Costco accepts Visa credit cards, but not other major card networks

Costco takes Visa cards at all warehouse locations and on its website. It does not take American Express, Mastercard, or Discover cards — this has been Costco's policy since 2016, when it ended its exclusive relationship with American Express. If you have a Costco Visa card (the co-branded card issued by Citi), that works everywhere Visa is accepted, including at Costco.

The restriction applies to both in-warehouse purchases and online orders. If you try to pay with a non-Visa card at checkout, the transaction will be declined. Costco does take other payment methods — debit cards, cash, checks, and digital wallets like Apple Pay or Google Pay that are linked to a Visa card — but credit card purchases must be on the Visa network.

Key Takeaways

  • Costco accepts Visa credit cards at all warehouses and online, but rejects American Express, Mastercard, and Discover.
  • The Costco Visa card, issued by Citi, earns rewards on Costco purchases and works at any merchant that takes Visa.
  • Digital wallets like Apple Pay and Google Pay work at Costco if they are linked to a Visa card.
  • Debit cards, cash, and checks are also accepted, so you have payment options beyond Visa credit cards.

Why Costco only accepts Visa

Costco's decision to accept only Visa came from a business agreement between Costco and Citi, which issues the Costco Visa card. When Costco ended its American Express partnership in 2015, it signed an exclusive deal with Citi to be the sole credit card issuer for Costco members. Part of that deal means Costco accepts Visa cards — the network Citi operates on — and no other credit card networks.

This arrangement benefits Costco because it simplifies payment processing and gives the company a direct relationship with one card issuer. It benefits Citi because Costco members who want to earn rewards on their warehouse purchases must use the Costco Visa card. For members, the trade-off is that you cannot use Amex, Mastercard, or Discover at Costco, even if you prefer those cards.

What to do if you don't have a Visa card

If you do not own a Visa credit card, you have several options. You can pay with a debit card linked to your bank account, which works at Costco checkout just like a credit card. You can also pay with cash or a personal check — Costco still accepts both, though check-writing is less common now.

If you want to use a credit card and earn rewards, you can open a Costco Visa card through Citi. The card offers cash back on Costco purchases (the rate varies by membership level and category) and on gas, travel, and dining outside Costco. You do not have to be a Costco member to apply, but you do need to be a member to shop at Costco and use the card there.

If you prefer not to open a Costco card, digital wallets are another route. Apple Pay, Google Pay, and Samsung Pay all work at Costco if your wallet is linked to a Visa card — either the Costco Visa or any other Visa you own. This lets you use rewards from a different Visa card if you have one.

Using digital wallets at Costco

Costco warehouses have contactless payment terminals that accept digital wallets. You can tap or scan your phone at checkout using Apple Pay, Google Pay, or Samsung Pay, as long as the wallet contains a Visa card. The payment goes through the Visa network, so the restriction still applies — your wallet must be linked to Visa, not Amex or Mastercard.

Online, Costco's website also accepts digital wallets during checkout. The process is the same: select your wallet as the payment method, and the transaction processes through Visa. This is useful if you want to avoid entering card details manually or if you prefer the security of a digital wallet.

Costco Visa card rewards and benefits

The Costco Visa card earns cash back on purchases, with rates that depend on your membership tier. Gold Star members earn 1% cash back on most Costco purchases and 2% on gas and travel. Executive members earn 2% on Costco purchases and 3% on gas and travel. The card also earns 1% cash back on all other purchases outside Costco.

Cash back is paid as an annual reward certificate that you can use at Costco warehouses or on the website. There is no annual fee for the card, and you can apply online through Citi's website. Approval is usually quick, and you can use the card immediately for online purchases while you wait for the physical card to arrive.

What happens if you try to use a non-Visa card

If you attempt to pay with an American Express, Mastercard, or Discover card at Costco, the payment terminal will decline the transaction. The cashier cannot override this — it is a system-level restriction, not a judgment call. You will need to provide a different payment method to complete your purchase.

This applies even if your Amex or Mastercard has a high credit limit or excellent standing with your bank. Costco's payment system simply does not route non-Visa credit cards, so the transaction cannot go through. The only exception is if your digital wallet is linked to a Visa card; in that case, the wallet processes the payment as a Visa transaction.

Frequently Asked Questions

Can I use American Express at Costco?

No. Costco stopped accepting American Express in 2016 and does not take Amex cards at any warehouse or online. If you have an Amex, you can pay with cash, a debit card, or a digital wallet linked to a Visa card instead.

Does Costco accept Mastercard?

No. Costco's payment system only accepts Visa credit cards. Mastercard is not accepted at warehouses or online. You can use a debit card, cash, or a digital wallet linked to a Visa card.

Can I use my bank's debit card at Costco?

Yes. Debit cards work at Costco checkout and online. You do not need a credit card to shop at Costco — debit, cash, and checks are all accepted payment methods.

Does the Costco Visa card work everywhere Visa is accepted?

Yes. The Costco Visa card is a standard Visa card, so it works at any merchant that takes Visa, not just at Costco. You earn rewards at Costco and on gas, travel, and dining purchases outside Costco.

What if I have a Visa card from another bank — can I use it at Costco?

Yes. Any Visa credit card works at Costco, whether it is the Costco Visa card or a Visa from your bank or another issuer. You will not earn Costco-specific rewards with a non-Costco Visa, but the card will be accepted at checkout.