Being a shopper myself I understand the frequent disagreement on whether or not Costco accepts American Express.
I also believe many consumers have developed a curiosity to know the payment methods accepted at Costco.
American Express is one of the payment methods that has aroused such curiosity in the minds of customers.
The truth is, American Express has once been one of the favorite payment methods for many shoppers, but does Costco accept it?
This article aims to provide an answer to that question and also give an overview of what other payment options are accepted at Costco.
Table of Contents
Does Costco Accept American Express
No, Costco does not accept American Express as a form of payment! American Express is a card issued by a multinational financial institution named American Express.
Before now, American Express used to be acceptable at Costco. However, as of today, it is no longer acceptable both in-store and online.
American Express has been replaced with Visa cards in all of Costco stores and even on its website.
This reason for this switch is another topic that has aroused curiosity in the minds of customers. Why did Costco stop accepting American Express? Read on!
Why is American Express Not Accepted at Costco?
As stated earlier, American Express used to be an acceptable method of payment at Costco, but things changed.
The reason for this change was a result of a broken relationship and the enactment of another partnership.
Costco and American Express had a broken relationship as a result of a contract dispute, which is why American Express is no longer accepted at Costco.
Meanwhile, Costco enacted a new business partnership with Visa, which offers more exclusive benefits to its customers than American Express, making it the exclusive credit card accepted at all Costco stores.
Visa cards are also accepted on Costco’s websites. This change helped Costco get better terms for its business operations and more benefits for its customers.
This decision by Costco can be judged to be strategic, as it has afforded the business an increased profit margin since customers can use their preferred credit card.
However, not all credit cards are also acceptable at Costco; Want to find out what credit cards Costco accepts? Keep reading!
What Credit Cards Does Costco Accept
As of now, the only recognized and accepted credit cards at Costco are Visa credit cards.
However, it is important to note that Visa cards are not the only credit cards accepted at Costco.
It will interest you to know that Costco accepts all Visa cards as well as a wide range of other credit cards, including the following:
- The Costco Anywhere: This is a Visa Card by Citi, which is co-branded with the warehouse club. It can be used at Costco just like any other credit card supported by the Visa network.
- Chase Freedom Unlimited: Freedom Unlimited is a credit card issued by Chase Bank of America. It is accepted for payments at Costco.
- Visa Signature Card: Costco accepts Visa Signature Cards. However, it has to be the Visa Signature Card with the PenFed Power Cash Rewards Card. This card offers numerous benefits for customers, including 2% cashback on all purchases.
- Active Cash Card: Costco accepts Active Cash cards, especially Wells Fargo Active Cash cards. These cards offer a unique and convenient mode of payment at Costco.
- Chase Sapphire Preferred: In addition to the above, Costco also accepts Chase Sapphire Preferred cards. Beyond being able to offer customers cashback rewards like the Visa Signature Card, the Chase Sapphire Preferred Card also offers travel benefits for its users.
Credit Cards Not Accepted at Costco
It is no news that Costco accepts credit cards. But, as mentioned earlier, not all credit cards are accepted at Costco.
There are credit cards that are not accepted at Costco. These three credit cards are:
- Discover: Costco does not accept cards issued by Discover. Costco only accepts Visa credit cards, and Discover is not a Visa card.
- American Express: Given the bridge in the contract between the card issuer and Costco, Costco no longer accepts American Express, also known as Amex, as a payment method.
- MasterCard: Costco does not accept MasterCards as a means of payment. This is applicable both in-store and online.
While this might be frustrating for Costco shoppers, the good news is that other reliable payment methods are accepted at Costco. Interested? Read on!
What Payment Methods Are Accepted At Costco?
Costco accepts a wide range of payment methods aside from credit cards, both in-store and online. A few of them include:
- Cash: Cash payments are accepted at Costco. Although this is only restricted to in-store payments, cash cannot be used as a payment method for online purchases. Some shoppers prefer to use cash to avoid credit card fees and interest charges.
- Debit cards: Debit cards are also acceptable at Costco. Unlike cash payments, debit cards can be used both in-store and online. However, terms and conditions may apply. For instance, payments on debit cards may be subject to daily limits.
- Checks: In addition to the aforementioned, Costco also accepts checks as one of its payment methods. Meanwhile, customers need to check with their local Costco stores, as there are some restrictions on checks, especially when it comes to personal checks. There are also limits to what checks can pay for.
- Shop cards: Costco makes shop cards available for its customers. It is also known as gift cards. These cards can be used to make both online and offline purchases. They are acceptable at any of the Costco locations.
It is true that Costco no longer accepts American Express; however, it still accepts various means of payment.
Visa credit cards are one of the most accepted payment methods at Costco.
Costco came to accept Visa credit cards when its relationship with American Express went sour, and Visa tends to offer the business many benefits.
Other payment methods accepted at Costco include checks, cash, debit cards, and Costco Shop Cards.
Before entering any Costco store, it is important to be sure of which payment methods are accepted at Costco.