Costco only accepts Visa credit cards, not Mastercard or American Express
If you walk to a Costco checkout with an American Express or Mastercard, you will not be able to use it to pay. Costco has an exclusive partnership with Visa, which means Visa is the only credit card brand accepted at the register. This rule applies at all Costco locations in the United States, Canada, and most other countries where Costco operates.
The partnership between Costco and Visa has been in place since 2016, when Costco ended its long relationship with American Express. Before that switch, American Express was the only credit card Costco took. If you have been a Costco member for years, you may remember that change — it was significant enough that many members had to get a new card.
Debit cards, cash, and checks still work at Costco. The Visa-only rule applies only to credit cards. If you do not have a Visa credit card, you have other payment methods available, though they may not earn you rewards the way a credit card would.
Key Takeaways
- Costco accepts only Visa credit cards; Mastercard and American Express are not accepted at checkout.
- The Costco Anywhere Visa Card, issued by Citi, is the official Costco credit card and earns cash back on Costco purchases.
- Any Visa card from any bank works at Costco, not just the Costco-branded card, though rewards vary by card.
- If you do not have a Visa, you can pay with debit, cash, or check instead.
- Online orders at Costco.com accept more payment methods than in-store checkout does.
The Costco Anywhere Visa Card and how it differs from other Visa cards
The Costco Anywhere Visa Card is the credit card Costco promotes and the one designed to work best with your membership. It is issued by Citibank and earns cash back on purchases made at Costco. The cash back rate is 2 percent on Costco purchases and gas, 1 percent on all other purchases. You do not have to use this card to shop at Costco — any Visa card will work — but this card is built to reward you for shopping there.
The card has an annual fee of $59 for the standard version and $120 for the Executive version. The Executive version earns higher cash back rates: 2 percent at Costco and on gas, 3 percent on travel booked through Costco Travel, and 1 percent elsewhere. Whether the higher fee pays for itself depends on how much you spend at Costco each year. Costco publishes a calculator on its website to help you decide between the two versions.
If you already have a Visa card from your bank or credit union, you can use it at Costco without switching. You will not earn Costco-specific rewards, but you will earn whatever rewards your existing card offers. Some general-purpose Visa cards earn 1 to 2 percent cash back on all purchases, which may be close to or better than the Costco card depending on the card and how much you spend outside Costco.
What happens if you try to pay with a non-Visa card
If you reach the checkout with a Mastercard or American Express, the card reader will decline it. The cashier cannot override this — it is a system-wide restriction, not a judgment call. You will need to use a different payment method to complete your purchase.
This can be frustrating if you did not know about the Visa-only policy beforehand. The best way to avoid it is to check your wallet before you get in line, or to call your local Costco ahead of time if you are unsure whether your card is a Visa. Costco's customer service line can also tell you which cards are accepted.
Paying online at Costco.com versus in-store
Costco.com, the warehouse's online shopping site, accepts more payment methods than the physical stores do. You can use Visa, Mastercard, American Express, and Discover online. You can also pay with PayPal, Apple Pay, and Google Pay if you link one of those services to a supported card.
This means if you have a Mastercard or American Express but no Visa, you can still order from Costco online and have items shipped to you or picked up at a warehouse. The online site does not accept cash or checks, but it does give you payment flexibility that the register does not.
Shipping costs and membership requirements for online orders vary depending on what you are buying. Some items ship free to members; others have a minimum order or charge a delivery fee. Check Costco.com for details on the specific items you want.
Why Costco switched from American Express to Visa
In 2015, Costco and American Express ended their partnership after decades of working together. The two companies disagreed on fees and terms. Costco wanted lower interchange fees — the percentage American Express charged Costco for processing each transaction. American Express would not agree to Costco's terms, so Costco signed an exclusive deal with Visa instead, effective in 2016.
From a member's perspective, the switch meant that anyone who had been using an American Express card at Costco had to get a Visa or use another payment method. Costco offered a transition period and promoted the new Costco Anywhere Visa Card as the replacement. Many long-time members who had built rewards with American Express felt the change was unfair, but Costco's business decision was final.
The partnership with Visa remains exclusive. Costco has not indicated any plans to accept other credit card brands in the future, though business relationships can always change.
How to get a Visa if you do not have one
If you want to use a credit card at Costco and do not currently have a Visa, you have two main routes: explore for the Costco Anywhere Visa Card through Citibank, or explore for a Visa card from your own bank or credit union.
The Costco card process is available on Costco.com or in the warehouse. Citibank will review your credit history and let you know whether you are approved. The process usually takes a few business days. If you are approved, the card arrives by mail within one to two weeks.
If you prefer not to use the Costco-branded card, you can contact your bank or credit union and ask about Visa options. Most banks offer at least one Visa card. Some have no annual fee; others charge a fee but offer rewards. Compare the options available to you based on your credit score and spending habits.
Frequently Asked Questions
Can I use my Mastercard at Costco if I am an Executive member?
No. Membership level does not change the payment rules. Only Visa credit cards work at Costco registers, regardless of whether you have a Gold Star membership or an Executive membership. You can pay with debit, cash, or check instead.
Does the Costco Visa Card work at other stores?
Yes. The Costco Anywhere Visa Card is a regular Visa card and works anywhere Visa is accepted. You will earn 1 percent cash back on non-Costco purchases, compared to 2 percent at Costco. You can use it at grocery stores, gas stations, restaurants, and online retailers.
What if I have a Visa debit card instead of a credit card?
Visa debit cards work at Costco checkout. The Visa-only rule applies to credit cards, but Visa debit cards are accepted as well. You will not earn credit card rewards, but you will be able to complete your purchase.
Can I use Apple Pay or Google Pay at Costco if my card is a Visa?
Not at the warehouse register. Costco does not accept mobile payment apps in-store, even if your underlying card is a Visa. You must present a physical Visa card or use cash, check, or debit. Mobile payments do work on Costco.com.
What should I do if my Visa card is declined at Costco?
Contact your card issuer to find out why. The decline could be due to fraud protection, a low credit limit, an expired card, or an account issue unrelated to Costco's Visa-only policy. Your bank can tell you what happened and help you resolve it.