Costco only takes Visa cards, Costco's own Mastercard, and a few other payment methods — not American Express or Discover
Costco stopped accepting American Express in 2016 and has not taken Discover cards since it began. If you have an American Express or Discover card, you cannot use it at Costco registers or on Costco.com. The warehouse accepts Visa cards from any bank, the Costco Anywhere Visa Card (which Costco issues), and the older Costco Mastercard (still valid for existing cardholders, though Costco no longer issues new ones). You can also pay with cash, debit cards, checks, and EBT cards at warehouse locations.
This payment restriction is unusual among major retailers and affects how you shop there. If Visa is your only card option, you can still use it. But if you rely on American Express or Discover for rewards or other reasons, you will need to bring cash or a debit card to Costco, or use a different payment method online.
Key Takeaways
- Costco accepts Visa cards from any issuer, the Costco Anywhere Visa Card, and the Costco Mastercard (for existing holders only).
- American Express and Discover cards are not accepted at Costco warehouses or on Costco.com, and have not been for years.
- You can pay with cash, debit cards, checks, or EBT at warehouse locations if you do not have a Visa option.
- The Costco Anywhere Visa Card offers warehouse-specific rewards and is the only credit card Costco currently issues.
Why Costco Dropped American Express
Costco and American Express ended their exclusive payment partnership in 2015, and the change took effect in January 2016. The two companies could not agree on the fees American Express charged Costco for processing transactions. American Express typically charges merchants higher processing fees than Visa or Mastercard, and Costco decided the cost was not worth the benefit of accepting that card.
When the partnership ended, Costco switched to Visa as its primary credit card partner. Existing American Express cardholders had a grace period to use their cards, but new American Express cards were rejected when ready. If you held an American Express card before 2016, you may have received a transition offer, but those expired years ago.
What Cards Work at Costco Warehouses
At Costco warehouse locations, you can use any Visa card — whether it is issued by your bank, a credit union, or any other lender. You do not need a Costco-branded card to shop there. A standard Visa debit card, Visa credit card, or Visa prepaid card all work.
The Costco Anywhere Visa Card is Costco's own credit card, issued through Citi. It offers rewards specific to Costco purchases: 4% back on gas, 3% back on travel, 2% back on Costco purchases, and 1% back on everything else. You earn these rewards only when you use the card at Costco or Costco.com, not at other retailers. If you shop at Costco regularly, this card can offset some of your membership cost, but it is not required to shop there.
The Costco Mastercard still works at Costco warehouses if you obtained it before Costco stopped issuing new ones. Costco no longer issues new Mastercards, so this option is only available to existing cardholders. If your Mastercard expires, you cannot renew it as a Costco card — you would need to switch to a Visa option.
Payment Methods on Costco.com
Online at Costco.com, the card rules are the same: Visa cards work, American Express and Discover do not. You can use any Visa credit card, the Costco Anywhere Visa Card, or a Visa debit card to check out. You can also pay with PayPal if you link a Visa card to your PayPal account, though the underlying payment method is still Visa.
For online orders, you also have the option to pay by electronic check if you provide your bank account and routing number. This method takes longer to process but does not require a card at all. Some members use this option specifically to avoid card fees or to keep their card information off the Costco website.
Non-Credit Card Payment Options
If you do not have a Visa card or prefer not to use one, Costco warehouses accept cash, debit cards (Visa or non-Visa), personal checks, and EBT cards for may be able to access purchases. Debit cards that are not Visa-branded still work — the Visa requirement applies only to credit cards. This means if your bank issued you a Mastercard debit card or a Discover debit card, you can use it at Costco even though Costco does not accept Mastercard or Discover credit cards.
EBT cards work for SNAP-may be able to access items only, not for all Costco purchases. If you use EBT, the cashier will separate your may be able to access items from other purchases at checkout. Personal checks require a valid ID and take time to process, so this method is less common now, but Costco still accepts them.
What Happens If You Try to Use American Express or Discover
If you attempt to pay with American Express or Discover at a Costco register, the card will be declined. The cashier cannot override this — it is a system-wide restriction, not a judgment call. You will need to provide a different payment method on the spot. At self-checkout, the card reader will reject the card before you can complete the transaction.
On Costco.com, the website will not accept American Express or Discover as a payment option. The checkout page will not show these card types as choices, so you cannot accidentally try to use one. If you attempt to enter an American Express or Discover number, the system will reject it.
Should You Get the Costco Anywhere Visa Card
The Costco Anywhere Visa Card makes sense if you shop at Costco frequently and want to earn rewards on those purchases. The 2% back on Costco purchases and 4% back on gas can add up over a year, especially if you buy groceries, household items, or fuel regularly. There is no annual fee, so the card costs nothing to hold.
However, you do not need this card to shop at Costco. A regular Visa card from your bank works just as well at checkout. The Costco card is purely optional and only valuable if you use it enough to earn meaningful rewards. If you already have a Visa card with better rewards elsewhere, or if you prefer not to carry multiple cards, your existing Visa is sufficient.
Frequently Asked Questions
Can I use my American Express card at Costco if I call ahead?
No. Costco's payment system does not accept American Express cards under any circumstances. Calling ahead will not change this. If you have an American Express card, you will need to bring a Visa card, cash, debit card, or another accepted payment method to Costco.
Does Costco take Discover cards online?
No. Costco.com does not accept Discover cards, just like the warehouses do not. The online checkout will not show Discover as a payment option. You will need to use a Visa card or another accepted method to complete your order.
If I have a Visa debit card, do I need a Visa credit card too?
No. A Visa debit card works at Costco just like a Visa credit card does. You do not need both. If your debit card has the Visa logo, you can use it to shop at Costco without a separate credit card.
What if my bank only issues Mastercard or Discover?
You can use a debit card from your bank even if it is Mastercard or Discover branded — the card type restriction applies only to credit cards. If your bank does not offer Visa credit cards, you can open a Visa card with a different bank or credit union, or use cash and debit at Costco.
Can I use a Visa gift card at Costco?
Yes. Any Visa card, including Visa gift cards and Visa prepaid cards, works at Costco. The card does not have to be a traditional credit card issued by a bank.