Costco only accepts Visa cards, and you must use a Costco Visa to get the best rewards
Costco does not take American Express, Mastercard, Discover, or most other credit cards at the warehouse or online. If you show up with a different card, the checkout will decline it. The only credit card Costco accepts is Visa — and to earn cash back rewards on your purchases, you need their co-branded Costco Visa card, issued by Citi.
This is not a recent change. Costco has had an exclusive Visa agreement since 2016, when they ended their partnership with American Express. Before that, Amex was the only card they took. The shift surprised a lot of members, but the Costco Visa has become the standard way members pay with plastic.
You can still shop at Costco without a Visa — you can use cash, debit cards, or checks. But if you want to use a credit card, Visa is your only option.
Key Takeaways
- Costco accepts only Visa credit cards; American Express, Mastercard, and Discover will not work at checkout.
- The Costco Visa card, issued by Citi, earns 2% cash back on Costco purchases and gas, and 1% on everything else.
- You do not need the Costco Visa to shop — cash, debit, and checks work fine — but you will not earn rewards with a regular Visa card.
- Costco's Visa-only policy has been in place since 2016 and applies both in-warehouse and online.
Why Costco chose Visa and locked out other networks
Costco's deal with Citi and Visa is a business arrangement, not a customer preference. Warehouse clubs negotiate directly with card networks because they process enormous transaction volumes. Costco wanted a partner willing to offer rewards that would appeal to members, and Citi and Visa made that deal happen.
The exclusivity works both ways. Costco gets favorable processing rates and co-branding rights. Visa and Citi get access to millions of high-spending members. American Express, Mastercard, and Discover either did not match the offer or Costco chose not to renew with them.
This is legal. Merchants can choose which payment networks they accept, and warehouse clubs often use this leverage to negotiate better terms than a typical store could get.
What happens if you try to use a different card at Costco
If you bring an American Express, Mastercard, or Discover card to the register, the payment terminal will decline it. The cashier cannot override this — it is a system-wide block, not a judgment call. You will need to pay with a different method: cash, debit card, check, or a Visa.
This applies everywhere Costco operates: warehouse locations, the gas station, and Costco.com. There is no exception for premium cards, business cards, or cards from major banks. If it is not a Visa, it will not process.
The only workaround is to use a Visa card you already own — but you will not earn Costco rewards unless it is the Costco Visa itself.
The Costco Visa card and how rewards work
The Costco Anywhere Visa Card by Citi is the card that earns cash back at Costco. It offers 2% cash back on Costco purchases and gas, 1% on restaurants and travel, and 1% on all other purchases. There is an annual fee, though Costco members often see promotional offers that waive it for the first year.
Cash back is paid as an annual statement credit or check, not as points you redeem. You earn it automatically on every purchase, and Citi sends it to you once a year. This is simpler than points programs, but it also means you cannot hold rewards or combine them across cards.
You do not have to be a Costco member to apply for the card, but you do need to be a member to use it at the warehouse. If your membership expires, you can still use the card online or at gas stations, but you cannot enter the warehouse.
Other Visa cards at Costco: rewards and limits
You can use any Visa card at Costco — a Visa from your bank, a travel rewards Visa, a business Visa. The transaction will go through. But you will not earn any Costco-specific rewards. You will only earn whatever rewards that card normally offers, which may be nothing if it is a basic Visa.
Some people use a different Visa card at Costco because it earns higher rewards in a category they care about — for example, a Visa that earns 3% on groceries. That is a valid choice if the rewards rate beats the 2% the Costco Visa offers. But you are giving up the 2% Costco cash back to do it, so the math has to work in your favor.
The Costco Visa is designed to be the best option for most members because it combines the Costco rewards with the fact that you can only use Visa there anyway.
Costco.com and phone orders: same Visa-only rule
Costco's online store and phone orders follow the same rule. You can only pay with a Visa credit card, debit card, or cash (if you pick up in-warehouse). American Express and Mastercard will not be accepted online either.
This sometimes surprises members who assume online checkout might be more flexible. It is not. The Visa requirement is built into Costco's entire payment system, not just the warehouse terminals.
If you are ordering online and your only card is a Mastercard or Amex, you will need to use a different payment method or get a Visa card to complete the purchase.
What to do if you do not have a Visa
If you shop at Costco but do not have a Visa card, you have several options. You can pay with cash, a debit card, or a check at the warehouse. Online, you can use a debit card or arrange to pay by other methods Costco offers (this varies by region).
If you want to use a credit card and earn rewards, you will need to open a Visa card. The Costco Visa is the obvious choice because it earns rewards specifically at Costco. But if you do not want to apply for a new card, you could use any Visa you already own — you just will not earn Costco cash back.
Some members decide the Costco Visa is not worth it if they do not shop there often or if they prefer to consolidate rewards on a single card. That is a reasonable choice. Costco does not require you to use their card; they just do not accept other networks.
Frequently Asked Questions
Can I use my American Express at Costco if I have been a member for a long time?
No. Costco stopped accepting American Express in 2016 and has not made exceptions since. The Visa-only policy applies to all members, regardless of tenure or membership level. If you want to pay with a credit card, you need a Visa.
Does Costco accept Mastercard or Discover?
No. Costco only accepts Visa credit cards. Mastercard and Discover will be declined at checkout. You can use debit cards from any network, but for credit cards, Visa is the only option.
Will I earn rewards if I use a regular Visa card instead of the Costco Visa?
No. Only the Costco Anywhere Visa Card by Citi earns Costco cash back rewards. A regular Visa card will process the payment, but you will earn only whatever rewards that card normally offers — which may be nothing. You will miss out on the 2% Costco cash back.
Can I use the Costco Visa card if I am not a Costco member?
You can open the card without a membership, but you cannot use it to shop inside the warehouse. You can use it online, at the gas station, or at Costco pharmacies. To enter the warehouse, you need an active membership.
What if I forgot my Visa card and only have a Mastercard with me?
The Mastercard will not work at Costco checkout. You will need to pay with cash, a debit card, or a check. If you shop at Costco regularly, keeping a Visa card in your wallet solves this problem.