Costco is one of the largest membership-only warehouse clubs in the United States, known for offering bulk products at competitive prices. Many shoppers carefully choose their payment methods to maximize rewards and benefits. One common question is whether Costco accepts American Express credit cards.
Does Costco Accept American Express?
The straightforward answer is no. As of 2016, Costco no longer accepts American Express cards in its warehouses or gas stations in the United States. This change stemmed from the end of Costco’s long-standing exclusive partnership with American Express. Instead, Costco transitioned to an exclusive agreement with Visa, meaning that only Visa credit cards are accepted inside Costco stores.
What Payment Methods Does Costco Accept?
Although American Express is not accepted, Costco provides several other payment options for its members. These include:
- Visa credit cards – Costco exclusively accepts Visa-branded credit cards inside its stores in the U.S.
- Costco Anywhere Visa® Card by Citi – This co-branded card is specifically designed for Costco members, offering cash back on various purchases.
- Debit cards – Costco allows members to pay using debit cards from most banks.
- Cash – Cash payments are accepted at all Costco locations.
- Personal checks – Members can pay with personal checks at warehouse registers.
- Electronic Benefit Transfer (EBT) cards – Eligible purchases can be made using EBT cards.
- Mobile payment options – Digital wallets such as Apple Pay, Google Pay, and Samsung Pay are accepted, but only when linked to a Visa card.
Why Did Costco End Its Partnership with American Express?
Before 2016, Costco had an exclusive agreement with American Express, meaning that only Amex credit cards were accepted for credit card purchases. However, after renegotiating payment processing terms, Costco and American Express could not reach a new agreement.
The primary reasons for the switch included:
- Lower transaction fees – Visa offered Costco a more competitive rate on transaction processing, reducing costs for the company.
- Better membership benefits – The transition to Visa allowed Costco to offer its members a credit card with more lucrative rewards through Citi’s Costco Anywhere Visa® Card.
- Higher cardholder base – Visa cards are more widely issued than American Express, ensuring that a larger number of Costco customers could use their existing credit cards.
Can You Use an American Express Card for Costco Purchases?
While American Express is not accepted inside Costco stores, there is one way to use your Amex card for Costco purchases:
- If you shop online at Costco.com, American Express cards are accepted, along with Visa, Mastercard, and Discover.
This means that while in-store shoppers need to rely on Visa credit cards or other accepted payment methods, those purchasing from Costco’s website can still use their American Express cards.
What Should You Do If You Are an American Express Cardholder?
If you primarily use an American Express card for shopping, you may need to adjust your payment strategy for Costco purchases. Here are a few solutions:
- Use a Visa credit card – Consider applying for the Costco Anywhere Visa® Card by Citi, which offers rewards on Costco purchases, travel, dining, and more.
- Use debit or cash – If you don’t want to open a new credit card, paying with a debit card or cash remains a convenient option.
- Shop online – If you prefer to use American Express, you can still do so when making purchases at Costco’s website.
Final Thoughts
Costco’s payment policy is specific: Visa is the only credit card network accepted inside their stores. American Express cardholders cannot use their cards for in-store purchases but can still shop online at Costco’s website. If you frequently shop at Costco, it may be beneficial to carry a Visa credit card to take advantage of Costco’s bulk savings while maximizing credit card rewards.
