Costco, the popular warehouse club, is known for its bulk deals and savings, but you might be wondering âWhy canât I use AMEX at Costco?â as many shoppers are becoming aware that the retailer exclusively accepts Visa credit cards at their brick-and-mortar stores, as well as only accepting Visa and Mastercard in their online store.
This has been a point of frustration for American Express (AMEX) cardholders who want to enjoy their membership perks while shopping at Costco. However, in 2024, theres a new solution that allows you to use your AMEX card at Costcos online storeâby leveraging the financial service Kasheesh.
Holding the Costco Anywhere Visa® Card by Citi or American Express in your wallet gives you access to exclusive perks when shopping at Costco. But when it comes time to pay your monthly credit card bill, you want fast and easy options. Luckily, Costco offers a few convenient methods for members to pay their American Express card bill quickly during Costco runs.
In this article, we’ll outline the payment options available and steps to take so you can efficiently cross that monthly task off your to-do list during your regular Costco trips.
Overview of Costco Payment Methods
Costco accepts various payment types across their locations, with some variability between in-warehouse purchases, gas stations, online orders, etc. Here is a quick rundown of what’s accepted:
In-Warehouse
- Visa credit/debit
- American Express credit
- Cash
- Checks
- Costco Shop Cards
- Apple/Google/Samsung Pay
Gas Stations:
- Visa credit/debit
- Cash
- Apple Pay
- Costco Shop Cards
Online Orders
- Visa
- Mastercard
- American Express
- Debit cards
- Apple Pay
- Costco Shop Cards
So you’ll notice American Express is accepted for in-store purchases but not gas, Keep this in mind when paying your Amex bill at Costco,
Why Pay at Costco Locations?
You may be wondering why you’d want to pay your American Express bill at Costco rather than online, via the Amex app, on your mobile wallet, or through your bank. There are a few potential advantages to doing so during regular Costco trips:
-
Convenience: If already visiting Costco, paying your Amex bill takes just a quick stop at the membership counter. No need to make a separate payment trip or transaction later.
-
Avoid late fees: Paying your bill early in your Costco trip ensures on-time payment and avoidance of late fees. No worries about forgetfulness or mail delays.
-
Earn rewards: When paying your Amex bill with your Costco Visa at Costco, you earn your normal rewards on that purchase amount. Maximizes rewards earning potential.
-
Credit card usage: Meeting minimum spend requirements on your Costco Visa is easier when big bills like Amex are charged to it.
While not the only payment method, paying at a Costco warehouse can be quick and convenient under the right circumstances.
How to Pay at Costco
If you want to take advantage of paying your monthly American Express bill during your regular Costco visits, here are the steps:
-
Bring your Amex account statement with you when shopping at Costco. This allows you to reference your account number and current balance owed.
-
After finishing your regular Costco purchases, stop by the membership counter before leaving the warehouse.
-
Inform the employee you would like to make an American Express credit card payment. Provide them with your Amex account number and payment amount.
-
Pay with your chosen payment method. You can use your Costco Visa, another Visa/Mastercard, cash, or check.
-
Ensure you receive a receipt documenting the Amex payment transaction details just like your Costco purchases. This provides proof of payment date and amount should any issues arise.
-
Double check your Amex account online in next couple days to confirm payment was properly applied.
And you’re done! Just allow enough time before Amex’s due date so the in-store payment posts promptly.
Payment Options Available
When paying your American Express bill at the Costco membership counter, you have several payment options:
-
Costco Visa – Earns your normal rewards on the payment amount. Subject to Visa’s processing fees.
-
Other Visa/Mastercard – Accepted but won’t earn Costco Visa rewards. Processing fees still apply.
-
Cash – Free payment option though subject to your own cash flow availability.
-
Check – Free if you have checks available, but funds must clear before payment posts.
-
Debit – Functions same as cash or check. No rewards earned.
-
Costco Shop Card – Previously purchased Shop Card balance can pay Amex bill. But no rewards earned.
Choose what makes most sense for your financial situation each month. Costco Visa maximizes rewards potential.
Know the Payment Policies
When paying your bill at the Costco membership desk, be aware of a few key policies to ensure your American Express payment goes through smoothly:
-
Payment posting times – In-store payments require standard processing time before final posting to your Amex account, usually within a couple days.
-
Receipts – Always take the payment receipt from Costco employees for your records to track payment date and amount.
-
Partial payments – Costco locations can only accept payment for the full Amex balance owed. Partial payments must be made via Amex directly.
-
Large payments – Very large Amex bills may need to be split into smaller amounts if paying by Costco Visa due to possible Visa limits.
-
Credit balances – Any account credits cannot be cashed out or transferred during in-store payments. Must go through Amex.
Simply follow Costco’s standard practices for credit card bill payments. Notify them of any concerns right away.
Seek Payment Assistance if Needed
While it’s usually recommended to pay your credit card balance in full each month, realistically that’s not always feasible during periods of financial hardship. If you find yourself struggling to pay even the minimum on your Costco Amex card for a few months, be sure to contact American Express to check available assistance options like:
-
Payment plans – Approved reduced payment plans until you overcome hardship.
-
Rate reductions – Temporarily lowered interest rates to reduce cost of carrying balance.
-
Credit line decrease – Lowers minimum payment requirements.
-
Goodwill adjustments – One-time concessions like late fee waivers.
Don’t ignore the issue or let your account become delinquent. Reach out early for help until your situation improves. Protect your credit standing and ability to use your Costco Visa benefits.
Costco Visa Card Rewards
One final tip when paying your monthly American Express bill at Costco – maximize your rewards by doing so with your Costco Anywhere Visa by Citi! This card offers:
-
4% cash back on eligible gas purchases (including Costco pumps)
-
3% cash back at restaurants and eligible travel purchases
-
2% cash back on all Costco and Costco.com purchases
-
1% cash back on everything else
So you earn 2% back on amounts paid at the Costco membership counter towards your Amex bill when using your Costco Visa. That can really add up over time if you tend to carry a large monthly balance.
Plus, you’re meeting Visa minimum spend requirements with a big recurring charge each month. That will help you reach sign-up bonuses and take full advantage of the generous Costco Visa rewards.
Paying Your Amex Bill at Costco is Easy
Why Doesn’t My American Express Card Work at Costco?
Beginning in 1999, American Express became the sole credit card partner for Costco. For many years, it was the only credit card accepted by the retailer. Customers looking to earn Costco-specific rewards had to obtain a co-branded American Express/Costco card.
However, this arrangement changed when Costco and American Express decided to part ways in 2016. Following this, Costco partnered with Citi as its exclusive credit card issuer, with Visa becoming the exclusive credit card network for Costco stores in the U.S. and Puerto Rico. Since then, American Express has been replaced by Citi and Visa, which has caused frustration with shoppers who dont have a Visa credit card.
Beyond Visa credit cards, Costco continues to accept payments via cash, checks, electronic benefit transfer (EBT), Costco Shop Cards, and most importantly and most pin-based debit and ATM cards.
Solution:Â Create a digital Debit Card funded by your Credit Card
Kasheesh is a payment service that offers a unique solution for consumers who want flexibility in how they pay for purchases. One of its standout features is the ability to generate a digital Mastercard that can be funded by any underlying credit or debit card in your wallet, including your American Express credit card.
This means you can effectively use your AMEX when shopping at Costcoâs online store by first generating a Kasheesh digital Mastercard debit card which is linked to your AMEX, and then using that debit card to make your purchase.
- Sign Up and Link Your Cards: Start by signing up for a Kasheesh account and linking your American Express card along with any other credit, debit, or prepaid gift cards you might want to use. â
- Create a Kasheesh Card: Once your cards are linked, you can generate a digital Mastercard within the Kasheesh platform. Select your AMEX as the funding source, and Kasheesh will create a virtual Mastercard that can be used just like any other credit card. â
- Shop at Costco: Use the generated digital debit card for your Costco online purchases, Â without worrying about the Visa and Mastercard exclusivity. The transaction will be instantly charged to your AMEX card through the Kasheesh platform.
How do I use American Express at Costco?
FAQ
Can you pay Amex at Costco?
Costco accepts Visa-branded credit cards in its warehouses. In its warehouses, it doesn’t take American Express, Discover, or Mastercard credit cards. However, you can use Discover or Mastercard credit cards online at Costco, but not American Express. com or through the Costco app.
Why won’t Costco take American Express?
Costco has a contract with Visa that says they can’t use any other credit card networks. This includes Mastercard, Discover, and American Express.
What happened with American Express and Costco?
American Express announced the end of its Costco partnership in 2016. When Costco first made the announcement, management told shareholders that 10% of the 20112,000,000 American Express cards in circulation had been co-branded with the company.
Can I pay my Costco credit card at Costco?
No, you cannot pay your Costco Credit Card at Costco. The card’s payments must be made directly to the issuer. But there are several other ways to make Costco Credit Card payments, including online and by phone. Online: Sign in to your account and click the “Payments” tab.
Does Costco accept online payments?
Costco does accept different payment methods online compared to its warehouse locations. As a result, you’ll need at least one of the following payment options to shop at Costco. com: The biggest difference you’ll notice is that Costco. com allows you to pay with MasterCard, while Costco locations do not. How to pay with a Costco Shop Card.
What payment types can I use at Costco?
You can pay at Costco in a number of ways. You can also use FSA/HSA Visa and MasterCard debit cards at Costco Pharmacies, as well as in the Optical and Hearing Aid Departments. There isn’t an American Express on this list of accepted payment methods. There are different payment methods for Canadian Costco shoppers.
Can I pay my American Express bill online?
If you have an American Express card from a different bank or credit union but it’s on the American Express network, you can only pay your bill in person. That’s because Amex does not have any physical locations. If American Express gave you your Amex card, the only ways to pay are online, with the app, over the phone, or by sending a check.
Can I use Amex at Costco via Apple Pay?
Just so you know, you can use your real American Express card at Costco to pay for things online with Apple Pay. I did this for a delivery, and it worked! Delivery is through Instacart, right? (With a markup and fee that goes along with it?) The selection of products for online delivery is much smaller than in person:/
Does Costco accept MasterCard?
Aside from being an accepted payment method at Costco, Costco’s MasterCard comes with many benefits for cardholders. Take advantage of these deals: pay anywhere Visa is accepted and get cash back rewards, such as 3% cash back at restaurants and 2% cash back at Costco and Costco. com purchases. Use the Costco MasterCard as your Costco membership card.
