Costco's Visa-Only Policy

Costco accepts only Visa credit cards — not Mastercard, American Express, or Discover. This has been the case since 2016, when Costco ended its partnership with American Express and switched to Visa as its exclusive credit card partner. If you want to use a credit card at Costco, it must carry the Visa logo.

You can still shop at Costco with a debit card, cash, or a Costco-branded Visa card. But if you own an American Express, Mastercard, or Discover card and want to earn rewards on your Costco purchases, you cannot use that card in the warehouse or on Costco.com.

This restriction applies everywhere Costco operates — in the warehouse, at the gas station, and online. The only exception is Costco Travel, which accepts all major credit cards.

Key Takeaways

  • Costco accepts only Visa credit cards, debit cards, cash, and checks — no Mastercard, American Express, or Discover.
  • The Costco Anywhere Visa card earns 4% back on gas, 3% on travel, 2% on restaurant purchases, and 1% on everything else.
  • If you carry a non-Visa credit card, you can still shop at Costco using cash, debit, or a check.
  • Costco Travel is the only part of Costco's business that accepts all major credit cards.

The Costco Anywhere Visa Card and Its Rewards

Costco's own credit card is the Costco Anywhere Visa Card, issued by Citi. It is the only credit card Costco actively promotes, and it is the card most Costco members use to maximize rewards on their purchases.

The card earns cash back at different rates depending on where you spend: 4% on gas (at Costco gas stations and other fuel pumps), 3% on travel (including flights, hotels, and car rentals booked through Costco Travel), 2% on restaurant purchases and travel booked outside Costco Travel, and 1% on all other purchases. You earn an additional 2% back on Costco purchases if you are a Costco Gold Star member, and an additional 3% if you are an Executive member.

There is no annual fee for the standard Costco Anywhere Visa Card. An Executive version exists with a higher annual fee, but it offers no additional rewards — the rewards structure is identical. The cash back you earn is paid as an annual reward certificate that you can use at Costco or redeem for a statement credit.

What Happens If You Don't Have a Visa

If you own a Mastercard, American Express, or Discover card and do not want to open a Costco Visa, you have other payment options. You can pay with a debit card, cash, or a personal check. You straightforward will not earn credit card rewards on those purchases.

Some people choose to keep their non-Visa card for the rewards it offers elsewhere and use a debit card or cash at Costco instead. Others open the Costco Visa specifically to earn rewards in the warehouse, even if they use their primary card everywhere else.

The decision depends on your spending habits. If you spend heavily at Costco and use the gas station regularly, the Costco Visa rewards may outweigh the value of rewards from your existing card. If you shop at Costco infrequently, the difference may not matter.

How Costco's Visa Partnership Works

Costco's exclusive partnership with Visa is a business arrangement between two companies. Visa pays Costco for the right to be the only credit card network accepted in the warehouse. In return, Costco directs its members toward Visa cards and away from competitors.

This arrangement benefits Costco financially and gives Visa a captive audience of high-spending members. It benefits Citi, which issues the Costco Visa and collects fees from Visa for each transaction. The arrangement does not directly benefit you as a cardholder, but the Costco Visa rewards are designed to be competitive enough that members feel the card is worth opening.

Similar exclusive partnerships exist at other retailers. Sam's Club, for example, accepts only Mastercard. Warehouse clubs use these agreements to negotiate better terms with payment networks and to encourage members to use a specific card.

Using Other Visa Cards at Costco

You do not have to use the Costco Visa to shop at Costco. Any Visa card — whether issued by your bank, a different retailer, or a travel rewards program — will be accepted. You straightforward will not earn the Costco-specific rewards that the Costco Visa offers.

If you have a Visa card that earns higher rewards in certain categories, you may prefer to use that card instead. For example, if your bank's Visa card earns 5% back on groceries, you might use that card at Costco rather than the Costco Visa, which earns only 1% on non-gas, non-travel purchases. The math depends on your card's rewards structure and your spending patterns.

The key point is that Costco's restriction is on the card network, not on the issuer. Visa cards from any bank are welcome. Non-Visa cards are not.

Costco's Online Shopping and the Visa Rule

The Visa-only rule applies to Costco.com as well as the warehouse. If you shop online, you must use a Visa credit card, debit card, cash (through a gift card), or check. You cannot use a Mastercard or American Express online.

This can be inconvenient if you prefer to use a different card for online purchases or if your primary rewards card is not a Visa. Some members keep a Visa card specifically for Costco purchases, both in-warehouse and online, to avoid this friction.

Frequently Asked Questions

Can I use my Mastercard or American Express at Costco?

No. Costco accepts only Visa credit cards. You can use a Mastercard or American Express debit card, or pay with cash or a check, but you cannot use a Mastercard or American Express credit card.

Do I have to open a Costco Visa to shop at Costco?

No. You can shop at Costco with a debit card, cash, or a check. The Costco Visa is optional. However, if you want to use a credit card at Costco, it must be a Visa.

What is the annual fee for the Costco Anywhere Visa Card?

There is no annual fee for the standard Costco Anywhere Visa Card. An Executive version exists, but it also has no annual fee — the difference is in membership tier benefits, not the card itself.

Can I use my Costco Visa outside of Costco?

Yes. The Costco Anywhere Visa is a regular Visa card that works anywhere Visa is accepted. You earn 1% cash back on non-Costco purchases, and higher rates on gas, travel, and restaurants as described above.

Does Costco Travel accept non-Visa cards?

Yes. Costco Travel is the only part of Costco's business that accepts all major credit cards, including Mastercard, American Express, and Discover. You can book travel through Costco Travel with any card you own.