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Understanding the Citi Costco Card and Its Features

The Citi Costco card is a rewards credit card designed specifically for Costco members and shoppers. This card offers cash back rewards on purchases made at Costco locations and gas stations, as well as on other everyday purchases. The card itself comes with no annual fee, which means members can keep it in their wallet without worrying about yearly costs.

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The guide covers how the card's rewards structure works across different spending categories. Cardholders earn 4% cash back on gas purchases at Costco and Costco gas stations (up to $7,000 per year, then 1% thereafter), 3% back on Costco purchases, and 1% on other purchases. These percentages are real numbers that have remained consistent with the card's terms. For example, if someone spends $200 on groceries at Costco and $300 on gas at a Costco gas station in a month, they would earn $6 in cash back from groceries (3% of $200) and $12 in cash back from gas (4% of $300).

Understanding these reward tiers is important because different spending patterns produce different returns. A family that visits Costco weekly might accumulate rewards faster than someone who shops there monthly. The guide explains how these earnings accumulate throughout the year and how members can track their rewards through their account statements.

The card also comes with additional protections and features beyond rewards. These may include purchase protection, return protection, and travel-related protections that the guide describes in detail. Knowing what protections come standard with the card helps members understand what coverage they have when making purchases.

Practical takeaway: Review your typical monthly spending at Costco and gas stations to understand how much cash back you might earn annually with this card's reward structure.

How the Cash Back Rewards Program Functions

The cash back rewards system works by tracking purchases in real-time and accumulating rewards that members can redeem. Unlike some rewards programs that require point conversions or complicated redemption processes, this card generates actual cash back that typically appears as a statement credit or direct payment to the cardholder's account.

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The informational guide walks through how the rewards posting works. When you use the card at Costco, the transaction is categorized automatically as a Costco purchase, earning 3% cash back. When you use it at a Costco gas station, the system recognizes it as a gas purchase and applies the 4% rate. All other purchases outside these categories earn 1% cash back. The rewards appear on your monthly statement, and members can choose to have them credited directly to their bank account or applied as a statement credit.

One important detail the guide covers is the annual cap on the 4% gas rewards. You can earn 4% cash back on up to $7,000 per year in gas purchases at Costco and Costco gas stations. This means the maximum cash back on gas in a year is $280. After you reach $7,000 in gas purchases, any additional gas purchases earn only 1% cash back for the remainder of that calendar year. Understanding this cap helps members know when their rewards rate might change as they approach the limit.

The guide also explains that rewards are tracked by calendar year, which runs from January through December. This means the $7,000 cap resets on January 1st each year. If you spend $8,000 on gas in a year, you'd earn $280 in cash back on the first $7,000 (at 4%) and $10 on the remaining $1,000 (at 1%), totaling $290 in gas rewards for that year.

Practical takeaway: Track your gas spending throughout the year to know when you've approached the $7,000 annual cap, since your rewards rate will change after that point.

Membership Requirements and Card Relationship to Costco

The Citi Costco card is linked directly to a Costco membership. To hold this card, you must first be a Costco member. The card works as a payment method specifically for Costco purchases and provides enhanced rewards when used at Costco locations. This structure means the card is not a standalone credit card but rather a membership-linked benefit for people who already shop at Costco.

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Costco offers different membership tiers: Gold Star, Executive, and in some regions, additional membership types. The card works with all membership levels, so whether you have a basic Gold Star membership or an Executive membership, you can hold the Citi Costco card and earn the same rewards rates. However, Executive members may receive additional benefits through their membership that stack with the card's rewards, which the guide explains in detail.

The relationship between the card and membership means that if your Costco membership expires, your card usage at Costco will be affected, though the card account itself may remain open. The guide clarifies these details so members understand how the card connects to their membership status. For renewal periods, members should know that their card will continue to work if they renew their membership on time.

The informational guide also covers what happens if you want to get a second cardholder on your account. Costco allows household members to have cards linked to the same account, which can be useful for families where multiple people make purchases. Each cardholder earns rewards on their individual purchases, but those rewards are typically combined into one account. The guide walks through how this works and what to know about household cardholders.

Practical takeaway: Verify your Costco membership status before relying on the card, and understand how any household cardholders will earn rewards that contribute to your overall cash back total.

Using Your Card for Different Purchase Types and Locations

The Citi Costco card works at multiple types of locations, and understanding where you earn the best rewards helps you maximize your cash back. The highest reward rate of 4% applies specifically to gas purchases made at Costco and Costco gas stations. This includes both the warehouse gas stations and Costco gas kiosks. You earn this rate regardless of what fuel grade you purchase, whether it's regular, premium, or diesel.

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For purchases at Costco warehouse locations, you earn 3% cash back on virtually all items you buy there. This includes groceries, household goods, electronics, clothing, and any other merchandise available in the warehouse. The 3% rate applies to both in-warehouse purchases and purchases made through Costco.com when using your Citi Costco card. This means online shoppers who are Costco members can earn the same 3% rate on website purchases.

All other purchases made with the card outside of Costco locations and Costco gas stations earn 1% cash back. This includes restaurants, retail stores, medical offices, subscriptions, utilities, and any other merchant that is not Costco or a Costco gas station. While 1% may seem modest compared to the higher categories, it still generates rewards on everyday spending. Someone who spends $1,000 per month outside of Costco would earn $10 monthly in cash back, or $120 per year, just from this category.

The guide includes examples of common scenarios to show how rewards work in practice. For instance, a monthly shopping trip that includes $150 at Costco, $40 at the Costco gas station, and $300 in other purchases would generate $4.50 from Costco (3% of $150), $1.60 from gas (4% of $40), and $3.00 from other purchases (1% of $300), totaling $9.10 in cash back that month. Understanding these categories helps members intentionally direct certain purchases to maximize their rewards.

Practical takeaway: Review your monthly spending across different store types and use the card primarily for Costco purchases and gas to earn the highest reward rates on your spending.

Card Features, Protections, and Additional Benefits

Beyond cash back rewards, the Citi Costco card includes various protections and benefits that the informational guide describes. Purchase protection covers purchases against accidental damage or theft within a certain time period from purchase. Return protection extends Costco's standard return window, allowing you additional time to return eligible items purchased with the card. These protections apply to most merchandise purchases and can be valuable if you buy higher-priced items.

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The guide covers travel-related prot