For frequent travelers in the United States, a Costco membership can be a powerful tool to trim trip costs, unlock extra rewards and enjoy added protections on the road. Yet many members quietly leave hundreds of dollars in value on the table every year or, worse, get tripped up by fine print and timing rules that make their rewards harder to use.

With recent updates to the Costco Anywhere Visa Card by Citi and higher membership fees now in effect, understanding what has changed and where people commonly go wrong matters more than ever. For a complete overview of how Costco membership tiers, travel benefits and rewards are designed to work together, see our Costco Membership and Travel Benefits explained guide.

Misunderstanding How Costco Credit Card Travel Rewards Really Work

The Costco Anywhere Visa Card by Citi is at the center of most Costco travel strategies, but many cardholders only use it at the warehouse for groceries and household goods. That is a missed opportunity. As of early 2025, the card earns 5 percent cash back on gas at Costco and 4 percent at other eligible gas stations and EV charging locations on up to 7,000 dollars per year in combined gas and charging purchases, then 1 percent after that cap.

It also earns 3 percent on restaurants and eligible travel, including Costco Travel bookings, 2 percent on most Costco purchases and 1 percent on everything else. Too many travelers swipe a general cash back card for flights and hotels without realizing they would have earned a higher return with their Costco Visa.

Another frequent mistake is assuming every purchase that feels like “travel” automatically earns the elevated 3 percent rate. The definition of eligible travel is narrower than many realize. Airfare, hotels, cruises, car rentals and travel booked through a travel agent or Costco Travel generally qualify.

However, items like timeshare purchases, many campground stays, train tickets and some third party booking platforms can post as non-bonus transactions and only earn 1 percent. Travelers who rely on trains in Europe or who book quirky accommodations such as campsites or boutique lodges through less conventional channels can be surprised when the bonus rewards do not appear on their statement.

Cardholders also underestimate the power of stacking rewards when they use Costco Travel. Executive members who book a cruise or resort package through Costco Travel and pay with the Costco Anywhere Visa are effectively layering rewards. They earn 3 percent from the card on eligible travel, plus up to 2 percent back from their Executive membership on qualifying Costco spending, along with any onboard credits or extras negotiated by Costco Travel.

For a family booking a several-thousand-dollar vacation, failing to put the purchase on the Costco Visa or downgrading from Executive status too soon can quietly cost hundreds of dollars in missed rebates.

Confusion Around Annual Reward Certificates and Redemption Rules

The reward structure on the Costco Anywhere Visa Card trips up even financially savvy travelers because it does not function like many other cash back cards. Instead of redeeming rewards at any time, cardholders receive a single reward certificate once per year, typically with their February statement. This certificate represents the prior calendar year’s earnings.

If you open the card in June or shift large portions of your travel spending late in the year, it can be months before you see any benefit. Many cardholders assume they will be able to cash out points toward spring break flights and discover that the timing does not line up with their plans.

Another common misunderstanding is where and how that certificate can be used. The certificate must be redeemed at a Costco warehouse in the United States. It cannot be applied directly online at Costco’s website, and you cannot redeem it through Costco Travel to offset a cruise or vacation package.

For travelers who live far from a warehouse, rely primarily on Costco online or spend months abroad, this restriction can be a real limitation. If you are flying out weeks after your certificate arrives, you may have to make a special trip to the warehouse just to convert the certificate into cash at the register, which can then be used toward your travel costs.

Travelers also underestimate the importance of keeping both their Costco membership and their Costco Visa account open and in good standing through the date when certificates are issued. To receive the annual reward, your account typically must be open, your membership active and the total rewards earned must exceed a modest minimum threshold.

Closing the card or letting the membership lapse in January because you plan to “take a break” from Costco can accidentally sacrifice the entire year’s accumulated cash back. That is an expensive mistake for someone who has put most of their fuel, dining and travel spending on the card.

Letting Membership Timing and Upgrades Eat Into Value

Membership timing is another subtle area where travelers lose out. Costco raised its Gold Star membership fee to 65 dollars and its Executive membership to 130 dollars in September 2024. Since then, some travelers have been more cautious about renewing or upgrading. Yet Costco still offers a satisfaction guarantee on memberships, and properly timed upgrades can pay for themselves quickly for frequent travelers. The mistake is not doing the math, or upgrading at the wrong moment and then downgrading again before earning back enough in rewards.

Executive membership offers up to 2 percent back annually on most Costco purchases, including many travel products booked through Costco Travel. However, that 2 percent rebate is capped, and travel spending does not always qualify in the same way as standard warehouse purchases, so it is essential to understand where your major expenses fall.

A traveler who books cruises, rental cars and resort stays through Costco Travel may see substantial Executive rewards. Someone who mostly uses the warehouse for occasional grocery runs and buys airfare directly from airlines may not earn enough to offset the higher fee. Upgrading right before a big trip booked through Costco Travel can be strategic. Keeping Executive status year-round when your travel plans are light can be wasteful.

Renewal timing can also create frustration, particularly for people who travel seasonally. Costco’s policy practices around backdating renewals have drawn criticism from some members over the years. If you renew after letting a membership lapse, the new expiration date may not always correspond neatly to the day you pay.

Members who assume they are buying a full twelve months of benefits from the moment of renewal can feel shortchanged when the official expiration lands earlier than expected. For a traveler who upgrades only because of an expensive vacation booking, failing to clarify exactly how long that upgraded membership will last may reduce the value of the strategy.

Underusing Costco Travel and Overlooking Package Fine Print

Costco Travel is one of the most powerful but underused benefits of membership for travelers. The platform negotiates package rates with major cruise lines, resort brands and car rental companies and often layers in extras such as onboard credits, daily food and beverage credits or room upgrades. Many Costco members go straight to airline sites, online travel agencies or hotel apps and never compare Costco Travel’s rates. The result is missed savings on both the base price of the trip and the extra perks that Costco builds into many offers.

At the same time, relying on Costco Travel without reading the fine print can lead to its own headaches. Package deals frequently come with stricter cancellation policies, specific room categories, limited departure dates and extra fees for changes. Travelers sometimes assume that Costco’s customer friendly reputation will override supplier rules, and they find out too late that a low promotional rate is nonrefundable or carries high change fees. This tends to be most painful when flights are included in the package or when cruises change itineraries and travelers want to adjust their plans.

Another oversight is forgetting to ensure that your Costco membership and Costco Anywhere Visa Card are active all the way through your trip if you are relying on them for perks or protections. For example, if you book a cruise through Costco Travel with your card but then cancel your Costco membership or close the card before departure, you may still be traveling, but you may not be able to resolve booking questions or handle last minute payment issues seamlessly through Costco. For trips planned nine or twelve months in advance, it is smart to confirm that your membership and card will remain active until after you return home.

Ignoring Travel Protections and Foreign Transaction Benefits

One of the hidden advantages of using the Costco Anywhere Visa Card for travel is access to built in protections. The card includes certain travel and emergency assistance services, worldwide car rental insurance, and travel accident insurance, along with damage and theft purchase protection on eligible items.

Travelers often pay extra for overlapping protections through rental car counters or third party websites because they do not realize their card already covers some of the same risks. That can add dozens of dollars per day to the cost of a rental car or push them into buying a separate travel insurance policy that duplicates coverage they already have.

However, those protections come with limitations and exclusions. For instance, rental car coverage may be secondary in some regions or for certain vehicle types, or it may exclude specific countries. Travel accident insurance only applies under defined circumstances.

Many travelers never read the benefit guide that accompanies their Costco Visa and only investigate after something goes wrong, such as damage to a rental car or lost luggage. At that point, trying to piece together coverage details while dealing with a foreign police report or airline customer service can be stressful and time consuming.

Another underused feature is the lack of foreign transaction fees on the Costco Anywhere Visa Card. Some members pack a separate travel credit card with no foreign transaction fees and leave their Costco Visa at home, not realizing they could have tapped the same savings plus earned 3 percent back on eligible travel and restaurant spending abroad.

As long as the card is widely accepted where you are going, it can be a powerful primary card for overseas trips. The mistake is defaulting to cash or debit cards that incur poor exchange rates or fees, or using a different credit card that charges foreign transaction fees, while the Costco Visa sits unused.

Overlooking Everyday Travel Costs: Gas, Dining and On The Road Spending

Travelers tend to focus on big ticket expenses like airfare and hotels, but the Costco rewards structure often shines brightest on everyday travel costs. Road trippers in particular miss out when they do not route all their gas spending through the Costco Anywhere Visa Card. With 5 percent back at Costco gas stations and 4 percent at other eligible gas and EV charging stations on up to 7,000 dollars per year in combined spend, consistent use of the card can generate substantial cash back.

A household that spends several hundred dollars a month on fuel, especially during summer road trip season, can easily surpass a few hundred dollars in annual gas rewards alone.

Dining is another area where travelers leave value on the table. The card’s 3 percent cash back rate at restaurants can apply to most sit down establishments, many cafes and fast food chains, and bars and lounges. However, not every food purchase codes as a restaurant. Purchases at bakeries, certain food counters inside stores, or dessert shops attached to retail locations may be categorized differently and earn only 1 percent.

Travelers who expect every coffee or snack to generate the 3 percent rate may be disappointed when reviewing statements, but the bigger error is putting clear restaurant spending on a card with weaker dining rewards.

On longer trips, other categories of spending still earn the baseline 1 or 2 percent, which can add up over time. Using the Costco Anywhere Visa Card for rideshares, local public transit where accepted, attraction tickets, and shopping in destination cities will not always trigger bonus tiers but still builds toward the annual reward certificate.

Travelers who switch constantly between multiple cards often end up with small, scattered balances of points or cash back everywhere, whereas concentrating most everyday travel spending on the Costco card simplifies tracking and maximizes the size of the single annual payout.

Membership Friction: Cancellations, Service Issues and Traveler Expectations

In recent years, some Costco members have voiced frustrations with customer service, particularly around membership cancellations and digital limitations. While renewals can usually be handled quickly online, canceling a membership often still requires calling customer service or visiting a warehouse in person. For travelers who are frequently on the road or live far from a physical club, that extra step can be enough to delay cancellation past planned dates.

In an effort to avoid being charged another year, some resort to removing payment methods or turning off auto-renewal without fully confirming the status of their account.

For frequent travelers, these gaps in communication can lead to misunderstandings about whether a membership is active at the exact moment they need to book travel, redeem a certificate or troubleshoot an issue in transit. A member might assume their account remains in good standing, only to discover at the airport or at a cruise check-in that their membership number is not recognized. Similarly, applying for a Costco Anywhere Visa while membership data is in flux can lead to delays or complications that disrupt travel planning. It is wise to resolve any membership changes well in advance of major trips, rather than trying to adjust on the fly between flights.

Some travelers also approach Costco with expectations shaped by traditional brick and mortar travel agencies, expecting a very high level of personalized planning support. Costco Travel offers strong value and competitive negotiations, but it is still primarily a large scale, volume driven service.

That means hold times, strict adherence to supplier rules and limited flexibility once a booking is in place. Members who understand this are more likely to feel satisfied: they use Costco for value and perks while accepting that complex, highly customized itineraries may still be better handled by a specialist travel advisor or an airline directly.

The Takeaway

When used thoughtfully, a Costco membership and the Costco Anywhere Visa Card by Citi can form the backbone of a powerful travel savings strategy. The combination of elevated rewards on gas, dining and eligible travel, plus the potential 2 percent Executive membership rebate on many Costco purchases and Costco Travel bookings, can significantly reduce the real cost of vacations and routine trips. The key is understanding precisely how rewards are calculated, when certificates are issued, what counts as eligible travel and how long your membership and card need to remain active.

The most costly mistakes are often the quiet ones: using a different card for flights when the Costco Visa would have earned more, missing redemption windows on the annual reward certificate, misjudging the timing of membership upgrades and renewals, and overlooking the protections and fee savings baked into the card. By taking the time to study your card’s benefits guide, reviewing Costco Travel’s fine print before booking, and aligning your membership status with your travel calendar, you can turn a standard warehouse card into a serious asset for your journeys.

FAQ

Q1. Do I have to be a Costco member to use the Costco Anywhere Visa Card for travel?
Yes. You must maintain an active, paid Costco membership to qualify for and keep the Costco Anywhere Visa Card by Citi. If your membership is canceled or lapses, you risk losing access to the card and any rewards earned.

Q2. Can I redeem my Costco credit card rewards directly toward flights or hotel bookings?
No. Rewards from the Costco Anywhere Visa Card are paid once a year in the form of a reward certificate, usually with your February statement. That certificate must be redeemed at a Costco warehouse either for merchandise or converted to cash at the register. You cannot apply it directly to travel purchases or use it through Costco Travel.

Q3. What travel expenses actually earn 3 percent back on the Costco Anywhere Visa Card?
Airline tickets, hotel stays, eligible car rentals, cruises and many bookings through Costco Travel generally qualify for 3 percent cash back. Some categories, like timeshares, many campgrounds and certain train tickets, may only earn 1 percent, so it is important to review how the merchant is categorized by the card issuer.

Q4. Are there foreign transaction fees when I use my Costco Anywhere Visa Card abroad?
No. The Costco Anywhere Visa Card does not charge foreign transaction fees, which makes it a strong option for use overseas on eligible travel and restaurant purchases, as long as Visa is widely accepted at your destination.

Q5. Can I book a Costco Travel package without paying with my Costco Anywhere Visa Card?
Yes. You can usually pay with other major credit cards, but you may miss out on some of the best stacking opportunities. Using the Costco Anywhere Visa Card often means earning 3 percent back on eligible travel while also collecting any Executive membership rewards on the Costco portion of the purchase.

Q6. What happens to my accumulated rewards if I cancel my Costco membership before February?
If your membership or Costco Anywhere Visa account is not active and in good standing when the annual reward certificate is issued, you may forfeit the rewards you earned during the year. To avoid losing value, wait until after the certificate arrives and is redeemed before making changes.

Q7. Is upgrading to an Executive membership worth it just for travel?
It can be, but only if you book enough eligible Costco and Costco Travel purchases to earn back the additional fee through the 2 percent Executive reward. Travelers who book multiple cruises, resort stays or significant car rentals through Costco Travel are more likely to come out ahead than those who rarely use the service.

Q8. Can I use my Costco reward certificate online at Costco’s website?
No. The annual reward certificate from the Costco Anywhere Visa must be redeemed in person at a Costco warehouse in the United States. It cannot be applied directly to online orders, though you can redeem it for cash in store and then use that cash however you choose.

Q9. Does every restaurant purchase earn 3 percent cash back?
Most standard restaurants, cafes, bars and fast food outlets do, but not every place that sells food is coded as a restaurant. Bakeries, some counters inside larger stores and certain specialty food shops may be coded differently and only earn 1 percent, even if you are eating there while traveling.

Q10. What should I do before a big trip to make sure I get the most from my Costco membership and card?
Verify that your Costco membership and Costco Anywhere Visa Card will remain active through your travel dates, review your card’s benefit guide for travel protections and exclusions, check your current rewards balance, and compare prices and perks on Costco Travel before booking. Planning these details ahead of time helps you maximize rewards and avoid surprises on the road.