Perhaps no credit or debit card change in history has had an effect or been as shocking as the news that the answer to does Costco accept Amex is now a No! But why?
American Express and its Costco-branded card have been in business for several years, with a financially rewarding points program that has made it a popular card among Costco customers. Certain gems can only be found at Costco, making the membership fee well worth it.
Does Costco Accept Amex Credit Card?
Costco’s exclusive credit card partner for a long time, beginning in 1999, was American Express. It was the only type of credit card accepted at the store, and members of the wholesale giant had no choice but to get a co-branded American Express/Costco card if they wanted a credit card with Costco-related rewards.
That all changed in 2016 when Costco and American Express decided to end their partnership. Following that, Costco appointed Citi as its exclusive credit card issuer, and Visa as its new exclusive credit card network for Costco in the United States and Puerto Rico.
Beginning in 2022, Costco does not accept Amex and will not acknowledge American Express credit cards at all its venues. Clients will now have to make transactions with Visa credit cards or other modes of payout in the future.
Why Did Costco End Its Agreement With Amex?
Costco increased its potential client base by millions by switching its sole credit provider from American Express to Visa and Citi. It also made shopping more convenient for existing Costco members. Instead of being forced to use an American Express card, members can now choose from a variety of Visa cards on the market.
Costco’s exclusive agreement with Amex expired in the summer of 2016 when the two parties were unable to reach an agreement that would result in the contract being renewed. The switch from American Express to Visa does not appear to have had a negative impact on Costco, as the company continues to thrive with its current partnership.
Currently, Visa credit cards are the only ones accepted at Costco’s physical locations. Furthermore, Costco does permit other non-Visa credit cards to be used for internet purchases and orders, but Amex is not one of them.
The agreement between Visa and Costco ensures that credit cards from Discover, MasterCard, and others are not accepted as payment in physical stores. Costco only accepts MasterCard and Discover credit cards for online purchases. This benefit is not available to Amex credit cardholders.
What Credit Card Does Costco Accept For In-store and Online Purchases?
There are a few things to keep in mind presently if you wish to use another credit card after having to shop at the bulk superstore.
- When paying by credit card at Costco, you can only use a Visa.
- If you want a co-branded credit card with a Costco logo, you can only get it from Citi.
- Furthermore, in addition to Visa cards, Costco still takes cash, checks, many debits, and ATM cards, electronic benefits transfer (EBT), and Costco Shop Cards.
Due to an exclusive partnership, Costco only accepted American Express credit cards for the past 16 years. However, the retailer switched to Citi Visa a few years ago. At the same time, the branded cards were switched over, and cardholders received the Costco Anywhere Visa Card. Fortunately, cardholders received more benefits with this card than they did with Costco’s previous Amex cards.
Non-Visa cards are no longer accepted at Costco, so you’ll need a Visa card to pay and earn rewards. Customers also cannot use credit cards backed by the other three major networks, American Express, MasterCard, or Discover, at Costco warehouses. Purchases made at Costco.com and the Costco app, on the other hand, can be paid for with MasterCard and Discover cards.
Can You Use Costco Amex Debit Card At Costco?
You may be surprised to learn that your American Express debit card is accepted both in-store and online. Costco gladly accepts most debit cards from various providers.
Costco also accepts MasterCard and Discover pin-protected debit cards. Customers who want to use their American Express debit cards at Costco or online face far fewer restrictions. There’s no need to be concerned if you like Costco but don’t have a Visa credit card. There are numerous cards available to meet your needs while still allowing you to shop at Costco. Customers can use their American Express debit card at the following locations:
- When visiting Costco warehouse stores in person.
- When they shop at Costco.com from the comfort of their own home.
- While driving through Costco gas stations.
As good as their policy is for those who use Amex debit cards; there is still an outright refusal for those who want to use their Amex credit cards at Costco.
What Payment Methods Are Accepted At Costco Warehouse?
You must use a Visa-branded credit card to make an in-store purchase at a Costco Wholesale Warehouse. This policy also applies to Costco gas stations. Costco warehouses in the United States accept:
- Visa Cards in general.
- The Costco Anywhere Visa Card by Citi.
- The majority of PIN-based Debit/ATM Cards.
- Costco Gift Cards.
- Money up front.
- Checks personally written by current Costco members.
- Checks for business from current Costco Business Members.
- Traveler’s checks.
- EBT cards.
- Payment via a mobile device (Apple Pay, Google Pay, Samsung Pay).
What Payment Methods Can You Use At Costco Gas Stations?
If you wish to make an in-store purchase at a Costco gas station, you need to use a Visa-branded credit card. Costco gas stations in the United States accept:
- Visa Cards in general.
- The Costco Anywhere Visa Card by Citi.
- The large percentage of PIN-based Debit/ATM Cards.
- Costco Gift Cards/Costco Shop Cards.
Which Payment Methods Are Acceptable At www.Costco.com
When you shop at Costco.com or on the Costco app, you’ll notice that your credit card options expand to include other types of credit cards. According to the Costco website, you can make online purchases with a MasterCard or Discover card in addition to a Visa card. The types of payments accepted online are:
- Visa Cards in general.
- The Costco Anywhere Visa Card by Citi.
- MasterCard.
- Cards issued by Discover (Including JCB and Diners Club).
- Almost all PIN-based Debit/ATM Cards.
For deliveries within the US, a billing address in the United States or Canada is required and delivery options outside of the United States can be found on their official sources.
Final Words
It indeed was a sad news that Costco ended its agreement with Amex in 2016 and does not accept Amex now. However, to make up for it, the store has definitely provided enough options to its buyers. You can now shop at Costco store as well as its online platform through Visa or Citi cards. However, the use is limited to within the US and Canada. So you can not place an order international unless doing so through their official website.
