Costco only takes Visa credit cards, plus their own Costco Anywhere Visa card

Costco stopped taking American Express in 2015 and now accepts only Visa for credit card purchases at the warehouse and online. This means Mastercard, Discover, and American Express are not accepted, even though you may use them elsewhere. The one exception is the Costco Anywhere Visa Card by Citi, which is Costco's co-branded card and earns rewards on Costco purchases.

If you don't have a Visa, you can still shop at Costco using a debit card, PIN-based Visa debit card, or cash. The Visa-only rule applies to both in-warehouse and online purchases, so the payment method matters before you reach checkout.

Key Takeaways

  • Costco accepts any Visa credit card, including cards from your bank, plus the Costco Anywhere Visa Card by Citi.
  • American Express, Mastercard, and Discover credit cards are not accepted at Costco warehouses or on Costco.com.
  • Debit cards, PIN-based Visa debit cards, and cash work at Costco if you don't have a Visa credit card.
  • The Costco Anywhere Visa Card earns 2% cash back on Costco purchases and 1% on other purchases, but you must be a Costco member to use it.

Why Costco switched to Visa only

Costco's 2015 decision to drop American Express and move exclusively to Visa came down to cost. American Express charges merchants higher fees than Visa does, and Costco negotiated a deal with Citi to become the sole credit card partner. In exchange, Citi issues the Costco Anywhere Visa Card and handles all Costco credit card transactions.

This arrangement benefits Costco by lowering payment processing costs, which is why the policy has remained in place for nearly a decade. Members who had American Express cards had to switch to a Visa option or use another payment method.

What payment methods work at Costco

Costco accepts these payment methods at warehouses and online:

  • Any Visa credit card (from your bank, a credit union, or any issuer)
  • Costco Anywhere Visa Card by Citi
  • Debit cards with a Visa logo
  • PIN-based debit cards
  • Cash
  • Costco Shop Cards (gift cards)

American Express, Mastercard, and Discover credit cards will be declined at checkout. If you have one of these cards, you'll need to use a different payment method or get a Visa card before shopping.

The Costco Anywhere Visa Card and its rewards

The Costco Anywhere Visa Card by Citi is Costco's own credit card and earns cash back on purchases. The card gives 2% cash back on Costco purchases (in-warehouse and online), 1% cash back on gas at Costco, and 1% cash back on all other purchases. There is an annual fee, though Costco members often receive promotional offers that waive it for the first year.

You must be a Costco member to open this card, and the rewards are paid as an annual certificate that you can use at Costco. Unlike some rewards programs, you cannot redeem cash back as a statement credit or transfer it elsewhere — it stays within Costco.

If you already have a Visa card from another bank, you can use that at Costco without opening the Costco card. The choice depends on how much you spend at Costco and whether the rewards offset the annual fee.

What to do if you have a different credit card

If your primary credit card is American Express, Mastercard, or Discover, you have several options. You can open a Visa card through your current bank or credit union — most banks offer at least one Visa option. You can also explore for the Costco Anywhere Visa Card if you're a member, though this requires a new account.

Alternatively, you can pay with a debit card or cash at Costco. Many people keep a Visa card specifically for Costco purchases, even if they use another card for everyday spending. This approach lets you keep your existing rewards program while still shopping at Costco.

Costco's payment policy online versus in-warehouse

The Visa-only rule applies equally to Costco.com and in-warehouse purchases. You cannot use American Express, Mastercard, or Discover online, and you cannot use them in the warehouse either. The payment method you choose must be Visa, a debit card, or cash.

If you're ordering online and your saved payment method is not Visa, you'll see an error at checkout. Update your payment information before placing an order, or add a new Visa card to your account.

Frequently Asked Questions

Can I use my American Express at Costco?

No. Costco stopped accepting American Express in 2015 and now only takes Visa credit cards. If you have an American Express card, you'll need to use a Visa card, debit card, or cash to shop at Costco.

Does Costco take Mastercard or Discover?

No. Costco accepts only Visa credit cards among major credit card brands. Mastercard and Discover are not accepted at warehouses or online. You can use a debit card or cash instead.

Do I need the Costco Visa card to shop there?

No. You can use any Visa credit card from any bank. The Costco Anywhere Visa Card is optional and only worth opening if you spend enough at Costco for the rewards to cover the annual fee.

What if I don't have a Visa card?

You can pay with a debit card, a PIN-based Visa debit card, or cash. You can also open a Visa credit card through your bank or credit union. Many banks offer Visa cards with no annual fee.

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

Yes. Costco accepts Visa debit cards and PIN-based debit cards. You do not need a Visa credit card specifically — a Visa debit card works the same way at checkout.