Costco's Credit Card Rules Have Changed Over Time
Costco accepts credit cards, but not all of them. For most of its history, Costco had exclusive partnerships that limited which cards you could use. Today, Costco takes Visa cards everywhere, but the rules still differ depending on whether you shop in-warehouse or online, and they vary slightly by country.
The shift happened in 2015, when Costco ended its long partnership with American Express and moved to Visa. If you have an older Costco American Express card sitting in a drawer, it stopped working at Costco locations years ago — though you can still use it elsewhere. Understanding what cards work where matters because using the wrong one at checkout can hold up your transaction and frustrate the people behind you.
Key Takeaways
- Costco accepts all Visa cards at warehouse locations and online, but does not take American Express, Mastercard, or Discover.
- The Costco Anywhere Visa card earns rewards on Costco purchases and gives you cash back, but you do not need it to shop — any Visa works.
- If you do not have a Visa, you can still pay with debit cards, checks, EBT, or cash at warehouse locations.
- Online orders require a Visa credit card, debit card, or the Costco Shop Card — cash and checks do not work for delivery.
- Warehouse locations have a physical card reader at checkout, so your card must be accepted before you reach the register to avoid delays.
What Credit Cards Work at Costco Warehouses
At any Costco warehouse in the United States, you can use any Visa credit card — whether it is the Costco Anywhere Visa, a Visa from your bank, or a Visa from another issuer. Costco does not take American Express, Mastercard, or Discover at the register, even if you have been a member for years.
If you do not have a Visa, you have other payment options. You can pay with a debit card (Visa or non-Visa), a Costco Shop Card (a prepaid card you load with cash), a personal check, or cash. EBT cards work for may be able to access food items. The one payment method that does not work is a non-Visa credit card — so if your only credit card is a Mastercard or American Express, bring a debit card or cash instead.
The Costco Anywhere Visa card is optional. It earns 4% cash back on gas, 3% on travel, 2% on Costco purchases, and 1% on everything else. But you do not need it to shop at Costco. Any Visa credit card will get you through checkout just as quickly.
Online Orders and Costco.com Payment Rules
Costco.com has stricter payment rules than warehouse locations. You cannot pay with cash, check, or the Costco Shop Card online. You need either a Visa credit card, a Visa debit card, or a Mastercard debit card. Costco does not take Mastercard or Discover credit cards online, only debit cards from those networks.
If you are ordering for delivery or pickup, check your card type before you reach the payment screen. If you have a Mastercard credit card and want to order online, you will need to use a different payment method or shop in a warehouse instead. The same applies to American Express and Discover — they do not work on Costco.com at all.
Why Costco Stopped Taking American Express
For decades, Costco and American Express had an exclusive partnership. If you wanted to shop at Costco, you needed an American Express card or cash. That changed in September 2015 when the contract ended and Costco switched to Visa.
The reason was cost. American Express charges merchants higher fees than Visa does, and Costco wanted to lower its payment processing expenses. The switch saved Costco money but meant that American Express cardholders had to find a different payment method or get a Visa card. Costco members who had the old American Express card received a transition period, but those cards have not worked at Costco for years now.
What Happens If You Try to Use a Non-Visa Card
If you reach the register with a Mastercard, American Express, or Discover card, the card reader will decline it. The cashier will ask you to provide a different payment method. This happens quickly if you have a backup option ready — a debit card, the Costco Shop Card, or cash. But if your only card is non-Visa, you will have to leave the checkout line, go to the customer service desk to load a Shop Card with cash, and come back.
To avoid this delay, check your wallet before you shop. If you only have non-Visa credit cards, bring a debit card or cash. If you shop online, the payment screen will reject a non-Visa credit card before you complete the order, so you will know when ready rather than at delivery time.
International Costco Locations and Credit Card Rules
Costco operates in Canada, Mexico, Japan, South Korea, Taiwan, and the United Kingdom, and payment rules vary by country. In Canada, Costco accepts Visa and Mastercard at warehouse locations. In Mexico, Costco takes Visa and Mastercard as well. Japan, South Korea, and Taiwan each have their own local payment networks and rules.
If you are traveling and plan to shop at a Costco outside the United States, contact that location or check Costco's website for the country you are visiting. Visa is widely accepted at international locations, but Mastercard acceptance varies, and American Express is not accepted anywhere Costco operates.
The Costco Anywhere Visa Card: Rewards Without Obligation
The Costco Anywhere Visa card is a rewards card issued by Citi Bank. It earns cash back on Costco purchases and gas, but you do not need it to shop. If you spend a lot at Costco and want to earn rewards, it can make sense. If you prefer to use another card or pay with cash, that is fine — Costco will not pressure you to get one.
The card has an annual fee that matches your membership tier: $60 for Gold Star members, $120 for Executive members. You get an annual cash back reward that offsets some of that fee if you spend enough. The card is a Visa, so it works everywhere Visa is accepted, not just at Costco.
Frequently Asked Questions
Can I use my Mastercard at Costco?
No, Costco does not take Mastercard credit cards at warehouse locations. You can use a Mastercard debit card at the warehouse or online, but not a Mastercard credit card. If Mastercard is your only credit card, bring a debit card, the Costco Shop Card, or cash.
Do I need the Costco Visa card to shop?
No. Any Visa credit card works at Costco warehouses. The Costco Anywhere Visa is optional and earns rewards, but it is not required. You can shop with any Visa, a debit card, the Shop Card, check, or cash.
What if I only have American Express?
American Express is not accepted at Costco. You will need to pay with a debit card, the Costco Shop Card, cash, or check at a warehouse. For online orders, you need a Visa or Mastercard debit card. Consider getting a Visa debit card from your bank if you shop at Costco regularly.
Can I use my Discover card online?
No. Costco.com does not take Discover cards, either credit or debit. You need a Visa credit card, a Visa debit card, or a Mastercard debit card to order online.
What is the Costco Shop Card?
The Costco Shop Card is a prepaid card you load with cash at the warehouse. You can use it at any Costco location and online. It is useful if you do not have a Visa or debit card, or if you want to control your spending by loading a set amount.