What Credit Card Does Costco Take?

Does Costco take American Express? Costco is a large and popular membership warehouse store known for offering a wide variety of products. People love it for groceries, but it also has deals on gas, electronics, clothes, and more.

When you’re getting ready for a big event, feeding your family, or just looking for a bunch of different things, people trust Costco to have what they need.

However, it’s essential to note that Costco has specific guidelines regarding the types of credit cards it accepts. 

So, the question is, does Costco take American Express?

Does Costco Take American Express?

Costco doesn’t take American Express, Mastercard, or Discover for in-store purchases anymore. 

Until 2016, only American Express was accepted. But then, Costco and American Express ended their partnership. 

Now, Citi issues exclusive Costco credit cards, and Visa is the only network for these cards in the U.S. and Puerto Rico.

However, if you’re a Costco member, you can still purchase a Costco Shop card online using Mastercard, Discover, or Diners Club.

Why Did Costco End the American Express Partnership?

Costco stopped using American Express in 2016 because American Express relied too much on a few big partnerships, with Costco being a major one.

When they announced the split, it came out that 10% of all American Express cards were connected to Costco. This meant a lot of their customers were tied to Costco.

After Costco, other big partners like JetBlue and Fidelity also decided to stop working with American Express and chose other companies like MasterCard and Visa instead.

Losing these important partners hurt American Express. This caused a drop in their earnings since they used to make a significant amount of money from these collaborations.

What are the Credit Cards Accepted at Costco?

Costco mostly takes Visa cards when you’re shopping in their stores. But there are a few places where you can use other credit cards:

1. Credit Cards in Costco Warehouses

Any Visa credit card, such as the Costco Anywhere Visa Card from Citi, can be used to purchase your heavy Costco shopping sprees.

The Costco Anywhere Visa Card offers cashback rewards that include 4% back on gas and EV charging (up to $7,000 per year, then 1% back), 3% back at restaurants and travel, 2% back at Costco, and 1% on all other purchases.

If you want to look at other credit cards, some popular ones at Costco include the Chase Sapphire Preferred Card and Chase Freedom Unlimited. These cards also provide rebates, in the form of points or cashback, for different kinds of purchases.

The Chase Sapphire Preferred Card gives you Ultimate Rewards points, as opposed to the Chase Freedom Unlimited, where you can earn cash back but do not have to pay an annual fee.

2. Costco’s Gas Stations Accept Credit Cards

At Costco gas station, you can pay using only a Visa credit card when filling up your car.

The Costco Anywhere Visa Card by Citi, due to its excellent gas rewards, is a solid pick in this situation.

But other gas credit cards offer excellent benefits for buying gas. For instance, the Chase Freedom Unlimited. In the first year, you will earn 5% cash back on the first $6,000 spent on fuel purchases (then 1.5% back).

This card also provides 5% back for booked travel through Chase Ultimate Rewards, 3% back on dining and drugstore transactions, and 1.5% cash back on all other purchases.

3. Credit Cards on Costco Website

While shopping on the Costco website or the Costco App, you have several payment options with various credit cards.

They also accept Discover cards (including JCB and Diners Club) and Mastercard credit cards on the Costco website and app.

This adaptability enables you to utilize various reward cards and also cash-back credit cards for your online purchases from Costco.

What If Costco Doesn’t Accept My Credit Card?

If your credit card doesn’t work at Costco, here’s what you can do:

1. See if Costco accepts your credit card based on their list of accepted cards.

2. In case your card is not accepted, you can use other payment options such as debit card, cash, or even Costco Cash Card.

3. Call your credit card company to ensure there is no any problem with your card, such as a temporary freeze or any limitation.

4. Verify that you have not exceeded your credit limit and ensure that the card information like (name, expiration date, security code) is correctly entered.

5. If you hold several credit cards, test another one to check if the issue remains the same.

6. Alternatively, you can also use the Costco Cash Cards as prepaid options.

7. In case everything else fails, go to the Costco customer service desk for help.

A Costco membership gives one several advantages, among them, buying many household items and groceries at the same time. However, when it comes to payment, Costco is very selective with the cards.

Check your wallet before you shop at the Costco. They take Visa only for credit card payments, so do not take your American Express.

Now, if you’re thinking of getting a credit card for Costco, you can go for the Costco Anywhere Visa Card by Citi or another Visa card. Just pick the one that suits you best and gives you what you want from a credit card.