Costco accepts only Visa cards, Costco Anywhere Visa cards, and Mastercard at warehouse locations

Costco stopped accepting American Express in 2016 and now takes Visa, Mastercard, and its own branded card, the Costco Anywhere Visa Card. If you show up with Discover, American Express, Diners Club, or a store card from another retailer, the register will decline it. You can still pay with cash, debit cards, checks, or a Costco Cash Card (their gift card product), but credit-wise, your options are limited to those three.

The Costco Anywhere Visa Card is issued by Citi and is the only credit card that earns rewards on Costco purchases. A regular Visa or Mastercard will go through, but you will not earn any Costco-specific cash back or points. If you use a Visa or Mastercard from another bank, you earn whatever that card's standard rewards are — which may be nothing.

Key Takeaways

  • Costco warehouse locations accept Visa, Mastercard, and the Costco Anywhere Visa Card only — no American Express, Discover, or other credit cards.
  • The Costco Anywhere Visa Card earns 2% cash back on Costco purchases and 1% on all other purchases, but you must be a Costco member to hold it.
  • Costco.com accepts more payment methods than warehouses, including American Express, Discover, and PayPal, so online and in-store rules differ.
  • If you do not have an accepted card, you can pay with cash, debit, checks, or a Costco Cash Card at any warehouse location.

What happens when you try to use a card Costco does not accept

The card reader will reject the transaction. The cashier cannot override this — it is a hard block in Costco's payment system. You will need to provide a different payment method on the spot. This means you should know before you reach the register whether your card will work.

If you are a regular Costco shopper and carry American Express or Discover as your primary card, you have two choices: bring a Visa or Mastercard with you, or switch to cash or debit. Many members who prefer rewards keep a Costco Anywhere Visa Card specifically for warehouse trips and use other cards elsewhere.

The Costco Anywhere Visa Card and its rewards structure

The Costco Anywhere Visa Card is a co-branded card issued by Citi. It earns 2% cash back on Costco purchases (both warehouse and online), 1% cash back on gas at any pump, and 1% on all other purchases. The cash back is issued as an annual statement credit or can be redeemed at the warehouse.

You must be an active Costco member to open this card, and membership status is checked at process. If your membership lapses, the card remains valid but you lose the Costco-specific rewards rates. There is no annual fee for the card itself, though you do pay Costco's membership fee separately (Gold Star or Executive membership).

The card is a true Visa, so it works anywhere Visa is accepted, not just at Costco. Outside Costco, you earn the 1% base rate on all purchases. The 2% rate applies only to transactions coded as Costco warehouse or Costco.com purchases.

Costco.com payment rules are different from warehouse rules

Costco's website accepts American Express, Discover, Visa, Mastercard, and PayPal. This is a deliberate difference from warehouse checkout. If you have an American Express card and want to shop Costco online, you can use it there even though it will not work in a warehouse.

The Costco Anywhere Visa Card still earns 2% cash back on Costco.com purchases, so it remains the highest-reward option for online orders. But the broader acceptance online means you have flexibility that does not exist at the warehouse.

How to prepare if you do not have an accepted card

Before your next Costco trip, check your wallet for a Visa or Mastercard. If you do not have one, plan to pay with cash or debit. Costco accepts debit cards with a Visa or Mastercard logo, so a debit card from your bank may work even if your credit card does not.

If you shop at Costco regularly and want to earn rewards, opening a Costco Anywhere Visa Card is straightforward. You can start the process online or at the membership desk. You will need your Costco membership number and basic personal information. The card usually arrives within 7 to 10 business days.

If you do not want to open a new card, you can ask a family member or friend with an accepted card to pay, or you can use cash. Costco also accepts personal checks at the warehouse, though this is less common now.

Why Costco made this change in 2016

Costco ended its American Express partnership and moved to Visa to negotiate lower processing fees and offer its own branded card. The Costco Anywhere Visa Card gave Costco a direct relationship with cardholders and let them offer rewards tied to Costco purchases. This shift was a business decision to reduce payment processing costs and increase member loyalty.

The change was unpopular with some American Express holders, but Costco has maintained this policy for over eight years. If you are a long-time member who used American Express, you will need to switch to a different card or payment method.

Frequently Asked Questions

Can I use my American Express card at Costco?

No. Costco stopped accepting American Express in 2016. You can use American Express on Costco.com, but not at warehouse locations. At the warehouse, you will need a Visa, Mastercard, or the Costco Anywhere Visa Card.

Does Costco accept Discover?

Discover is not accepted at Costco warehouses. It is accepted on Costco.com. At the warehouse, bring a Visa, Mastercard, cash, or debit instead.

What if I only have a store credit card from another retailer?

Store cards from other retailers will not work at Costco. You will need to use cash, debit, a personal check, or a Visa or Mastercard from a bank.

Does the Costco Anywhere Visa Card have an annual fee?

The card itself has no annual fee. You do pay Costco's membership fee separately, which is required to hold the card. Membership costs vary by tier (Gold Star or Executive).

Can I use a debit card instead of a credit card?

Yes. Costco accepts debit cards. If your debit card has a Visa or Mastercard logo, it will work at checkout. You can also pay with cash or a personal check.