Costco accepts only Visa cards and their own Costco Anywhere Visa card

Costco stopped accepting American Express, Discover, and Mastercard at warehouse locations in 2016. Today, the only credit cards that work at Costco warehouses are Visa cards issued by any bank, plus the Costco Anywhere Visa Card by Citi. This means if you carry Mastercard or Discover, you cannot use it to pay for warehouse purchases — though both work online at Costco.com.

At Costco.com, you have more options. The website accepts Visa, Mastercard, Discover, and American Express. You can also pay with debit cards, PayPal, and gift cards at both the warehouse and online. If you shop at Costco and do not have a Visa, the simplest solution is to bring a debit card or use cash.

Key Takeaways

  • Only Visa credit cards work at Costco warehouse locations; Mastercard, Discover, and American Express are not accepted in-store.
  • The Costco Anywhere Visa Card by Citi earns cash back on Costco purchases and gas, but requires a Costco membership to use.
  • Costco.com accepts Visa, Mastercard, Discover, American Express, PayPal, and debit cards, giving you more payment options online.
  • If you do not have a Visa, you can pay with a debit card, cash, or a Costco gift card at the warehouse.

The Costco Anywhere Visa Card and its cash back structure

The Costco Anywhere Visa Card by Citi is a co-branded card that gives you cash back on Costco purchases. You earn 2% cash back on Costco warehouse purchases and gas at Costco, 1% on other Visa purchases, and 3% on restaurants and travel. There is no annual fee, but you must have an active Costco membership to open the card.

Cash back appears as an annual reward certificate that Costco mails to you or credits to your account. You can use this certificate to buy anything at the warehouse or online. The card also includes purchase protection and extended warranty coverage on items you buy.

If you already have a different Visa card, you do not need the Costco card to shop at the warehouse — any Visa works. The Costco card makes sense only if you shop at Costco regularly and want to earn cash back on those purchases.

Why Costco switched from American Express to Visa

Costco and American Express ended their partnership in 2015 after a contract dispute over fees. American Express wanted higher interchange rates — the percentage Costco pays per transaction — and the two sides could not reach a new agreement. Costco chose Visa as its exclusive credit card partner starting in 2016.

At the same time, Costco launched the Costco Anywhere Visa Card with Citi to keep members who wanted a co-branded card. This gave Costco more control over the card's terms and rewards structure. The shift was unpopular with some American Express cardholders, but Costco has not reversed the policy.

Payment options if you do not have a Visa

If you carry Mastercard, Discover, or American Express, you have three ways to pay at the warehouse. You can use a debit card linked to your bank account, pay with cash, or use a Costco gift card. All three work at every warehouse location and online.

Costco gift cards come in any amount and never expire. You can buy them at the warehouse, online, or at some grocery stores. If you shop at Costco only occasionally and do not want to open a new card, a gift card is the simplest option.

Some members keep a small amount on a Costco gift card specifically for warehouse visits, then use their preferred credit card for online purchases where it is accepted.

How the warehouse-only Visa rule affects your shopping

The Visa-only rule applies only to in-person warehouse purchases. You can use any major credit card at Costco.com, so online shopping gives you flexibility if you prefer Mastercard or Discover. Some members use this to their advantage: they buy items online that earn better rewards on their preferred card, then pick them up at the warehouse if that option is available.

The rule also does not explore to Costco gas stations. You can use any major credit card at the pump, even if you cannot use it inside the warehouse. This is because Costco gas is technically a separate business unit with different payment processing.

Comparing the Costco card to other warehouse credit cards

Sam's Club offers the Sam's Club Mastercard, which earns cash back on Sam's Club purchases and gas. Walmart+ members can use the Walmart+ credit card for rewards at Walmart stores. If you shop at multiple warehouse clubs, you might carry more than one card.

The Costco card's 2% cash back on warehouse purchases is competitive with other warehouse cards, but the benefit only applies if you shop at Costco regularly. If you visit fewer than four times a year, the cash back may not offset the value of a general rewards card that works everywhere.

A standard 2% cash back card from a bank works at any store, including Costco, and gives you the same rate on warehouse purchases. The trade-off is that you lose the 3% on restaurants and travel that the Costco card offers. The choice depends on where you spend most of your money.

Frequently Asked Questions

Can I use my Mastercard or Discover at a Costco warehouse?

No. Costco warehouses accept only Visa credit cards and the Costco Anywhere Visa Card by Citi. You can use Mastercard and Discover at Costco.com, or pay with a debit card, cash, or Costco gift card at the warehouse.

Do I need the Costco Visa card to shop at Costco?

No. Any Visa card works at the warehouse. The Costco card is optional and makes sense only if you want the cash back rewards. A regular Visa from your bank works just as well for paying.

Can I use American Express at Costco now?

No. Costco ended its American Express partnership in 2016 and has not brought it back. American Express is not accepted at warehouse locations, though it works at Costco.com.

What happens if I try to use a Mastercard at the checkout?

The card will be declined. The cashier will ask you to use a different payment method: another Visa, a debit card, cash, or a Costco gift card.

Is the Costco Visa card worth it if I only shop there once a month?

Probably not. At one visit per month, you would earn roughly $24 in annual cash back on a $1,200 yearly spend. Since the card has no annual fee, it costs nothing to carry, but the reward is modest unless you also use it for gas and restaurants.