Does Costco Take American Express Gift Cards?

🛒 Introduction: Understanding Costco’s Strict Payment Rules

Costco is known for its excellent prices and bulk shopping experience—but also for having strict payment policies. While most retailers accept a variety of credit and gift cards, Costco limits both its credit card networks and prepaid card options depending on where you shop.

That leads many customers to wonder:

❓ “Can I use my American Express gift card at Costco?”

The answer isn’t a simple yes or no. It depends on:

Where you’re shopping (in-store, online, gas)
What kind of gift card you have (physical or digital)
Whether it’s debit-enabled or credit-only
Whether you’re in the U.S., Canada, or another country

This article provides a complete breakdown of how Amex gift cards work at Costco—and how you can use them strategically.

🔍 What Is an American Express Gift Card?

Before diving into Costco policy, it’s important to understand how Amex gift cards work.

There are two primary types:

1. Physical Amex Gift Cards

Prepaid cards with a fixed balance (e.g., $25, $50, $100)
Can be used anywhere Amex is accepted
Function similarly to credit cards but limited to the loaded amount
Require the cardholder to sign or enter billing zip code at checkout

2. Amex eGift Cards

Delivered via email
Can be added to mobile wallets (Apple Pay, Google Pay)
Accepted online and at stores that take American Express
Typically require card number, expiration, and security code

These cards are not linked to a specific customer or bank account and are not reloadable.

🏬 Can You Use an American Express Gift Card at Costco Stores?

❌ No, Costco Warehouses in the U.S. Do Not Accept Amex Gift Cards

Costco U.S. stores only accept Visa credit cards for credit-based transactions. This includes warehouse registers, customer service counters, and most specialty kiosks.

Because Amex gift cards are processed on the American Express credit network, they are rejected at the point of sale.

Payment Method	Accepted at Costco U.S. In-Store?
Amex Credit Card	❌ No
Amex Gift Card (Physical)	❌ No
Amex eGift Card	❌ No
Visa Credit Card	✅ Yes
Visa Gift Card	✅ Yes
Debit Mastercard	✅ Yes (PIN)

🚫 What Happens If You Try?

If you try to swipe or insert an Amex gift card at a Costco register:

The payment terminal will decline the transaction
The cashier may remind you of the Visa-only policy
Your gift card balance will remain untouched

This is not a system error—Costco is intentionally configured to block all American Express network payments in U.S. stores, even if the funds are valid.

💻 Can You Use an Amex Gift Card at Costco Online?

✅ Yes, American Express Gift Cards Are Accepted Online at Costco

One major difference between Costco stores and its online platform is card acceptance.

Online, Costco accepts:

Visa
Mastercard
Discover
American Express

That means you can successfully use a physical or e-gift Amex card for online purchases, including:

Electronics
Furniture
Grocery items (available in select zip codes)
Digital Costco Shop Cards
Membership renewals
Optical and pharmacy orders

As long as your card has enough balance to cover the transaction—or you’re combining it with another payment method—it will process like any other credit card.

💡 Pro Tip for Online Use

To use an Amex gift card online:

Make sure the balance covers the full purchase total (including tax + shipping).
Register the card with your name and billing ZIP code on the Amex gift card site (if needed).
Enter it as a credit card at checkout.
If the amount is insufficient, use a Costco Shop Card or second card to pay the remainder.

⛽ Can You Use an American Express Gift Card at Costco Gas Stations?

❌ No, Costco Gas Does Not Accept Amex Gift Cards

Costco fuel stations in the U.S. are governed by the same rules as the warehouse stores. They only accept Visa credit cards, PIN debit cards, and Costco Shop Cards.

Because Amex gift cards behave like credit cards—and run on the Amex network—they are not recognized at the pump.

Payment Type	Costco Gas Accepted?
Visa Credit Card	✅ Yes
Visa Debit	✅ Yes
Debit Mastercard	✅ Yes (PIN only)
Amex Gift Card	❌ No
Discover / Mastercard Credit	❌ No

Additionally, Costco fuel pumps are automated. They do not allow split payments, manual overrides, or clerk-assisted transactions.

📦 Amex Gift Cards and Costco Delivery Services

If you’re using Costco’s home delivery (via their online platform), Amex gift cards are accepted. This includes:

Standard 2-day dry goods shipping
Cold and frozen deliveries (where available)
Pharmacy shipping
Large item delivery (e.g., mattresses, appliances)

Note: For same-day grocery delivery that redirects to Instacart or another service, acceptance will depend on that partner’s policy, not Costco’s.

♻️ Can You Return a Costco Item Purchased with an Amex Gift Card?

Yes—returns work as expected, even if you used a prepaid gift card like Amex.

Here’s what happens:

If you return a product bought online with an Amex gift card, the refund is credited back to the same gift card number.
You must keep the card or e-gift details until the refund is complete.
Lost gift cards may result in forfeited refunds unless recovered via Amex customer service.

Refunds to gift cards may take 5–10 business days depending on the issuer.

💳 How Do Amex Gift Cards Compare to Other Prepaid Cards at Costco?

When it comes to prepaid cards, not all brands function the same way at Costco. Here’s a comparison of how American Express gift cards perform compared to other popular options.

📋 Comparison Table: Prepaid Card Acceptance at Costco (U.S.)

Card Type	Costco In-Store	Costco Online	Costco Gas
Visa Gift Card	✅ Yes	✅ Yes	✅ Yes
Mastercard Gift Card	❌ No (credit)	✅ Yes	❌ No
Discover Gift Card	❌ No	✅ Yes	❌ No
American Express Gift Card	❌ No	✅ Yes	❌ No
Costco Shop Card	✅ Yes	✅ Yes	✅ Yes

🟢 Why Visa Gift Cards Work Better

Visa gift cards are accepted in-store because Costco U.S. warehouses have an exclusive relationship with Visa. They process like normal credit cards at the register and gas pumps—making them the most universally functional prepaid option.

🔴 Why Amex and Others Get Rejected In-Store

Amex, Discover, and Mastercard prepaid cards are processed as credit cards on their respective networks. Since those networks aren’t accepted at Costco registers in the U.S., their gift cards are also declined.

So even if your Amex gift card is valid and funded, Costco’s terminal will block it based on network, not balance.

🔁 Creative Workarounds to Use Amex Gift Cards at Costco

Even though you can’t use Amex gift cards directly in U.S. warehouses or gas stations, there are several ways to turn that gift card into something you can use at Costco.

1. 🎁 Buy a Costco Shop Card Online Using Amex

The easiest and most direct method:

Use your Amex gift card to purchase a Costco Shop Card (a store gift card).
Shop Cards are accepted everywhere: warehouse, online, and fuel stations.
Reload the card as needed—up to $2,000 per card.
No membership is required to use a Shop Card.

📌 You must buy the Shop Card through Costco’s online platform or authorized resellers.

2. 💸 Buy a Visa Gift Card Using Amex Balance

Go to a major retailer that accepts American Express (e.g., drugstores, supermarkets) and:

Purchase a Visa gift card using your Amex gift card balance.
Then use the Visa card at Costco like a regular credit card.

Make sure:

The purchase value is slightly below your Amex card balance (to account for fees).
The Visa card is not “store-restricted” and works anywhere Visa is accepted.

3. 🔁 Transfer Through PayPal or a Wallet App

If you have a PayPal account or digital wallet:

Link your Amex gift card as a payment method.
Use the balance to send money to yourself or someone else.
Withdraw funds or load them onto a debit card you can use at Costco.

Caution: This method may incur small service or processing fees. Also, not all wallets accept prepaid Amex cards.

4. 🏪 Buy a Costco Membership Online

Even though you can’t use an Amex gift card in-store, you can:

Purchase or renew a Costco membership online using your Amex gift card.
Take advantage of any promotional offers that include bonus Shop Cards.

This helps put your card to productive use, even if not directly at the register.

⚠️ Common Problems When Using Amex Gift Cards at Costco

Because prepaid cards can behave differently than standard credit or debit cards, here are some common issues shoppers experience—and how to avoid them.

1. ❌ Payment Declined Despite Sufficient Funds

Many users report that their Amex gift card gets declined—even when there’s enough money to cover the purchase.

Why this happens:

Costco’s terminals don’t support the Amex network (in-store).
Online purchases may be blocked due to:
- Address mismatch
- Lack of billing ZIP code registration
- Insufficient balance when tax/shipping is included

How to fix it:

Always register your card’s billing address on the issuer website before using it.
Make sure the purchase amount doesn’t exceed the balance.
Use the full card amount on one order if possible.

2. ⛽ Preauthorization Holds at Gas Stations

At gas pumps, prepaid cards often fail because of preauthorization holds.

When you swipe a card at a Costco gas pump:

The terminal may place a temporary $100 hold
If your Amex gift card balance is less than this amount, it will decline immediately

Solution: You cannot use Amex gift cards at Costco fuel pumps, but this is why other prepaid cards fail there too.

3. 🧾 Low-Balance Headaches

If your Amex gift card has a partial remaining balance, you may struggle to spend it.

Common issues:

Split payments are often not accepted online
Some checkout systems reject partial payments without prior authorization
Users forget the exact remaining amount

Tips:

Check your balance before shopping
Apply the full balance toward a larger purchase, then pay the rest with a secondary method
Call Amex gift card support to inquire about exact figures

4. 🔒 Security and Expiration Warnings

Although most Amex gift cards do not expire quickly, there are a few caveats:

Monthly fees may apply after 12 months
Unused cards with low balances may be deactivated after years
eGift cards are vulnerable to email phishing or account theft if unclaimed

Always use your card within a reasonable timeframe and avoid sharing the full card number outside secure checkout portals.

🙋 Frequently Asked Questions (FAQs)

Q1: Can I use my Amex gift card at a U.S. Costco warehouse?

No. Costco warehouses in the U.S. accept only Visa credit cards. Since American Express operates on its own network, Amex gift cards are rejected in-store.

Q2: Can I use an American Express gift card online at Costco?

Yes. Amex gift cards are accepted as a form of payment on Costco’s website. You can purchase electronics, groceries, membership renewals, and even Costco Shop Cards using an Amex gift card—provided the balance covers the order.

Q3: Do Amex eGift Cards work differently than physical ones at Costco?

Functionally, no. Both eGift and physical Amex cards use the same network and transaction system. However, eGift cards require:

Online card number entry
Expiration date and security code
Proper billing ZIP code (if applicable)

Be sure to register or activate the card if required.

Q4: Can I use an Amex gift card to pay at Costco’s pharmacy or optical departments?

If you’re inside a Costco warehouse, no—Amex gift cards won’t work even in the pharmacy or optical lanes. However, if you place a prescription refill or optical order online, and checkout through the Costco website, Amex gift cards will be accepted.

Q5: Is there a way to add my Amex gift card to a digital wallet for Costco shopping?

Technically yes, but it doesn’t help much in-store. Even if you link the Amex card to Apple Pay or Google Pay, Costco’s registers will still reject American Express-based transactions. However, if shopping online via mobile browser or app, it may process successfully.

Q6: What happens if I return something bought with an Amex gift card?

Your refund is credited back to the original card. That’s why it’s important to:

Keep the gift card number and security code
Avoid discarding eGift emails until after the return is fully processed
Call Amex support if the card is lost before the refund completes

🌍 International Acceptance: Does Costco Take Amex Gift Cards Outside the U.S.?

Costco operates in several countries, and credit card policies vary by region. Here’s how Amex gift card acceptance plays out globally:

🇨🇦 Canada

Costco Canada does not accept Amex or Amex gift cards in-store.
Their exclusive credit network is Mastercard.
Amex gift cards may be used online if the platform accepts Amex.

🇲🇽 Mexico

Some Costco Mexico locations do accept American Express.
Amex gift card use is not guaranteed and may vary by store.
Calling ahead to confirm is strongly advised.

🇯🇵 Japan

Costco Japan locations accept both Visa and American Express.
Amex gift cards issued within Japan may work.
International Amex gift cards may not be accepted due to cross-border issues.

🇬🇧 United Kingdom

Costco UK accepts Visa and Mastercard, but not American Express.
Amex gift cards are not usable in-store.

🧠 Final Take: Best Strategies to Use Amex Gift Cards at Costco

While Costco’s in-store credit card restrictions can be frustrating, savvy shoppers can still make good use of Amex gift cards by planning smartly.

✅ Best Uses of Amex Gift Cards for Costco

Action	Method
Buy groceries and electronics	Shop online using Amex gift card
Shop in-store	Use Amex gift card to buy Costco Shop Card online
Fill up at Costco gas	Use Shop Card purchased with Amex gift card
Redeem points	Trade Amex rewards for Visa or Costco gift cards
Membership renewal	Pay online with Amex gift card

⚠️ What to Avoid

Don’t expect Amex gift cards to work at physical registers in U.S. warehouses
Avoid trying to split Amex gift card payments in-store—it won’t work
Be cautious with third-party gift card resellers and check refund policies

🧾 Quick Recap

Shopping Location	Amex Gift Card Accepted?
U.S. Costco Store	❌ No
Costco Gas	❌ No
Costco.com	✅ Yes
Canada	❌ No
Mexico	✅ Varies
Online Grocery Delivery	✅ Yes
Pharmacy (in-store)	❌ No
Pharmacy (online)	✅ Yes

💡 Final Tip: Turn your Amex gift card into a Costco Shop Card for universal acceptance across all Costco platforms.