Payment Methods Accepted at Cosco

You are approaching the Costco checkout with a massive haul, but you only have cash in your pocket. Do they take cash at the register at Costco?

Costco is one of the most popular warehouse retailers, offering bulk goods at competitive prices. However, its payment policies are unique compared to other major retailers. Let’s break it all down below.

Key Takeaways

• Costco accepts cash at most warehouse locations, but some may have restrictions, so it’s best to check with your local store.
• Only Visa credit cards are accepted in-store, while both Visa and Mastercard are accepted for online and app purchases.
• Apple Pay, Google Pay, and Samsung Pay are accepted in-store when linked to a Visa card.
• Costco also accepts EBT for eligible food purchases, Costco Shop Cards, and checks for certain transactions.
• American Express, Discover, PayPal, and Buy Now, Pay Later services like Afterpay are not accepted.

What Are the Accepted Payment Methods at Costco?

Costco accepts a variety of payment methods, including:

• Visa credit cards – more on this below
• Debit cards (with PIN transactions)
• Cash (at most warehouse locations)
• Costco Shop Cards (gift cards)
• Mobile payments (Google Pay and Samsung Pay in-store)
• Apply Pay
• EBT cards (for eligible food purchases)
• Checks (for business members and specific purchases)

While these are the general payment methods, credit card acceptance at Costco is a bit more nuanced.

Does Costco Take Credit Cards?

Yes, Costco accepts credit cards, but there is a catch: they only accept Visa credit cards in-store. This is due to an exclusive agreement Costco has with Visa, which allows the retailer to negotiate lower transaction fees compared to other credit card networks. This partnership started in 2016 when Costco switched from American Express to Visa, aiming to offer better rewards and savings to its members.

As a result, customers who primarily use Mastercard, American Express, or Discover credit cards will need to either carry a Visa credit card, use a debit card, or opt for other accepted payment methods when shopping in-store at Costco.

Credit Cards You Can Use in Costco Stores

If you want to pay with a credit card inside a Costco warehouse, you must use a Visa card. Some popular Visa credit cards accepted at Costco include:

• Costco Anywhere Visa® Card by Citi
• Chase Sapphire Preferred® Card
• Bank of America® Visa Cards
• Wells Fargo Active Cash® Visa Card

If your card is not a Visa, you won’t be able to use it at a Costco warehouse checkout.

What Are Cards You Can Use Online or on the App

Unlike in-store purchases, Costco.com and the Costco app accept both Visa and Mastercard credit cards. This provides more flexibility for shoppers who do not have a Visa credit card but still want to make purchases from Costco. Online customers can use Mastercard credit cards for a wide range of products, including electronics, furniture, groceries, and Costco Travel bookings.

Some popular Mastercard options that are accepted for online purchases include:

• Capital One SavorOne® Cash Rewards Credit Card. Offers cashback on dining, entertainment, and grocery store purchases.
• Citi® Double Cash Card. Provides 2% cashback on all purchases (1% when buying and 1% when paying the bill).
• Mastercard credit cards from various banks. These may include travel rewards, cashback, or business credit cards depending on the issuing bank.

While Mastercard is accepted for Costco.com and app purchases, it is important to note that the same flexibility does not extend to in-store transactions, where only Visa credit cards are permitted.

• Capital One SavorOne® Cash Rewards Credit Card
• Citi® Double Cash Card
• Mastercard credit cards from various banks

Cards You Cannot Use at Costco Online or In-Store

To clarify, here are the payment methods not accepted at Costco warehouses:

• American Express
• Discover
• Mastercard (in-store only)
• PayPal (direct payments)
• Buy Now, Pay Later services like Afterpay

Why Does Costco Only Accept Visa Cards?

By exclusively partnering with Visa, Costco can pass the savings from reduced transaction fees to its members in the form of lower prices on merchandise. Credit card companies charge retailers a percentage of each transaction, known as interchange fees. Visa offers Costco lower interchange fees compared to competitors like Mastercard and American Express, allowing Costco to keep operating costs down. These savings contribute to Costco's ability to maintain its low-margin business model, which prioritizes competitive pricing and member-exclusive discounts. Additionally, by simplifying its credit card processing system, Costco reduces administrative expenses, further enabling them to offer better deals and bulk savings to members.

What Are Costco’s Visa Card Terms?

• Costco requires that all in-store credit card purchases be made with a Visa-branded credit card. This means that shoppers using Mastercard, American Express, or Discover credit cards will need an alternative payment method when shopping in-store. The Visa requirement stems from Costco's exclusive agreement with the credit card company, which allows the retailer to negotiate lower transaction fees and offer cost savings to members.

• Debit cards from any network (Visa, Mastercard, Discover) are accepted for both in-store and online purchases, provided they are processed as PIN-based transactions.

• For online purchases, both Visa and Mastercard credit cards are accepted, giving customers more flexibility when shopping on Costco.com or through the Costco app. This expanded online payment policy allows Mastercard users to take advantage of Costco’s deals and services, such as Costco Travel and large-item deliveries, without needing a Visa card.

How Does the Switch to Visa Save Money for Costco Members?

As we mentioned above, by partnering only with Visa, Costco can pass the savings from reduced transaction fees to its members in the form of lower prices on merchandise.

Does Costco Take Cash?

Yes, Costco does accept cash, but only at specific locations. While you can use cash for in-store purchases at most Costco warehouses, some locations, especially in areas with self-checkout kiosks or stricter payment policies, may not accept it.

Additionally, certain Costco Business Centers and food courts may have different cash acceptance policies compared to regular warehouse locations. International Costco locations may also have varying rules regarding cash payments. To avoid any inconvenience, it's best to check with your local Costco or review their official payment policies before visiting.

Three Reasons to Use Cash at Costco

Using cash instead of credit cards at Costco can be beneficial for several reasons:

1. Avoid credit card interest. If you prefer to stick to a budget and avoid credit card debt, using cash can help you spend only what you have.
2. Bypass credit card fees. Some consumers avoid credit cards due to transaction fees or security concerns, making cash a convenient alternative.
3. Easier budgeting. Paying in cash allows you to physically track your spending and stick to a predetermined budget while shopping at Costco.

While cash has its advantages, understanding Costco's full range of accepted payment methods is essential.

What Other Payments Does Costco Accept?

Aside from Visa credit cards and cash, Costco offers several other payment options to accommodate a wide range of shoppers. Customers can use debit cards from major networks, including Visa, Mastercard, and Discover, which provide a convenient alternative for those who do not have a Visa credit card.

Additionally, Costco accepts mobile payment options such as Apple Pay, Google Pay, and Samsung Pay, allowing for quick and secure transactions in-store. Costco Shop Cards (gift cards) are another widely used payment method, offering flexibility for members and non-members alike.

For eligible food purchases, Costco also accepts Electronic Benefit Transfer (EBT) cards, making it a convenient shopping destination for SNAP beneficiaries. Business members may also use checks for certain transactions. While these options enhance payment flexibility, it is important to note that Costco does not accept PayPal, buy now, pay later services like Afterpay, or most non-Visa credit cards in-store.

What Payment Methods Are Accepted at Costco Gas Stations?

Costco gas stations only accept:

• Visa credit cards
• Costco Shop Cards
• Debit cards
• Apple Pay, Google Pay, and Samsung Pay (linked to a Visa card)

Other Payment Methods at Costco

Here is a summary of every payment method at Costco:

Payment Method	Accepted In-Store	Accepted Online	Additional Notes
WIC	No	No	Costco does not accept WIC benefits.
Apple Pay	Yes	Yes	Must be linked to a Visa card.
Mastercard	No	Yes	Accepted for online and app purchases only.
American Express	No	No	Not accepted in-store or online.
EBT	Yes	No	Eligible for food purchases at warehouse locations.
Tricare	No	No	Not directly accepted, but can be used for eligible prescriptions.
Scan-and-Go	No	No	Costco does not currently offer this feature.
Medicare	Yes	No	Accepted for prescription medications and eligible services.
Eyemed	Yes	No	Accepted at select Costco Optical locations.
VSP Insurance	Yes	No	Accepted at participating Costco Optical locations.
PayPal	No	No	Not accepted as a payment method.
Afterpay	No	No	Buy Now, Pay Later services are not supported.
Discover	No	Yes	Only for online or mobile app purchases.
Coupons	No	No	Manufacturer coupons are not accepted, but Costco offers its own discounts.

While Costco accepts cash in most locations, its payment policies are unique, especially regarding credit cards. To ensure a smooth shopping experience, it's best to bring a Visa credit card, debit card, or another accepted payment method. Whether you're shopping in-store or online, understanding Costco's payment options can help you plan your purchases effectively.

Related Frequently Asked Questions (FAQs)

Here are more questions people often ask about Costco payment methods.

Does Costco Accept Apple Pay?

Yes, Apple Pay is accepted at Costco warehouses, gas stations, and online, but with an important caveat: it must be linked to a Visa card. Here are some additional tips:

• Ensure your Visa card is properly set up in your Apple Pay wallet
• You can use Apple Pay at Costco checkout terminals by holding your iPhone or Apple Watch near the payment reader
• This payment method works for both in-store and online purchases
• Apple Pay offers an additional layer of security with its tokenization technology

Does Costco Accept WIC?

No, Costco does not accept WIC (Women, Infants, and Children program) benefits. Important context:

• WIC is a federal nutrition program for low-income pregnant women, new mothers, and young children
• While Costco doesn't accept WIC, they do offer competitive prices on many food items that WIC typically covers
• Shoppers using WIC might want to compare prices and look for alternative stores that accept the program
• Costco's bulk pricing can still be cost-effective for families, even without WIC acceptance

Does Costco Take Mastercard?

Mastercard is only accepted for online and app purchases, not in physical stores. Additional insights:

• Online purchases through Costco.com can be made with Mastercard
• In-warehouse purchases require a different payment method
• Recommended alternatives for in-store shopping include:
  • Visa credit cards
  • Debit cards
  • Costco Anywhere Visa Card by Citi
  • Cash
  • Costco Shop Cards

Does Costco Accept American Express?

No, Costco does not accept American Express credit cards. Some important background:

• Costco ended its exclusive partnership with American Express in 2016
• The Costco Anywhere Visa Card by Citi replaced the previous Amex partnership
• Members can still use Visa credit cards at Costco warehouses and online
• Consider applying for the Costco Anywhere Visa Card for maximum benefits

Does Costco Accept EBT?

Yes, Costco accepts EBT cards for eligible food purchases at warehouse locations. Helpful details:

• EBT can be used for SNAP (Supplemental Nutrition Assistance Program) approved items
• Typically covers:
  • Fresh produce
  • Meat
  • Dairy products
  • Bread and cereals
• Cannot be used for prepared foods, non-food items, or Costco membership fees
• Some Costco locations may have specific guidelines, so check with your local warehous

Does Costco Accept Tricare?

No, Costco does not accept Tricare insurance directly for prescriptions. However, there are nuances:

• Military members and their families can still use Tricare for eligible prescriptions at Costco pharmacies
• Recommend calling your specific Costco pharmacy to confirm current policies
• Costco pharmacies are known for competitive pricing, which can be beneficial even without direct Tricare billing
• Members can submit Tricare prescriptions and potentially get reimbursement

Does Costco Accept Medicare?

Yes, Costco pharmacies accept Medicare for prescription medications and eligible services. Additional information:

• Covers both Medicare Part B and Part D prescriptions
• Competitive pricing makes Costco a popular choice for Medicare recipients
• Pharmacists can help navigate Medicare prescription coverage
• Some vaccinations may also be covered under Medicare at Costco pharmacies

Does Costco Accept Eyemed?

Yes, Costco Optical accepts EyeMed vision insurance at select locations. Pro tips:

• Not all Costco locations have optical centers
• Call ahead to confirm EyeMed acceptance at your local store
• Bring your current EyeMed insurance card
• Understand your specific plan's coverage and potential out-of-pocket costs

Does Costco Accept VSP Insurance?

Yes, Costco Optical accepts VSP (Vision Service Plan) insurance at participating locations. Recommendations:

• Verify VSP coverage at your specific Costco Optical center
• Bring your VSP insurance card and identification
• Some plans may cover different percentages of eye exams and eyewear
• Schedule an appointment in advance for smoother processing

Does Costco Accept Afterpay?

No, Costco does not support Buy Now, Pay Later services like Afterpay or Klarna. Alternative suggestions:

• Use credit cards with installment plans
• Consider Costco's own financing options for large purchases
• Look for seasonal promotions and discounts
• The Costco Anywhere Visa Card offers cashback rewards

Does Costco Accept Coupons?

No, Costco does not accept manufacturer coupons. Instead, they offer unique savings strategies:

• Exclusive Costco member savings and instant rebates
• Seasonal clearance events
• Warehouse markdowns
• Monthly coupon books for members
• Executive members get 2% cashback on purchases

Note: The content provided in this article is for informational purposes only. Contact your financial advisor regarding your specific financial situation.