What Credit Cards Are Accepted at Costco?
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Looking for a way to further maximize the deals you score when shopping in bulk at Costco? Not all credit cards are created equally in the warehouse giant’s eyes so picking the right rewards card is important.
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With bargain prices on your basic necessities, from a 7-pound container of chicken stew to life insurance, it’s no wonder why Costco Wholesale was ranked by the National Retail Federation as one of the country’s top five retailers. With bulk buys beyond your wildest dreams (if it’s not at Costco, does it even really exist?), securing an annual membership could seem like a top priority.
But buyer beware — the retail giant doesn’t accept all credit cards. So next time you venture to your local neighborhood Costco to replace your cult favorites, be sure to come prepared with the right plastic.
Costco Credit Card Payments: A Breakdown
Prior to 2016, Costco Wholesale members needed an American Express card to make credit card purchases, which was the retailer’s standard for 16 years. As of April 2016, Costco ended its partnership with Amex to begin a new one with Visa.
Now you must have a Visa-networked credit card in order to make any credit card purchases in physical Costco stores. But Costco.com will also accept Mastercard and Discover cards, so if you don’t have a Visa you’re not totally out of luck. And if you shop through a service like Instacart, you can use other payment methods as well.
The retailer’s contract with Visa prohibits the use of any other card network for in-store credit card purchases, which is why your Mastercard, Discover, or American Express credit card will be of no use the next time you go to check out.
Costco also has a partnership with Citi, which is currently the sole issuer of its co-branded credit cards. The Costco Anywhere Visa® Card by Citi (Review) comes in both a consumer and business model, and provides cardholders with rewards for purchases made at Costco along with a few other bonus categories.
Insider tip
Although Costco only accepts Visa credit cards in stores, the company does accept most PIN-based debit cards of all networks.
What Other Payment Methods Are Accepted at Costco?
In addition to Visa credit cards and most debit cards, Costco will accept payment methods including:
- Costco Cash Cards
- Costco Shop Cards
- EBT cards (for eligible purchases)
- Mobile payments (Apple Pay, Google Pay, Samsung Pay)
It’s important to note that, if you’re a fan of mobile wallet payments, the card you’re using must still be Visa.
Best Visa Credit Cards to Use at Costco
If you’re already scoring a pretty sweet deal by buying bulk, why not go a step further and pay with a credit card that will earn rewards to get the most for your money?
Visa networks a variety of solid rewards cards, but your go-to Costco plastic should be determined by the rewards you’d like to earn. Some cards prioritize bonus categories like gas while others may earn more for travel. The card you use for your Costco run doesn’t just have to be for grocery shopping. Since most cards don’t include wholesale clubs as a bonus category, pick a card based on what you’d like to earn rewards on beyond your trips to the wholesale warehouse.
Here are our picks for the best credit cards to use for all of your Costco needs (the following cards are all Visas; if you’ll shop online or through a food delivery service, your options open up considerably).
The Costco Credit Cards
Costco Anywhere Visa® Card by Citi
Details
securely on the issuer's website
- Discover one of Citi’s best cash back rewards cards designed exclusively for Costco members
- 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter
- 3% cash back on restaurants and eligible travel purchases
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
- No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
- The standard variable APR for Citi Flex Plan is 15.24%. Citi Flex Plan offers are made available at Citi’s discretion.
Citi is a Credit Card Insider advertiser.
The Costco Anywhere Visa® Card by Citi (Review) is ideal for diehards of the warehouse club, and while the peak cash back rewards aren’t geared towards grocery shopping, it offers a decent return on gas stations and dining out. You’ll need a Costco membership of some kind to apply, but there’s no additional annual fee.
One other caveat is that rewards can typically only be redeemed towards Costco purchases. Additionally, Costco only cuts your cash rewards certificate once per year after your February statement, so you’ll have to wait a full year between reward redemptions.
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Insider tip
The Costco Anywhere Visa® Business Card by Citi offers the same reward rates as the personal Anywhere Visa, which can be helpful for companies that need to purchase inventory.
Flat-Rate Cards
The Chase Freedom Unlimited® (Review) is a good pick for earning slightly more than the standard 1% that cards usually offer for non-category purchases. The Freedom Unlimited also offers a 0% intro APR period to help pay off your Costco trips, and with no annual fee it’s almost a no-brainer.
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PenFed Power Cash Rewards Visa Signature® Card
Details
securely on the issuer's website
- $100 statement credit after spending $1,500 in purchase transactions within the first 90 days of account opening
- 2% cash back on all purchases through the PenFed Honors Advantage program
- 1.5% unlimited cash back on all purchases
- Flexible cash redemption options (Power Cash statement credit or cash-out to a checking or savings account)
- No caps, limits or category restrictions on cash rewards
- No annual fee
- No foreign transaction fees
- No cash advance fee
- Chip and Contactless ‘Tap to Pay’ enabled for added security, ease and convenience at the point of sale
- Click and Pay eligible, via Secure Remote Commerce, so you can enjoy easy and secure online buying checkout
- Digital wallet capable
- Purchase variable rate as low as 14.99% APR
- 0% promotional rate for 12 months on balance transfers made between now and September 30, 2021. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%. 3% balance transfer fee per transaction. Subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.
- Cash Advance APR 17.99%
- Rate and offers current as of May 1, 2021 and subject to change.
The PenFed Power Cash Rewards Visa Signature® Card (Review) is not bad, but it really only provides an advantage to PenFed Honors Advantage members, who will receive 2% cash back on every purchase. It offers 1.5% cash back on purchases for people who don’t qualify for PenFed Honors Advantage.
To qualify for a PenFed Honors Advantage membership you must either have an active checking account with the credit union or meet the military service requirements. If you do qualify for the higher rewards rate, then this is one of the few cards that will earn you 2% back at Costco for no annual fee.
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Travel Card
Capital One Venture Rewards Credit Card
Details
- Earn 100,000 bonus miles when you spend $20,000 on purchases in the first 12 months from account opening, or still earn 50,000 miles if you spend $3,000 on purchases in the first 3 months
- Earn unlimited 2X miles on every purchase, every day
- Miles won’t expire for the life of the account and there’s no limit to how many you can earn
- Receive up to $100 application fee credit for Global Entry or TSA Pre✓®
- Redeem on travel—including flights, vacation rentals, car rentals and more. Plus transfer your miles to over 15+ travel loyalty programs
- No foreign transaction fees
The information related to Capital One Venture Rewards Credit Card has been collected by Credit Card Insider and has not been reviewed or provided by the issuer or provider of this product.
For a low annual fee, the Capital One Venture Rewards Credit Card (Review) offers cardholders unlimited 2X miles on every purchase you make. Enjoy no foreign transaction fees and flexibility in rewards — transfer miles to one of Capital One’s airline travel partners to potentially get a better return on your spending.
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Mobile Wallet Cards
U.S. Bank Altitude Reserve Visa Infinite® Card
Details
securely on the issuer's website
- 5X points on prepaid hotels and car rentals booked directly in the Altitude Rewards Center
- 3X points per dollar for travel, mobile wallet purchases, and restaurants (until 7/1/21)
- 50,000 bonus points for spending $4,500 in the first 90 days of membership, equivalent to $750 in travel redemptions.
- $325 annual travel credit.
- Application fee credit for either Global Entry ($100) or TSA Pre✓ ($85), once every four years.
- Enhanced status at Relais & Châteaux hotels and resorts.
- 12-month membership to Priority Pass Select for airport lounge access.
- 12 complimentary Gogo Inflight WiFi passes per year.
- No foreign transaction fees.
- $400 annual fee, $75 for additional authorized users.
Now that Costco offers mobile wallet accessibility, you may want to look into a card that offers rewards for going cardless with your next Costco haul. The U.S. Bank Altitude Reserve Visa Infinite® Card (Review) is one of your best options there, offering 3X points on all purchases made with an eligible mobile wallet.
Although the Altitude Reserve gives cardholders a significant return between the rewards rate, the $325 travel credit, and the TSA PreCheck/Global Entry fee credit, you’ll have to dish out $400 for the annual fee.
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Wells Fargo Cash Wise Visa® card
Details
If you’re not willing to pay the hefty annual fee that comes with the more-rewarding Altitude Reserve, the Cash Wise is a decent runner up for those who enjoy using their mobile wallets. This card has no annual fee and provides a lengthy 0% intro APR period. Notably, for our purposes here, cardholders will earn a little bit of bonus cash back for purchases made with an eligible mobile wallet during the first 12 months of card membership.
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Other Cards to Use at Costco
Beyond the specific cards we showcased, there are plenty of additional Visa credit cards available for use at Costco. A few more good ones are:
| Card | Annual Fee |
|---|---|
| Bank of America® Premium Rewards® Credit Card | $95 |
| Bank of America® Travel Rewards Credit Card | $0 |
| Capital One VentureOne Rewards Credit Card | $0 |
| Capital One Spark Cash for Business | $0 intro for first year; $95 after that |
| Ink Business Unlimited® Credit Card | $0 |
Insider tip
If you already have a bug for travel, don’t neglect hotel credit cards for your wholesale store needs. They often offer a better point-per-dollar rewards rate on non-category purchases, which includes wholesale warehouses like Costco.
Why Get Rid of the Costco American Express Card?
Costco’s decision to switch over to Visa comes down to the way networks make money from credit card transactions. Whenever a transaction is completed using a customer’s credit or debit card, the business — in this case it would be Costco — has to pay a merchant fee.
One advantage of switching to Visa is a lower network transaction fee than Amex. This isn’t new, however. Historically, many retailers have chosen not to accept American Express as a payment option. This is due to that network’s transaction fees being nearly double those set by Visa, Mastercard, and Discover.
Although accepting multiple networks gives customers more payment flexibility, Costco doesn’t seem to be suffering too much from this exclusivity. Costco now offers its Anywhere Visa rewards cards as easy options for customers to use every time they shop, although, as mentioned, the cards are most impressive for buying gas.
Don’t forget your arsenal of rewards-earning plastic on your next trip to Costco. If you’re still on the search for the right card to make the most out of your supermarket trips, check out these picks for the best grocery store credit cards.
Brendan Harkness
Brendan has been writing about personal finance for over eight years, and is now taking on the challenge of bringing high quality credit education to the masses. He makes sure that Credit Card Insider is covering the most important credit topics transparently and precisely, and that we have up-to-date reviews of credit cards so you can find cards that are right for you.
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