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- Costco currently only accepts American Express cards.
- Soon, Costco will accept Visa cards.
- Starting April 1, 2016 (in 13 months), Costco will no longer accept American Express.
This is primarily of interest to me because many people who fill out my Free Credit Card Consultation Form let me know that they need an AMEX because they do a lot of their shopping at Costco. (And because Costco’s pre-cooked ribs are such a fantastic way for a bachelor to cater a party.)
It turns out Citi is taking over the contract to issue a Costco card and will issue a Citi Visa. But you will be able to use any card with the Visa logo, not just the Citi Visa Costco card to pay at Costco.
A quick refresh on what American Express, Citi, and Visa are:
- Citi is a bank that issues credit cards like Chase, Barclaycard, and others.
- Visa is a payment network like MasterCard and others.
- American Express is both a bank that issues credit cards and a payment network. All cards issued by the bank American Express are processed by the American Express payment network. This includes AMEX-branded cards like the Platinum or Premier Rewards Gold and co-branded cards like the Delta credit cards. Some cards issued by other banks are processed on the payment network American Express. I used to have a Citi (issuing bank) American Airlines American Express (payment network.)
Citi will be the issuing bank for the Costco credit card, but any card on the Visa payment network will soon be accepted at Costco. Look in your credit card drawer, and I’m sure you already have quite a few cards with the Visa logo. These will all be accepted at Costco. If you don’t have any and want a new credit card, fill out this form for personalized suggestions based on your travel goals and other factors.
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So, until 4/1/2016, probably the best card to use at Costco is the Fidelity AmEx for 2%. (I never understood why people were so hot on their TrueEarnings Card from Costco and American Express which only earned 1% at Costco.)
Starting April 1st of 2016, some of the best cards to use at Costco will be:
1. BankAmericard Travel Rewards Visa which can earn 2.625% toward travel if you qualify for Bank of America’s Preferred Rewards Platinum Honors status. (Or 2.25% with Platinum status or 1.875% with Gold status or 1.5% with no Preferred Rewards status.)
2. Capital One Venture Visa which earns 2% toward travel.
3. U.S. Bank FlexPerks Travel Rewards Visa Signature card which earns about 1.66% toward travel on spending at Costco and about 3.32% on cell phone as well as either gas, grocery stores, or airfare, whichever you spend the most on each month.
4. Capital One Quicksilver Visa which earns 1.5% cash back on all spending including Costco.
The Discover it Miles Card offers 3% back on everything for the first year. https://milevalu.wpengine.com/earn-three-miles-per-dollar-on-all-purchases-for-one-year/
So, until 4/1/2016, probably the best card to use at Costco is the Fidelity AmEx for 2%. (I never understood why people were so hot on their TrueEarnings Card from Costco and American Express which only earned 1% at Costco.)
Starting April 1st of 2016, some of the best cards to use at Costco will be:
1. BankAmericard Travel Rewards Visa which can earn 2.625% toward travel if you qualify for Bank of America’s Preferred Rewards Platinum Honors status. (Or 2.25% with Platinum status or 1.875% with Gold status or 1.5% with no Preferred Rewards status.)
2. Capital One Venture Visa which earns 2% toward travel.
3. U.S. Bank FlexPerks Travel Rewards Visa Signature card which earns about 1.66% toward travel on spending at Costco and about 3.32% on cell phone as well as either gas, grocery stores, or airfare, whichever you spend the most on each month.
4. Capital One Quicksilver Visa which earns 1.5% cash back on all spending including Costco.
The Discover it Miles Card offers 3% back on everything for the first year. https://milevalu.wpengine.com/earn-three-miles-per-dollar-on-all-purchases-for-one-year/