Costco shoppers often face restrictions when it comes to payment options, as the retailer primarily accepts Visa credit cards for in-store purchases. However, Mastercard is also accepted for transactions on Costco.com. Here is a review of some of the best Visa cards to use at Costco and a Mastercard option for online shopping.
The Costco Anywhere Visa Card by Citi stands out as a top choice with no annual fee for those with a paid Costco membership. According to The Points Guy, it offers cash back at varying rates: 5% on gas purchased at Costco locations, 4% on other eligible gas and EV charging purchases (up to $7,000 per year), 3% on restaurant and travel purchases worldwide, 2% on all other Costco and Costco.com purchases, and 1% on everything else. “The sweet spot for this card is gas purchases,” although there is no welcome bonus offered.
For everyday spending without bonus categories specific to warehouse clubs like Costco, the Chase Freedom Unlimited card provides 1.5% cash back with no cap. “Among all the Visa cards, none is better in this category than the Chase Freedom Unlimited,” notes The Points Guy. If paired with another Ultimate Rewards-earning card such as the Chase Sapphire Preferred Card or Chase Sapphire Reserve, rewards can be redeemed as Ultimate Rewards points.
The Chase Freedom card offers 5% back on rotating quarterly bonus categories up to $1,500 spent each quarter after activation and 1% on other purchases. Wholesale clubs like Costco typically appear once a year in these categories.
The Chase Sapphire Preferred Card might appeal to those making large purchases due to its purchase protection policy covering theft or damage up to $500 per claim within 120 days of purchase. It also earns valuable Ultimate Rewards points but only gives one point per dollar spent at Costco.
For those interested in airline miles rather than cash back or points, the Alaska Airlines Visa Signature credit card may be surprising since it does not offer bonuses specifically for spending at Costco. However, it earns unlimited miles per dollar spent on various eligible purchases.
The Citi Double Cash Card offers a straightforward earning structure of 2% cash back: 1% when you buy and another 1% when you pay off your balance. As a Mastercard, it can only be used for purchases made through Costco.com.
Business owners might consider the Capital One Spark Miles for Business card for their online shopping needs at Costco.com since it earns two miles per dollar spent on all purchases plus five miles per dollar spent through Capital One Travel bookings.
Choosing the right card can maximize rewards earned from shopping at Costco despite limited bonus categories and payment restrictions.
