Costco accepts only Visa cards, Costco's own Mastercard, and cash — no American Express or Discover

Costco stopped taking American Express in 2016 and has not accepted Discover since it began. If you have an Amex or Discover card, you cannot use it at Costco registers, online, or at the gas station. You can pay with Visa, any Costco Mastercard (including the Costco Anywhere Visa card, which is actually a Visa despite the name), cash, checks, debit cards, or EBT. This matters because many people carry Amex or Discover as their primary card and do not realize until checkout that it will not work.

The reason Costco made this choice was cost. Amex charges merchants higher fees than Visa and Mastercard do. Costco negotiated a deal with Visa and Mastercard to be the only card networks accepted, which lowered Costco's payment processing costs. Costco passed some of that savings to members through lower prices and better rewards on the Costco Mastercard.

Key Takeaways

  • Costco accepts Visa, Costco Mastercard, cash, checks, debit cards, and EBT — but not American Express or Discover under any circumstance.
  • The Costco Anywhere Visa card is a Visa product, not a Mastercard, despite its name and the Mastercard logo on some versions.
  • If you shop at Costco regularly, a Costco Mastercard or Costco Anywhere Visa card gives you cash back on purchases, which a regular Visa does not.
  • Costco's gas stations follow the same payment rules as the warehouse, so you cannot use Amex or Discover there either.

The Costco Mastercard versus the Costco Anywhere Visa Card

Costco offers two co-branded credit cards, and the names can confuse people. The Costco Mastercard is a Mastercard issued by Citi. The Costco Anywhere Visa Card is a Visa issued by Citi. Both give you cash back on Costco purchases, but the rates and benefits differ.

The Costco Mastercard gives you 2% cash back on Costco purchases and gas, 1% on travel, and 1% on everything else. You earn the cash back as a Costco Cash certificate that you can use in the warehouse or online. The Costco Anywhere Visa Card gives you 4% cash back on gas (up to $7,500 per year, then 1%), 3% on travel, 2% on restaurants, and 1% on everything else. The Visa card also earns cash back as a Costco Cash certificate.

Both cards require a Costco membership to open. Both charge an annual fee — currently $65 for the Mastercard and $99 for the Visa card, though these amounts change periodically. If you do not have a membership, you cannot get either card. If you have a membership but do not want a co-branded card, you can still use any regular Visa or pay with cash.

Why Costco Does Not Accept American Express

Costco and American Express had a long partnership that ended in 2016. Costco announced it would stop accepting Amex at the end of that year. The split happened because Amex's interchange fees — the percentage Costco pays per transaction — were higher than what Visa and Mastercard charged. Costco decided it could save money by accepting only Visa and Mastercard.

American Express was unhappy about the split because Costco was a major merchant partner. Amex tried to negotiate, but Costco held firm. The company had already negotiated exclusive deals with Visa and Mastercard, so Amex had no leverage. This was a business decision, not a technical one — Costco's systems could accept Amex, but the company chose not to.

If you have an Amex card and shop at Costco, you have two options: get a Visa or Mastercard for Costco purchases, or pay with cash or a debit card. Some people keep an Amex for other merchants and a Visa for Costco. Others switched to the Costco Anywhere Visa Card to earn rewards on their Costco spending.

What Happens If You Try to Use an Unsupported Card

If you try to pay with an American Express or Discover card at a Costco register, the card will be declined. The cashier will tell you the card is not accepted and ask for a different payment method. This happens when ready — the register recognizes the card type before processing the transaction. You will not be charged, and there is no fee for the declined attempt.

At the self-checkout, the machine will reject the card the same way. Online, Costco's website will not let you enter an Amex or Discover card number — the payment form straightforward will not accept it. At the gas station, the pump will decline the card if you try to pay at the pump, though you can go inside and pay with cash or a supported card.

The best practice is to check your wallet before you go to Costco. If your only card is Amex or Discover, bring cash or a debit card instead. If you shop at Costco often, consider opening a Costco Mastercard or Costco Anywhere Visa Card so you can earn cash back on your purchases.

Debit Cards, Cash, and Other Payment Methods

Costco accepts all debit cards, including those linked to checking accounts and prepaid debit cards. You can also pay with cash, personal checks (though few people do), and EBT cards if you are in a state where Costco accepts them. Costco does not accept PayPal, Apple Pay, Google Pay, or other digital wallets, even though many other retailers do.

If you want to use a digital wallet at Costco, you would need to add a supported Visa or Mastercard to that wallet first. Some digital wallets let you add a debit card, which Costco accepts. However, Costco's website and app do not have a built-in digital wallet option — you enter your card details directly.

For online orders, Costco accepts Visa, Mastercard, Costco gift cards, and Costco Cash certificates. You cannot pay with cash or check online. If you are a member but do not have a supported card, you can buy a Costco gift card with cash at the warehouse and use that to pay for online orders.

Costco Gas Station Payment Rules

Costco gas stations follow the same card rules as the warehouse. You can pay with Visa, Costco Mastercard, or Costco Anywhere Visa Card. You cannot use American Express or Discover. You can also pay with cash, debit cards, and EBT.

At the pump, you can insert a card directly or go inside and pay with cash. If you pay at the pump with a card, it must be a supported Visa or Mastercard. If the pump declines your card, go inside and pay with cash or a different card. Costco gas is only for members — you need a valid membership card to buy gas, regardless of how you pay.

Frequently Asked Questions

Can I use my American Express card at Costco if I call ahead or ask a manager?

No. Costco's policy is absolute — American Express is not accepted anywhere in the warehouse, at the pump, or online. There is no exception for members, no workaround, and no manager override. If you want to use Amex, you will need to shop somewhere else or use a different payment method at Costco.

Does the Costco Anywhere Visa Card work at other stores, or only at Costco?

The Costco Anywhere Visa Card works anywhere Visa is accepted, not just at Costco. However, you only earn the higher cash back rates (4% on gas, 3% on travel, 2% on restaurants) at those specific merchants. Outside Costco, you earn 1% cash back on all other purchases. At Costco, you earn the full rewards rate.

If I have a Discover card, can I use it at Costco's website?

No. Costco's website does not accept Discover cards online any more than the warehouse does. You will need to use a Visa, Mastercard, or Costco gift card to pay for online orders. The payment form will reject a Discover card number before you can complete the purchase.

What if I have a Visa debit card instead of a credit card — will that work at Costco?

Yes. Costco accepts all debit cards, including Visa debit cards. You can use a Visa debit card at the register, pump, or online just like a Visa credit card. The only difference is that the money comes directly from your bank account instead of being charged to a credit line.

Can I use a prepaid Visa or Mastercard at Costco?

Yes. Any prepaid card that carries a Visa or Mastercard logo will work at Costco. This includes prepaid cards you buy at the store, gift cards, and payroll cards. The register does not distinguish between a prepaid card and a regular credit or debit card — it only checks the card network, which is Visa or Mastercard.