Why Costco Doesn’t Accept PayPal? (+Alternatives)

In addition to its physical stores, Costco also offers online shopping through its website costco.com; however, many wonder if Costco accepts PayPal payments.

Can You Use Paypal At Costco?

Unfortunately, Costco doesn’t accept PayPal online or in their stores. However, there are alternative ways you can use your PayPal balance to make purchases at Costco.

PayPal is a popular digital wallet that allows you to send and receive money. You can link your credit card or bank account and use it to make online purchases and pay bills.


Why Costco Doesn’t Accept PayPal

1) Limiting methods of payment saves them money.

Costco is a discount warehouse store that monitors its costs closely to keep retail prices as low as possible.

2) Brand agreements with Citi and Visa 

Costco entered into a long-term co-brand credit card program agreement with Citi and an acceptance and co-brand incentive agreement with Visa, limiting how much they can charge for transactions.

3) Accepting PayPal would require Costco to update its payment system and hire additional staff.

These costs would also be passed on to customers in the form of higher prices for merchandise sold at Costco stores.

4) When accepting electronic payments, Costco only accepts debit cards (either PIN-based or signature-based). 

Debit cards limit liability to Costco if a customer’s card is compromised and prevents fraudsters from using stolen credit cards at their stores.

Other payment methods not accepted by Costco include;

  • Paying with a check (unless it’s in Canadian dollars)
  • Credit cards with a rewards program
  • Debit cards with a rewards program
  • Discover credit cards
  • American Express credit cards
  • MasterCard credit cards

Ways to Use PayPal Balance to Purchase Items at Costco

1) Get a PayPal debit card that uses your balance. Costco takes almost all debit cards, including this type of card.

  • Go to Paypal-Cash Card and fill out the form to request an application for a debit card that uses your PayPal balance as its funding source.
  • Once they’ve approved your application, they’ll send you an email telling you how much money is available on your account and instructions on how to activate the card at the bottom of the email.
  • Next, go back onto the website where you applied for the card and click on “Activate Card.” 
  • Click the “Transfer Money” button near the top of the page.
  • Select “Deposit Funds Into My Debit Card.”
  • You can now use your PayPal balance to shop at Costco.

2) Another option is to transfer money from your PayPal account to your local bank account and then pay at the Costco store using a debit card or a Visa credit card.

To make this work, you’ll need a checking account with your local bank that you can link to your PayPal account. Once you’ve opened an account with them (or if you already have one), follow these steps:

  • Log into your Paypal account. On the left-hand side of your PayPal page, click “Transfer Money.”
  • Click on “Transfer to Bank Account.” Your bank’s name should be displayed on their website so you may enter it.
  • Enter how much money you want to transfer from your PayPal balance into your bank account (the maximum amount is $5,000).
  • Enter any other details your financial institution requires (such as routing number). Then click “Continue.”
  • Verify that all information is correct before clicking “Confirm.”

What Other Forms of Payment Does Costco Accept?

 You can use the following forms of payment to make purchases at Costco:

  • Cash
  • Costco cash cards and Costco credit cards
  • Visa credit card
  • All Debit cards
  • EBT cards (Electronic Benefits Transfer)
  • The Costco Anywhere Visa® Card by Citi
  • Chase Freedom Flex℠ 
  • Personal checks
  •  Business checks
  • Traveler’s checks
  • Capital One Quicksilver Cash Rewards Credit Card
  • Most PIN-based Debit/ATM Cards
  • Apple Pay
  • Google Pay
  • Samsung Pay

Costco gas stations and vehicle washes don’t accept cash, checks, or EBTs. You can only pay with your Visa card, debit/ATM card, or a Costco Shop Card.


Does Costco Canada accept PayPal?

Costco Canada doesn’t accept PayPal as a form of payment. You can use any of the above-listed methods to make your purchases at Costco Canada.

Can you buy a Costco gift card with PayPal?

No, You can not buy a Costco gift card with Paypal. However, you can transfer your PayPal balance to your bank account or register for a PayPal Cash card to enable you to complete your transaction.

Does Costco Take Paypal MasterCard?

Costco doesn’t take PayPal MasterCard as a payment method. You’ll have to use another credit or debit card instead.

Does Costco Travel Take Paypal?

Costco Travel doesn’t accept PayPal as a form of payment. To buy tickets for an upcoming trip, you’ll need a traveler check taken by Costo or a debit card.

What stores accept PayPal payments?

Some stores that accept Paypal as a form of payment include;

  • Apple Store
  • Best Buy
  • Starbucks(online)
  • Walmart
  • Amazon
  • Target
  • Lowes
  • Airbnb
  • CheapOair
  • eBay
  • Microsoft
  • Bed Bath & Beyond
  • Dell
  • Gamestop
  • Expedia
  • Ikea


Costco doesn’t accept PayPal, but that doesn’t mean you can’t use it to pay for your purchases. You can use PayPal to pay with your debit card, credit card, or even bank account.

It’s quick, easy, and secure—they use the same security protocols as banks and other financial institutions.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.