Does Costco Code as a Grocery Store for Credit Card Rewards?
This guide explains why Costco does not earn grocery rewards, what it codes as, and how to actually maximize rewards there.
Why Costco is not a grocery store to your card
Credit card bonus categories are triggered by the merchant category code a store is assigned, not the products you buy. Costco is coded as a warehouse or wholesale club, a separate category from supermarkets, so a card advertising bonus rewards on groceries sees Costco as something else and pays only its base rate on the purchase.
How to earn the most at Costco
To maximize rewards at Costco, use either a good flat-rate card, which pays the same rate everywhere regardless of category, or a card that specifically bonuses warehouse-club spending, like the co-branded Costco card. Since Costco warehouses accept only Visa, your card also has to be a Visa to work in-store, though Costco.com is more flexible.
The bigger lesson
Costco is the classic example of a broader truth: where you shop is categorized in ways that do not always match what you are buying, which is why a purchase can miss a bonus you expected. The same surprise hits at Target and Walmart. Knowing your favorite stores’ actual codes lets you put the right card on each trip, and our Costco card review covers the in-house option.
- Costco codes as a warehouse club, not a grocery store.
- Grocery-bonus cards earn only their base rate at Costco.
- Rewards follow the merchant category code, not your cart.
- Use a flat-rate or warehouse-club card to earn more.
- Costco warehouses accept only Visa.
Frequently asked questions
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