Costco only accepts Visa credit cards, not Mastercard or American Express
Costco has a single credit card partnership: Visa. This means you can use any Visa card at Costco warehouses and on Costco.com. You cannot use Mastercard or American Express, even if you have them. Debit cards, cash, and checks still work, but if you want to pay with a credit card, it must be Visa.
This restriction has been in place since 2006, when Costco ended its American Express partnership and switched to Visa. The company renewed this agreement in 2016 and again in 2021, so this is not expected to change soon.
The reason Costco limits itself to one network is cost. Credit card processing fees are a major expense for retailers, and Costco negotiates directly with Visa to keep those fees lower than what Mastercard or Amex would charge. Costco passes some of this savings to members through lower prices and warehouse operations.
Key Takeaways
- Costco accepts only Visa credit cards; Mastercard and American Express are not accepted at the warehouse or online.
- You can still pay with cash, checks, or debit cards, but credit card purchases must use Visa.
- The Costco Anywhere Visa card offers 2% cash back on Costco purchases and 1% on all other purchases, but you do not need it to shop.
- If you have a Mastercard or Amex but no Visa, you can open a basic Visa card from your bank or use a prepaid Visa card.
- This policy applies to all Costco locations worldwide and has remained unchanged since 2006.
The Costco Anywhere Visa card versus other Visa cards
Costco offers its own credit card, the Costco Anywhere Visa Card, issued by Citi. This card gives you 2% cash back on Costco purchases (warehouse and online), 1% cash back on gas and restaurants, and 1% on all other purchases. There is no annual fee, and the cash back is paid as an annual reward certificate you can use at Costco.
You do not have to use the Costco card to shop at Costco. Any Visa card works. A basic Visa from your bank, a rewards Visa from another issuer, or even a prepaid Visa card will be accepted. The Costco card is only worth opening if you shop there regularly enough that the 2% cash back on Costco purchases outweighs the value you would get from a different rewards card.
If you already have a Visa card with higher rewards elsewhere, or if you prefer to keep your cards straightforward, use the Visa you have. Costco will accept it without question.
What to do if you only have Mastercard or American Express
If Mastercard or American Express is your only credit card, you have three options. First, you can pay with cash, a debit card, or a check at the warehouse. Online purchases require a credit card, so this option only works in person.
Second, you can open a Visa card. Most banks offer basic Visa cards with no annual fee. You do not need rewards or special features — a plain Visa will work. This takes a few days to a week after you open the account.
Third, you can buy a prepaid Visa card at a drugstore or supermarket and load it with cash. This works at Costco like any other Visa. Prepaid cards charge a fee to load money (usually $2 to $5), so this is most practical if you are making a single large purchase rather than shopping regularly.
Why Costco does not accept Mastercard or American Express
Costco's decision to accept only Visa comes down to negotiating power and cost control. When Costco switched from American Express to Visa in 2006, the company was able to negotiate lower processing fees because Visa was willing to compete for Costco's volume. Mastercard and American Express would not match those terms.
Costco's business model depends on keeping operating costs low so it can offer low prices to members. Credit card fees are one of the largest costs a retailer faces. By limiting itself to one network and negotiating directly, Costco reduces what it pays per transaction. This savings gets passed along through lower warehouse prices and lower membership fees.
This is also why Costco does not accept payment apps like Apple Pay or Google Pay, even though they use Visa underneath. Costco wants to control the transaction directly with Visa, not through a third-party processor.
How to check if your Visa card will work at Costco
Almost any Visa card will work at Costco, but a few types may not. Visa gift cards and prepaid Visa cards work fine. Business Visa cards work fine. The only Visa cards that sometimes do not work are very old cards or cards issued by banks outside the United States if you are shopping at a U.S. Costco.
If you are unsure whether your specific Visa card will work, call Costco member services at 1-800-992-2683 before you shop. They can tell you in a few minutes. You can also test it at a self-checkout kiosk with a small purchase before you fill your cart.
If your Visa card is declined, the most common reasons are that the card is expired, the card has been flagged for fraud, or you have hit your credit limit. Contact your card issuer to check. Costco's payment system itself does not reject Visa cards based on the bank that issued them.
Costco's payment policy at the warehouse and online
At Costco warehouses, you can pay with Visa credit cards, Visa debit cards, cash, checks, or Costco Cash Cards (a prepaid card Costco sells). You cannot use Mastercard, American Express, Discover, or any other credit card network.
On Costco.com, you can use Visa credit cards, Visa debit cards, or Costco Cash Cards. You cannot pay with cash or checks online. If you are ordering online and do not have a Visa, you will need to get one before checkout.
Costco also accepts EBT (food stamps) at the warehouse for may be able to access food items, but only if you pay with the EBT card itself, not a credit card. This is a separate payment method and does not require Visa.
International Costco locations and Visa acceptance
Costco operates warehouses in Canada, Mexico, Japan, South Korea, Taiwan, and the United Kingdom. All of these locations accept Visa credit cards. The Visa-only policy is global, not just in the United States.
If you are traveling and plan to shop at a Costco outside the U.S., bring a Visa card. Mastercard and American Express will not be accepted, even in countries where those networks are more common than Visa. Some international Costco locations may also accept local payment methods like debit cards or mobile payments, but Visa is the only credit card network accepted everywhere.
Frequently Asked Questions
Can I use my Mastercard at Costco if I have a membership?
No. Costco does not accept Mastercard under any circumstances, regardless of membership status. Your membership gets you into the warehouse, but payment is separate. You will need to use Visa, cash, a check, or a debit card.
Does the Costco Anywhere Visa card give better rewards than a regular Visa?
The Costco card gives 2% cash back on Costco purchases, which is higher than most regular Visa cards. However, if you already have a Visa with 2% or higher cash back on all purchases, or if you do not shop at Costco often enough to earn meaningful rewards, your current card may be better. Compare your annual Costco spending to the rewards you would earn before switching.
What if my Visa card is declined at Costco?
The most common reasons are an expired card, a fraud hold, or a maxed-out credit limit. Contact your card issuer to check your account status. Costco's system accepts all Visa cards, so the problem is almost always with the card itself, not with Costco's payment system.
Can I use a Visa gift card at Costco?
Yes. Visa gift cards work at Costco just like any other Visa card. Make sure the card has enough balance for your purchase and that it has not expired. Some gift cards have a PIN; if prompted at checkout, enter it.
Does Costco accept Apple Pay or Google Pay?
No. Costco does not accept mobile payment apps, even though they use Visa underneath. You must present a physical Visa card or pay with cash, a check, or a debit card.