Unless you’re living under a rock, you know that, effective today:
- Costco stores no longer accepts American Express as a method of payment, Visa is now exclusively accepted as the method of payment.
- The Costco American Express Card is now caput. The new Costco credit card is a …. (you guessed it) Visa card issued by Citibank.
- Costco, as a warehouse store, will be a 5% category for the Chase Visa Freedom card for the remainder of the year.
But, what if you don’t want to pay by Visa card? Are you stuck?
Answer: yes and no. When Costco exclusively accepted American Express cards, it was a well-known trick to buy Costco Cash Cards online with a Visa or MasterCard.
So, I just did an experiment fully expecting to be able to buy a Costco Cash Card online with an American Express Card. I was wrong. American Express isn’t even accepted online at Costco.com anymore.
While you cannot use an American Express card online at Costco.com, you are not bound by the EXCLUSIVELY VISA rule. Instead, if you are making a purchase online at Costco.com, in addition to Visa, you can pay with MasterCard or Discover cards. Good to know!
Two other questions come to mind: First, will there be another Groupon or Living Social deal for Costco membership anytime soon? Answer: I don’t know, but I’m guessing there will be. Second, what happens if you purchase an item at Costco online with a non-Visa credit card, and return it at a Costco Warehouse store – will you receive a credit of some sort or a refund? Answer: I don’t know but I’m guessing we’ll know soon enough.
A New York frequent flyer who elegantly combines her passions for worldwide travel, running a gazillion marathons all over the globe and staying fit ... without sacrificing her fancy for good wine and food.
In the past (prior to the change to VISA), if you purchased an item online with a VISA card and returned it to a warehouse, you were given a CASH refund (because they couldn’t credit your VISA card at the warehouse). This held true for me for an item that was several hundred dollars. I suspect it will be the same if you’ve previously purchased an item in-warehouse or on-line with an AMEX – you’ll get cash back. There is likely a limit to the amount they will refund in cash, but I don’t know what that limit is.
Yes, Andrew, I knew about the refunds in the past. I was asking how this would be handled in the future. And, at least as of today, payment by AMEX is not an option – even online at Costco.com.
Right — so it seems fairly logical based on their prior policy that if you purchase online with a non-VISA that you’ll get cash back (likely up to a certain amount). Or, if you’ve previously purchased something when they used to take AMEX, and you return it after June 20 — you’ll get cash back. You didn’t mention you were already aware of how refunds worked in the past, which I why I provided first-hand experience.
The only other end-around I know of is to buy Costco products through Google Express, if you happen to live in a city where that service is offered. AFAIK GE does not restrict the credit cards you can use.
great info. Thanks.
What about Visa gift cards?
good question. Do you know if Costco accepted amex gift cards before the changeover to visa?
I have no idea. On the other hand, some Visa gift cards boast “Good wherever Visa is valid”, so there’s a really good chance that’s the workaround. If I find out more I will definitely post back but my nearest Costco is over a 2 hour drive so I don’t go there often.
Replying to my own comment: Visa gift cards work fine. SO you can buy them with an amex and then shop at Costco with them.