Does Costco Use PayPal in 2024? (Do This Instead…)
As a Costco member for over 5 years and PayPal user for over a decade, I often get asked if Costco accepts PayPal. With over 105 million PayPal users in the US alone, it‘s one of the most popular online payment processors. And with 105 million Costco members worldwide, it‘s one of the biggest retailers around. But unfortunately, the two have not paired up.
Why Costco Doesn‘t Take PayPal
Costco has an exclusive agreement with Visa, likely for competitive reasons. This deal incentivizes Costco to only accept Visa credit cards, not other processors like PayPal. Even Mastercard isn‘t accepted in-store.
Costco also avoids certain payment types to maximize profits. PayPal charges merchant fees of 2.9% plus $0.30 per transaction. So Costco loses money on PayPal purchases compared to cash, check, or debit.
Workarounds: How to Use PayPal at Costco
While you can‘t directly use PayPal, there are some handy workarounds to tap into your PayPal funds at Costco:
Get the PayPal Visa Debit Card
This links your PayPal balance to a debit card that works anywhere Visa is accepted, including Costco. There‘s no monthly fee or minimum balance. You can use it online or in stores. Just move money from PayPal to your card‘s balance before shopping.
Transfer to Your Bank, Then Shop
You can transfer PayPal funds to a connected bank account for free. It takes 1-3 days to clear. Then use your debit card or write a check to spend at Costco.
Withdraw Cash
Hit up the ATM to turn your PayPal dollars into cold hard cash. Just make sure to withdraw enough to cover your Costco haul!
Costco Payment Methods
While PayPal may be off the table, you still have ways to pay at Costco:
In-Store Payment Options
- Visa Credit: All Visa consumer credit cards are accepted.
- Visa Debit: Includes PIN-based debit and ATM cards.
- Cash: Cash is always accepted.
- Checks: Personal and business checks are accepted. Bring your ID!
- Shop Card: Prepaid Costco gift cards can be used.
- EBT: Electronic benefit transfer cards are accepted at Costco.
| Payment Type | Accepted In-Store? |
|---|---|
| Visa Credit | Yes |
| Mastercard | No |
| American Express | No |
| Discover | No |
| PayPal | No |
| Apple Pay | Yes |
| Google Pay | Yes |
| Samsung Pay | Yes |
| Cash | Yes |
| Check | Yes |
| Shop Card | Yes |
| EBT | Yes |
Online Payment Options
Costco‘s website accepts more payment varieties:
- Visa Credit
- Visa Debit
- Mastercard
- Discover
- Shop Cards
So online offers more flexibility if you don‘t have a Visa card.
Tips for Using PayPal Funds at Costco
As a devoted Costco shopper and PayPal user, here are my top tips:
Use the PayPal debit card for seamless purchases without waiting for transfers.
Plan ahead and transfer PayPal funds to your bank 3-4 days before your Costco trip.
Bring a checkbook to access transferred PayPal funds easily.
Use PayPal for non-Costco online shopping to save your Visa limit for Costco.
Treat the debit card like a reloadable gift card. Transfer over only what you need for each Costco trip.
The Bottom Line
While Costco doesn‘t directly accept PayPal, workarounds let you tap into your PayPal balance for both online and in-store Costco shopping. Just take some extra steps to transfer funds to debit, cash, or check payments. As a devoted Costo and PayPal fan, a debit card linked to my PayPal is my personal favorite workaround!
