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.
If you’re a Costco shopper with an American Express card, you might be wondering if you can knock out two errands at once by paying your AmEx bill while shopping for bulk items. I’ve got the straightforward answer and some helpful alternatives for ya!
The Short Answer: No, You Cannot Pay Your American Express Bill at Costco
Unfortunately, you cannot pay your American Express bill at Costco. In fact, Costco doesn’t even accept American Express cards as a payment method anymore! This might come as a surprise to longtime Costco members who remember when AmEx was the warehouse club’s exclusive credit card partner.
Why Costco Doesn’t Accept American Express
Back in 2015 Costco made a significant switch from American Express to Visa as their exclusive credit card partner. This business decision effectively ended a 16-year partnership with American Express that had begun in 1999.
The main reasons for the switch included:
- Better financial terms from Visa
- Broader acceptance of Visa cards among consumers
- Potentially lower transaction fees for Costco
As a result, American Express cards are no longer accepted at any of Costco’s 500+ warehouse locations across the United States and Puerto Rico. This applies to both in-store purchases and gas station transactions.
Payment Methods Accepted at Costco
Before we dive into how you can pay your American Express bill elsewhere, let’s clarify what payment methods Costco does accept:
| Payment Method | Costco Warehouse | Costco.com | Costco Gas Stations |
|---|---|---|---|
| Visa Credit Cards | ✓ | ✓ | ✓ |
| Debit Cards with PIN | ✓ | ✓ | ✓ (except AmEx) |
| Cash | ✓ | ✗ | ✗ |
| Checks | ✓ | ✗ | ✗ |
| Costco Shop Cards | ✓ | ✓ | ✓ |
| EBT Cards | ✓ | ✗ | ✗ |
| Mobile Payments (Apple Pay, Google Pay, Samsung Pay) | ✓ | ✗ | ✗ |
| MasterCard | ✗ | ✓ | ✗ |
| Discover | ✗ | ✓ | ✗ |
| American Express | ✗ | ✗ | ✗ |
As you can see, American Express is completely excluded from Costco’s accepted payment methods both in-store and online.
Alternative Ways to Pay Your American Express Bill
Don’t worry though! There are several convenient ways to pay your American Express bill:
1. Online & Mobile Payments
The easiest and most popular method is paying online through the American Express website or mobile app:
- Log into your AmEx account
- Select the card you want to pay
- Enter your payment amount
- Submit payment using your bank account, another credit card, or AmEx rewards points
The online payment service is available 24/7, making it super convenient You can pay your bill in full, make the minimum payment, or pay any custom amount
Pro tip Set up autopay with American Express to have your bill paid automatically every month. This ensures you’ll never miss a payment due date!
2. Pay By Phone
American Express offers a convenient pay-by-phone option:
- Call 1-800-472-9297 (toll-free)
- Follow the automated system’s prompts
- Enter your card details (account number, expiration date, security code)
- Specify your payment amount
- Authorize the transaction
If you prefer speaking with a real person, live representatives are available during normal business hours to assist with bill payments.
3. Pay By Mail
If you’re old-school and prefer sending checks:
- Write a check or get a money order for your payment amount
- Include your account number and payment slip from your bill
- Mail to the address listed on your statement
Important: Mail your payment at least 5-7 business days before the due date to avoid late fees and interest charges!
4. Pay at Other Retailers
Many retailers DO accept American Express cards for bill payments, including:
- Grocery stores
- Pharmacies
- Convenience stores
- Banks
- Financial service centers
Look for locations displaying American Express signage or simply ask the cashier if AmEx is accepted for bill pay.
5. Third-Party Payment Services
Services like Plastiq allow you to use various payment methods to pay bills:
- These services charge a processing fee (typically 2-3%)
- They essentially mail a check on your behalf after you submit digital payment
- While more expensive than standard options, they provide flexibility
Costco Credit Card Option
Since you can’t use your American Express at Costco anymore, you might consider applying for the Costco Anywhere Visa® Card by Citi:
- No annual fee with paid Costco membership
- 4% cash back on eligible gas purchases (including at Costco gas stations)
- 3% cash back on restaurant and travel purchases
- 2% cash back on all Costco purchases
- 1% cash back on all other purchases
This card works great for Costco shoppers, and you could use it alongside your American Express for purchases at other locations.
Tips for Managing Your AmEx Bill Responsibly
No matter how you choose to pay your American Express bill, follow these best practices:
- Pay on time and in full each billing cycle when possible
- Set up payment reminders or autopay
- Monitor your account regularly
- Keep track of your due date on a calendar
- Set up alerts through your AmEx account
Frequently Asked Questions
Why did Costco stop accepting American Express?
American Express’ business model made it too dependent on a few co-branded card partnerships. The risks of this concentration eventually outweighed the benefits, and Costco found better terms with Visa.
Can I use American Express at Costco.com?
No, American Express is not accepted on Costco.com either. The website accepts Visa, Mastercard, and Discover credit cards, but not American Express.
Can I pay my Costco credit card bill at Costco?
No, you cannot pay your Costco Credit Card at Costco warehouses. The card’s payments must be made directly to Citibank (the issuer) through online methods, by phone, or by mail.
How do I pay my Costco credit card bill online?
To pay a Costco Credit Card bill online, log in to your Citibank online account, click on “Make a Payment,” choose your payment amount and date, and select your payment source. You can also set up automatic payments.
The Bottom Line
While it’s disappointing that you can’t pay your American Express bill at Costco (or even use your AmEx card there), there are plenty of other convenient ways to stay on top of your payments. The easiest method is probably setting up online payments or autopay through the American Express website or app.
If you’re a frequent Costco shopper, you might wanna consider adding the Costco Anywhere Visa Card to your wallet to maximize savings at the warehouse club while still enjoying the benefits your American Express card offers elsewhere.
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.
