Costco takes Visa, Mastercard, and American Express — but not Discover or other cards

Costco accepts Visa, Mastercard, and American Express at checkout. They do not take Discover, Diners Club, or any other credit card brand. This policy applies at warehouse locations and on Costco.com. If you show up with a Discover card, you'll need to pay with a debit card, cash, or a check instead.

The reason Costco limits their card options comes down to the fees they pay to card networks. Visa, Mastercard, and American Express negotiated deals with Costco years ago. Discover never made that deal, so Costco chose not to accept it. This is Costco's choice to make — they're a private business and can decide which payment methods they want.

If you're a Costco member planning to use a credit card there, the takeaway is simple: bring Visa, Mastercard, or American Express. Anything else won't work at the register.

Key Takeaways

  • Costco accepts Visa, Mastercard, and American Express credit cards at all warehouse locations and online.
  • Discover, Diners Club, and other credit card brands are not accepted, even if you have a Costco membership.
  • If you don't have one of the three accepted card types, you can pay with debit, cash, or check instead.
  • Costco's card restrictions are the same whether you shop in person or online.

Why Costco doesn't accept all credit cards

Costco's payment rules are based on contracts with card networks, not on how popular a card is. When Costco negotiated with Visa, Mastercard, and American Express, they worked out interchange rates — the percentage Costco pays each time someone swipes one of those cards. Those rates are lower than what Discover charges, which is why Costco chose to accept only those three.

This isn't unusual. Many retailers have similar restrictions. Target, for example, doesn't accept American Express. Walmart has its own preferred card partners. Each business decides which cards make financial sense for them to accept.

Costco has held this policy for years and shows no sign of changing it. If you shop at Costco regularly, having at least one of their accepted card types makes checkout faster and easier.

What to do if you only have Discover or another card

If Discover is your only credit card, you have three options at Costco: pay with a debit card, pay with cash, or pay with a check. All three work at the register. You won't lose your membership or face any penalty for not using a credit card.

Some people in this situation open a second credit card with Visa or Mastercard just for Costco trips. That's a personal choice — it depends on whether you shop there often enough to make a new card worth it. If you do open a new card, compare annual fees and rewards to see which one fits your spending.

Another option is to use a Costco Visa card if you want rewards on your purchases. Costco offers a co-branded Visa through Citi that gives cash back on Costco purchases. You can only use it at Costco and gas stations, but the rewards are designed for Costco shoppers.

Using the Costco Visa card for extra rewards

The Costco Anywhere Visa Card is a Mastercard issued by Citi that gives you cash back on Costco purchases. Members earn 2% back on Costco purchases and gas, 1% on other purchases. The card has an annual fee, which Costco members pay upfront.

This card is optional — you don't need it to shop at Costco. But if you spend a lot there, the cash back can add up. The card also works at other stores and online, so you can use it anywhere Mastercard is accepted, not just at Costco.

If you're interested in the Costco card, you can learn about the current rewards and fees on Costco's website or ask at the membership desk. The terms change occasionally, so it's worth checking what the current offer is before you open one.

Costco's payment rules online versus in the warehouse

Costco.com has the same credit card rules as the warehouse: Visa, Mastercard, and American Express only. You cannot use Discover online either. The checkout process is the same whether you're buying groceries or electronics.

One difference: online, you can also pay with a Costco Shop Card, which is a prepaid card you load with money ahead of time. This option is not available in the warehouse. If you want to use a Shop Card, you have to order online.

For in-warehouse shopping, your payment options are credit card (Visa, Mastercard, or American Express), debit card, cash, or check. There's no prepaid card option at the register.

What happens if you try to use an unsupported card

If you hand a Discover card or any other unsupported card to the cashier, they'll let you know it won't go through. The card reader will decline it. At that point, you'll need to switch to a different payment method — debit, cash, or check.

This happens quickly and without any awkwardness. Costco staff deal with this regularly and won't make you feel bad about it. Just let them know you'll pay a different way, and you're done.

The best way to avoid this is to check your wallet before you get in line. If you know you only have Discover, bring your debit card or cash instead. That way you won't be surprised at checkout.

Frequently Asked Questions

Can I use my Discover card at Costco if I'm a Gold Star member?

No. Membership level doesn't change Costco's card rules. Gold Star, Executive, and all other membership tiers have the same payment restrictions. Discover is not accepted at any Costco location, regardless of your membership type.

Does Costco accept American Express gift cards?

Yes. American Express gift cards work at Costco because they're issued by American Express, which Costco accepts. The same applies to Visa and Mastercard gift cards. Discover gift cards do not work.

Can I use a credit card to buy a Costco gift card?

Yes. You can buy a Costco gift card with any accepted credit card (Visa, Mastercard, or American Express) at the warehouse or online. The gift card itself can be used by anyone, regardless of what cards they have.

What if my credit card is Visa but it's declined at Costco?

A decline usually means your bank flagged the transaction as suspicious, not that Costco won't accept Visa. Contact your bank to ask why it was declined. They may need to verify the purchase before the card will work. Once cleared, try again at checkout.

Does Costco accept contactless payments like Apple Pay?

Yes, if your phone or watch is linked to an accepted card. Apple Pay, Google Pay, and similar services work at Costco as long as they're connected to a Visa, Mastercard, or American Express account. Discover-linked digital wallets will not work.