Although often mocked for the super-sized supplies stocked on pallets instead of shelves, warehouse clubs and their voluminous products can be a huge blessing to the budgets of large families and small businesses alike.
One of the most popular warehouse chains is Costco, which sports over 740 locations around the world, more than 500 of which are in the U.S.
But while consumers may love the store’s copious quantities and cost-per-ounce prices, when it comes to the credit cards accepted at Costco, the company’s card policy definitely leaves a little something to be desired. In this article, we’ll take a look at the cards from the only network accepted by Costco. Hint: it’s Visa. And we’ll present some of our favorite Visa cards that may come in handy the next time you’re ready to make some bulk purchases.
Only Visa® Network Credit Cards Are Accepted at Costco
So, what’s the big beef with using a credit card at Costco’s warehouse stores? In short, Costco only accepts cards that operate on the Visa credit card network.
More expansively, Costco has an exclusive contract with Visa that prohibits the use of any other credit card networks, including Mastercard, Discover, and American Express. If you want to use a credit card to make purchases at Costco, you’re going to need one with a Visa logo.
This single-network credit card policy isn’t new for the big-box retailer, either. Until the recent switch to Visa, Costco had a similar contract with American Express that limited card use to that network.
The exclusivity does seem to be limited to credit cards alone; there don’t appear to be any restrictions on debit card networks, meaning you could use a Mastercard debit card to make a Costco purchase (or one from any other network).
Costco accepts all Visa cards, as well as cash, checks, debit/ATM, EBT and Costco Cash Cards. — Costco
Of course, the key distinction to point out here is that Visa is a credit card processing network, not a credit card issuer. Visa only processes the transactions — the issuing bank does everything else.
For example, the Chase Freedom Flex℠ operates on the Visa network, but it is issued by Chase bank. It’s Chase that holds the credit line, dictates the rates and fees, and determines the purchase rewards. Bills are sent from Chase — and cardholders make their payments to Chase.
This means that while Costco’s policy limiting accepted cards to the Visa network may limit your options, it doesn’t restrict them as much as you might think. Visa has a wide range of bank partners that issue cards on the Visa network, including Costco’s own co-branded credit card.
The Top 6 Visa® Credit Cards to Use at Costco
When considering the best credit card to use for your Costco purchases, the biggest decision will likely come down to what you want to do with the rewards you earn.
If you want to maximize the value of what you earn, points rewards credit cards are usually the way to go. Those who don’t mind rewards that are only good at Costco can get decent value out of the co-branded card, but an unlimited cash back card will generally have the most redemption flexibility.
4.9
4.7
Given that Costco doesn’t fall into either card’s bonus categories, the Chase Sapphire Preferred® Card and its big sibling, the Chase Sapphire Reserve®, only offer 1X Ultimate Rewards® points per dollar spent.
That said, one Ultimate Rewards® point can easily be worth more than its cash-back value. Indeed, the expert valuation of Ultimate Rewards® sets them at 2.1¢ per point — and smart transfers could boost that value up to as much as 4¢ per point.
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On pure base rate cash back rewards rate alone, the Chase Freedom Unlimited® would rank below the co-branded Costco credit card.
However, if you happen to own a credit card that earns Ultimate Rewards® points, as cards #1 and #2 on this list do, you can turn your cash back into points, effectively earning unlimited 1.5X Ultimate Rewards® points per $1 spent with the Chase Freedom Unlimited®, which gives you even more per-point value.
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- Discover one of Citi's best cash back rewards cards designed exclusively for Costco members
- Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
- 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel.
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
- No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
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Intro (Purchases)
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Intro (Transfers)
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Regular APR
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Annual Fee
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Credit Needed
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N/A
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19.49% - 27.49% (Variable)
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$0
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Excellent
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Additional Disclosure: Citi is a CardRates advertiser.
The Costco Anywhere Visa® offers one of the highest flat cash back rewards rates for Costco purchases, providing 2% cash back at Costco and Costco.com. While the card itself has no annual fee, you’ll need to be a paid Costco member to apply for the card.
Perhaps the biggest downside to the Costco Anywhere Visa® is that its rewards can only be redeemed toward Costco purchases. Additionally, you’ll need to retain your Costco membership to keep your card — and to redeem your rewards.
5. Costco Anywhere Visa® Business Card by Citi
This card is currently not available.
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Intro (Purchases)
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Credit Needed
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N/A
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N/A
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N/A
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N/A
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N/A
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Additional Disclosure: Citi is a CardRates advertiser.
The Costco Anywhere Visa® Business Card by Citi is the sibling card to the card above, but for business owners who 1) do a lot of shopping at Costco for their business or 2) drive a lot. That’s because where this card really excels is its cash back for fuel purchases.
This card doesn’t charge an annual fee, but you will need to be a Costco membership to qualify.
6. Wells Fargo Cash Wise Visa® Card
This card is currently not available.
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Intro (Purchases)
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Intro (Transfers)
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Regular APR
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Annual Fee
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Credit Needed
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N/A
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N/A
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N/A
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N/A
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N/A
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The Wells Fargo Cash Wise Visa® Card offers a simple, no-fuss unlimited 1.5% cash back on every purchase, everywhere the card is accepted — Costco included. Cash back is redeemed for a straightforward statement credit equal to the face value of 1.5¢ per dollar spent.
Plus, pay your mobile phone bill with your card to be eligible for up to $600 in cellphone protection against covered damage or theft.
Save More on Your Bulk Purchases with the Right Card
While few of us really need a vat of mayonnaise or cubic foot of peanut butter, just about anyone with multiple mouths to feed can likely find a good deal at a warehouse club.
But when you’re already paying a membership fee just for the right to browse the cavernous aisles, the savings margin can be slim for those not supplying a small army.
Choosing the right credit card for your Costco purchases can not only ensure you actually have a way to pay (remember, Visa only!), it can also add a little more steal to your deal by potentially making up for that troublesome membership fee.
Advertiser Disclosure
CardRates.com is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation for referrals for many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across CardRates.com (including, for example, the order in which they appear). CardRates.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.
Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on CardRates.com are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on CardRates.com will direct you to the issuer's website, where you can review the current terms and conditions of the offer.
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