Standing in a massive checkout line with a flatbed full of rotisserie chickens, Kirkland toilet paper, and a literal gallon of maple syrup is a Costco rite of passage. But reaching the front and pulling out the wrong plastic? That’s a nightmare. If you're wondering does Costco accept American Express, I’ll save you the suspense: No. They don’t. Not since 2016. It was a messy divorce that sent shockwaves through the financial world, and honestly, a lot of people are still carrying the Amex card in their wallet hoping the two giants might kiss and make up. They haven't.
If you walk into a US Costco warehouse today, your American Express card is basically a glorified bookmark. It won’t work at the register. It won’t work at the gas pump. It won’t even work for that $1.50 hot dog combo.
The Day the Rewards Died
The partnership between Costco and American Express lasted sixteen years. It was a powerhouse duo. For over a decade, the only credit card you could use at Costco was an Amex. It was an exclusive marriage that seemed unbreakable until it suddenly shattered over a contract dispute. Basically, Costco is famous for being incredibly cheap—in a good way. They obsess over keeping margins thin so they can pass savings to members. When it came time to renew their deal, Costco wanted lower merchant fees. Amex, used to being a premium brand with premium fees, said no.
Costco walked.
They didn't just walk; they ran into the arms of Visa and Citigroup. This wasn't just a minor change for the company; it was a logistical Herculean task. Millions of cardholders had to be transitioned. People who had built their entire credit history around that co-branded Costco Amex suddenly found themselves holding a Citi Visa. It remains one of the largest credit card portfolio transfers in history.
What You Can Actually Use at the Register
Since the Amex era ended, Costco has strictly enforced a "Visa only" policy for credit cards in their US warehouses. It’s kinda weird when you think about it. Most retailers want to accept every payment method possible to make spending money easy. Costco does the opposite. By limiting themselves to one credit provider, they negotiate rock-bottom processing fees. That’s how they keep the price of a rotisserie chicken at five bucks despite inflation.
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So, what works? Any Visa credit card. It doesn't have to be the official Costco Anywhere Visa® Card by Citi. If you have a Chase Sapphire, a Wells Fargo Autograph, or a Capital One Venture—as long as that little Visa logo is in the corner, you’re golden. But if you're a die-hard Mastercard or Discover fan, you're mostly out of luck at the physical warehouse.
Debit cards are a different story. Costco is much more flexible here. They accept most PIN-based debit cards, including those on the Mastercard or Discover networks. If you have a Mastercard debit card from your local credit union, just swipe it, enter your PIN, and you’re good to go. It’s the credit side of the transaction where they get picky.
The Secret Online Loophole (Yes, It Exists)
Here is where things get a little bit spicy and where the "does Costco accept American Express" answer gets a tiny "maybe" attached to it. While the physical warehouses are strictly Visa-only for credit, Costco.com is a bit of a rebel.
If you are shopping online at Costco.com, you can actually use Mastercard and Discover cards.
Wait, really? Yeah. It’s one of those quirks of their business model. However—and this is a big "however"—they still do not accept American Express online. Even on their website, Amex is the persona non grata. If you are desperate to use an Amex to get Costco goods, you generally have to jump through hoops like buying Costco Shop Cards (their version of a gift card) through a third-party secondary market, though that’s often more trouble than it’s worth.
Why Amex Users Are Still Salty
For years, the Amex-Costco partnership was the gold standard for suburban families. The rewards were decent, but more importantly, the customer service was legendary. American Express is known for having your back on chargebacks and purchase protection. When the switch to Citi happened, there were a lot of growing pains.
I remember the forums back in 2016. People were livid. Some stayed for the bulk deals, but others actually cancelled their Costco memberships in protest, moving over to Sam’s Club. Ironically, Sam’s Club accepts Amex, Mastercard, Visa, and Discover. They are the "open door" policy version of a warehouse club. But for many, the quality of Kirkland Signature products is a gravitational pull that you just can't escape, even if it means changing your favorite credit card.
Navigating the Gas Station Gauntlet
If you think the checkout line is strict, try the gas station. Costco Gasoline is arguably the biggest draw for memberships, but the payment rules are even tighter there. At the pump, it’s Visa credit or a PIN-based debit card. Period.
You can't use cash at the pump. You can't use a check. And you certainly can't use your Amex.
Interestingly, if you use a mobile wallet like Apple Pay or Google Pay at the pump, it still has to be linked to a supported card. You can't "trick" the system by putting an American Express card into Apple Pay and tapping it at a Costco pump. The system will recognize the underlying network and spit out a "Card Not Accepted" message faster than you can say "Kirkland Signature."
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International Variations: A Travel Warning
If you’re a jet-setter, don’t assume the US rules apply everywhere. Costco Canada, for example, had a massive breakup with American Express even before the US did. But instead of going to Visa, they went to Mastercard.
If you take your US-based Visa to a Canadian Costco, it might not work at the register. They generally want Mastercard. It’s a confusing mess for travelers. Always carry a backup debit card when visiting international warehouses, because the exclusive contracts vary wildly by country. In South Korea or Japan, the rules shift again. It’s a game of corporate musical chairs.
The Financial Logic Behind the Ban
You might wonder why a multi-billion dollar company would alienate millions of Amex cardholders. It comes down to "interchange fees." Every time you swipe a credit card, the merchant pays a percentage (usually 1.5% to 3.5%) to the bank and the card network.
Amex has historically charged higher fees than Visa or Mastercard.
For a company like Costco, which operates on razor-thin profit margins (sometimes as low as 1-2%), a 3% fee could literally wipe out the profit on a sale. By giving Visa exclusivity, Costco negotiated a fee that is rumored to be substantially less than 0.5%. When you're doing hundreds of billions in sales, that tiny percentage difference is worth billions of dollars. They use that money to keep the price of hot dogs at $1.50 and the membership fees relatively stable.
Is the Costco Anywhere Visa Worth It?
Since you can't use your Amex, should you get the "official" card? Honestly, it’s one of the better no-annual-fee cards out there if you're already a member. You get 4% back on gas (up to $7,000 per year), 3% on restaurants and travel, and 2% on Costco purchases.
But there’s a catch.
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Unlike Amex, where you can redeem points almost instantly for travel or statement credits, the Costco Visa only pays out your rewards once a year. You get a literal paper voucher in your February billing statement. You have to take that piece of paper into a Costco warehouse to get your cash or spend it on groceries. It’s very "old school," and for people used to the slick Amex Membership Rewards portal, it feels like stepping back into 1995.
Strategies for Amex Loyalists
If you absolutely refuse to give up your Amex lifestyle but need your Costco fix, you have a few slim options:
- Instacart: You can order Costco delivery through Instacart. Since Instacart is the merchant of record, they accept American Express. You’ll pay higher prices per item and delivery fees, but you’ll get those Amex points.
- The Shop Card Trick: If you have a friend with a Visa, give them cash to buy you a Costco Shop Card (gift card). Costco accepts Shop Cards as payment regardless of your credit card status.
- Secondary Markets: Some people buy Costco gift cards on reputable gift card exchange sites using an Amex, though this is risky and often results in zero net gain after fees.
Practical Next Steps for Your Next Trip
Stop trying to make Amex happen at Costco. It’s not going to happen.
Before your next run, make sure your mobile wallet is loaded with a Visa card. If you're a heavy spender, check if your current Visa offers a "wholesale club" bonus category—some cards like the Chase Freedom Flex often rotate this in as a 5% back category for three months of the year.
If you are a business owner who used to rely on the Amex Open cards for Costco runs, look into the Costco Anywhere Visa® Business Card by Citi. It mirrors the consumer version but helps keep your business expenses separate.
Finally, if you're truly loyal to the American Express ecosystem, consider switching your bulk shopping to Sam's Club or BJ's Wholesale. Both accept Amex without a fuss. But let’s be real: they don't have the Kirkland cashew clusters, do they?
Check your wallet now. If it’s all Centurions and Delta Skymiles cards, grab your debit card or head to the bank before you hit the Costco parking lot. There is nothing more awkward than a "Declined" screen while a line of fifty people watches you struggle.