Costco accepts only Costco-branded Visa cards and Mastercard, plus cash and debit cards — no other credit cards
Costco stopped accepting most credit cards in 2016. Today, the warehouse will take a Costco Visa (issued by Citi), a regular Mastercard from any bank, cash, debit cards, checks, and Costco Cash cards. If you arrive with an American Express or a non-Mastercard Visa from another bank, Costco will not process it at checkout.
This matters because the Costco Visa is the only card that earns rewards on Costco purchases. A regular Mastercard earns nothing extra. If you want cash back or points from your shopping, you need the Costco card — or you need to use a different payment method entirely.
Key Takeaways
- The Costco Visa earns 2% cash back on Costco purchases and gas, 1% on all other spending, with no annual fee.
- You must have a Costco membership to open a Costco Visa, and the card is issued by Citi, not Costco.
- Regular Mastercards work at Costco checkout but earn no rewards; American Express and other Visas do not work at all.
- Costco Visa rewards are paid as an annual certificate mailed to your home, not as points you can use when ready.
- The card has no annual fee, but you lose rewards access if your membership lapses.
What the Costco Visa earns and what it costs
The Costco Anywhere Visa Card by Citi earns 2% cash back on all Costco warehouse purchases and Costco.com orders, plus 2% on gas (at any station), and 1% on everything else. There is no annual fee. The rewards are paid once per year as a Costco Cash certificate, mailed to your address in January.
The 2% rate on Costco purchases is higher than most general-purpose cash back cards, which typically offer 1% to 1.5%. However, the rewards are locked into Costco spending — you cannot use them anywhere else, and you cannot convert them to points or transfer them to another program. If you do not shop at Costco regularly, the card's value drops sharply.
The card also includes purchase protection, extended warranty coverage, and roadside information. These are standard benefits on mid-tier Visa cards and do not set it apart from competitors.
How to open a Costco Visa account
You must have an active Costco membership before you can open a Costco Visa. Citi will verify your membership status during the process process. If your membership has lapsed, you will need to renew it first.
You can start an process online at Citi's website or in the Costco warehouse at the membership desk. The online process takes about 10 minutes and asks for your Social Security number, income, employment status, and address. Citi will pull your credit report. Approval or denial usually comes within minutes, though some applications go to manual review and take a few days.
If you are approved, Citi mails the physical card to you within 7 to 10 business days. You can use the card number for online purchases at Costco.com when ready after approval, even before the card arrives.
What happens to your rewards if your membership ends
Your Costco Visa remains active even if your warehouse membership lapses, but you stop earning rewards. The card will still work at any Mastercard merchant outside Costco, and you will earn 1% cash back on those purchases. However, the 2% rate on Costco purchases and gas disappears the moment your membership expires.
If you let your membership lapse and then renew it later, your rewards earning restarts when ready. There is no waiting period or reactivation step — as soon as your new membership is active, the 2% rate applies again to your next Costco purchase.
Comparing the Costco Visa to other cash back cards
The Costco Visa's 2% rate on Costco purchases beats most competitors, but only if you shop there regularly. A card like the Chase Freedom Unlimited offers 1.5% cash back everywhere with no category limits, which may be better if you split your spending across multiple stores. The American Express Blue Cash Preferred offers 3% cash back at supermarkets and gas stations, which could beat Costco's 2% on gas if you buy fuel at a grocery chain.
The trade-off is flexibility. The Costco card locks you into Costco's ecosystem — your rewards can only be spent there. Other cards give you cash back that works anywhere. If you are a heavy Costco shopper and buy gas there regularly, the Costco Visa usually wins. If you shop at multiple retailers or want flexibility in how you use rewards, a general-purpose card may be better.
One more constraint: you cannot use the Costco Visa at any warehouse except Costco. If you shop at Sam's Club or BJ's Wholesale, their own credit cards offer similar rewards structures but are separate products.
Why Costco stopped accepting other credit cards
Costco switched to Visa-only in 2016 after its contract with American Express ended. The warehouse negotiated a deal with Citi to issue a co-branded Visa card in exchange for accepting Visa as its primary credit card network. This gave Costco lower processing fees and more control over the card's terms.
From Costco's perspective, the move also encourages members to use the Costco Visa, which generates data about shopping patterns and keeps customers tied to the Costco ecosystem. From your perspective, it means you have fewer payment options — but if you shop there often, the rewards rate on the Costco card is usually worth the switch.
Using your Costco Visa outside the warehouse
The Costco Visa works as a regular Mastercard everywhere Mastercard is accepted — restaurants, gas stations, online retailers, and other merchants. Outside Costco, it earns 1% cash back, which is lower than many competing cards but still better than earning nothing.
The card's main value proposition is the 2% rate at Costco and on gas. If you use it primarily for non-Costco purchases, you are likely leaving money on the table compared to a card that offers 1.5% or higher on all spending. However, if you already have the card for Costco shopping, using it for everyday purchases is a reasonable way to earn a small amount of additional cash back.
Frequently Asked Questions
Can I use a regular Mastercard at Costco?
Yes. Any Mastercard from any bank works at Costco checkout. However, it will not earn any rewards on your purchase. Only the Costco Visa earns cash back at Costco.
What if I do not have a Costco membership yet?
You must join Costco before you can open a Costco Visa. Membership costs vary by tier — the Gold Star membership is the entry level. Once your membership is active, you can start a credit card process when ready.
When do I get my cash back rewards?
Costco mails a Costco Cash certificate to your home address once per year, typically in January. The certificate shows your total rewards earned over the previous 12 months. You can use it like a gift card at any Costco warehouse or on Costco.com. It does not expire, but it is only good at Costco.
Does the Costco Visa have an annual fee?
No. The Costco Anywhere Visa Card has no annual fee. You only pay the annual cost of your Costco membership, which is separate from the credit card.
What if I want to return the card?
You can close the account by calling Citi at the number on the back of your card. There is no penalty for closing it. If you close the account, any unused Costco Cash certificate remains valid and can still be used at Costco.