Costco requires a membership card to shop, and a credit card to use at checkout — but not necessarily a Costco-branded one
Costco will not let you pay with just any credit card. At the register, you can use a Costco Anywhere Visa Card (the warehouse's own card), any other Visa card, or cash and checks. Mastercard, American Express, and Discover are not accepted, even if you have a Costco membership. This rule applies at all Costco locations in the United States.
If you do not own a Visa card and do not want to open one, you can still shop at Costco by paying with cash or a check. You will still need an active Costco membership to enter the warehouse and make purchases.
The Costco Anywhere Visa Card is issued by Citi and comes in two versions: one for warehouse members and one for non-members. The warehouse version offers cash back on Costco purchases and gas, while the non-member version has different rewards. Neither card is required to shop at Costco — a regular Visa card works just as well at checkout.
Key Takeaways
- Costco accepts only Visa cards, cash, and checks at checkout, regardless of your membership status.
- The Costco Anywhere Visa Card offers cash back on warehouse purchases and gas, but you do not need it to shop — any Visa card will work.
- If you do not have a Visa card, you can pay with cash or checks instead.
- The Costco Anywhere card requires a credit check and approval from Citi, just like any other credit card.
- Costco membership and a payment method are separate requirements — you need both to shop, but the payment method does not have to be Costco-branded.
What the Costco Anywhere Visa Card offers
The Costco Anywhere Visa Card earns cash back on purchases made at Costco warehouses and Costco.com, as well as on gas purchased at Costco gas stations. The cash back rate varies by category: warehouse purchases earn a lower percentage, while gas and Costco.com purchases earn a higher percentage. The exact rates change periodically, so check the Citi website or your Costco membership materials for current numbers.
The card also includes purchase protection, extended warranty coverage, and travel benefits like emergency medical and dental coverage when you are traveling outside the United States. There is an annual fee, which Costco members pay once per year. The fee is waived for the first year if you open the card through a Costco warehouse or Costco.com.
If you are not a Costco member, Citi offers a non-member version of the card with different rewards and no annual fee. That version earns cash back on all purchases, not just Costco purchases, but at a lower rate than the warehouse member card.
How to open a Costco Anywhere Visa Card
You can open a Costco Anywhere Visa Card online through Citi's website, by phone, or in person at a Costco warehouse. The process takes about 10 minutes and asks for your Social Security number, income, employment status, and other information Citi uses to decide whether to approve you.
Citi will run a hard inquiry on your credit report, which temporarily lowers your credit score by a few points. If you are approved, your card arrives in the mail within 7 to 10 business days. If you are denied, Citi will send you a letter explaining why. Common reasons for denial include a low credit score, high existing debt, or a short credit history.
You do not need to be a Costco member to open the card, but if you are a member, you will receive the warehouse version with better rewards. If you open the card and later cancel your membership, you can still use the card at other retailers that accept Visa.
When a regular Visa card makes more sense than the Costco card
If you shop at Costco only once or twice a year, the annual fee on the Costco Anywhere card may cost more than the cash back you earn. In that case, using a regular Visa card you already own avoids the fee and still gets you through checkout.
If you have a rewards Visa card from your bank or another issuer that earns a higher cash back rate on all purchases, you might earn more by using that card at Costco than by opening the Costco card. Compare the cash back rates and annual fees of cards you already own before opening a new one.
If your credit score is below 650 or you have recent missed payments, you may be denied for the Costco card. In that case, using cash or a Visa card you already have is your only option at Costco checkout.
What happens if you do not have a Visa card
Costco will not accept Mastercard, American Express, or Discover, even if you have a Costco membership. If you do not own a Visa card and do not want to open one, you can pay with cash or a personal check at any Costco warehouse.
If you prefer not to carry cash or write checks, you have two options: open a basic Visa card through your bank (which may not require a credit check if you have an existing account), or open the Costco Anywhere Visa Card through Citi. A basic Visa debit card linked to your bank account is another option if you want to avoid a credit card altogether.
Some Costco warehouses have ATMs on site, so you can withdraw cash before checkout if you did not bring enough. Check your local warehouse's website or call ahead to confirm.
How the Costco card affects your credit
Opening the Costco Anywhere Visa Card will lower your credit score slightly in the short term because Citi runs a hard inquiry and opens a new account. The hard inquiry typically drops your score by 5 to 10 points and falls off your credit report after two years. The new account lowers your average account age, which also affects your score temporarily.
Over time, using the card responsibly — paying your full balance on time each month — will raise your score. The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), so on-time payments build your credit history and show lenders you can manage debt reliably.
If you carry a balance and pay interest, the card will cost you money and may hurt your credit score if your balance gets too high relative to your credit limit. Keeping your balance below 30 percent of your limit is the best way to protect your score while building credit history.
Frequently Asked Questions
Can I use my Mastercard or American Express at Costco?
No. Costco accepts only Visa cards, cash, and checks at checkout. This rule applies at all U.S. Costco locations. If you have a Mastercard or American Express, you can still shop at Costco by paying with cash or a check.
Do I need the Costco Anywhere card to shop at Costco?
No. Any Visa card works at Costco checkout. The Costco Anywhere card is optional and useful only if you shop at Costco frequently enough to earn back more in cash rewards than you pay in the annual fee.
What if I get denied for the Costco Anywhere card?
You can still shop at Costco using a different Visa card, cash, or a check. If you want to build credit or improve your score before reapplying, focus on paying down existing debt and making all payments on time for at least six months, then reapply.
Does opening the Costco card hurt my credit score?
Yes, temporarily. The hard inquiry and new account will lower your score by a few points for a few months. Over time, using the card responsibly and paying your balance in full each month will raise your score as you build a positive payment history.
Can I use the Costco card outside of Costco?
Yes. The Costco Anywhere Visa Card is a regular Visa card and works anywhere Visa is accepted. You will earn cash back only on Costco purchases and gas, but you can use it at other retailers, restaurants, and online stores.