Costco is one of the largest warehouse clubs in the world, known for its bulk deals, quality products, and loyal membership base. For many shoppers, understanding which credit cards Costco accepts is essential to make the most of their shopping experience. Unlike many retailers, Costco has specific partnerships with certain credit card companies, which influences what cards are accepted.
What Credit Cards Does Costco Accept?
As of 2024, Costco exclusively accepts Visa credit cards in its U.S. warehouse locations and gas stations. This is because of a partnership between Costco and Visa, making it the only accepted credit card network at physical stores.
Table of Contents
Here’s a quick summary of the types of cards accepted at Costco locations:
| Credit Card Type | Accepted at Costco? |
|---|---|
| Visa | Yes |
| Mastercard | No |
| American Express | No |
| Discover | No |
Why Does Costco Only Accept Visa?
Costco’s decision to only accept Visa is due to an exclusive agreement between Costco and the credit card network. In 2016, Costco switched from American Express to Visa after a long partnership, negotiating a deal that allows Costco to save on transaction fees. Lower fees benefit Costco and help the company offer more competitive pricing to members.
Visa credit cards are widely accepted, making it easier for most members to adapt to this change. However, for those with only Mastercard, American Express, or Discover cards, this exclusivity can be inconvenient.
Types of Visa Cards You Can Use at Costco
Since Costco accepts only Visa cards, you have several choices when deciding which Visa card to use for your purchases. Here are some popular options:
Costco Anywhere Visa® Card by Citi
- Rewards: 4% cash back on eligible gas, 3% on dining and travel, 2% on Costco purchases, 1% on other purchases.
- Annual Fee: None with Costco membership.
- Ideal for: Regular Costco shoppers who want extra rewards.
Chase Freedom Unlimited®
- Rewards: 1.5% cash back on all purchases.
- Annual Fee: None.
- Ideal for: Shoppers who want a flat cash-back rate on everything, including Costco.
Wells Fargo Active Cash® Card
- Rewards: 2% cash back on all purchases.
- Annual Fee: None.
- Ideal for: People looking for simple cash-back rewards on all purchases.
What About Online Purchases at Costco.com?
When shopping at Costco’s online store, Costco.com, the rules are a bit more flexible. Unlike in-store purchases, Costco.com accepts both Visa and Mastercard credit cards. This is convenient for those who prefer to shop online or use a different credit card brand.
| Card Type | Accepted In-Store | Accepted Online |
|---|---|---|
| Visa | Yes | Yes |
| Mastercard | No | Yes |
| American Express | No | No |
| Discover | No | No |
Alternatives for Non-Visa Cardholders
If you don’t have a Visa credit card, don’t worry. There are still ways you can shop at Costco without getting a new card. Here are a few alternatives:
Use a Debit Card
- Costco accepts all debit cards, regardless of network, including those from Mastercard and Visa.
Pay with Cash or Check
- For in-store purchases, you can also use cash, personal checks, or Costco Shop Cards (Costco’s gift card).
Get a Costco Shop Card
- You can use a Costco Shop Card, which functions like a gift card. These can be loaded with a balance using any credit card on Costco.com. Costco Shop Cards can then be used in-store and online.
Mobile Payment Options
- In some locations, Costco accepts mobile payment apps such as Apple Pay, Google Pay, and Samsung Pay. However, the card linked to your mobile payment app must be a Visa to work in Costco’s stores.
Why You Might Want the Costco Anywhere Visa® Card
The Costco Anywhere Visa® Card by Citi is a popular choice for frequent Costco shoppers. Since it’s designed specifically for Costco members, it offers excellent rewards for Costco purchases and more. Here’s a closer look at the perks:
| Feature | Details |
|---|---|
| Cashback on Gas | 4% on eligible gas purchases up to $7,000/year |
| Cashback on Dining | 3% on dining and eligible travel purchases |
| Cashback on Costco | 2% on Costco and Costco.com |
| Other Purchases | 1% on all other purchases |
While there are no foreign transaction fees, note that you must have a paid Costco membership to qualify for this card.
FAQs: What Credit Cards Does Costco Accept
Can I use a Mastercard at Costco?
No, Costco only accepts Visa credit cards in its U.S. stores. However, Mastercard can be used on Costco.com.
Does Costco accept American Express?
No, American Express is not accepted at Costco stores or on Costco.com.
Can I use my mobile payment app at Costco?
Yes, but the card linked to your mobile wallet must be a Visa to be accepted in Costco stores.
Conclusion
Costco’s partnership with Visa means that only Visa credit cards are accepted at its U.S. warehouses and gas stations. However, online shoppers can also use Mastercard, giving a bit more flexibility. If you’re a regular Costco shopper, consider the Costco Anywhere Visa® Card by Citi to maximize rewards on gas, dining, and in-store purchases.
For shoppers without a Visa card, consider using a debit card, cash, check, or a Costco Shop Card to complete your purchase. Knowing these options will help you plan your Costco trips effectively and ensure a smooth checkout experience.
Disclaimer
This article is intended for informational purposes only. Please check Costco’s website or contact their customer service for the latest updates on accepted payment methods. The details on credit cards, rewards, and fees are accurate as of the publication date but may change over time.
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