Costco only accepts Visa cards, not Mastercard or American Express
Costco takes Visa credit cards at checkout — both in-warehouse and online. It does not take Mastercard, American Express, Discover, or other card networks. This rule applies everywhere Costco operates, including gas stations and the Costco Travel website.
The restriction exists because Costco has an exclusive agreement with Visa that dates back decades. Costco negotiated this deal to keep interchange fees — the percentage Costco pays to card issuers per transaction — lower than they would be if the warehouse accepted all card networks. That savings gets passed to members through lower prices on goods and fuel.
If you do not own a Visa card, you can still shop at Costco using cash, debit cards, or a Costco-branded credit card (which runs on the Visa network). You cannot use a Mastercard or American Express card, even if you have one.
Key Takeaways
- Costco accepts Visa credit cards only — no Mastercard, American Express, or Discover at any Costco location.
- The Costco Anywhere Visa card is the co-branded credit card option and earns rewards on Costco purchases.
- You can pay with cash, debit cards, or checks if you do not have a Visa card.
- The Visa-only policy applies to gas stations, warehouses, and online shopping on Costco.com.
- Costco's exclusive Visa agreement keeps interchange costs down, which helps keep member prices lower.
The Costco Anywhere Visa card and its rewards structure
The Costco Anywhere Visa Card is Costco's co-branded credit card, issued by Citi. It is the only credit card that earns rewards on Costco purchases. The card earns 4% cash back on gas (up to $7,500 per year, then 1%), 3% on restaurants and travel, 2% on Costco purchases, and 1% on all other purchases.
You do not need the Costco Anywhere card to shop at Costco — any Visa card works. But if you shop regularly, the rewards add up. A household that spends $200 per month at Costco ($2,400 per year) would earn $48 in annual cash back at the 2% rate. The card has an annual fee of $65 for the standard version and $130 for the Executive version, which includes additional benefits.
The card is issued by Citi and the cash back is paid as an annual reward certificate that you can use at Costco or redeem for a statement credit. Unlike some rewards cards, you cannot transfer points to airlines or hotels.
What happens if you try to use a different card network
If you attempt to pay with a Mastercard, American Express, or Discover card at a Costco checkout, the transaction will be declined. The card reader will not process the payment. This happens at the point of sale — the cashier cannot override it.
The same rule applies at Costco gas stations and when ordering online. There is no exception for high-value purchases or member status. If your only card is Mastercard or American Express, you will need to use cash, a debit card, or a check instead.
Some members keep a Visa card specifically for Costco shopping, even if they prefer another card network for other purchases. Others use the Costco Anywhere card to earn rewards while shopping there, then use their preferred card elsewhere.
Payment methods that work at Costco
Beyond Visa cards, Costco accepts the following payment methods: cash, debit cards (Visa or Mastercard debit), checks, and EBT cards for members who use SNAP benefits. Online orders can be paid with any Visa card or the Costco Anywhere card.
Costco does not accept PayPal, Apple Pay, Google Pay, or other digital wallets at the warehouse, though this may change. The warehouse operates its own payment system and has not integrated third-party digital payment platforms.
If you are a member without a Visa credit card, using a debit card is the simplest alternative. Debit cards process quickly and do not require a credit check or annual fee.
Why Costco chose Visa and what it means for members
Costco's exclusive Visa agreement began in 1992 and has been renewed multiple times. The deal gives Costco negotiating power over interchange rates — the fees Costco pays when you swipe a card. By accepting only one card network, Costco can demand lower rates than a retailer that accepts all networks.
Lower interchange costs mean Costco can keep its operating margins tight while maintaining low prices on merchandise. This is part of Costco's business model: the warehouse makes money primarily from membership fees, not from product markups. The Visa deal supports that structure.
For members, this means the Visa-only policy is not arbitrary — it is a deliberate trade-off. You lose the flexibility of using any card, but you benefit from lower prices on the goods you buy. Whether that trade-off is worth it depends on whether you already own a Visa card or are willing to get one.
How to prepare if you do not have a Visa card
If you plan to shop at Costco but do not have a Visa card, decide in advance which payment method you will use. The simplest options are a Visa debit card (if your bank offers one) or cash. Both work everywhere at Costco and require no process or approval.
If you shop at Costco regularly and want to earn rewards, the Costco Anywhere Visa card is the only option. You can request one in-warehouse or online through Citi's website. The process takes a few minutes and you will know when ready whether you are approved.
If you do not want a credit card, a Visa debit card is the next-best option. Most banks offer Visa debit cards as standard. Check with your bank to confirm yours is Visa-branded (some are Mastercard). If it is Mastercard, you can request a Visa debit card or use cash instead.
Frequently Asked Questions
Can I use my Mastercard or American Express at Costco?
No. Costco only accepts Visa credit cards. Mastercard and American Express are not accepted at any Costco location, including gas stations and online. You can use a Mastercard debit card, cash, or check instead.
Does the Costco Anywhere card have an annual fee?
Yes. The standard Costco Anywhere Visa card has a $65 annual fee. The Executive version costs $130 per year and includes additional benefits like extended warranty coverage and travel protections. The rewards you earn may offset the fee if you shop at Costco regularly.
What if I do not want a credit card but want to earn rewards?
There is no way to earn rewards at Costco without the Costco Anywhere Visa card. If you do not want a credit card, you can pay with cash, a debit card, or a check, but you will not earn cash back on your purchases.
Can I use a Visa debit card instead of a credit card?
Yes. Visa debit cards work at Costco just like Visa credit cards. You do not earn rewards on a debit card purchase, but you can shop without carrying cash or using credit. Check with your bank to confirm your debit card is Visa-branded.
Does Costco accept digital wallets like Apple Pay or Google Pay?
Not at the warehouse. Costco does not currently accept Apple Pay, Google Pay, or other digital wallets in-store. You must use a physical Visa card, debit card, cash, or check. Online orders can be paid with a Visa card.