Visa is accepted at Costco, but only if you have a Costco Visa card

Costco stopped taking most Visa cards in 2016. Today, the warehouse will accept a Costco Anywhere Visa Card by Chase — that is the only Visa product that works there. If you have a regular Visa from another bank, it will be declined at checkout, even if it is a premium card with a high credit limit.

This restriction is unusual. Most retailers accept all major credit cards. Costco made this choice to control which card networks profit from member purchases and to steer members toward a card that offers rewards specifically tied to Costco spending. The Costco Visa is issued by Chase, and Costco negotiated an exclusive deal with Chase to be the only Visa issuer allowed in the warehouse.

If you shop at Costco regularly and want to use a Visa, you will need to open the Costco Anywhere Visa account. If you do not want that card, you can still shop using a Mastercard, American Express, or Discover card — or pay with cash or a debit card.

Key Takeaways

  • Costco accepts only the Costco Anywhere Visa Card by Chase; no other Visa cards will work at the warehouse.
  • The warehouse also accepts Mastercard, American Express, Discover, and debit cards, so you have other payment options if you do not want a Costco Visa.
  • The Costco Anywhere Visa earns cash back on Costco purchases and at gas stations, but carries an annual fee.
  • You must be a Costco member to open the Costco Visa, and membership is separate from the credit card account.

What the Costco Anywhere Visa Card offers

The Costco Anywhere Visa Card is a cash-back card designed to reward Costco members. It earns a percentage of cash back on purchases made at Costco warehouses and on Costco.com, as well as at gas stations and on travel. The exact cash-back rates vary — Costco adjusts them periodically — so check the current terms on Costco's website or the cardholder agreement before opening the account.

The card also comes with an annual fee. This fee is separate from your Costco membership fee. You pay both to be a member and to hold the card. Some people find the cash back offsets the annual fee if they spend enough at Costco; others decide the fee is not worth it and use a different payment method instead.

The card is issued by Chase, so the application process is the same as applying for any Chase credit card. You will need to provide your Social Security number, income, and other financial information. Chase will check your credit report and make a decision based on your credit history and current debt.

Why Costco stopped accepting other Visa cards

In 2016, Costco's contract with Visa ended, and the warehouse chose not to renew it. Instead, Costco negotiated an exclusive deal with Chase to issue a Costco-branded Visa card. This meant Costco could accept Visa payments only through that one card product.

Costco made this move for two reasons. First, it gave Costco more control over the fees it pays when members use credit cards. Second, it created an incentive for members to open the Costco Visa card, which generates rewards data and spending information that helps Costco understand member behavior.

This arrangement is legal and common in the credit card industry, though it is rare to see a major retailer restrict a card network this severely. Most stores accept all Visa cards from all issuers. Costco's decision reflects its power as a large retailer and its willingness to limit payment options to achieve its business goals.

Other payment methods that work at Costco

If you do not have the Costco Visa, you still have several ways to pay. Costco accepts Mastercard from any issuer, American Express from any issuer, and Discover from any issuer. You can also pay with a debit card, cash, or a Costco gift card.

Some Costco locations also accept mobile payment apps like Apple Pay and Google Pay, though this varies by warehouse. If you use Apple Pay or Google Pay, the payment is processed through whichever card you have linked to that app — so if you link a Mastercard, the transaction goes through Mastercard's network.

Online purchases at Costco.com have slightly different rules. The website accepts the Costco Visa, Mastercard, American Express, and Discover. It does not accept cash or gift cards for online orders, but it does accept PayPal if you link a supported card to your PayPal account.

How to open a Costco Anywhere Visa Card

You must be a Costco member before you can open the Costco Visa. If you are not yet a member, you will need to join Costco first. Membership costs vary by membership tier — Gold Star, Executive, and other options — and is separate from the credit card.

Once you are a member, you can open the Costco Visa through Costco's website, in the warehouse, or by phone. You will need your Costco membership number. The application asks for your name, address, date of birth, Social Security number, income, and employment information. Chase reviews the application and tells you whether you are approved, usually within a few minutes to a few hours.

If you are approved, Chase will mail the card to you. It typically arrives within 7 to 10 business days. You can start using it at Costco warehouses and on Costco.com as soon as it arrives. You will also receive a cardholder agreement in the mail that explains the cash-back rates, annual fee, and other terms.

What happens if you try to use a different Visa at Costco

If you attempt to pay with a Visa card that is not the Costco Anywhere Visa, the card will be declined at the checkout terminal. The cashier will see an error message indicating that the card is not accepted. You will need to use a different payment method — another card network, cash, or a gift card.

This can be frustrating if you are not expecting it, especially if you have a high-limit Visa card from another bank. Costco does not make exceptions, even for premium or business Visa cards. The restriction applies to all non-Costco Visa products.

If you regularly use a Visa card at other retailers and want to use Visa at Costco too, opening the Costco Visa is your only option. Otherwise, consider using a Mastercard or American Express that you already have, or paying with cash or a debit card.

Comparing the Costco Visa to other payment options

Whether the Costco Visa makes sense for you depends on how much you spend at Costco and whether the cash-back rewards offset the annual fee. If you shop at Costco several times a month and spend a significant amount, the cash back may cover the fee and put money back in your pocket. If you visit Costco once or twice a year, the annual fee will likely cost you more than any rewards you earn.

You should also consider whether you already have a Mastercard or American Express that offers cash back on warehouse or grocery purchases. Some cards from other banks offer similar or better rewards rates on certain categories. Compare the cash-back rates, annual fees, and other benefits before deciding whether to open the Costco Visa.

Another factor is whether you want to carry multiple credit cards. If you prefer to use one card for all purchases, the Costco Visa might not fit your strategy. If you are comfortable having a card dedicated to Costco spending, it could be a good fit.

Frequently Asked Questions

Can I use my regular Visa card at Costco if I call ahead?

No. Costco's payment system does not accept any Visa card except the Costco Anywhere Visa, regardless of the card's credit limit, rewards program, or issuer. Calling ahead will not change this. You will need to use a different payment method or open the Costco Visa.

Does the Costco Visa work outside of Costco?

Yes. The Costco Anywhere Visa is a regular Visa card that works anywhere Visa is accepted — restaurants, gas stations, online retailers, and other merchants. It earns cash back at higher rates for Costco and gas purchases, but you can use it anywhere.

What if I have a Costco Mastercard instead of a Visa?

Costco also issues a Mastercard through Citibank. Both the Costco Visa and the Costco Mastercard work at Costco warehouses and online. You do not need both — choose whichever card's rewards and benefits appeal to you more.

Can I use a Costco gift card if my Visa is declined?

Yes. Costco gift cards are accepted at all warehouses and on Costco.com. If your Visa is declined, you can pay with a gift card, cash, a different credit card network, or a debit card.

Does Costco.com have the same Visa restriction as the warehouse?

Yes. Costco.com only accepts the Costco Anywhere Visa for Visa payments. You can use Mastercard, American Express, or Discover online, just as you can in the warehouse.