Costco accepts American Express, but only American Express

Yes, you can use your American Express card at Costco. In fact, Costco has an exclusive partnership with American Express, which means Costco locations accept only American Express credit cards — not Visa, Mastercard, or Discover. This partnership has been in place since 1992 and was renewed most recently in 2016.

If you have an American Express card issued by any bank or financial institution, you can use it to pay for groceries, household items, and other merchandise at any Costco warehouse in the United States. You can also use American Express online at Costco.com. The card works the same way it does anywhere else: you present it at checkout, and the transaction processes through American Express's payment network.

Costco also accepts American Express gift cards and the Costco Anywhere Visa card — but the Visa card is a special case covered below. Debit cards that carry the American Express logo work at Costco as well.

Key Takeaways

  • Costco accepts all American Express credit cards, debit cards, and gift cards at warehouse locations and online.
  • Costco does not accept Visa, Mastercard, or Discover credit cards, though it does accept those brands' debit cards.
  • The Costco Anywhere Visa card is the only Visa product accepted at Costco, and it earns rewards on Costco purchases.
  • You must have a valid Costco membership to shop at the warehouse, regardless of which payment method you use.
  • If you want to earn rewards on Costco purchases with a credit card, your options are limited to American Express cards or the Costco Anywhere Visa card.

What payment methods Costco does not accept

Costco does not accept Visa or Mastercard credit cards at the warehouse. This is a direct result of the American Express exclusivity agreement. If you arrive at Costco with a Visa or Mastercard credit card, the cashier will ask you to use a different payment method.

However, Costco does accept Visa and Mastercard debit cards — the distinction matters. A debit card that carries a Visa or Mastercard logo will work at checkout because it draws directly from your bank account rather than creating a line of credit. Discover credit cards are also not accepted, but Discover debit cards are accepted.

You can also pay with cash, checks, or a Costco Cash Card (a prepaid card you load with your own money). Mobile payment apps like Apple Pay and Google Pay work at Costco if your phone is linked to an American Express card.

The Costco Anywhere Visa card exception

Costco issues its own Visa credit card called the Costco Anywhere Visa card. This is the only Visa card accepted at Costco warehouses. The card earns rewards on Costco purchases: 4% back on gas (up to $7,500 per year, then 1%), 3% back on restaurants and travel, 2% back on Costco purchases, and 1% back on all other purchases.

The Costco Anywhere Visa card is issued by Citi and carries the Visa logo, but it is a Costco-branded product. You must be a Costco member to open this card, and you must maintain your membership to use the card's rewards. If your membership lapses, you can still use the card to pay at Costco, but you cannot shop there without an active membership anyway.

If you do not have an American Express card and want to earn rewards on Costco purchases, the Costco Anywhere Visa card is your only credit card option. If you prefer American Express, any standard American Express card will work, though it may not earn Costco-specific rewards unless it is a co-branded American Express card issued by Costco.

Using American Express online and for Costco purchases outside the warehouse

American Express works on Costco.com the same way it works in the warehouse. You enter your card number at checkout, and the transaction processes when ready. You still need an active Costco membership to shop online.

If you use Costco's delivery service through Instacart or other third-party platforms, those services may have their own payment rules. Instacart, for example, accepts American Express, Visa, Mastercard, and Discover. The exclusivity agreement applies only to Costco's own warehouses and website, not to third-party delivery partners.

What to do if you do not have an American Express card

If you have a Costco membership but no American Express card, you have several options. You can open an American Express card through any bank or card issuer — you do not need to use Costco's card. American Express offers cards at different price points and reward levels, so you can find one that fits your spending.

You can also use a debit card that carries a Visa or Mastercard logo, or pay with cash or check. If you want to earn rewards on Costco purchases without using American Express, the Costco Anywhere Visa card is the only credit card option available at the warehouse.

Some people open a basic American Express card just to shop at Costco, especially if they shop there frequently. Others use cash or a debit card and accept that they will not earn rewards. Neither choice is wrong — it depends on how much you shop at Costco and whether the rewards justify the card's annual fee, if it has one.

How the American Express exclusivity agreement affects your choices

Costco's partnership with American Express is a business decision that limits your payment options but also shapes the rewards landscape. Because Costco has committed to accepting only American Express (and its own Visa card), American Express has incentive to offer competitive rewards on Costco purchases. This is why many American Express cards earn bonus rewards at Costco or why Costco itself chose to issue a Visa card rather than an American Express card.

The exclusivity agreement has been controversial among shoppers who prefer other card networks. If you are loyal to a particular credit card brand, Costco membership may not be worth it to you, or you may need to carry multiple cards. Some people keep an American Express card specifically for Costco and use other cards elsewhere.

Frequently Asked Questions

Can I use my Visa debit card at Costco if I do not have a credit card?

Yes. Costco accepts Visa, Mastercard, and Discover debit cards, even though it does not accept those brands' credit cards. Your debit card will work at checkout as long as it carries one of those logos and is linked to a valid bank account.

Does the Costco Anywhere Visa card work at other stores?

Yes. The Costco Anywhere Visa card is a regular Visa card and works anywhere Visa is accepted. It earns rewards only on Costco purchases and at gas stations, restaurants, and travel merchants — not on purchases at other retailers.

What if I forget my American Express card at home?

You can pay with cash, check, a debit card that carries a Visa or Mastercard logo, or a Costco Cash Card. You cannot use a mobile payment app unless it is linked to an American Express card. If you have none of these options, you will need to leave and return with a valid payment method.

Can I use American Express gift cards at Costco?

Yes. American Express gift cards work at Costco just like regular American Express credit cards. The gift card balance will be deducted from the card at checkout, and you will be asked for another payment method if the balance does not cover the full purchase.

Why does Costco only accept American Express?

Costco has an exclusive partnership with American Express that dates back to 1992. The agreement benefits both companies: Costco negotiates lower processing fees, and American Express gets access to Costco's high-spending customer base. This is a business arrangement, not a technical limitation.