If you frequently shop at Costco, you know it’s easy to rack up a big purchase quickly when buying vast quantities of items in bulk. Over an entire year, you could spend a significant amount of money at the popular warehouse club.
As with any big annual outlay of funds, we’re always on the lookout for ways to make sure those purchases earn as many rewards as possible.
Costco is unique in that not all types of payments or credit cards are accepted in the store. With that obstacle in the forefront, we’ll zero in on the cards that do earn rewards at Costco to help you make your selection.
If you’re a Costco lover — and there are many of them — you’re probably wondering which cards made our list. Let’s dig in and find out the best ways to earn more rewards at Costco.
How Does Costco Work?
Costco is a warehouse retailer operating membership-based wholesale shopping clubs with hundreds of locations across 12 countries.
Retail locations offer members savings on things such as groceries, clothing, household products, business and restaurant supplies, and travel services. You’ll also find a photo, auto, and optical center, as well as a pharmacy, located in each store.
You may also purchase products and services at Costco.com and Costco gas stations.
A basic Gold Star or Business membership costs $60 per year, while a Gold Star Executive or Business Executive Membership costs $120 per year. Business memberships allow you to add additional people to your membership and purchase items for resale. Executive-level memberships, both personal and business, earn 2% rewards on eligible purchases, paid out annually.
You won’t be able to use your American Express, Mastercard, or Discover-issued cards at Costco as the retailer accepts only Visa for in-store shopping. If you shop online at Costco, however, you can use a wider variety of credit cards compared to in-store purchases.
Costco accepts the following forms of payment in-store:
- Visa credit cards
- Costco Shop Card (gift card)
- Most pin-enabled debit/ATM cards
- Mobile wallet transactions including Apple Pay, Samsung Pay, and Google Pay that are not linked to Amex, Mastercard, or Discover cards
- Cash or checks from an existing member
- Traveler’s checks
- Electronic Benefits Transfer (EBT) cards
And here are the payment methods accepted for Costco online purchases:
- All Visa cards
- Mastercard
- Discover cards
- Pin-enabled debit cards and ATM cards
- Costco Shop Cards (gift cards)
Finally, Costco gas stations accept Visa, pin-enabled debit/ATM cards, and Costco Shop Cards gift cards.
Bottom Line: Costco warehouse clubs, gas stations, and Costco.com differ in the types of credit cards and payment methods accepted. You will not be able to use American Express, Discover, or Mastercard in-store at Costco or Costco gas stations, even via mobile-wallet transactions.
The 5 Best Personal Credit Cards for Shopping at Costco or Costco.com
Costco’s offerings include a complete line of its own branded products. Image Credit: Costco
First, we’ll walk you through our favorite personal credit cards for shopping at Costco warehouses and online at Costco.com:
| Card |
Welcome Bonus and Annual Fee |
Benefits for Costco Shopping |
| Capital One Venture X Rewards Credit Card |
- Earn 75,000 miles when you spend $4,000 on purchases in the first 3 months.
- Annual fee of $395
|
- Accepted both in-store and online
- Unlimited 2x miles on all non-bonus purchases
- Exceptional travel benefits
- Purchase protection and extended warranty
|
| Capital One Venture Rewards Credit Card |
- Earn 75,000 miles when you spend $4,000 on purchases in the first 3 months.
- Annual fee of $95
|
- Accepted both in-store and online
- Unlimited 2x miles on all non-bonus purchases
- Purchase protection and extended warranty
|
| Chase Freedom Unlimited® |
- INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back!
- Annual fee of $0
|
- Accepted both in-store and online
- Unlimited 1.5% cash-back on all non-bonus purchases
- Purchase protection and extended warranty
|
| Costco Anywhere Visa® Card by Citi |
- No welcome offer available.
- Annual fee of $0
|
- Accepted both in-store and online
- 4% cash-back at gas stations and EV charging purchases, including Costco
- 2% cash-back at Costco and Costco.com
- Purchase protection
|
| Honorable Mention: Citi® Double Cash Card |
- For a limited time, earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening.
- Annual fee of $0
|
- Accepted online only
- Unlimited 2% cash-back (1% when you buy and another 1% when you pay)
|
1. Capital One Venture X Rewards Credit Card
The CapOne Venture X card is the best credit card you can use to earn top-shelf rewards at Costco and Costo.com.
Currently, the card earns as much as 10x Capital One miles on purchases:
- 10x miles on hotels and rental cars booked via Capital One Travel
- 10x miles on Turo bookings through May 16, 2023
- 5x miles for flights booked through Capital One Travel
- 2x miles on all other purchases
Ongoing benefits on this credit card include a 10,000-mile bonus after every cardmember anniversary, up to $300 Capital One Travel credit, complimentary access to Capital One Lounges and Plaza Premium Lounges for yourself and 2 guests, and a complimentary Priority Pass Select membership.
And we’re only just getting started — the CapOne Venture X card has up to $100 Global Entry/TSA PreCheck application fee credit, complimentary Hertz President’s Circle status, and superb travel insurance.
You’ll also notice that when you go shopping, you can protect yourself with purchase security, extended warranty, virtual card numbers via Eno, and cell phone protection.
There are no foreign transaction fees with the CapOne Venture X card, and you can even add up to 4 authorized users for no additional fee.
Why We Like Earning Capital One Miles
Capital One miles are worth around 1.8 cents per point according to our valuations, which means that your Costco and Costco.com spending will earn you a return on spending of 3.6%, which is industry-leading.
In addition, Capital One miles are easy to use, whether it’s for cash-back, statement credits, charitable donations, merchandise, Capital One Travel bookings, or gift cards.
But if you’re in the know, you’ll use your Capital One miles for award travel through airline and hotel transfer partners.
2. Capital One Venture Rewards Credit Card
The popular mid-tier CapOne Venture card, the little sibling of the CapOne Venture X card, offers most of the same benefits that people are looking for.
In the context of Costco, this Visa credit card can be used in-store and online, making it an attractive option if you’re looking for maximum rewards.
This card earns up to 5x miles as shown here:
- 5x miles on hotels and rental cars booked through Capital One Travel
- 5x miles on Turo bookings through May 16, 2023
- 2x miles on all other purchases
In short, the CapOne Venture card earns the same rewards at Costco as the ultra-premium CapOne Venture X card! When you earn 2x miles, it’s equivalent to a return on spending of around 3.6% according to our valuations.
The main difference is that the lower-tier card doesn’t offer luxury travel benefits, though it still offers up to $100 for the Global Entry/TSA Precheck application fee credit, travel insurance, purchase protection, and extended warranty.
And, you may not even miss much when it comes to Capital One Lounge or Plaza Premium Lounge access because the CapOne Venture card still offers 2 free visits per year!
3. Chase Freedom Unlimited®
The Freedom Unlimited card is one of the best no-annual-fee credit cards available. As a Visa credit card, the Freedom Unlimited card can help you shop with confidence at Costco stores and on Costco.com.
Remember, this impressive credit card offers up to 5% cash-back on your purchases:
- 5% cash-back on travel booked through Chase Ultimate Rewards
- 5% cash-back on Lyft purchases through March 31, 2025
- 3% cash-back on dining
- 3% cash-back at drugstores
- 1.5% cash-back on all other purchases
While you might not be impressed by a 1.5% rewards rate, the cash-back is earned in the form of Ultimate Rewards that can be transferred to premium Chase cards and redeemed for greater value for travel or transferred to airline and hotel partners for potentially even more value!
Paired with the right credit cards like the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, or Ink Business Preferred® Credit Card, you can convert your rewards from a 1.5% cash-back rate to a 3% return on spending.
Even so, the Freedom Unlimited card has a 0% introductory APR benefit as shown in the table above, secondary auto rental collision damage insurance, purchase protection, extended warranty, zero liability fraud protection, no additional annual fees for authorized users, and fraud alerts.
Why We Like Earning Chase Ultimate Rewards Points
We mentioned above that you can convert your cash-back rewards to transferable Ultimate Rewards points with the right credit card — so how does that work?
It’s pretty simple — if you have an Ultimate Rewards-earning card, you can convert rewards from the Freedom Unlimited card at a 1% to 1x Ultimate Rewards points ratio.
Since we value Chase Ultimate Rewards points at 2 cents apiece, 1.5x point would equate to a 3% return on spending.
Once you have Ultimate Rewards points in your possession, you can transfer them to travel partners and use those points for luxury travel. This way, you’ll get tremendous redemption value.
But if you only have the Freedom Unlimited card, you can redeem your rewards for cash-back, Shop at Amazon, travel through Chase Ultimate Rewards, gift cards, and charitable donations.
4. Costco Anywhere Visa® Card by Citi
The Costco Anywhere card is an obvious choice for shopping in-store. The card earns well on specific everyday purchases and purchases at Costco and Costco.com, but there are a few drawbacks to the card.
Here’s how the earnings are broken down:
- 4% cash-back at gas stations and EV charging purchases, including Costco, up to $7,000 in purchases each year, then 1%
- 3% cash-back at restaurants and on travel purchases
- 2% cash-back at Costco and Costco.com
- 1% cash-back on all other purchases
Although the credit card is light on benefits, you’ll still have purchase protection, no foreign transaction fees, and Visa credit card acceptance.
5. Honorable Mention: Citi® Double Cash Card
Using the Double Cash card ensures every purchase you make at Costco online earns rewards. To us, it’s an honorable mention because although you can’t use this card in-store, online shopping at Costco.com is possible with Mastercard products.
The Double Cash card earns 2% cash-back on every purchase (1% when you buy and 1% when you pay, earned as ThankYou Points).
It also has a 0% introductory APR offer as shown in the table above, flexible pay dates, fraud protection, zero liability for unauthorized purchases, and no annual fees for authorized users.
Why We Like Earning Citi ThankYou Rewards Points
Citi ThankYou Rewards points are yet another type of valuable transferable points.
If you don’t have a separate ThankYou Rewards credit card besides the Double Cash card, you can only redeem your points for gift cards, travel through the Citi Travel Portal, cash-back, and limited transfer partners.
But if you have the Citi Premier® Card or the Citi Prestige® Card, you can transfer your points to any available transfer partner for luxury travel experiences like Emirates business class and British Airways first class.
With that being said, we value Citi ThankYou Rewards points at 1.6 cents each, making a 2x earning structure equivalent to a 3.2% return on spending.
Hot Tip: Regardless of your credit card’s purchase protection, return protection, or extended warranty coverage, Costco offers a risk-free 100% satisfaction guarantee on nearly everything it sells.
The 3 Best Business Credit Cards for Shopping at Costco or Costco.com
Shopping at Costco online allows you to use additional payment methods such as Mastercard. Image Credit: Kite_lin via Shutterstock
Here are some of the best business cards that earn rewards when shopping at Costco, whether it’s online or in-store:
| Card |
Welcome Bonus and Annual Fee |
Benefits for Costco Shopping |
| Ink Business Unlimited® Credit Card |
- Earn $750 bonus cash-back after you spend $7,500 on purchases in the first 3 months.
- Annual fee of $0
|
- Accepted both in-store and online
- Unlimited 1.5% cash-back on all purchases
- Purchase protection and extended warranty
|
| Capital One Spark Cash Plus Card |
- Earn up to a $1,000 cash bonus; $500 once you spend $5,000 in the first 3 months, and $500 once you spend $50,000 in the first 6 months of account opening.
- Annual fee of $150
|
- Accepted both in-store and online
- Unlimited 2% cash-back on every non-bonus purchase with no caps
- No preset spending limit
- Purchase protection and extended warranty
|
| Costco Anywhere Visa® Business Card by Citi |
- No welcome offer available.
- Annual fee of $0
|
- Accepted both in-store and online
- 2% cash-back at gas stations, including Costco
- 2% cash-back at Costco and Costco.com
- Purchase protection
|
1. Ink Business Unlimited® Credit Card
Our top pick for the best business credit card at Costco and Costco.com is the Ink Business Unlimited card, which is issued by Chase.
It earns up to 5% cash-back:
- 5% cash-back on Lyft purchases through March 31, 2025
- 1.5% cash-back on all other purchases
Since the 1.5% cash-back can be converted to 1.5x Ultimate Rewards points if you also hold an Ultimate Rewards-earning card, the rewards would then equal a 3% return on spending.
Wrapping up, the Ink Business Unlimited card has a 0% introductory APR period, primary rental car insurance, zero liability fraud protection, extended warranty, purchase protection, and no-additional-fee employee cards.
2. Capital One Spark Cash Plus Card
Our runner-up is Capital One’s new business charge card, the CapOne Spark Cash Plus card, which is attractive for a few reasons.
Beyond the sizable welcome bonus, you’ll want to sign up for this card if you’re looking for unlimited 2% cash-back with no preset spending limit. You’ll also get an unlimited 5% cash-back on rental cars and hotels booked through Capital One Travel.
Hot Tip: The CapOne Spark Cash Plus card earns you a $200 annual cash bonus every year when you spend $200,000 or more per year.
Standard benefits apply, including purchase protection, extended warranty, no foreign transaction fees, and employee cards for no additional annual fee.
3. Costco Anywhere Visa® Business Card by Citi
It’s always good to keep business and personal purchases separate. Fortunately, in addition to the personal card, Citi offers the Costco Anywhere Business card.
Like the personal Costco Anywhere card, the Costco Anywhere Business card comes with the same bonus category earnings, redemption options, benefits, and no annual fee.
Also, like the personal Costco Anywhere card, you must have a Costco membership to be approved.
There’s no welcome offer for the card, and cash-back earnings are paid out just once per year in-store. You can accept your cash-back earnings in the form of store credit or cash.
Final Thoughts
Shopping at wholesale clubs can save you a lot of money. Earning rewards while saving money can be a beneficial double-dip when you select the right card for your purchases.
If you spend significantly at wholesale clubs such as Costco, select a card that maximizes those earnings, but ideally, one that would also align with your overall spending mix.
The information regarding the Capital One Venture X Rewards Credit Card, Capital One Venture Rewards Card, Capital One Spark Cash Plus Card, and Citi® Prestige Card were independently collected by Upgraded Points and not provided nor reviewed by the issuer.
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