Costco only takes Visa cards, and they have a warehouse membership requirement

Costco accepts Visa credit cards only — not Mastercard, American Express, Discover, or any other brand. This has been their policy since 2016, when they ended their partnership with American Express. If you want to use a credit card at Costco, it must carry the Visa logo.

You also need a Costco membership to shop there at all. You cannot walk in and pay with any card, Visa or otherwise, without a valid membership card. The membership requirement applies whether you're paying with a credit card, debit card, or cash.

Costco does accept other payment methods besides Visa: debit cards (including Visa debit), cash, checks, and their own Costco Cash Card (a prepaid card). But if you want to use a credit card specifically, Visa is your only option.

Key Takeaways

  • Costco accepts Visa credit cards and Visa debit cards, but no other credit card brands.
  • You must have an active Costco membership to make any purchase, regardless of payment method.
  • Costco stopped accepting American Express in 2016 and has not accepted it since.
  • If you don't have a Visa card, you can pay with cash, a debit card, a check, or Costco's prepaid Costco Cash Card.

Why Costco switched from American Express to Visa

Costco and American Express ended their exclusive partnership in 2015, and the switch took effect in 2016. The two companies could not agree on the terms of their contract — primarily the fees Costco would pay American Express for processing credit card transactions. Costco decided to move to Visa instead, which offered terms that worked better for the warehouse's business model.

This was a major shift because American Express had been Costco's only accepted credit card for years. Customers who held American Express cards suddenly could not use them at Costco locations. The change affected millions of cardholders, and some Costco members switched to Visa cards specifically to keep shopping there.

What Visa cards work at Costco

Any Visa credit card works at Costco — there is no requirement that it be a specific Visa card or issued by a particular bank. A Visa card from Chase, Bank of America, Citi, Capital One, or any other issuer will be accepted. The only requirement is that it carries the Visa logo and you have an active Costco membership.

Costco does not issue their own Visa credit card. They offer a Costco Anywhere Visa Card (issued by Citi), which gives you cash back on Costco purchases and some other benefits. But you do not need this card to shop at Costco — any Visa card will work. The Costco Visa card is optional and is useful only if you want the rewards it offers.

Costco membership types and payment

Costco has several membership levels: Gold Star (basic), Executive, and Business. All memberships give you access to the warehouse and the right to make purchases. The membership level you hold does not change which payment methods Costco accepts — Visa cards are accepted at all membership levels.

Your membership card and your payment card are separate. You show your membership card at the entrance and at checkout, and you pay with your Visa card (or other accepted payment method). If your membership expires, you cannot shop at Costco even if you have a valid Visa card. If your Visa card expires, you can still shop with a different payment method, but you cannot use that card.

What happens if you don't have a Visa card

If you do not own a Visa credit card, you have other ways to pay at Costco. You can use a Visa debit card, which works the same way as a Visa credit card at checkout. You can pay with cash or write a check. You can also load money onto a Costco Cash Card (Costco's prepaid card) and use that.

If you want to use a credit card but do not have a Visa, you would need to open a Visa credit card account with a bank or credit card issuer. This takes time and involves a credit check. If you are new to credit or rebuilding your credit history, opening a new card might not be possible right away. In that case, using cash, a debit card, or a prepaid card is a practical alternative.

Using a Costco Visa card for rewards

The Costco Anywhere Visa Card gives you cash back on purchases made at Costco and at gas stations, plus a smaller cash back rate on other purchases. The rewards rate and annual fee (if any) change over time, so check Citi's website or Costco's website for current terms before you open the card.

This card is useful only if you shop at Costco regularly and want to earn rewards on those purchases. If you rarely visit Costco or prefer not to carry another card, a regular Visa card works just as well for making purchases. The rewards card is a choice, not a requirement.

Frequently Asked Questions

Can I use my American Express card at Costco?

No. Costco stopped accepting American Express in 2016 and has not taken it since. If you have an American Express card, you will need to use a different payment method at Costco, such as cash, a debit card, or a Visa card.

Do I need the Costco Visa card to shop at Costco?

No. Any Visa card works at Costco. The Costco Anywhere Visa Card is optional and useful only if you want the cash back rewards it offers. You can shop with any other Visa card from any bank.

What if my Visa card is declined at Costco?

A decline usually means your card issuer flagged the transaction as suspicious, your card is expired, or you have reached your credit limit. Contact your card issuer to find out why. You can also pay with a different method — cash, debit card, or check — while you sort out the issue with your Visa card.

Can I use a Visa gift card at Costco?

Yes. A Visa gift card works the same way as any other Visa card at checkout. You still need a Costco membership to enter the warehouse and make purchases.

Does Costco accept Visa Debit cards?

Yes. Visa debit cards are accepted at Costco just like Visa credit cards. You do not need a credit card specifically — a Visa debit card will work for payment.