Does Costco Take Discover Card? – Complete Guide (2025)
Does Costco Take Discover Card? – Complete Guide (2025)
When it comes to wholesale shopping, Costco is one of the most popular and trusted retailers in the United States and around the globe. Known for its competitive prices, bulk purchasing options, and high-quality products, Costco attracts millions of customers annually. But if you’re a Discover cardholder, you may be wondering: Does Costco take Discover Card?
The short answer is:
- In-store: ❌ No for Discover credit cards
- Online: ✅ Yes for Discover credit cards
- In-store with Discover debit (PIN): ✅ Sometimes, depending on the terminal and location
In this detailed article, we’ll cover everything from Costco’s payment policies, Discover’s background, the reasons behind Costco’s Visa exclusivity in warehouses, and how you can still use your Discover card effectively.
Background: Discover Card at a Glance
Before we dive into Costco’s payment acceptance policies, it’s important to understand Discover itself.
| Category | Details |
|---|---|
| Founded | 1985 |
| Headquarters | Riverwoods, Illinois, USA |
| Network Type | Credit card & payment network |
| Acceptance in U.S. | Widespread for online and in-store purchases |
| Key Features | Cashback rewards, no annual fee, fraud protection |
Discover launched as a credit card designed to offer competitive benefits, including cash back rewards and no annual fees. Over the years, it’s grown into a well-established payment network. However, unlike Visa or Mastercard, Discover has faced more acceptance limitations, especially internationally and in exclusive merchant agreements—like Costco’s with Visa.
Costco’s Payment Policy: The Visa-Only Rule for Warehouses
In the U.S., Costco operates under an exclusive agreement with Visa for credit card acceptance in its warehouses. This means:
- All Costco warehouses in the U.S. accept only Visa credit cards for credit transactions.
- American Express, Mastercard, and Discover credit cards are not accepted in-store for credit purchases.
- This policy also extends to Costco’s U.S. gas stations.
Why Does Costco Only Accept Visa In-Store?
The decision is based on transaction fee negotiations. By partnering exclusively with Visa, Costco can secure significantly lower processing fees, which helps them keep product prices lower for members. This exclusivity started in 2016, after Costco ended its long-standing partnership with American Express.
Discover at Costco: Where You Can and Can’t Use It
Here’s a clear breakdown:
| Location | Discover Credit Card | Discover Debit Card (PIN) |
|---|---|---|
| Costco Warehouse (In-Store) | ❌ Not accepted | ✅ Sometimes, PIN-based only |
| Costco Gas Station | ❌ Not accepted | ✅ Possibly, if PIN debit works |
| Costco.com | ✅ Accepted | ✅ Accepted |
| Costco Mobile App | ✅ Accepted | ✅ Accepted |
Discover at Costco.com
While Discover credit cards aren’t accepted in Costco’s physical warehouses, they are accepted online.
When shopping at Costco.com or through the Costco mobile app, you can pay with:
- Visa
- MasterCard
- Discover
- Most debit cards
This is because online transactions are processed differently and don’t fall under the in-store Visa exclusivity contract.
Discover Debit Cards at Costco Warehouses
Discover also issues debit cards that work on the Pulse network. In some Costco warehouses, these can be used as PIN-based debit transactions. However:
- Acceptance varies by location and register terminal.
- You must run the transaction as a PIN debit, not as credit.
- Tap-to-pay may fail because it defaults to credit routing.
Customer Experiences & Reddit Insights
Many shoppers have shared mixed experiences with Discover debit in Costco warehouses:
“Only debit if anything other than Visa.”
“Discover debit did not work when I tried a month or so ago.”
“It did for me a few days ago—you can’t tap because it processes as credit.”
This inconsistency makes it risky to rely solely on a Discover debit card for an in-store Costco trip.
Why Costco Accepts Discover Online but Not In-Store
The key reason is contractual agreements. The Visa exclusivity applies only to in-store credit card transactions. Online transactions are processed separately, allowing Costco to accept other major card networks such as Mastercard and Discover.
Workarounds for Discover Cardholders
If Discover is your primary card, you can still shop at Costco using these strategies:
- Shop Online – Use your Discover card freely on Costco.com.
- Buy Costco Shop Cards Online – Purchase Costco Shop Cards (gift cards) online with your Discover card, then use them in-store.
- Use Debit Routing – If you have a Discover debit card, try using PIN-based transactions in-store.
- Link to a Digital Wallet – In some cases, linking your Discover card to PayPal (accepted online) can help.
- Get a Visa Backup Card – For frequent Costco warehouse shoppers, having at least one Visa credit card is highly recommended.
Comparison: Discover vs. Visa at Costco
| Feature | Discover Credit | Visa Credit |
|---|---|---|
| In-Store Acceptance | ❌ No | ✅ Yes |
| Online Acceptance | ✅ Yes | ✅ Yes |
| Gas Station Acceptance | ❌ No | ✅ Yes |
| Gift Card Purchase Online | ✅ Yes | ✅ Yes |
| Debit PIN Use | ✅ Sometimes | ✅ Yes |
International Costco Stores
Costco payment acceptance policies vary by country:
- Canada – MasterCard is the only credit card accepted in warehouses; Discover generally not accepted in-store.
- UK – Visa and MasterCard are widely accepted; Discover rarely accepted.
- Australia – Visa and MasterCard accepted; Discover not common.
Discover’s Position in the Credit Card Market
While Discover is a strong U.S.-based credit card network, it faces challenges with merchant acceptance, especially in global retail chains that enter exclusive agreements with larger networks like Visa or MasterCard.
Tips for Discover Users at Costco
- Always carry a backup payment method when shopping in-store.
- Use your Discover card for Costco.com orders to earn rewards.
- Consider purchasing high-ticket items online if you want to use your Discover cashback benefits.
- If you must use Discover in-store, preload a Costco Shop Card online.
Frequently Asked Questions
Can I use Discover at Costco gas stations?
No for credit; possible with Discover debit using PIN, but inconsistent.
Does Costco Canada take Discover?
Generally no—Canada Costco warehouses accept only MasterCard credit cards.
Can I use Discover to buy a Costco membership?
Online—yes; in-store—only with Visa credit or eligible debit.
Final Verdict
Costco’s exclusive Visa partnership means Discover credit cards aren’t accepted for in-store warehouse purchases in the U.S. However, Discover cards are welcome online at Costco.com and via the Costco mobile app. Discover debit cards may work in-store if processed as PIN-based transactions, but results vary. For a seamless experience, Discover cardholders should shop online, buy Costco Shop Cards, or carry a Visa backup card.
