Costco does not take Discover Card at the warehouse or online

Costco has a restricted payment policy and does not accept Discover Card at any of its locations or through its website. The warehouse chain only accepts Visa, Mastercard, American Express, and their own Costco credit card (which is a Visa). If you have a Discover Card, you will need to use a different payment method to shop at Costco.

This policy applies to all Costco warehouses in the United States, Canada, and the United Kingdom. It also applies to Costco.com purchases. The restriction has been in place for years and is unlikely to change without a major shift in Costco's payment agreements.

Key Takeaways

  • Costco accepts only Visa, Mastercard, American Express, and the Costco Visa card — Discover Card is not accepted anywhere at Costco.
  • This payment restriction applies to all warehouse locations, gas stations, and Costco.com orders.
  • If you want to use a rewards card at Costco, the Costco Visa card offers cash back on Costco purchases and gas.
  • You can use a debit card, PIN-based payment, or cash as alternatives if you do not have an accepted credit card.

Why Costco limits which cards it accepts

Costco's payment restrictions stem from negotiated agreements with card networks and banks. These agreements determine which cards the warehouse will process and what fees Costco pays per transaction. By limiting accepted cards, Costco reduces the number of payment processors it must work with and can negotiate lower processing fees across fewer networks.

The warehouse also uses payment restrictions as a way to steer members toward its own credit card product, the Costco Visa. Members who carry the Costco card earn cash back on purchases and pay no annual fee, which gives Costco a direct financial relationship with cardholders and encourages repeat visits.

What payment methods work at Costco instead

If you do not have Visa, Mastercard, or American Express, you have several alternatives. Costco accepts debit cards, which work like a credit card at checkout but draw directly from your bank account. You can also pay with cash, and Costco has ATMs in most warehouses if you need to withdraw money.

The Costco Visa card is another option if you want a rewards card. It earns 2% cash back on Costco purchases and gas, 1% on all other purchases, and has no annual fee. You can apply for it in the warehouse, online, or through the Costco website. The card is issued by Citi and is a Visa, so it is accepted everywhere Costco takes Visa.

Using Discover Card at Costco Gas stations

Discover Card is also not accepted at Costco gas stations. The fuel pumps only take Visa, Mastercard, American Express, and the Costco Visa card. This applies to all Costco gas locations in the United States.

If you want to pay for gas at Costco with a rewards card, the Costco Visa earns 4% cash back on Costco gas purchases (up to $7,500 per year, then 1% after). This is one of the highest rewards rates available for warehouse gas.

Costco.com payment options

Costco's online store has the same payment restrictions as the warehouse. You can pay with Visa, Mastercard, American Express, or the Costco Visa card. Discover Card will not be accepted during checkout on Costco.com.

You can also pay with a debit card or PayPal on the website, which gives you one additional option beyond the warehouse. If you use PayPal, you can link any of your bank accounts or cards to it, though PayPal itself will still need to process the transaction through an accepted network.

What to do if you only have Discover Card

If Discover is your only card, the simplest solution is to use a debit card or cash at Costco. Both are accepted everywhere in the warehouse and at gas pumps. If you do not have a debit card, you can open one through most banks with minimal paperwork.

Another option is to apply for a Costco Visa card if you shop there regularly. There is no annual fee, and the cash back on Costco purchases can offset the cost of a membership over time. You can also ask family members or friends who have an accepted card to pay on your behalf, though you would need to reimburse them separately.

Frequently Asked Questions

Can I use Discover Card at Costco if I call ahead?

No. Costco's payment system does not process Discover Card transactions at any location, and calling ahead will not change this. The restriction is built into the warehouse's payment terminals and cannot be overridden for individual transactions.

Does Costco accept Discover Card for membership payments?

No. When you renew or purchase a Costco membership, you must pay with Visa, Mastercard, American Express, or the Costco Visa card. Discover Card is not accepted for membership fees either online or in the warehouse.

Will Costco ever accept Discover Card?

There is no announced plan for Costco to accept Discover Card. The warehouse's payment agreements with Visa, Mastercard, and American Express have been in place for years. Any change would require Costco to renegotiate these contracts, which is unlikely unless Discover Card significantly increases its market share or offers Costco a better deal.

Can I use Discover Card to buy a Costco gift card?

No. Costco gift cards must be purchased with an accepted payment method — Visa, Mastercard, American Express, or the Costco Visa card. You cannot use Discover Card to buy gift cards in the warehouse or online.

What if my bank offers both Discover and Visa?

If your bank issues both cards, you can use the Visa card at Costco and the Discover Card elsewhere. Many banks allow you to request a second card on the same account, or you can open a separate account with a different bank that offers Visa as a primary card.