Merchants · Costco
Does Costco count as groceries for credit card rewards?
· Category rules checked against issuer terms
Usually not. Costco is classified as a warehouse club, and most cards define their grocery bonus to exclude warehouse clubs, even though you're buying food.
- Warehouse club purchases
- Grocery on cards whose definition includes wholesale clubs (reported for Bank of America Customized Cash)
- U.S. supermarkets on American Express
- Grocery or online grocery on Chase
- Grocery or gas on U.S. Bank Altitude Go
How Costco is coded
A merchant's category code is set by the merchant and its payment processor, not by your card issuer. Costco sells groceries, but it also sells tires, TVs and furniture, so it's classified as a wholesale club rather than a supermarket.
| MCC | Category | Where it applies |
|---|---|---|
| 5300 | Wholesale Clubs | In-warehouse purchases in the U.S. (commonly reported, and consistent with how every issuer below treats Costco) |
| — | Costco gas stations | Reports conflict. The card networks also have a separate code for warehouse club gas that only some processors use. Check your statement. |
| — | Costco.com, food court, pharmacy, optical | No reliable published code. These usually post as Costco, not as a restaurant or drugstore. |
How card issuers treat it
- American Express. Its U.S. supermarket definition says superstores, convenience stores, warehouse clubs and meal-kit delivery services "are NOT considered supermarkets." Warehouse clubs that sell gasoline also aren't treated as gas stations.
- Chase. The grocery category excludes "warehouse clubs, discount stores" and similar large stores, and online grocery explicitly excludes "wholesale clubs such as Costco and BJs." Chase has a separate Wholesale Clubs category on some cards, and gas bought at a wholesale club doesn't count toward it.
- U.S. Bank. On Altitude Go, wholesale clubs and discount stores earn the base rate for both grocery and gas.
- Citi. Costco's own card, the Costco Anywhere Visa, pays 2% on Costco and Costco.com purchases and 5% on gas at Costco, within its published caps.
- Bank of America. Its Customized Cash grocery category is reported to include wholesale clubs. We couldn't confirm this on Bank of America's own page, so check your card agreement.
Good to know before you pay
- Costco warehouses in the U.S. accept Visa as their only credit card network, plus debit, cash and Costco Shop Cards. Your best grocery card may not be usable at the register at all.
- Costco.com accepts more networks than the warehouses do. Check the payment options at checkout.
Getting the most from Costco purchases
- If you shop at Costco often, a strong flat-rate Visa usually beats a grocery card that only earns its base rate there.
- Gas at Costco often earns the base rate on cards that exclude warehouse clubs from their gas category.
- Food court purchases usually post as Costco, so don't count on a dining bonus.
- Look at how a recent purchase posted on your statement or in your card app. That shows the category your issuer actually assigned.
Common questions
Does Costco count as groceries on the Amex Gold Card?
No. American Express says warehouse clubs are not considered supermarkets, and U.S. Costco warehouses don't accept American Express credit cards anyway.
Does Costco count as a grocery store for Chase cards?
No. Chase excludes warehouse clubs from its grocery category and names Costco as excluded from online grocery.
Does Costco gas count as gas for credit card rewards?
It depends on the card. American Express and Chase say gas bought at warehouse clubs doesn't earn their gas bonus. Costco's own Visa pays its top rate on gas at Costco.
What credit cards does Costco accept?
In U.S. warehouses, Visa is the only credit card network accepted. Costco.com takes additional networks.