Costco, the popular warehouse club, is known for its bulk deals and savings, but you might be wondering “Why can’t I use AMEX at Costco?” as many shoppers are becoming aware that the retailer exclusively accepts Visa credit cards at their brick-and-mortar stores, as well as only accepting Visa and Mastercard in their online store.

This has been a point of frustration for American Express (AMEX) cardholders who want to enjoy their membership perks while shopping at Costco. However, in 2024, there's a new solution that allows you to use your AMEX card at Costco's online store—by leveraging the financial service Kasheesh.

Why Doesn't My American Express Card Work at Costco?

Beginning in 1999, American Express became the sole credit card partner for Costco. For many years, it was the only credit card accepted by the retailer. Customers looking to earn Costco-specific rewards had to obtain a co-branded American Express/Costco card.

However, this arrangement changed when Costco and American Express decided to part ways in 2016. Following this, Costco partnered with Citi as its exclusive credit card issuer, with Visa becoming the exclusive credit card network for Costco stores in the U.S. and Puerto Rico. Since then, American Express has been replaced by Citi and Visa, which has caused frustration with shoppers who don't have a Visa credit card.

Beyond Visa credit cards, Costco continues to accept payments via cash, checks, electronic benefit transfer (EBT), Costco Shop Cards, and most importantly and most pin-based debit and ATM cards.

Solution: Create a digital Debit Card funded by your Credit Card

Kasheesh is a payment service that offers a unique solution for consumers who want flexibility in how they pay for purchases. One of its standout features is the ability to generate a digital Mastercard that can be funded by any underlying credit or debit card in your wallet, including your American Express credit card.

This means you can effectively use your AMEX when shopping at Costco’s online store by first generating a Kasheesh digital Mastercard debit card which is linked to your AMEX, and then using that debit card to make your purchase.

How It Works

1. Sign Up and Link Your Cards: Start by signing up for a Kasheesh account and linking your American Express card along with any other credit, debit, or prepaid gift cards you might want to use.
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2. Create a Kasheesh Card: Once your cards are linked, you can generate a digital Mastercard within the Kasheesh platform. Select your AMEX as the funding source, and Kasheesh will create a virtual Mastercard that can be used just like any other credit card.
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3. Shop at Costco: Use the generated digital debit card for your Costco online purchases,  without worrying about the Visa and Mastercard exclusivity. The transaction will be instantly charged to your AMEX card through the Kasheesh platform.

Split Payments Across Multiple Cards

One of the most compelling features of Kasheesh is its ability to split a purchase across multiple cards. This is particularly useful if you want to manage your credit card balances and utilization rates, or maximize rewards across different cards. With Kasheesh, you can divide your Costco purchase between up to five different cards, including credit cards, debit cards, and prepaid gift cards.

For example, if you have a large purchase at Costco, you can split the payment between your AMEX, a Visa debit card, and a prepaid gift card, allowing you to manage your spending and take advantage of different rewards programs.

Why Use Kasheesh at Costco?

• Convenience & Flexibility: Use any credit card, including American Express, at Costco and other stores that don’t directly accept AMEX.
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• Afford more: Split purchases between multiple cards to be able to pay with your credit cards and maximize rewards no matter how high or low the credit limit is on a card.
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• Manage Your Credit Score: Spread out large purchases across multiple cards to avoid maxing out a credit card or raising your credit utilization rate.

Conclusion

Kasheesh is a game-changer for Costco shoppers who are looking for a way to use their AMEX cards at a retailer that traditionally only accepts Visa and Mastercard credit cards. By generating a digital debit card through Kasheesh, funded by your credit cards, you can bypass Costco's payment restrictions and even split your purchase between multiple funding sources for unparalleled flexibility and convenience.