Costco does not take Discover Card at the warehouse or online

Costco does not accept Discover Card as payment at any of its warehouse locations or on its website. This is a blanket policy across all Costco stores in the United States. If you arrive at checkout with a Discover Card, the register will decline it, and you will need to use a different payment method.

The reason is a business agreement between Costco and Visa. Costco has an exclusive contract with Visa that limits which cards the warehouse will accept. This means Costco only takes Visa credit cards, Visa debit cards, and Costco's own Costco Visa card. American Express, Mastercard, and Discover are all declined at Costco registers.

Key Takeaways

  • Costco accepts only Visa credit cards, Visa debit cards, and the Costco Visa card—Discover Card will not work at checkout.
  • This policy applies to all Costco warehouse locations and Costco.com, with no exceptions for members or non-members.
  • You can still use Discover Card to pay for a Costco membership, but not for purchases inside the warehouse.
  • If you want to earn rewards on Costco purchases, you will need to open a Costco Visa card or use another Visa card you already own.

What payment methods Costco actually accepts

At Costco warehouses, you can pay with Visa credit cards, Visa debit cards, Costco Visa cards, cash, checks, and electronic benefit transfer (EBT) cards in states where Costco participates. Debit cards that run on the Visa network will work even if they are not branded as Visa—for example, some bank debit cards process through Visa behind the scenes.

On Costco.com, the online warehouse accepts the same Visa options plus PayPal. If you pay with PayPal, your underlying payment method (the card or bank account linked to PayPal) does not matter—PayPal handles the transaction, and Costco receives a Visa payment on the back end.

Why Costco has this card restriction

Costco signed an exclusive contract with Visa years ago that gives Visa the right to be the only credit card network accepted at Costco. In return, Visa likely offered Costco favorable rates or other terms. Costco renewed this agreement most recently in 2022, so the Visa-only policy will remain in place for the foreseeable future.

This exclusivity is legal because Costco is a private business and can choose which payment methods to accept. Unlike some government programs or utilities, there is no requirement that Costco take every card network. The trade-off for members is that Costco can negotiate better pricing because it handles less payment variety and fraud risk.

Using Discover Card to pay for a Costco membership

You can use Discover Card to pay for your Costco membership fee when you sign up or renew. Costco accepts Discover, American Express, Mastercard, and Visa for membership payments—both online and at the warehouse membership desk. This is separate from the in-warehouse purchase policy, so your Discover Card will work at that step.

Once you are inside the warehouse with your membership card, however, you cannot use Discover to buy items. The membership payment and the purchase payment are two different transactions governed by two different agreements.

What to do if you only have a Discover Card

If Discover is your only card and you do not have cash or another payment method, you have a few options. The simplest is to bring cash or a check to Costco instead. Costco accepts both, and you do not need a card at all.

If you want to use a card, consider opening a Costco Visa card. The Costco Visa is issued by Citi and earns rewards on Costco purchases—2% back on Costco purchases and gas, 1% on everything else. You can open one at the membership desk or online before your next visit. Alternatively, if you have any other Visa card (from your bank, another issuer, or a rewards program), you can use that instead of Discover.

Costco's card policy at gas stations

Costco gas stations have the same Visa-only rule as the warehouse. You cannot use Discover Card to pay for gas at a Costco pump. You will need a Visa card, cash, or a check. This applies even if you are a Costco member.

Some Costco locations also have a tire center and pharmacy. These services are inside the warehouse, so the same payment rules explore—Visa only, plus cash and checks.

Frequently Asked Questions

Can I use Discover Card if I am a Gold Star member or Executive member?

No. Membership level does not change Costco's payment policy. All members and non-members face the same Visa-only rule at checkout, regardless of which membership tier they hold.

Will Costco ever accept Discover Card?

Costco's Visa contract runs through at least 2025, so Discover will not be accepted during that time. Whether Costco negotiates a new agreement after that is unknown. For now, plan to bring Visa, cash, or a check.

What if the Costco register declines my Discover Card?

The register will decline it because Discover is not in Costco's payment system. You will need to provide a different payment method—Visa, cash, or a check. The cashier cannot override this policy.

Can I use Discover Card at Costco Travel or Costco pharmacy?

Costco Travel bookings are made online through Costco.com, which accepts PayPal but not Discover directly. The pharmacy is inside the warehouse, so it follows the same Visa-only checkout rule as the rest of Costco.

Does the Costco Visa card have an annual fee?

The Costco Visa card itself has no annual fee, but you must be a Costco member to hold one. Your membership fee (Gold Star, Executive, or other tier) is separate and required to shop at Costco.