What Credit Cards Does Costco Accept?

Costco is well-known for its unbeatable deals, bulk products, and loyal customer base. However, when it comes to paying for your purchases, Costco's credit card policy differs from most retailers.

This can leave new shoppers scratching their heads, wondering why they can't use just any credit card at checkout. In this article, we'll solve the mystery behind Costco's credit card acceptance policy and share tips to help you make the most of your Costco shopping experience.

Why Did Costco Switch To Visa?

Costco transitioned to Visa as part of an agreement with Citi, the issuer of the Costco Anywhere Visa® Card by Citi. As a result, Costco now accepts all Visa cards. The switch from American Express to Visa significantly broadened Costco’s customer base.

In 2016, Visa had 276 million credit accounts in the U.S., compared to American Express's 23.3 million. This change allowed over 250 million additional Americans to use their credit cards at Costco. The move also provided greater flexibility for existing members.

Rather than being limited to American Express, Costco shoppers can now benefit from the wide range of Visa cards available in the market. Meanwhile, understanding the advantages of virtual cards vs. traditional paymentmethods can help consumers make smarter and safer choices for both in-store and online purchases.

Credit Cards Accepted At Costco Warehouses

Costco’s credit card acceptance policy is unique because it’s tied to an exclusive partnership with Visa. In the United States, Costco warehouses accept only Visa credit cards. Here’s a breakdown of the accepted payment methods:

• Visa credit cards(issued by any bank).
• Visa debit cards.
• Costco Shop Cards(prepaid gift cards).
• Cash and checks.
• Mobile paymentslike Apple Pay and Google Pay (if linked to a Visa card).

This policy applies to all U.S. Costco warehouses. International Costco locations, however, follow different credit card policies. For example, Costco in Canada accepts MasterCard instead of Visa. Understanding these differences is crucial for travelers who shop at Costco globally.

Credit Cards Accepted At Costco Gas Stations

Costco gas stations in the U.S. follow the same policy as the warehouses and accept only Visa cards. Specifically, they accept:

• Visa credit cards.
• Visa debit cards.
• Costco Shop Cards.

For a smooth experience at the pump, ensure you have a Visa card or an alternative payment method that works with Costco’s systems.

Credit Cards Not Accepted At Physical Costco Stores

Unlike many retailers, Costco does not accept the following credit cards at its U.S. warehouses:

• MasterCard
• American Express (Amex)
• Discover

The exclusion of these cards stems from Costco’s exclusive agreement with Visa. This partnership reduces transaction fees, enabling Costco to maintain its low pricing structure.

It’s worth noting that Costco’s online store (Costco.com) does accept MasterCard, Discover, and American Express. However, these cards won’t work at physical locations, so it’s important to plan accordingly.

Best Visa Credit Cards For Costco Shoppers

1. Costco Anywhere Visa® Card By Citi

This card, exclusively for Costco members, offers incredible rewards:

• 4% cashback on eligible gas (up to $7,000 annually).
• 3% cashback on restaurants and eligible travel.
• 2% cashback on Costco purchases.
• 1% cashback on all other purchases.

It also doubles as your Costco membership card, making it a convenient choice for frequent shoppers.

2. Chase Sapphire Preferred®

While primarily a travel card, it’s a strong option for Costco shoppers:

• Earn points on dining and travel purchases.
• Flexible points redemption options, including cashback.
• No foreign transaction fees, making it useful for shopping at Costco locations abroad.

3. Bank Of America® Customized Cash Rewards Visa

This card allows you to tailor your cashback categories:

• 3% cashback on a category of your choice (e.g., gas or online shopping).
• 2% cashback on grocery stores and wholesale clubs (including Costco).
• 1% on all other purchases.

By choosing the right Visa card, you can maximize rewards and offset Costco’s membership fees. Additionally, using best virtual credit cards for travelcan provide enhanced security and convenience, especially when making online purchases or booking trips.

How To Shop At Costco Without A Visa Credit Card

If you don’t have a Visa credit card, don’t worry. Costco offers alternative payment options:

• Visa Debit Cards: These work just like credit cards for in-store purchases.
• Prepaid Visa Gift Cards: Load them with your desired amount and use them at checkout.
• Costco Shop Cards: These prepaid cards can be purchased online or in-store and used for any Costco purchase.
• Mobile Payments: Link a Visa card to Apple Pay, Google Pay, or Samsung Pay for easy transactions.
• Cash and Checks: Traditional payment methods are also accepted.

For online purchases, you can use MasterCard, Discover, or American Express, providing flexibility for those without Visa.

International Costco Stores

Costco’s credit card policies vary by country. Here’s a quick overview:

• Canada: Accepts MasterCard instead of Visa.
• Mexico: Accepts Visa and MasterCard.
• United Kingdom: Accepts all major credit cards, including Visa and MasterCard.
• Australia: Similar to the U.S., primarily accepts Visa.

Travelers should check the credit card policies of international Costco locationsto avoid surprises at checkout. Carrying multiple payment methods can ensure a smooth shopping experience abroad.

Pro Tips For Shopping At Costco

1. Maximize Cashback Rewards

Make the most of your Costco shopping by using the Costco Anywhere Visa® Card by Citi. This card gives you cashback on every purchase; 4% on gas, 3% on restaurants and travel, 2% at Costco, and 1% on everything else. It’s a great way to save money while shopping for what you need.

2. Plan Purchases Strategically

If your credit card offers rewards or cashback cycles, try to align your big Costco shopping trips with those periods. For example, if your card has a quarterly bonus category for wholesale clubs, shop more during that time to earn extra rewards. While waiting in line or during your shopping trips, having best travel gameson hand can keep everyone entertained, making the experience more enjoyable and stress-free.

3. Utilize Mobile Payments

Set up a Visa card with mobile payment apps like Apple Pay, Google Pay, or Samsung Pay. These apps let you pay quickly and securely without needing to carry your card. They’re especially useful for speeding up checkout lines.

4. Check International Policies

If you’re traveling and plan to visit Costco abroad, check the credit card policies for that country. For example, Costco in Canada accepts MasterCard, while in the U.S., only Visa is accepted. Knowing this in advance will save you from any payment issues while shopping overseas.

FAQs

Does Costco Accept Credit Cards Other Than Visa?

In U.S. warehouses, Costco accepts only Visa credit cards. However, Costco’s online store and international locations may accept other credit card networks.

Why Does Costco Limit Credit Card Networks?

Costco’s exclusive agreement with Visa reduces transaction fees, allowing the retailer to offer lower prices to its members.

Can I Use A Visa Card Issued By A Non-U.S. Bank At Costco?

Yes, Visa cards issued by banks outside the U.S. are accepted at U.S. Costco locations, provided they are part of the Visa network.

Are Visa Gift Cards Accepted At Costco?

Yes, Visa-branded gift cards can be used for in-store purchases at Costco.

What Payment Methods Are Accepted At Costco Gas Stations?

Costco gas stations accept Visa credit cards, Visa debit cards, and Costco Shop Cards.

Final Thoughts

Costco's credit card policy may appear restrictive at first, but it is intended to assist customers by keeping costs low. By collaborating exclusively with Visa, Costco ensures cost savings while providing customers with a flawless purchasing experience.

To maximize rewards and savings, consider selecting a Visa card designed specifically for your spending habits, such as Citi's Costco Anywhere Visa® Card.For people who do not have a Visa credit card, alternative payment methods such as Visa debit cards, prepaid gift cards, or Costco Shop Cards offer flexibility.