Costco accepts only Visa cards, plus their own Costco Anywhere Visa and cash
Costco stopped accepting American Express, Discover, and Mastercard in 2016. Today, the warehouse will take any Visa card — whether it's from your bank, a rewards card, or a co-branded Costco card. They also take cash, checks, and debit cards that run on the Visa network. If your primary card is Amex, Discover, or Mastercard, it will not work at Costco registers or gas stations.
The reason is a contract between Costco and Visa that began in 2016. Costco negotiated an exclusive deal with Visa in exchange for lower processing fees. This is why you see Visa logos everywhere in the warehouse but no other card brands at checkout.
If you shop at Costco regularly and don't have a Visa, you have two paths: get a Visa card from your current bank, or switch to a card that earns rewards at Costco. The Costco Anywhere Visa Card by American Express is the only rewards card Costco officially promotes, even though it's technically an Amex product — it runs on the Visa network, so it works at Costco despite Amex being rejected elsewhere.
Key Takeaways
- Any Visa card works at Costco, including bank Visas, rewards Visas, and the Costco Anywhere Visa Card.
- American Express, Discover, and Mastercard are not accepted at Costco warehouses or gas stations, regardless of the card's rewards or status.
- The Costco Anywhere Visa Card earns 4% back on gas (up to $110 per year), 2% on travel, and 1% on everything else, but requires a Costco membership to use.
- If you have a Mastercard or Discover card, you can still shop at Costco using cash, check, or a debit card on the Visa network.
- Costco's Visa-only policy has been in place since 2016 and applies to all locations worldwide.
The Costco Anywhere Visa Card: the only co-branded option
The Costco Anywhere Visa Card by American Express is the card Costco created for members who want to earn rewards on their purchases. It's issued by American Express but runs on the Visa network, which is why it works at Costco despite Amex cards being rejected at the register.
The card earns 4% cash back on Costco gas (capped at $110 per year, then 1% after), 2% on Costco travel purchases, and 1% on everything else. There is an annual fee of $65 for the standard version and $130 for the Executive version, which also gives you a 2% reward on all Costco purchases instead of 1%. You must have an active Costco membership to open the card, and the membership fee is separate.
The card also works outside Costco — you can use it at any merchant that takes Visa. This makes it useful if you want one card that earns rewards both inside and outside the warehouse. However, the rewards structure is designed around Costco shopping, so the 4% gas benefit is the main draw for regular members.
What to do if you have an Amex, Discover, or Mastercard
If your primary card is American Express, Discover, or Mastercard, you cannot use it at Costco. The warehouse will not accept it, and there is no workaround at the register. You have three options: bring a different payment method, get a Visa card, or use the Costco Anywhere Visa Card.
The fastest option is to ask your current bank if they offer a Visa card. Most major banks issue both Visa and Mastercard, so you may already be able to open a Visa from the same institution. This takes a few days to a week and costs nothing. You do not need to close your Amex or Mastercard — you can keep both and use the Visa at Costco.
If you want to earn rewards on Costco purchases and do not already have a Visa, the Costco Anywhere Visa Card is the only card that earns bonus cash back inside the warehouse. Other Visa cards earn flat 1% or 2% back on all purchases, which is lower than the Costco card's 4% on gas and 2% on travel.
Costco gas station payment rules
Costco gas stations have the same Visa-only rule as the warehouse. You cannot use Amex, Discover, or Mastercard at the pump, even if you have a membership. Cash and Visa debit cards also work.
The Costco Anywhere Visa Card earns 4% back on gas purchases at Costco, but only up to $110 per year in rewards (which equals $2,750 in gas purchases). After you hit that cap, the card earns 1% on additional gas. This limit resets every calendar year on January 1st. If you fill up frequently, you will hit the cap by mid-year and earn standard rates for the rest of the year.
If you use a different Visa card at the pump, you earn whatever that card's standard rewards rate is — typically 1% to 3% depending on the card. The Costco card is worth using if you have not hit the 4% gas cap yet, but once you reach $110 in annual rewards, a higher-earning Visa card might be better for the rest of the year.
Comparing Visa options for Costco shopping
If you are deciding between the Costco Anywhere Visa Card and a standard Visa card from your bank, the math depends on how much you spend at Costco and on gas.
| Card Type | Annual Fee | Costco Rewards | Gas Rewards | Best For |
|---|---|---|---|---|
| Costco Anywhere Visa (Standard) | $65 | 1% cash back | 4% up to $110/year | Members who buy gas regularly and spend $6,500+ at Costco yearly |
| Costco Anywhere Visa (Executive) | $130 | 2% cash back | 4% up to $110/year | Members who spend $13,000+ at Costco yearly and want 2% on all purchases |
| Standard Bank Visa (no annual fee) | $0 | 1% cash back (typical) | 1% cash back (typical) | Occasional Costco shoppers or those who want no annual fee |
| Rewards Visa from bank (flat rate) | $0–$95 | 1–2% cash back | 1–2% cash back | People who want rewards outside Costco and do not need 4% gas |
The Costco Anywhere Visa Card breaks even on its $65 annual fee if you earn at least $65 in cash back per year. At 4% on gas, that means you need to spend $1,625 on Costco gas annually (about $31 per week). If you also earn 1% on other Costco purchases, you reach $65 in rewards faster. The Executive version requires higher spending to justify its $130 fee, but it doubles the cash back rate on all Costco purchases to 2%.
Using your Visa card outside Costco
Any Visa card works everywhere Visa is accepted, which is nearly all retailers, online stores, and gas stations outside Costco. The Costco Anywhere Visa Card is no exception — you can use it at grocery stores, restaurants, hotels, and any other business that takes Visa. The rewards rates are the same everywhere: 1% cash back on most purchases, 2% on travel, and 4% on Costco gas.
If you choose a standard bank Visa instead of the Costco card, check what rewards it earns outside Costco. Some bank Visas earn flat 1% or 2% on all purchases, while others earn bonus rates on specific categories like groceries or dining. The Costco card's rewards are lower outside the warehouse, so if you spend more on groceries or restaurants than at Costco, a different Visa might earn you more overall.
What happens if you try to use a non-Visa card at checkout
If you attempt to pay with an American Express, Discover, or Mastercard at a Costco register, the card will be declined. The terminal will not process it. You will need to provide a different payment method — another card, cash, or a check. This happens instantly, so you will know right away that your card does not work.
Costco staff cannot override this rule or process the card manually. The restriction is built into their payment system. If you discover at checkout that you do not have a Visa, your options are to pay with cash or check if you have them, or to leave and return with a Visa card.
Frequently Asked Questions
Can I use my Amex card at Costco if I have a membership?
No. Costco does not accept American Express cards at any location, regardless of membership status. The only exception is the Costco Anywhere Visa Card by American Express, which runs on the Visa network and is accepted everywhere.
Does Costco accept Mastercard or Discover?
No. Costco only accepts Visa cards, cash, checks, and Visa debit cards. Mastercard and Discover are not accepted at the warehouse or gas stations.
Do I need the Costco Anywhere Visa Card to shop at Costco?
No. You can use any Visa card, cash, or check. The Costco Anywhere Visa Card is optional and designed for members who want to earn rewards on their purchases.
What if I only have a Mastercard and want to shop at Costco?
You can pay with cash or check, or you can open a Visa card from your bank. Most banks offer both Visa and Mastercard, so you may be able to get a Visa without closing your Mastercard.
Does the 4% gas reward on the Costco card work at all gas stations?
No. The 4% reward only applies to Costco gas stations. At other gas stations, the Costco Anywhere Visa Card earns 1% cash back, the same as most other purchases.