As one of the largest wholesale retailers worldwide, Costco sells just about everything – including big ticket items like electronics, furniture, and appliances. With the average transaction topping $100, figuring out how to pay is key. But does Costco accept the medical credit card Care Credit? Let‘s dig into all of your Costco financing options.
Costco Payment Policies: What You Need To Know
First, it helps to understand Costco‘s general payment guidelines across its 558 U.S. warehouse locations.
While exact payment procedures can vary slightly by location, here is an overview of Costco‘s standard cash, check, and debit/credit card policies:
Cash & Checks
Costco gladly accepts cash and checks totaling up to $10,000 made out to Costco Wholesale. While you can pay by check at any register, amounts over $1,000 must be verified by a manager, which can add a few minutes to the checkout process.
One key exception – Costco gas stations and car washes do not accept cash or checks.
Debit & Credit Cards
Costco also takes signature debit cards and PIN-enabled debit cards affiliated with Visa and Mastercard.
However, when it comes to credit cards, options are far more limited. Due to an exclusive agreement with Visa, Costco only accepts Visa credit cards for in-store purchases. So no American Express, Discover, Mastercard or store cards like Care Credit.
This policy extends to Costco Services like the pharmacy, hearing aid center, and food court. However, the Costco website and app allow Mastercard and Discover in addition to Visa credit cards.
Now that we‘ve covered the payment basics, let‘s focus on financing and credit options at Costco.
Inside Costco‘s Exclusive Visa Credit Card
Rather than relying on Care Credit or an outside financing provider, the Costco Anywhere Visa® Card by Citi offers members an easy way to finance Costco purchases. Along with the basics, here is a snapshot of some of its top perks:
Earn Cash Back
When used for Costco purchases, this card offers:
- 4% cash back on eligible gas worldwide
- 3% cash back on restaurants and eligible travel
- 2% cash back on Costco purchases and Costco.com
- 1% back on other transactions
Executive members earn an extra 2% at Costco as reward certificates, totaling up to a 4% cash back equivalent.
No Annual Fee…With a Catch
Unlike many rewards cards, the Costco Visa comes with no annual fee. But there‘s an important caveat – you must maintain a current Costco membership to qualify for this perk.
Bonus Rewards & Benefits
Additional advantages of the Costco Visa include:
- Damage & theft protection
- Extra warranty coverage
- Special financing offers
Between the generous rewards and built-in protections, the Costco credit card eliminates the need for alternate financing through Care Credit or other means.
Ideal for Big Spenders
The Costco Visa makes the most financial sense for members who spend:
- Over $6,000 annually on gas ($6,960+ to offset the annual fee)
- $250+ monthly at Costco warehouses
For moderate spenders, basic credit cards like the Citi® Double Cash Card or Chase Freedom Unlimited® can offer better rates and benefits overall.
Alternatives for Financing Big Purchases at Costco
Say you need to finance a large Costco expense – like a $3,000 mattress or appliances totaling $5,000. What options work?
0% Introductory APR Credit Cards
One smart route is leveraging a 0% intro APR credit card offer. The Citi® Diamond Preferred® Card, for instance, provides a 0% rate for 21 months on balance transfers and purchases. As long as you pay off the balance during that intro period, you avoid finance charges.
When shopping for a 0% card, look for at least a 12-month term with no annual fee or balance transfer fees. Be sure to make payments on time as well, otherwise interest kicks in immediately.
Credit Card Installment Plans
Major issuers like Citi and Chase now offer installment plan options on credit card purchases over certain amounts.
For example, Citi Flex Pay allows cardholders to split eligible purchases over $100 into fixed monthly payments with a set APR. Terms range from 6 to 24 months depending on the amount.
3rd Party Financing Providers
Alternatively, companies like Affirm, Katapult, and PayPal Credit let you finance Costco online orders interest-free or at lower rates. They divide payments over monthly installments ranging from 3 months to 2 years or more.
To qualify and get the best terms, you‘ll need fair credit – scores of 620+ are ideal. While more flexible, research shows that retail credit lines ultimately cost 12-19% more compared to standard credit cards.
The Scoop on Capital One and Other Credit Cards
Given its exclusive Visa arrangement, Capital One credit cards simply don‘t work at Costco warehouses despite being a major issuer. You cannot tap into rewards or card benefits on in-store transactions.
The same applies to American Express, Discover, Mastercard, and store cards like Care Credit. Costco only processes payments through Visa‘s network – though its website and app remain more flexible.
So while Capital One and Mastercards functionally operate as credit cards, Costco bans use due to the Visa agreement. It comes down to the network, not the issuing bank.
The sole exception? Visa gift cards work at Costco since they run on the Visa network.
Layaway and Financing: How It Works at Costco
Layaway programs let you pay for items over time while the retailer stores them until fully paid. However, Costco itself does not offer traditional layaway.
Some third-party companies like eLayaway provide online layaway plans for Costco purchases. But terms vary, so scrutinize policies carefully before signing up.
Here’s a brief runthrough on layaway benefits and drawbacks:
Pros
- Pay over time in installments
- No credit check or financing fees
- Item held and delivered upon full payment
Cons
- Strict cancellation and refund policies
- No guarantees on pricing or availability
- Possible storage and service fees
While layaway bypasses credit checks and interest, lack of buyer protections mean it’s a gamble. Savvy shoppers recommend using Secured credit cards instead to build credit safely.
The Bottom Line on Care Credit and Payment Options
When shopping at Costco, convenient financing often tops the priority list for major buys. But with its powerful Visa partnership limiting payment methods, understanding all avenues for purchases is key.
Unfortunately, medical credit cards like Care Credit simply aren’t usable at Costco registers. Still, Visa credit cards, debit/checks/cash, online financing providers, and introductory 0% APR card offers provide ample alternatives.
Or for maximum savings and perks, the Costco Anywhere Visa® Card by Citi allows members to earn generous rewards while financing everything from pantry staples to vacations stress-free.
So don‘t let payment uncertainties stop you from snagging deals. Armed with this comprehensive guide on Costco financing, you can shop confidently for whatever you need.
