Costco has the largest overall membership base of the bulk wholesale clubs with more than 90 million members. They are best known for the bulk family-sized and commercial grocery offerings, it also offers savings on gas, electronics, clothing, and electronics.
One major con with Costco is that your credit card may not be accepted at checkout but you will most likely find that out when purchasing a membership.
Credit cards accepted at Costco
When you shop at Costco, you can use the warehouse club’s co-branded card, the Costco Anywhere Visa® Card by Citi, as well as any other credit card backed by the Visa network.
Here are some credit cards that can be used at Costco warehouses:
Credit cards not accepted at Costco
Since Costco has an exclusive contract with Visa, shoppers can’t use credit cards backed by the other three main networks — American Express, Mastercard and Discover — at Costco warehouses. However, you’re able to pay with Mastercard and Discover cards for purchases made at Costco.com and the Costco app.
Here are some cards that can be used online or via the Costco app:
Does Costco accept Discover card at the warehouse?
Costco does not accept Discover credit cards as a form of payment at the warehouse in-person. You can use it online.
Does Costco accept AMEX?
Costco stopped accepting American Express as a form of payment at its warehouses and gas stations. However, American Express may still be accepted at Costco-affiliated businesses such as Costco Travel or at certain Costco locations outside of the United States. I would recommend checking with the specific location you plan to visit to confirm their accepted forms of payment.
Costco U.S. accounts for 8% (10% worldwide) of spending on American Express cards overall right now but it appears the agreement will end on in 2016. Warehouse club retailer Costco Wholesale Corp will stop accepting American Express credit cards after a 15 partnership at U.S. stores and the loss of Costco would reduce spending on AmEx cards by about $80 billion a year, including their use at businesses other than Costco’s 468 stores in the United States and Puerto Rico.
Competition in the co-branded card business has intensified in recent years. Capital One Financial Corp and MasterCard replaced AmEx as Costco’s card partner in Canada, raising speculation that the companies could also replace AmEx in the U.S. I would bet that American Express will move into Sam’s Club because of their relationship that exists with Bluebird in Walmart stores nationwide. Costco may take the Mastercard away from Walmart and the wholesale wars may heat up with lots of offers for us to switch cards while they start up new contracts.
American Express renewed co-branded contracts with Delta Airlines, Starwood Hotels (now Marriott Bonvoy) & Resorts Worldwide and Cathay Pacific Airways in 2014. While Costco caters to relatively higher-income customers than WalMart and Target you will find American Express cards in both these chains under the Bluebird brand.
