Everyone's favorite membership warehouse is loyal to one payment network, and one only
Here’s the Real Reason Costco Doesn’t Accept Amex
Updated on Apr. 25, 2025
You think you know a store, and then, lo and behold, there’s a very obvious fact about them that has been escaping you this whole time. Case in point: Costco doesn’t accept American Express. While I have an Amex, I never pay for my Costco purchases with it, and it never dawned on me that it isn’t just my preference to use my Visa card there—that’s actually the only type of credit card Costco will accept. It’s not a secret Costco employees won’t tell you; it’s just something I never noticed.
So why doesn’t Costco accept American Express? And will they ever accept Amex? After all, let’s not forget the great Pepsi-to-Coke food court swap of 2025. That’s proof positive that things can change. Well, we have the answer to those questions and more. Read on for all the details, including what forms of payment the warehouse club will accept aside from Visa and cold, hard cash.
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Why doesn’t Costco accept American Express?
No, Costco doesn’t have any weird beef with American Express—it’s just they happen to have a very strong partnership with Visa. But the decision is a little more nuanced than just that.
“Amex’s merchant fees are higher than Visa,” says Mark Tremblay, a professor of economics at the University of Nevada, Las Vegas. “Credit card merchant fees are often passed on to consumers in the form of higher prices. Given Costco’s low-price business model, this presents a trade-off. Accepting Amex would allow consumers whose only credit card is Amex to shop at Costco, but by doing so, Costco would open itself up to higher costs or higher prices.”
And since it’s important for Costco to keep prices low, it isn’t in the best interest of their members for them to offer Amex as a payment option.
Has Costco ever accepted Amex?
Yes. In fact, Amex was partnered with Costco until as recently as 2016. But due to the aforementioned high merchant fees, that partnership ended in favor of one with Visa.
And Tremblay doesn’t foresee the big-box retailer returning to Amex in the near or distant future. “I see little reason for them to do so given their low-price business model and since most Amex holders have another payment that is accepted at Costco,” he says.
Do shoppers benefit from Costco’s Visa partnership?
Sure, because by partnering with a payment network that features lower merchant fees, Costco can keep their prices down. Higher merchant fees would likely lead to an increase on all of the deals you currently buy there. And, really, do we need that $4.99 rotisserie chicken getting a price hike? I think not. With tariffs threatening some Costco prices, let’s keep costs low where we can.
What types of payments does Costco accept?
As mentioned, Costco accepts Visa and cash as payment in stores. But they also accept Costco Shop Cards (essentially a gift card), most pin-based debit/ATM cards, EBT cards and mobile payment via Google Pay, Apple Pay and Samsung Pay. On top of that, there are some other options you can use for payment:
- Personal checks from current Costco members
- Business checks from current Costco business members
- FSA/HSA Visa or MasterCard debit cards, but only in the following Costco departments: pharmacies, optical and hearing aid
Over at Costco.com, it’s a slightly different story. Again, of course you’re free to use your Visa card, but you can also use a MasterCard at Costco.com. It’s also important to note that the only form of mobile pay Costco.com accepts is Apple Pay.
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Source:
- Mark Tremblay, professor of economics at the University of Nevada, Las Vegas
