Costco only accepts Visa credit cards, plus their own Costco Anywhere Visa card

Costco stopped accepting American Express in 2015 and now takes only Visa-branded credit cards at the warehouse and online. This means Mastercard, Discover, and American Express cards will not work, even if you have excellent credit and a high limit. Debit cards, prepaid cards, and cash still work everywhere Costco operates.

The most common card used at Costco is the Costco Anywhere Visa Card by Citi, which is Costco's own branded card. You do not have to use it — any Visa card from any bank will work — but Costco members often choose it because it offers rewards specifically tied to Costco purchases. If you already have a Visa from your bank, you can use that instead with no problem.

Key Takeaways

  • Only Visa credit cards work at Costco; Mastercard, Discover, and American Express are not accepted in warehouses or online.
  • The Costco Anywhere Visa Card by Citi is Costco's own card and earns cash back on Costco purchases, but it is optional — any Visa card works.
  • You must be a Costco member to shop there, but membership and credit card choice are separate decisions.
  • If you have a Visa from your bank already, you can use it at Costco without opening a new card account.

How the Costco Anywhere Visa Card works

The Costco Anywhere Visa Card is issued by Citi and earns cash back on purchases. The card earns 4% cash back on gas (up to $7,000 per year, then 1% after), 3% on restaurants and travel, 2% at Costco warehouses and Costco.com, and 1% on all other purchases. The cash back comes as an annual reward certificate that you can use at Costco or redeem for a deposit to your bank account.

There is an annual fee: $65 for the standard version, or $130 for the Executive version. The Executive version earns an extra 1% cash back on all categories and comes with a 2% annual reward certificate rebate, which means you get back $130 in rewards if you spend enough. Whether the Executive version pays for itself depends on how much you spend at Costco and on gas.

You do not need the Costco Anywhere card to shop at Costco. If you already have a Visa from another bank — from Chase, Bank of America, Wells Fargo, or any other issuer — that card will work at checkout. The choice between using your existing Visa and opening a Costco card is about whether the rewards are worth the annual fee to you.

Using a Visa from your bank instead

Any Visa card will work at Costco, whether it is a basic card, a rewards card, or a premium card with an annual fee. You might already have a Visa that earns rewards on all purchases, or one that earns bonus points on groceries and gas. If that card's rewards rate is better than the Costco card's rate for your spending pattern, there is no reason to switch.

For example, if you have a Visa that earns 2% cash back on all purchases with no annual fee, you would earn the same 2% at Costco as you would with the Costco card (which also earns 2% at Costco). The difference is that your existing card has no annual fee, so you would come out ahead by not opening a new account.

The main reason to choose the Costco card over another Visa is if you spend a lot at Costco and on gas, and the higher rewards rate (4% on gas, 2% at Costco) outweighs the annual fee. Run the math on your own spending before you decide.

What happens if you try to use a different card brand

If you attempt to pay with Mastercard, Discover, or American Express at a Costco warehouse, the card will be declined at the register. The same applies online at Costco.com. The cashier or the website will tell you that only Visa is accepted, and you will need to provide a different payment method.

This policy applies to all Costco locations worldwide. There are no exceptions for premium cards, high credit limits, or membership status. If you want to use a credit card at Costco, it must be Visa.

Costco membership and credit card choice are separate

Your Costco membership and your payment method are two different things. You need a membership to enter the warehouse and shop, but the membership does not require you to use any particular credit card. You can have a Gold Star membership (the basic level) or an Executive membership and pay with any Visa card, or with cash, or with a debit card.

If you are thinking about opening a Costco Anywhere card, the card process is separate from the membership process. You can be a Costco member without the card, and you can explore for the card later if you decide the rewards are worth it. Some people join Costco first, use their existing Visa for a few months, and then decide whether to open the Costco card based on their actual spending.

Comparing the Costco card to other Visa rewards cards

The Costco Anywhere card earns 2% at Costco and 4% on gas, but it has a $65 annual fee. Other Visa cards from major banks might earn 1.5% or 2% on all purchases with no annual fee, or they might earn bonus categories like 3% on groceries and 2% on gas. The best card for you depends on where you spend the most money and whether the rewards justify the annual fee.

If you spend $3,000 per year at Costco, the Costco card earns $60 in cash back (2% of $3,000). After the $65 annual fee, you break even or lose money. If you spend $5,000 per year at Costco, you earn $100 in cash back, which covers the fee and leaves you $35 ahead. Add gas rewards on top, and the card becomes more valuable. The math is different for every person.

A straightforward way to decide: add up what you spent at Costco and on gas last year. Multiply Costco spending by 2% and gas spending by 4%. If that total is more than $65, the Costco card likely pays for itself. If it is less, your existing Visa probably serves you better.

What to do if you do not have a Visa

If you have only Mastercard or American Express and do not want to open a new card, you can still shop at Costco by paying with cash or a debit card. Both work at every Costco location. You will not earn rewards, but you will not pay an annual fee either.

If you want to use a credit card and earn rewards, you have two options: open a Visa from your current bank (many banks offer Visa cards with rewards), or open the Costco Anywhere Visa Card. Either way, you will need a Visa to use a credit card at Costco. There is no workaround for the Visa-only policy.

Frequently Asked Questions

Can I use my Mastercard or American Express at Costco?

No. Costco accepts only Visa credit cards. Mastercard, Discover, and American Express will be declined at checkout. You can pay with cash, a debit card, or a Visa credit card instead.

Do I have to get the Costco Anywhere Visa Card to shop at Costco?

No. Any Visa card works at Costco, including a basic Visa from your bank with no rewards. The Costco card is optional and worth considering only if the rewards rate beats your current card and the annual fee makes sense for your spending.

What if I have a Visa but it is not from Citi?

That is fine. A Visa from Chase, Bank of America, Wells Fargo, or any other bank will work at Costco. You do not need a Citi card or the Costco-branded card. Any Visa is accepted.

Does the Costco card work outside of Costco?

Yes. The Costco Anywhere Visa Card is a regular Visa and works anywhere Visa is accepted. It earns 1% cash back on non-Costco purchases, 3% at restaurants and travel, and 4% on gas — the rewards vary by category.

Can I use a Costco gift card instead of a credit card?

Yes. Costco gift cards work at checkout and do not require a credit card. You can also use cash or a debit card. The only payment methods that do not work are non-Visa credit cards.