Costco accepts Visa cards only, and requires a Costco membership to shop

Costco stopped accepting American Express, Discover, and Mastercard in 2016. Today, the warehouse will take any Visa card — whether it's a personal card, a business card, a debit card with the Visa logo, or a prepaid card. You do not need a Costco-branded card to shop there, but you do need an active Costco membership.

If you own a Costco credit card, it is a Visa card issued by Citibank. If you have a different Visa card from another bank, Costco accepts it the same way. The key restriction is the Visa network itself, not the card issuer or whether the card carries the Costco name.

Key Takeaways

  • Costco accepts Visa cards only — no Mastercard, American Express, or Discover, whether credit or debit.
  • You can use any Visa card at Costco, including cards from banks other than Citibank.
  • The Costco Visa card earns cash back on gas, warehouse purchases, and travel, but you can shop at Costco with any Visa card.
  • Costco membership is required to enter and shop; a credit card alone does not grant membership.
  • At Costco gas stations, only Costco Visa cards and Costco Cash cards are accepted — other Visa cards do not work there.

The Costco Visa card and how it differs from other Visa cards

The Costco Visa card is issued by Citibank and earns cash back on purchases made at Costco warehouses, at Costco gas stations, and on travel booked through Costco Travel. The cash back rate varies by category — for example, 4% on gas at Costco pumps and 2% on warehouse purchases for most members. The card has an annual fee, which Costco members pay when they renew their membership.

If you do not have a Costco Visa card, you can still shop inside the warehouse with any other Visa card. You will not earn the Costco-specific cash back rates, but your purchase will go through. The difference is that the Costco card is designed to reward Costco shopping, while other Visa cards offer their own rewards based on their own terms.

You cannot use a non-Costco Visa card at Costco gas pumps. Only the Costco Visa card and the Costco Cash card (a prepaid card issued by Costco) work at the fuel station. This is a hard rule, not a temporary restriction.

Where Costco Visa cards work outside the warehouse

The Costco Visa card works anywhere Visa is accepted — not just at Costco. You can use it at grocery stores, restaurants, online retailers, and any other merchant that takes Visa. The cash back rates outside Costco are lower than the warehouse rates. For example, you might earn 1% cash back on most purchases outside Costco, compared to 2% inside the warehouse.

The card's main value comes from shopping at Costco itself. If you rarely visit the warehouse, a different Visa card might offer better rewards for your spending pattern. Compare the cash back rates on the Costco card against cards that reward the categories where you actually spend money.

What to do if you have a Mastercard or American Express

If your primary credit card is Mastercard or American Express, you have two options: bring a Visa card with you to Costco, or open a Costco Visa card. You cannot use Mastercard or American Express inside the warehouse, even if you have a Costco membership.

Some people keep a Visa card specifically for Costco shopping, even if they prefer another card for everyday purchases. Others open the Costco Visa card to earn the warehouse cash back rates. The choice depends on how often you shop at Costco and whether the cash back rewards matter to you.

Costco membership and payment methods

Costco membership is separate from your payment method. You pay for membership with whatever card Costco accepts at the register — Visa, debit card, or cash. Once you have an active membership, you can enter the warehouse and shop. At checkout, you pay with a Visa card (or cash, or a debit card with the Visa logo).

Your membership card is not a payment card. It proves you have paid Costco's membership fee and are allowed to shop there. Your credit card or debit card is what you use to pay for the items you buy. These are two separate things.

Costco Cash cards and other payment options

Costco also issues a prepaid card called the Costco Cash card. This is not a credit card — it is a stored-value card that you load with money and then spend down. The Costco Cash card works at Costco warehouses and at Costco gas pumps, and it is accepted anywhere Visa is accepted outside Costco.

You can also pay with cash, check, or debit card at Costco warehouses. At gas pumps, only the Costco Visa card and Costco Cash card work. This restriction exists because Costco gas pumps are designed to work with cards that Costco controls or that carry the Visa network.

Why Costco switched to Visa only

In 2016, Costco ended its partnership with American Express and switched its warehouse credit card to Visa, issued by Citibank. Costco made this change to negotiate better terms with a card network and to offer members a card with different rewards. American Express had been Costco's exclusive card partner for many years before the switch.

The change meant that Costco members who used American Express had to bring a different card to shop, or open the new Costco Visa card. Today, this is straightforward the rule: Visa only at Costco warehouses and gas pumps. If you have questions about why Costco made this choice, Costco's website and membership desk have more detail on the history of the partnership change.

Frequently Asked Questions

Can I use my Mastercard at Costco if I have a membership?

No. Costco accepts Visa cards only, regardless of membership status. Membership proves you can shop there, but it does not change which payment cards Costco accepts. You will need to bring a Visa card, debit card with a Visa logo, or cash to pay for your purchase.

Does the Costco Visa card have an annual fee?

Yes. The Costco Visa card's annual fee is bundled with your Costco membership renewal. When you renew your membership, you pay one fee that covers both. The exact amount varies by membership tier — Gold Star, Executive, or Business.

Can I use any Visa card at Costco gas pumps?

No. Only the Costco Visa card and the Costco Cash card work at Costco gas pumps. Other Visa cards, even from major banks, will not work at the fuel station. You can use other Visa cards inside the warehouse, but not at the pump.

What if I have a Costco membership but no Visa card?

You can pay with cash or a debit card inside the warehouse. At gas pumps, you must use the Costco Visa card or Costco Cash card. If you plan to buy gas regularly, opening a Costco Visa card or loading a Costco Cash card makes sense.

Does the Costco Visa card work outside Costco?

Yes. The Costco Visa card is a Visa card and works anywhere Visa is accepted. Cash back rates are lower outside Costco — typically 1% on most purchases, compared to 2% or higher inside the warehouse. Check your card's terms for the exact rates by category.