Costco accepts Visa cards and Costco's own Mastercard, but no American Express or Discover

Costco stopped accepting American Express in 2015 and switched to Visa as its primary credit card partner. Today, Costco warehouses take any Visa card — whether issued by your bank, a credit union, or a fintech lender. Costco also issues its own Mastercard through Citi, called the Costco Anywhere Visa Card, which earns rewards on Costco purchases and gas station spending.

The warehouse does not accept American Express, Discover, or Diners Club, even if you have a card from one of those networks. Debit cards work if they carry the Visa or Mastercard logo. Cash and checks are also accepted at all locations.

This arrangement reflects a business decision Costco made over a decade ago. American Express charged higher fees per transaction than Visa did, and Costco's membership model — where customers pay an annual fee to shop — meant the company had less incentive to accept every payment method. Switching to Visa and launching a co-branded card gave Costco better economics and gave cardholders a reason to use Costco's card specifically.

Key Takeaways

  • Any Visa card works at Costco, whether from a bank, credit union, or online lender, but American Express and Discover are not accepted.
  • The Costco Anywhere Visa Card earns 2% cash back on Costco purchases and gas, plus 1% on other spending, and requires Costco membership to use.
  • Costco stopped accepting American Express in 2015 because the network's fees were higher than Visa's.
  • Debit cards, cash, and checks work at Costco as long as the debit card carries a Visa or Mastercard logo.

Why Costco dropped American Express

Costco and American Express had a payment partnership for 14 years before the relationship ended in 2015. American Express charged Costco a higher percentage of each transaction than Visa does — typically around 2.5% to 3% versus Visa's lower rate. For a warehouse business that operates on thin margins and processes millions of transactions annually, that difference adds up quickly.

American Express also required Costco to accept all American Express cards, including premium cards with higher rewards rates. Costco preferred a simpler arrangement where it could control costs more directly. When the contract came up for renewal, Costco chose to switch to Visa instead and launch its own rewards card through Citi.

The move was controversial among American Express cardholders who had used their cards at Costco for years. But from Costco's perspective, the Visa partnership — combined with its own Mastercard — gave the company better fee control and a way to incentivize members to use Costco's branded card, which earns rewards only at Costco and gas stations.

What the Costco Anywhere Visa Card offers

The Costco Anywhere Visa Card is issued by Citi and requires an active Costco membership to open and use. The card earns 2% cash back on Costco purchases and gas station spending (up to $110 per year, then 1%), and 1% cash back on all other purchases. There is no annual fee beyond the Costco membership itself.

Cash back is issued as an annual reward certificate that you can use at Costco warehouses or on Costco.com. The certificate expires one year after issue, so you need to spend it within that window. The card also includes travel protections like trip cancellation insurance and emergency medical and dental coverage abroad.

You do not have to use the Costco card to shop at Costco — any Visa card works. But if you shop frequently at Costco or buy gas there regularly, the 2% cash back can offset the cost of membership over time. The card is not useful outside Costco unless you value the 1% cash back on general purchases, which is lower than many competing cash back cards offer.

What payment methods work at Costco gas stations

Costco gas stations have stricter payment rules than the warehouse itself. You can use the Costco Anywhere Visa Card, any other Visa card, or a Mastercard with a Visa or Mastercard logo. You cannot use American Express or Discover at the pump, and you cannot pay with cash or check.

Some Costco locations have a separate gas station entrance that requires a membership card to access. If you have a Costco membership card but no credit card with you, you can go inside the warehouse and ask a cashier to process a gas purchase, though this is slower than paying at the pump directly.

How Costco's payment rules compare to other warehouse clubs

Sam's Club accepts Visa, Mastercard, American Express, and Discover, giving members more flexibility. Sam's Club also issues its own Mastercard through Synchrony, which earns rewards on Sam's Club purchases. BJ's Wholesale Club accepts Visa, Mastercard, American Express, and Discover as well.

Costco's narrower acceptance is a trade-off. By limiting payment options, Costco reduces the number of payment networks it has to negotiate with and keeps transaction costs lower. Members who carry American Express or Discover cards cannot use them at Costco, which is a genuine inconvenience if those are your primary cards. But Costco's membership model means the company does not need to accept every payment method to attract shoppers — members are already paying to be there.

What to do if you only have American Express or Discover

If your primary credit card is American Express or Discover, you have three options at Costco. First, you can open a Costco Anywhere Visa Card through Citi if you have a Costco membership. Second, you can use a debit card that carries a Visa or Mastercard logo — most bank debit cards do. Third, you can pay with cash or a check.

If you shop at Costco regularly and want to use a rewards card, opening the Costco Anywhere Visa Card is the most straightforward path. The card has no annual fee and earns 2% cash back on Costco purchases, which many members find valuable. If you prefer not to open another card, a Visa or Mastercard debit card works just as well, though you will not earn rewards.

Some people maintain multiple credit cards specifically to shop at different retailers. If Costco is a regular destination for you and you want to maximize rewards, having a Visa card — whether the Costco card or another bank's Visa — makes sense. If you shop at Costco only occasionally, paying with cash or a debit card is simpler than opening a new card.

Frequently Asked Questions

Can I use my American Express card at Costco?

No. Costco stopped accepting American Express in 2015 and does not take the card at any warehouse location or gas station. If you want to use a rewards card at Costco, you can open the Costco Anywhere Visa Card, or use any other Visa card you already have.

Does Costco take Discover cards?

No, Costco does not accept Discover at the warehouse or gas stations. You can use Visa, Mastercard (including the Costco Anywhere Visa Card), cash, checks, or a debit card with a Visa or Mastercard logo.

Do I need the Costco Visa card to shop there?

No. Any Visa card works at Costco, along with Mastercard, cash, and checks. The Costco Anywhere Visa Card is optional and useful only if you want to earn rewards on your Costco purchases.

What happens if I try to use American Express at Costco?

The card will be declined at the register or pump. You will need to provide a different payment method — a Visa card, Mastercard, cash, check, or a debit card with a Visa or Mastercard logo.

Can I use a Mastercard at Costco?

Yes. Costco accepts Mastercard, including the Costco Anywhere Visa Card (which is a Mastercard despite its name). Any Mastercard from any bank or issuer works at Costco warehouses and gas stations.