If you frequently shop at Costco, you know it’s easy to rack up a big purchase quickly buying vast quantities of items in bulk. Over an entire year, you could spend significant dollars 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-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, which many shoppers are, 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 an American-based warehouse retailer operating membership-based wholesale shopping clubs with hundreds of locations across 8 countries.
Retail locations offer members savings on things like 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 at 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.
Best Credit Cards for Shopping In-Store at Costco or Online at Costco.com
Costco offerings include a complete line of its own branded products. Image Credit: KirklandYou 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. Let’s take a look at some of the best cards you can use for shopping in-store at Costco or online at Costco.com, and the associated card benefits.
The Costco Anywhere card is an obvious choice for shopping in-store. The card earns well on specific everyday purchases, purchases at Costco, and at Costco.com. But there are a few drawbacks to the card.
Why We Like the Card for Shopping at Costco
- 4% cash-back at gas stations, including Costco, up to $7,000 in purchases each year, then 1%
- 2% cash-back at Costco and Costco.com
Why We Like the Card Overall
- 3% cash-back at restaurants and on travel purchases
- 1% cash-back on all other purchases
- No annual fee
- No foreign transaction fees
- Good anywhere Visa is accepted
- Shopping protections such as purchase protection
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.
Drawbacks of the Costco Anywhere Card and Costco Anywhere Business Card
- No welcome bonus offer
- You must have a Costco membership to be approved for the card (at a cost of $60 to $120 per year)
- Cash-back earnings are paid out just once per year in-store
You can accept your cash-back earnings in the form of a store credit or cash.
Bottom Line: If you’re a frequent Costco shopper, either Costco Anywhere card could be a viable option for earning rewards when shopping at Costco. The drawbacks are minimal and since neither card charges an annual fee, if you receive value in excess of your membership fee, the card could be worthwhile.
The Chase Freedom Flex℠ Credit Card or the Freedom Unlimited card may be perfect for a large Costco purchase. Image Credit: Sleep ScienceWhy We Like the Card for Shopping at Costco
- 1.5% cash-back on all purchases, including Costco and Costco.com
- No annual fee
Why We Like the Card Overall
- Automatic earning, no special categories to remember or need to register the card each quarter
- 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
- Secondary car rental insurance
- Shopping benefits such as purchase protection and extended warranty
Additional Cards for Shopping In-Store at Costco and Online at Costco.com
- U.S. Bank Altitude™ Reserve Visa Infinite® Card — if you travel frequently and don’t mind paying a higher annual fee, the U.S. Bank Altitude Reserve card comes with plenty of travel benefits, statement credits, and earns 3x points on mobile wallet purchases
- Capital One® Venture® Rewards Card — earn 2 miles for every dollar you spend on the card, including Costco
Additional Payment Methods Accepted In-Store at Costco
In addition to the cards we’ve mentioned here, 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
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 at Costco gas stations, even via mobile-wallet transactions.
Additional Credit Cards for Shopping Online at Costco.com
Shopping at Costco online allows you to use additional payment methods such as Mastercard. Image Credit: Kite_lin via ShutterstockThe Costco Anywhere card, Costco Anywhere Business card, Costco gift cards, and ATM/debit cards that are accepted in-store are also accepted for Costco online purchases. Online shopping at Costco, however, allows you to use additional credit cards compared to in-store purchases.
Here are some of the best cards that earn rewards shopping at Costco online.
Bank of America® Cash Rewards Credit Card
If you shop online at Costco frequently, the Bank of America Cash Rewards card could be a consideration for earning up to 3% cash-back on your purchases.
Why We Like the Card for Shopping Online at Costco.com
- 2% cash-back at wholesale clubs, including Costco
- Select your own bonus category, including online purchases, to earn 3% cash-back, up to $2,500 in purchases per quarter, for 3% and 2% cash-back categories combined
- No annual fee
Why We Like the Card Overall
- Welcome bonus after meeting minimum spending requirements in the first 90 days after card approval
- Other 3% cash-back categories from which to select include gas, dining, travel, drug stores, and home improvement/furnishings
- 2% cash-back at grocery stores
- 1% cash-back on all other purchases
- Additional earning bonuses and redemption options for those who have relationships with Bank of America and are members of Preferred Rewards
Using the Double Cash card ensures every purchase you make at Costco online earns rewards.
Why We Like the Card for Shopping Online at Costco.com
- 2% cash-back on every purchase; 1% when you buy, 1% when you pay
- No annual fee
Why We Like the Card Overall
- No need to register for special bonus earnings or remember bonus-earning categories
- Convert cash rewards to ThankYou Points
Huntington Voice Credit Card® and Huntington Voice Business Credit Card℠
You won’t be able to use Mastercard for in-store Costco purchases, however, you can use these Huntington Bank-issued Mastercards for online purchases.
Why We Like the Cards for Shopping Online at Costco.com
Huntington Voice Card
- Earn 3% cash-back on your selected quarterly bonus category that can include warehouse and discount stores, up to $2,000 in purchases per quarter
- No annual fee
Huntington Voice Business Card
- Earn 4% cash-back on your selected quarterly bonus category that can include warehouse and discount stores, up to $7,000 per quarter in purchases
- No annual fee
Why We Like the Cards Overall
Each quarter you’ll have the option to select your own bonus earnings category from 10 different merchant groups. Options include gas stations, travel/entertainment, restaurants, discount/warehouse stores, home improvement, utilities/office supply stores, electronic/computer/camera stores, department/apparel/sporting goods stores, and auto parts/service.
The cards also do not charge foreign transaction fees.
Additional Payment Methods Accepted Online at Costco.com
- All Visa cards
- Mastercard
- Discover cards
- Pin-enabled debit cards and ATM cards
- Costco Shop Cards (gift cards)
Best Credit Cards for Shopping at Costco and Costco.com — Summary
Deciding which card works best for shopping at Costco can be tricky. Let’s take a moment and review the cards we’ve mentioned and the benefits of using each specific card for your purchases at Costco and Costco.com.
| Card | Costco In-Store | Costco Online | Benefits for Costco Shopping |
| Costco Anywhere card Costco Anywhere Business card | X | X | - 4% cash-back at gas stations, including Costco
- 2% cash-back at Costco and Costco.com
- Purchase protection
- No annual fee
|
| Freedom Unlimited card | X | X | - at least 1.5% cash-back on purchases
- Purchase protection and extended warranty coverage
- No annual fee
|
| U.S. Bank Altitude Reserve card | X | X | - 3x points on mobile-wallet purchases
- Purchase security and extended warranty coverage
|
| Venture card | X | X | - 2 miles per dollar on every purchase
- Purchase protection and extended warranty coverage
|
| Bank of America Cash Rewards card | | X | - 2% cash-back at wholesale clubs
- 3% cash-back when online purchases are selected as your quarterly bonus category, up to $2,500 per quarter
- Extended warranty
- No annual fee
|
| Double Cash card | | X | - 2% cash-back on every purchase
- Purchase protection
- No annual fee
|
| Huntington Voice card | | X | - 3% cash-back on your selected quarterly bonus category that can include warehouse/discount stores, and gas stations, up to $2,000 per quarter in purchases
- Purchase protection and extended warranty coverage
- No annual fee
|
| Huntington Voice Business card | | X | - 4% cash-back on your selected quarterly bonus category that can include warehouse/discount stores, and gas stations, up to $7,000 per quarter in purchases
- Purchase protection and extended warranty coverage
- No annual fee
|
Bottom Line: If you shop frequently at Costco in-store, selecting a card that earns well on those in-store purchases will be a plus as you will also be able to use that card to earn rewards when you shop online at Costco.com.
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, a card that would also align with your overall spending mix.
The information regarding the U.S. Bank Altitude™ Reserve Visa Infinite® Card, Capital One® Venture® Rewards Card, Bank of America® Cash Rewards Credit Card, Huntington Voice Credit Card®, and Huntington Voice Business Credit Card℠ were independently collected by Upgraded Points and not provided nor reviewed by the issuer.
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