom Unlimited keeps your points pooled together.
Read More: Costco Credit Card Benefits For Groceries: Rewards & Risks
Best credit card for Costco shoppers: Bottom Line
The “best” card ultimately depends on how much friction you are willing to tolerate for rewards. If you want the absolute highest return on spend and are tech-savvy, a card that leverages mobile wallet multipliers is your best bet.
If you want the path of least resistance with excellent gas benefits, stick with the official Costco Anywhere Visa. And if you just want cash in your pocket every month without waiting for a February certificate, a flat-rate 2% Visa is the smartest play.
Whichever you choose, ensure it is a Visa, and get ready to fill that oversized cart with confidence.
