4 Costco Items to Always Buy With a Credit Card

Why not stack savings and mix in some perks while shopping?

If you're a regular Costco shopper, you undoubtedly know that the warehouse giant has an exclusive relationship with Visa. You can't pay for in-store purchases with American Express, Mastercard, or Discover (although you can use Mastercard or Discover to pay for purchases on Costco.com and through the Costco app).

Here, we'll cover the types of Costco products and services you should always pay for using a Visa card. One word of caution: You might want to tuck away your Costco Anywhere Visa® Card by Citi when making these purchases. As of Jan. 22, 2023, the card no longer features an extended warranty benefit. While the extended warranty applies to qualified purchases made before that date, it will not cover purchases made on Jan. 22 or beyond.

In the meantime, pull out another Visa credit card to pay for these four purchase categories.

1. Appliances and electronics

You can get more protections for big-ticket purchases like refrigerators, laptops, and televisions by making the purchase with a Visa card. Most credit card companies offer extended warranties on big-ticket items, and some even offer price protection.

Let's say you purchase a new washer and dryer combo with a manufacturer's warranty of one year. One day after the warranty expires, the washer stops spinning. An extended warranty means having the washer fixed without paying out of pocket.

What if you purchase the combo for $1,400, and Costco advertises the same washer and dryer set the following week for $1,200? If your Visa card offers price protection, Visa will refund the difference.

In addition, Visa will replace, repair, or reimburse you if an item you purchased using your credit card is stolen or damaged by an eligible event within 90 days of the purchase. Each claim is subject to a maximum reimbursement of $500, but every little bit helps.

2. Business expenses

Whether you own a small business or work several side hustles, you know how vital receipts are at tax time. Keeping track of all the small expenses you encounter can be a nightmare, but if you make most of your business-related purchases at Costco, using a card can help.

Providing the IRS with accurate prices is as easy as checking your credit card statements for the previous year. That said, you'll want to retain your Costco receipts too, in case the IRS has any questions.

3. Gasoline

We suggest using a card to pay for the gas you purchase at Costco for two reasons:

1. You save money by purchasing gasoline from a Costco station and many credit cards offer high rewards points when your card is used at gas stations. That's a win-win.
2. While it may be hard to believe, pump skimming still goes on in the U.S. Anyone who doesn't use the chip function of their card is at risk. Pump skimming involves scammers putting small devices on or above the card reader that copies and steals your credit card information. Once they have that info, they can use it to make purchases anywhere in the world.

Suppose a scammer does use your card to make purchases. In that case, Visa will protect you with its Zero Liability Policy that guarantees you won't be held responsible for unauthorized charges made if your card is lost, stolen, or fraudulently used.

Tip: There are two ways to protect yourself against this scam. The first is to use the chip function of your Visa card, and the second is to use a gas pump that the attendant can clearly see. Thieves can only pull this scam off when they can install a scanner on a pump without the attendant catching them. They are less likely to try when a pump is in clear view.

4. Travel

Using your Visa card to pay for a Costco travel package may provide benefits like cancellation protection and accidental death coverage. Depending on which Visa card you carry, you may also score special concierge services, exclusive lounge areas, and have foreign transaction fees waived. Before heading out, look at your specific Visa benefits because benefits vary by card type. You will find them in the card agreement.

If you're going to shop at Costco anyway, why not make the most of it by coupling store savings with Visa card benefits?