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Best Visa Credit Cards for Costco Shoppers

May 31, 2016
Credit Cards, Rewards Credit Cards
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Costco shoppers, it’s time to take a look in your wallet. Do you have a Visa credit card in there?

As you may have heard, the wholesale club has broken up with American Express and started a new relationship with Visa. As of June 20, if you want to put a year’s worth of paper towels on your credit card, you’ll need a Visa. You’ll be able to use any Visa card — along with debit cards, cash, checks, EBT and Costco Cash Cards.

Don’t have a Visa?

Many loyal Costco members will opt for the new Costco Anywhere Visa® Card by Citi. But if you’d rather not get the co-branded Costco card, or are trying to decide whether you could do better with a different Visa, there are plenty of cards to choose from. Here are a few the Nerds like best.

Chase Freedom®: The Chase Freedom® is a great option for people seeking a Visa credit card to use at Costco. The card offers 5% cash back on up to $1,500 in spending each quarter in rotating bonus categories. Chase has announced that warehouse clubs are a Chase Freedom® bonus category through the end of 2016, so you can earn 5% back on up to $1,500 in spending per quarter not only at Costco, but also at Sam’s Club and BJ’s.

Chase Sapphire Preferred® Card: The Chase Sapphire Preferred® Card is one of the top Visa cards available. It gives you 2 points per dollar spent on travel and dining, and 1 point per dollar on every other purchase. Points can be transferred on a 1:1 basis to many airline and loyalty programs, or you can use them to book travel through Chase at a value of 1.25 cents per point. It also has one of the best sign-up bonuses around: Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®.

What the new Costco Visa offers

If you’re a frequent Costco shopper, you may want to consider the Costco Anywhere Visa® Card by Citi.

The Costco Anywhere Visa® Card by Citi’s rewards are very tempting indeed:

  • 4% back on up to $7,000 a year in gas purchases at Costco and other gas stations.
  • 3% back at restaurants and on some travel purchases.
  • 2% back at Costco and Costco.com.
  • 1% back on everything else.

The cash back on this card is redeemable only at Costco.

Whether you plan to carry the new Costco card or you’d rather get a Visa not affiliated with Costco, the change should have a minimal effect on most consumers.

Want more info about the transition? Check out the links below.

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Virginia C. McGuire is a staff writer at NerdWallet, a personal finance website. Email: virginia@nerdwallet.com. Twitter: @vcmcguire.