Which is the best credit card for Costco purchases?

The best credit card for in-store Costco purchases will be a Visa-issued credit card, as the retailer does not accept American Express, Mastercard, or Discover cards in-store. The best personal credit cards are the CapOne Venture X card, CapOne Venture card, Freedom Unlimited card, Costco Anywhere card, and Double Cash card (only for online Costco purchases). The best business credit cards are the Ink Business Unlimited card, CapOne Spark Cash Plus card, and Costco Anywhere Business card. Costco.com accepts Mastercard and Discover cards, which broadens your choice of payment options. Any card that earns multiple points on categories that align with your spending mix, offers redemption options you prefer, and has benefits you can use is worth considering for Costco purchases.

How does the Costco Anywhere card work?

To qualify for a Costco Anywhere card, you must have an active Costco membership. The card is good anywhere Visa is accepted and earns rewards on every purchase. There is no annual fee. Bonus earning categories include grocery stores, gas stations, restaurants, and Costco. Rewards accumulate and are paid out in-store once per year. You can select to receive your rewards in cash or store credit.

What payment methods are accepted at Costco?

Costco stores, Costco.com, and Costco gas stations all accept different forms of payment. Costco stores accept all Visa cards, Costco gift cards, most ATM/debit cards, mobile wallet, cash or member’s checks, traveler’s checks, and EBT cards. Costco.com accepts additional forms of payment, including Mastercard and Discover cards. Costco gas stations accept Visa, Costco gift cards, and most ATM/debit cards.

Do I have to be a member to get a Costco credit card?

Yes, you must have an active Costco membership to be approved for a Costco Anywhere card or Costco Anywhere Business card.

Does Costco count as a grocery store on your credit card?

No. Most credit card issuers do not categorize wholesale clubs as supermarket or grocery purchases.

The 8 Best Credit Cards for Costco & Costco.com Shopping [2022]

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 — 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.

Table of contents

How Does Costco Work?
The 5 Best Personal Credit Cards for Shopping at Costco or Costco.com
The 3 Best Business Credit Cards for Shopping at Costco or Costco.com
Final Thoughts

Table of Contents

How Does Costco Work?
The 5 Best Personal Credit Cards for Shopping at Costco or Costco.com
The 3 Best Business Credit Cards for Shopping at Costco or Costco.com
Final Thoughts

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, Mastercard, and 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 Anywhere Visa® Card by Citi employee and customer — 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 Summary

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 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.24% – 27.99 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	No welcome offer available. 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 many 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 just getting started — the CapOne Venture X card has an application fee credit of up to $100 for Global Entry/TSA PreCheck, 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 apiece 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, Hertz Five Star status, 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, including 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 points 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 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 Points at 1.6 cents apiece, 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

Woman Using Credit Card on Laptop — 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	BEST OFFER EVER: Earn $900 bonus cash back after you spend $6,000 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 0% intro APR on purchases for 12 months; variable 17.49% – 23.49% thereafter 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 equate to a 3% return on spending.

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, Citi® Prestige Card, and Capital One Spark Cash Plus Card were independently collected by Upgraded Points and not provided nor reviewed by the issuer.

4 comments

John July 16, 2021

The Chase Freedom Flex card is a Mastercard and thus doesn’t work at Costco.

- Christine Krzyszton July 16, 2021
  
  Hi John. You are correct, the Freedom Flex card can only be used at Costco.com and in the Costco app. I have adjusted the text. Thank you for your comment.
  
yl October 1, 2021

Can you use BOA cash rewards card to buy costco cashcard online and earn the 3%?

- Jarrod West October 1, 2021
  
  Hi Yl,
  
  No, you would not earn 3% back on a Costco Cash card since it is a cash-equivalent.

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The 8 Best Credit Cards for Shopping at Costco and Costco.com [2022]

How Does Costco Work?