Costco only takes Visa credit cards, not Mastercard or American Express

Costco stopped accepting American Express in 2016 and switched to Visa as its exclusive credit card partner. This means if you want to use a credit card at Costco, it must be a Visa. Mastercard, American Express, Discover, and other cards are not accepted for credit purchases, though Costco does take debit cards, cash, and checks at all locations.

The partnership between Costco and Visa is exclusive — Costco negotiated a deal where Visa became the only credit card brand allowed in their warehouses. This is different from most retailers, which accept multiple card brands. If you have a Mastercard or American Express but no Visa, you will need to pay with a different method or open a Costco Visa card.

Costco's Visa requirement applies to all warehouse locations and online purchases. Some Costco gas stations may have different rules depending on location, so check with your local warehouse if you plan to use a card at the pump.

Key Takeaways

  • Costco accepts only Visa credit cards; Mastercard, American Express, and Discover are not accepted for credit purchases.
  • You can still shop at Costco using a debit card, cash, or check instead of a credit card.
  • Costco offers its own Visa card through Citi, which gives cash back on Costco purchases and gas.
  • The Visa-only policy has been in place since 2016 when Costco ended its American Express partnership.
  • Online purchases at Costco.com follow the same Visa-only rule for credit cards.

The Costco Visa card and how it works

Costco's branded credit card is a Visa issued by Citibank. It is called the Costco Anywhere Visa Card by Citi, and it is the card most Costco members use because it offers cash back on purchases. The card gives 2% cash back on Costco purchases and gas, 1% on all other purchases, and an annual 2% reward certificate that you can use in the warehouse or online.

You do not have to use the Costco Visa card to shop at Costco — any Visa card will work. But the Costco card is designed to reward frequent shoppers. If you already have a different Visa card from your bank, you can use that instead. The cash back rewards on the Costco card are the main reason many members choose it over a regular Visa.

The Costco Visa card requires a Costco membership to open. You can open one at the warehouse membership desk or online through Citi's website. There is no annual fee for the card itself, though you do pay for your Costco membership separately.

What to do if you have a different credit card brand

If you have a Mastercard, American Express, or Discover card but no Visa, you have several options. The simplest is to pay with a debit card or cash instead. Costco takes all debit cards, so if your bank account is linked to a debit card, you can use that without any restrictions.

If you want to use a credit card specifically, you can open a Costco Visa card through Citi. This takes about 10 minutes online or at the warehouse. You do not need to close your other credit cards — you can have both a Visa and a Mastercard, and simply use the Visa when you shop at Costco.

Some people keep a basic Visa card from their bank just for Costco purchases, even if they prefer using another brand elsewhere. This is a practical solution if you shop at Costco regularly but do not want the rewards card.

Costco's payment methods beyond credit cards

Costco takes debit cards, cash, and checks at all warehouse locations. Online at Costco.com, you can pay with any Visa card, debit card, or PayPal. If you are paying in person, you have the most flexibility — bring cash or a debit card and you do not need to worry about the Visa requirement at all.

Some Costco locations have self-checkout, and the payment rules are the same: Visa credit cards only, or debit, cash, or check. The Visa-only policy applies to all payment terminals in the warehouse.

Why Costco switched to Visa and what changed

Costco had a long partnership with American Express before switching to Visa in 2016. The change happened because Costco and American Express could not reach a new agreement on fees and terms. Costco decided Visa offered better rates and benefits for the warehouse and its members.

When the switch happened, members who had the Costco American Express card received a new Costco Visa card automatically. Existing rewards on the old card were honored. The transition took a few months, but by mid-2016, all Costco locations were Visa-only.

This kind of exclusive partnership is unusual in retail. Most stores accept multiple card brands to give customers more options. Costco's decision to go exclusive with Visa was a business choice that prioritized the terms Visa offered over customer convenience.

Frequently Asked Questions

Can I use my American Express card at Costco?

No. Costco stopped accepting American Express in 2016 and now only takes Visa credit cards. You can still pay with cash, a debit card, or a check. If you want to use a credit card, you will need a Visa — either the Costco Visa card or any other Visa from your bank.

Do I have to have the Costco Visa card to shop there?

No. Any Visa card works at Costco. You can also pay with a debit card, cash, or check. The Costco Visa card is optional and is mainly useful if you want the cash back rewards on your purchases.

What if I use a Mastercard at Costco by mistake?

The card will be declined at checkout. You will need to use a different payment method — a Visa, debit card, cash, or check. Costco's payment terminals do not accept Mastercard, so there is no way around this at the register.

Can I use Visa on Costco.com?

Yes. Costco.com takes any Visa card, debit card, or PayPal. The same Visa-only rule for credit cards applies online as it does in the warehouse. You can also pay with a debit card or PayPal if you prefer not to use a credit card.

Does Costco take Discover or Diners Club?

No. Costco only accepts Visa for credit card purchases. Discover, Diners Club, and all other card brands are not accepted. Your options are Visa, debit card, cash, or check.