Costco Removing Discover Card Option

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Last updated on September 28th, 2023

Costco will no longer accept Discover Cards for online payments at The wholesale giant revealed the news in a message to members about the changes – which will take effect after November 15, 2023 – and seeks to streamline further which credit cards you can use at its locations.

Costco Makes Changes to Online Payment Options

Costco is notorious for its strict rules regarding credit cards – specifically which ones you can use at its stores. Now, customers will feel the pinch even more thanks to an upcoming restriction to the Discover payment network.

Effective November 15, 2023, Discover credit cards will no longer be accepted as a payment method for purchases made at, the wholesale club’s online presence. The website previously accepted Mastercard, Visa, and Discover credit cards, leaving just two networks. Further, Costco physical stores and gas stations don’t accept Mastercard, with Visa and the Costco Store Card as your only real credit card payment options.

Here are the payment methods currently accepted across Costco locations:

Costco stores Costco gas
American Express
Debit Most PIN-based cards Most PIN-based cards Most PIN-based cards
Check Current member
Other Traveler's checks, mobile payments, EBT, store card Store card Store card, Visa click-to-pay

Why Costco Prefers Visa Over Others

Costco uses the Visa payment network for a few reasons. First, because Visa charges the lowest interchange fees for a card payment network. These fees are charged between banks for accepting card-based transactions, with Visa charging around $1.50 in fees on a $100 Visa credit card purchase. But Costco likely has a deal even better than this – about $0.40 on $100 purchases – and it passes those savings on to you, the customer.

Second, by removing the other expensive payment networks, the wholesale club and retailer can reduce the prices it charges to its members – already lower than average thanks to these clubs’ wholesale/bulk buying practices.

Finally, Visa is the preferred payment network of Costco stores because Costco offers a few co-branded retail credit cards backed by the Visa network. The cards, issued by Citi, are the following:

Costco Anywhere Visa® Card by Citi

Costco Anywhere Visa® Business Card by Citi
Card type Consumer Business
Annual fee $0 $0
Rewards 4% cash back on eligible gas and EV charging purchases for the first $7,000 per year and then 1% thereafter, 3% back on eligible travel and dining, 2% back on all other Costco purchases, and 1% on all other purchases 4% cash back on eligible gas and EV charging purchases for the first $7,000 per year and then 1% thereafter, 3% back on eligible travel and dining, 2% back on all other Costco purchases, and 1% on all other purchases

The Costco Visa credit cards also act as your membership card, meaning you don’t need to worry about extra plastic in your pocket or purse.

Related Article: The Best Credit Cards to Use at Costco

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About: Cory Santos
Cory Santos

Cory is the senior credit card editor at BestCards, specializing in everything credit card-related. He’s worked extensively with credit cards and other personal finance topics, including nearly five years at BestCards. Cory’s extensive knowledge is an essential part of the BestCards experience, helping readers to live their best financial lives with up-to-date insights and comprehensive coverage of all facets of the credit card space, including market trends, rewards guides, credit advice, and comprehensive credit card reviews.

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