A frustrated Costco member was publicly called out by a self-checkout machine after trying to use a credit card that the warehouse retailer does not accept.

The shopper said the payment terminal loudly rejected his card in front of others, creating an embarrassing moment.

His mistake? Attempting to use an American Express card—which has been banned at Costco for nearly a decade.



Online user @bewhittenfunny shared a video in early May describing the encounter and the awkwardness that followed.

“In Costco, they don’t accept American Express,” he explained, walking through the store’s aisles. “So when you ring it with an American Express card, the system is real loud like, ‘Card not accepted!’” He added, “Lower your [expletive] voice,” mocking how the machine exposed him.

The shopper wrote in his caption that “Costco self-checkout needs to watch its tone,” highlighting his annoyance with the point-of-sale system. He also noted that the machine gave no explanation for the card rejection.


According to Costco policy, only Visa credit cards are accepted in-store. American Express, once the exclusive card at the retailer, is no longer supported.

Costco officially ended its partnership with Amex in 2016 and transitioned to Visa as its sole credit card network.

Since then, members have only been able to use Visa-branded credit cards, Costco Shop Cards, debit cards, EBT, checks, and cash.

Citi is currently the official issuer of Costco’s co-branded credit card. The online user’s experience revealed that not every customer is familiar with this long-standing switch.


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Despite his frustration, commenters were unsympathetic and quick to point out that the policy is not new.

“Where have you been? Costco hasn’t taken American Express in 10 years,” said one user. “Is it your first time at Costco?” another asked.

Several users reminded others that Costco explains payment rules clearly at sign-up, but “people DON’T LISTEN.”

Costco’s former deal with American Express started in 1999, when Amex was the only credit card allowed in the warehouse club.


Over time, rising fees reportedly became a problem. According to Reader’s Digest, the company opted to switch to Visa because Amex charged higher merchant fees.

“Credit card merchant fees are often passed on to consumers in the form of higher prices,” said economics professor Mark Tremblay.

“Given Costco’s low-price business model, this presents a trade-off,” Tremblay explained. “Accepting Amex would allow consumers whose only credit card is Amex to shop at Costco, but by doing so, Costco would open itself up to higher costs or higher prices.”

The retailer maintains that limiting accepted credit cards helps preserve low prices for members. For customers, it means fewer options but potentially better deals.


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In addition to Visa credit cards and Costco's branded Citi card, members can pay using ATM/debit cards, Costco Shop Cards, EBT cards, personal checks, and cash.

The rule applies at all US locations and has remained unchanged since 2016. While some members continue to be surprised by the limitation, others argue that the policy is clearly outlined. Costco’s online help center also confirms the accepted payment types.

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Have you ever been caught off guard by a store’s payment policy? Should Costco reconsider how its self-checkout machines announce rejections—or is this simply a case of shopper error? Let us know in the comments whether the store should improve the customer experience or if the rules are clear enough already.