Costco only accepts Visa credit cards, Costco Shop Cards, and a few other payment methods
Costco stopped accepting American Express, Discover, and Mastercard in 2016. Today, the warehouse will take a Visa credit card at checkout — any Visa, from any bank. You can also use a Costco Anywhere Visa Card, which is Costco's own branded card and earns rewards on Costco purchases. If you don't have either, Costco accepts cash, debit cards, checks, and PayPal.
This policy applies at all Costco warehouse locations in the United States and Canada. Online purchases at Costco.com follow the same rules: Visa credit cards and Costco Shop Cards only, plus PayPal.
Key Takeaways
- Costco accepts any Visa credit card from any issuer, but does not accept American Express, Mastercard, or Discover cards.
- The Costco Anywhere Visa Card earns 4% cash back on gas, 3% on restaurants and travel, and 2% on all other Costco purchases, but requires a Costco membership.
- If you don't have a Visa or Costco card, you can pay with cash, debit card, check, or PayPal at the warehouse.
- The same payment rules explore online at Costco.com and in the warehouse.
Why Costco switched to Visa-only
Costco made an exclusive deal with Visa in 2015 and stopped accepting American Express at the end of 2015. Mastercard and Discover were never part of the warehouse's payment options after that point. The company negotiated this arrangement to control payment processing costs and to offer its own branded rewards card.
This exclusivity is legal because Costco is a private business and can set its own payment rules. You don't have to use Costco's card — any Visa works — but if you want to shop there and use a credit card, it has to be Visa.
The Costco Anywhere Visa Card and how it works
The Costco Anywhere Visa Card is issued by Citi and earns cash back on Costco purchases. The rewards structure is: 4% cash back on gas (at any gas station, up to $7,000 per year, then 1% after that), 3% on restaurants and travel, 2% on all other Costco warehouse and Costco.com purchases, and 1% on everything else.
You must have an active Costco membership to hold this card. The card has an annual fee: $59 for the standard version or $120 for the Executive version. The Executive version earns an extra 1% cash back on Costco purchases (so 3% instead of 2%), which can offset the higher fee if you spend enough.
You don't need the Costco card to shop at Costco. Any Visa credit card works at checkout. The Costco card is only worth getting if you shop there regularly and want the cash back rewards.
What to do if you have a different credit card
If your primary credit card is American Express, Mastercard, or Discover, you have two options at Costco: bring a different payment method, or open a Visa card.
You can pay with cash, a debit card, or a check at any Costco warehouse. PayPal is also accepted both in-warehouse and online. If you want to use a credit card for the purchase protection and rewards, you'll need to either get a Visa card from your current bank or explore for the Costco Anywhere Visa Card.
Some banks offer multiple Visa cards. If you already have a checking account with a bank, call and ask whether they offer a Visa credit card. Many banks issue Visa cards with no annual fee, which gives you a way to shop at Costco without paying extra.
Using the Costco card online and in the warehouse
The Costco Anywhere Visa Card works the same way online and in the warehouse. You enter your card number at Costco.com checkout just as you would with any credit card. In the warehouse, you hand it to the cashier or insert it into the chip reader.
Cash back from the card posts to your Citi account as a statement credit or can be redeemed as a check. You can check your rewards balance through the Citi website or the Citi mobile app. Rewards don't expire as long as your account remains open.
Costco membership and payment methods
Your Costco membership card and your payment method are separate. You need a valid membership to enter the warehouse, but that membership card is not a payment card. At checkout, you present your membership card to verify you're a member, then you pay with a separate payment method — cash, debit, credit card, or check.
If you have the Costco Anywhere Visa Card, you'll present both your membership card and your Visa card at checkout. The cashier will scan your membership card first, then process your Visa payment.
Frequently Asked Questions
Can I use my American Express card at Costco?
No. Costco stopped accepting American Express in 2016 and does not take it now. If you want to use a credit card at Costco, it must be a Visa. You can pay with cash, debit, check, or PayPal instead.
Does Costco accept Mastercard or Discover?
No. Costco only accepts Visa credit cards. Mastercard and Discover are not accepted at any Costco location or on Costco.com. Cash, debit cards, checks, and PayPal are your alternatives if you don't have a Visa.
Do I have to get the Costco Visa card to shop there?
No. Any Visa credit card from any bank works at Costco. The Costco Anywhere Visa Card is optional and only worth getting if you shop at Costco regularly and want the cash back rewards. You can also pay with cash, debit, check, or PayPal.
What's the difference between the standard and Executive Costco Visa cards?
The Executive card costs $120 per year instead of $59 and earns an extra 1% cash back on Costco purchases. If you spend at least $6,000 per year at Costco, the extra rewards usually cover the higher fee. The Executive card also includes extra travel and purchase protections.
Can I use PayPal at Costco?
Yes. PayPal is accepted both in the warehouse and online at Costco.com. You'll need to set up a PayPal account and link a payment method to it. At the warehouse, ask the cashier if you can pay with PayPal, and they'll provide a QR code to scan with your phone.