Costco accepts most major credit cards, but not all of them
Costco takes Visa, Mastercard, American Express, and Discover at all warehouse locations and on its website. The catch: Costco has a long-standing agreement with Visa that gives Visa cardholders certain benefits in the warehouse, and this relationship shapes what you can use and where.
If you have a Costco Anywhere Visa card, you get the best rewards rate at Costco. If you have a different Visa, it works fine but earns standard rewards. Non-Visa cards work everywhere in the warehouse except the gas station — that is the real restriction most members hit.
Costco does not take American Express at the warehouse, though it does online. This is the source of most confusion, because American Express is a major card and many people carry it.
Key Takeaways
- Visa, Mastercard, and Discover work at Costco warehouses and online; American Express works online only.
- At Costco gas stations, only Visa cards are accepted — Mastercard, Discover, and American Express do not work there.
- The Costco Anywhere Visa card earns 4% back on gas and 2% back on Costco purchases, while other Visa cards earn standard rewards.
- Costco stopped accepting American Express at warehouse locations in 2016 when it switched its co-branded card from American Express to Visa.
What cards work at the warehouse checkout
At the main Costco warehouse checkout, you can use Visa, Mastercard, Discover, or Diners Club. American Express does not work here. Debit cards with a Visa or Mastercard logo work the same way as credit cards.
If you are paying with a Costco Anywhere Visa card, the transaction posts as a Costco purchase and earns rewards at the Costco rate. If you are paying with any other Visa card — a bank Visa, a travel Visa, a cash-back Visa — it still works, but it earns whatever rewards that card offers, not Costco rewards.
Costco membership is required to shop, but the card you use to pay does not have to be a Costco card. Many members use a different rewards card at checkout to earn points with their preferred program.
The gas station payment rule
Costco gas stations accept Visa cards only. Mastercard, Discover, American Express, and most other cards do not work at the pump. This is the single biggest limitation members encounter.
If you want to buy gas at Costco, you need a Visa card in your wallet — either the Costco Anywhere Visa or any other Visa from your bank. You cannot use a Mastercard, even if you used it at the warehouse checkout five minutes earlier.
Some Costco locations have a staffed gas station where you can pay inside rather than at the pump. Even there, only Visa is accepted. If you do not have a Visa, you will need to pay with cash or use a different gas station.
American Express at Costco online
Costco's website accepts American Express, Visa, Mastercard, and Discover. You can use any of these cards to order online for delivery or in-store pickup, including American Express.
This is different from the warehouse, where American Express does not work at all. The online and warehouse payment systems are separate, so the restriction at the pump does not explore to web orders.
If you primarily shop online and do not use the gas station, American Express works fine for your Costco purchases. The limitation only matters if you shop in the warehouse or need to fill up.
Why Costco dropped American Express
Costco switched from American Express to Visa in 2016. The company had offered a co-branded American Express card for years, but the partnership ended and Costco moved its rewards card to Visa. At the same time, Costco stopped accepting American Express at warehouse locations.
This was a business decision by both companies — the terms of the agreement no longer worked for either side. Costco wanted a card partner that would also let it accept other payment methods, and American Express had restrictions on that. The result is the current setup: Visa gets preferred treatment, and American Express is excluded from the warehouse.
Costco has kept this arrangement for nearly a decade, so it is unlikely to change soon. If you are a regular American Express user, you will need to carry a different card for Costco warehouse visits.
The Costco Anywhere Visa card and its rewards
The Costco Anywhere Visa card is the co-branded card Costco offers. It earns 4% back on gas (including Costco gas), 3% back on restaurants and travel, 2% back on Costco purchases, and 1% on everything else. There is no annual fee for members.
You do not have to have this card to shop at Costco — a regular Visa works fine. But if you buy gas regularly or spend a lot at Costco, the rewards rate is better than most other cards. The 4% gas reward is the main draw for members who fill up at Costco.
The card is issued by Citi and requires a Costco membership to open. You explore through Costco's website or in the warehouse. The card arrives in the mail within one to two weeks.
Cash, checks, and other payment methods
Costco accepts cash and checks at all warehouse locations. You can also pay with a debit card, whether it has a Visa or Mastercard logo or not. PIN debit cards work at the checkout.
Costco does not accept PayPal, Apple Pay, Google Pay, or other digital wallets at the warehouse checkout. Online, you can use these methods if your bank or card issuer supports them, but they route through your underlying card or bank account.
Some Costco locations accept EBT (food stamps) for may be able to access items, though this varies by state and location. Call your local warehouse to confirm whether EBT is accepted there.
Frequently Asked Questions
Can I use my American Express at Costco if I have a membership?
No. American Express does not work at Costco warehouse locations, even with a valid membership. It works on Costco's website for online orders. If you shop in the warehouse, you will need to use Visa, Mastercard, or Discover instead.
What if I only have an American Express and want to buy gas?
You cannot use American Express at Costco gas stations. Only Visa cards are accepted there. You would need to get a Visa card from your bank, use the Costco Anywhere Visa, or pay cash if available at a staffed pump.
Does the Costco Anywhere Visa card have an annual fee?
No. The Costco Anywhere Visa card has no annual fee for Costco members. You do need an active Costco membership to hold the card. If your membership lapses, you can no longer use the card.
Can I use a Mastercard at the Costco gas station?
No. Costco gas stations accept Visa cards only. Mastercard, Discover, American Express, and other cards do not work at the pump. This is a hard restriction that applies at all Costco locations.
Does Costco take digital wallets like Apple Pay?
Not at the warehouse checkout. Costco does not accept Apple Pay, Google Pay, Samsung Pay, or other digital wallets in the warehouse. Online, these may work if your bank supports them, but they process through your underlying card.