Costco does not take Discover cards at the warehouse or online
Costco stopped accepting Discover cards in 2016. If you try to pay with a Discover card at a Costco warehouse or on Costco.com, the transaction will be declined. This applies to all Discover cards, including those with cash back rewards or other perks.
The reason comes down to a business decision between Costco and Visa. When Costco's contract with American Express ended in 2015, Costco switched to accepting Visa cards exclusively for credit purchases. Discover was not part of that new agreement, and it remains excluded today.
If you have a Discover card and shop at Costco, you have a few payment options that will actually work at checkout.
Key Takeaways
- Costco will not accept Discover cards in warehouses or online, and this policy has been in place since 2016.
- You can pay with Visa, Mastercard, American Express, or Costco's own Costco Anywhere Visa card at any location.
- Debit cards, cash, and checks are also accepted at Costco warehouses, though not all payment methods work online.
- If you primarily use Discover for rewards, opening a Costco Visa card or switching to a different card for Costco purchases may make sense.
What payment methods Costco actually accepts
Costco takes Visa, Mastercard, and American Express at both warehouses and online. The Costco Anywhere Visa card, which Costco issues itself, is also accepted everywhere. If you have one of these cards, you will have no problem checking out.
At Costco warehouses only, you can also pay with a debit card, cash, or a personal check. Online purchases must be made with a credit card — debit cards, cash, and checks do not work on Costco.com.
Some Costco locations have a Costco Gas station attached. Gas purchases follow the same rules: Visa, Mastercard, American Express, and the Costco Visa card are accepted. Discover is not accepted at the pump either.
Why Discover was dropped and what changed
For years, Costco accepted both American Express and Discover. That ended when Costco's long-standing contract with American Express came up for renewal in 2015. Rather than renew with Amex, Costco negotiated a new deal with Visa that gave Visa exclusive credit card acceptance rights.
This exclusivity meant Costco had to stop taking other credit cards, including Discover. The switch happened gradually through 2016, with Discover cards being phased out completely by the end of that year. Costco has not changed this policy since, and there is no indication it plans to.
The business reason is straightforward: Visa likely offered Costco better terms — lower processing fees, better rewards for Costco members, or both — in exchange for being the only major credit card network accepted. Costco benefits from lower costs, and Visa benefits from the exclusive relationship.
What to do if you only have a Discover card
If Discover is your primary card and you shop at Costco regularly, you have several options. The simplest is to pay with cash or a debit card at the warehouse. Both are accepted without any restrictions, and you will not lose access to your Costco membership or deals.
If you prefer to use a credit card for the rewards or purchase protection, consider opening a Costco Anywhere Visa card. Costco's own card earns cash back on Costco purchases — 2% on gas, 1% on everything else — and it works everywhere Costco accepts Visa. You do not have to close your Discover card; you can keep both and use the Visa at Costco.
Another option is to use a Visa or Mastercard you may already have. If you carry multiple cards, switching to one of those for Costco purchases avoids the need to open a new account.
Online shopping at Costco with Discover
Costco.com does not accept Discover cards, just as the warehouses do not. You will need to use Visa, Mastercard, American Express, or the Costco Visa card to complete an online order.
If you try to enter a Discover card number during checkout, the website will reject it and ask you to use a different payment method. There is no workaround or exception for online orders — the restriction is the same everywhere.
This matters if you do your Costco shopping online rather than in person. Plan ahead and have a different card ready before you start your order, or you will have to abandon your cart and find another payment method.
Costco Gas and Discover cards
Costco Gas stations follow the same payment rules as the warehouses. Discover cards are not accepted at the pump. You can pay with Visa, Mastercard, American Express, or the Costco Visa card.
At the pump, you cannot pay with cash or check — credit or debit cards only. If you have a Discover card and want to buy gas at Costco, you will need to use a different card or pay inside the station with cash.
Should you get a Costco Visa card instead
The Costco Anywhere Visa card is worth considering if you shop at Costco frequently and want to earn rewards. It earns 2% cash back on Costco gas purchases, 1% on everything else at Costco, and 1% on all other purchases outside Costco. The card has no annual fee.
The main trade-off is that you are locked into using Visa at Costco instead of having the flexibility to use any card you want. If you have a Discover card with better rewards elsewhere, you would be using the Costco card only for Costco purchases and the Discover card for everything else.
Run the numbers: if you spend $200 a month at Costco, the 1% cash back adds up to $24 a year. Whether that is worth opening a new card depends on your spending habits and whether you already have a card you prefer.
Frequently Asked Questions
Can I use Discover at Costco if I call ahead or ask a manager?
No. Discover is not accepted at Costco under any circumstances. Calling ahead or asking a manager will not change this — it is a company-wide policy that applies to all locations and all transactions. You will need to use a different payment method.
Will Costco ever accept Discover again?
There is no public indication that Costco plans to change this policy. The exclusive agreement with Visa has been in place since 2016 and appears to be long-term. If Costco's contract with Visa changes in the future, Discover might be reconsidered, but that is speculation.
What if I have both Discover and another card — can I use Discover for part of the purchase?
No. Costco does not split payments between multiple cards. You must choose one payment method and complete the entire transaction with it. If you want to use a card, it has to be Visa, Mastercard, American Express, or the Costco Visa card.
Does the Costco Visa card have an annual fee?
The Costco Anywhere Visa card has no annual fee. You do need an active Costco membership to use it, and membership fees vary by membership tier — Gold Star membership is the basic level and costs around $65 per year, though this varies by location.
Can I use Discover at Costco.com but not in the warehouse?
No. Discover is not accepted on Costco.com or in any Costco warehouse. The payment rules are the same everywhere — only Visa, Mastercard, American Express, and the Costco Visa card work.