If you‘re in the market for a versatile gift or simply want to keep your spending money separate, a Visa gift card can be a convenient choice. But where‘s the best place to purchase one? Many consumers turn to warehouse clubs like Costco for discounted gift cards, leading to a common question: does Costco sell Visa gift cards?
The short answer is no, Costco does not currently sell Visa gift cards in-store or online. However, there‘s more to the story when it comes to Costco‘s gift card strategy and its exclusive partnership with Visa. In this article, we‘ll explore the details of Costco‘s gift card offerings, alternative Visa gift card sources, and tips for using gift cards effectively.
Costco‘s Curated Gift Card Selection
While you won‘t find Visa gift cards at Costco, the retailer does curate a unique selection of other gift cards. Costco‘s buyers carefully choose which merchants to partner with based on factors like brand popularity, member demand, and discounting potential. The goal is to offer gift cards that provide genuine value to shoppers.
Kirkland Signature, Costco‘s private label brand, plays a role in this curation as well. Some of the gift cards sold are co-branded with Kirkland Signature, such as multi-packs of movie tickets or restaurant gift cards. Aligning with Kirkland Signature‘s reputation for quality and affordability further distinguishes these as smart buys in the eyes of members.
So what kinds of gift cards will you find at Costco? The assortment typically focuses on:
- Popular chain restaurants like The Cheesecake Factory, Domino‘s, and Subway
- Entertainment brands such as Google Play, Hulu, and Xbox Live
- Select retailers including Best Buy, Macy‘s, and Petco
- Experiences and services like spa treatments, oil changes, and movie rentals
Notably absent are Visa gift cards and other open-loop options that can be used anywhere. Costco seems to prefer working with individual merchants to secure deeper discounts on closed-loop cards, which can only be redeemed with that specific retailer.
The discount potential is a big draw for many shoppers. A 2018 survey by Blackhawk Network found that 69% of consumers are more likely to buy gift cards if they‘re on sale. By offering multi-packs and bonus value bundles, Costco can entice deal-seekers to add gift cards to their haul. Members might grab a pack of Starbucks or iTunes gift cards to divvy up as teacher gifts or stocking stuffers, knowing they‘ve scored a bargain.
Exact discounts vary, but Costco gift cards are often priced 15-30% below face value. For example, you might find a $100 gift card multi-pack selling for $79.99, or a "buy $100, get a $20 bonus card" offer around the holidays. Compared to other big-box stores that might sell a $100 gift card for $95, Costco‘s promotions can lead to significant savings, especially on big-ticket items like restaurant or spa gift cards.
That said, it‘s always wise to comparison shop. Wholesale clubs aren‘t the only places to find gift card deals. Grocery stores, drug stores, and office supply retailers often run their own gift card promotions, so it pays to check weekly ads and websites. Costco‘s selection also fluctuates throughout the year, with more gift card variety around peak seasons like Christmas and Father‘s Day.
The Visa Partnership Factor
Costco‘s decision not to stock Visa gift cards may seem odd considering the retailer‘s close ties to Visa. Since 2016, Costco has accepted only Visa cards at its stores, as part of an exclusive arrangement. Costco even offers a co-branded Anywhere Visa Card by Citi with bonus cash back categories tailored to Costco purchases.
So why not sell Visa gift cards as well? While the details of Costco‘s contract with Visa aren‘t public, it‘s possible that terms of the agreement actually restrict Costco from offering Visa-branded gift cards. Costco gave up a lot by severing its previous partnership with American Express, and Visa may have negotiated certain conditions in exchange for becoming Costco‘s exclusive credit card network.
It‘s also worth examining Costco‘s overall business model. The retailer is known for its low markups, made possible by membership fees, high sales volume, and a limited product assortment. Gift cards tend to yield slim profit margins to begin with, due to activation fees and revenue sharing with card issuers. For a $100 Visa gift card, the retailer might only earn a few dollars at most.
Rather than devoting shelf space and working capital to low-margin Visa gift cards, Costco may prefer to stock higher-value items and pricier third-party gift cards. There‘s also less financial risk involved with closed-loop cards, since the issuing merchants are wholly responsible for redemptions. With Visa gift cards, Costco could be on the hook for funds if cards are lost or stolen.
As a members-only club, Costco also has to consider whether Visa gift cards fit its customer base. A 2019 Blackhawk Network study revealed that high-income shoppers are less likely to buy gift cards overall, perhaps perceiving them as impersonal or preferring more specialized gifts. Costco members skew toward affluent consumers focused on quality and value, not just low prices alone.
For these reasons, Costco seems to have made the strategic decision not to sell Visa gift cards, at least for now. But that doesn‘t mean you‘re out of luck if a Visa gift card is on your shopping list. There are still plenty of purchasing options available.
Where to Buy Visa Gift Cards
Just because Costco doesn‘t sell Visa gift cards doesn‘t mean they‘re hard to find. In fact, Visa gift cards are widely available from a variety of retailers, both in-store and online. Here are some of the best places to look:
Visa‘s Website
One of the easiest ways to purchase Visa gift cards is directly through Visa‘s official website. You can choose from an assortment of designs, load any amount between $10-$250, and even customize the card with a name, photo, or personal message. Physical cards are mailed to the recipient with free standard shipping. E-gift cards are also available if you need a last-minute option delivered electronically.
Grocery Stores
Most major supermarket chains carry Visa gift cards in their checkout lanes or customer service desks. Kroger, Safeway, Publix, Albertsons, Stop & Shop, and other regional grocers typically stock variable load gift cards with maximum values of $200-500. Watch weekly circulars for special promotions like waived activation fees or bonus fuel points for gift card purchases. Some grocers even offer their own store-branded Visa gift cards.
Drug Stores
National pharmacy chains like CVS, Walgreens, and Rite Aid are also reliable Visa gift card sources. You‘ll usually find a rack of prepaid cards near the registers, with load amounts ranging from $25 up to $500. Drug stores tend to run promotions around holidays and may have exclusive card designs. Buying Visa gift cards at drugstores can also be a good way to reach spending thresholds on a store loyalty program.
Big Box Retailers
Walmart, Target, and similar big-box retailers stock a wide variety of Visa gift cards both in-store and online. At Walmart, you can purchase fixed denomination Visa gift cards from $25-$100, plus variable load cards up to $500. Target offers similar options, and may feature special card designs around occasions like graduation or wedding season. Sam‘s Club and BJ‘s Wholesale also sell Visa gift cards, so you don‘t necessarily need a Costco membership to buy them at a warehouse club.
Office Supply Stores
Staples, Office Depot, and other office supply retailers are another avenue for buying Visa gift cards, especially if you have a small business. Purchasing gift cards with a business credit card that earns bonus points on office store purchases can be lucrative. Just be aware that some credit card issuers have caught onto this strategy and may not award points for gift card purchases.
Online Gift Card Marketplaces
In addition to physical retailers, there are several online gift card marketplaces that sell Visa gift cards. Sites like GiftCards.com, Gift Card Mall, and GiftCardGranny.com offer a range of designs and load amounts, with options for physical or digital delivery. You may even find discount Visa gift cards on resale marketplaces like Raise or CardCash, though be sure to check the fine print on any card restrictions or fees.
When purchasing Visa gift cards online, pay attention to shipping costs and delivery timeframes. Some sites charge extra fees for expedited shipping or customization options. Also note that digital Visa gift cards are typically delivered to the purchaser‘s email, not the recipient directly, so you‘ll need to forward the email or print out the card for gifting.
Tips for Buying and Using Visa Gift Cards
Whether you‘re giving a Visa gift card as a present or using one for your own spending, there are a few best practices to keep in mind. Here are some tips for a smoother gift card experience:
Check the Fine Print
Before purchasing any Visa gift card, read the terms and conditions carefully. Look for information on activation fees, which can range from $3-7 per card depending on the retailer and load value. Some gift cards also charge dormancy fees if they go unused for a certain period of time, which can gradually eat away at the balance. Note any usage restrictions as well, such as whether the card is valid for online purchases or if it‘s limited to in-store use.
Know the Balance
It‘s important to keep tabs on your Visa gift card balance, especially if you‘re making multiple purchases. Most gift cards have a website where you can check the balance and transaction history online. Alternatively, you can call the toll-free number printed on the back of the card for an automated balance update. Keeping track of the remaining funds can help you avoid embarrassing declines at the register or ending up with a tiny leftover amount that‘s hard to use.
Consider Reloadable Cards
Some Visa gift cards are reloadable, meaning you can add more money to the card after the initial balance is spent. While there may be fees associated with reloading, opting for a reloadable card can be more cost-effective and environmentally friendly than buying multiple disposable gift cards over time. Just be aware that some prepaid reloadable cards may require identity verification or have monthly maintenance fees, so read the fine print.
Spend Strategically
When redeeming a Visa gift card, try to use the full balance in one transaction if possible. Many retailers won‘t give you cash back if the purchase amount is less than the gift card value, which can leave you with an odd remaining balance. If you do have a small amount left on a gift card, consider using it for a digital purchase like an iTunes song or an Amazon Kindle ebook. You can usually apply multiple payment methods on online transactions, so the spare change on a gift card can still go to use.
Beware of Scams
Gift cards are a popular target for scammers, so exercise caution when purchasing or redeeming Visa gift cards. Only buy from trusted retailers or directly from the Visa website. When checking the balance or transaction history online, make sure you‘re on a secure website with "https" in the URL. If you receive a suspicious email or phone call asking for your gift card number or PIN, hang up or delete the message. No legitimate organization will request payment via gift cards.
The Costco Visa Credit Card
While Costco may not sell Visa gift cards, fans of the warehouse club can still leverage their Visa partnership through the Costco Anywhere Visa Card. This co-branded credit card acts as your Costco membership ID and offers bonus cash back rewards on Costco purchases and other everyday spending categories.
Rewards Breakdown
Here‘s how the rewards stack up:
- 4% cash back on eligible gas purchases, including gas at Costco (up to $7,000 per year, then 1% back)
- 3% cash back on restaurant and eligible travel purchases worldwide
- 2% cash back on all Costco and Costco.com purchases
- 1% cash back on all other purchases
The cash back accrues as an annual reward certificate, mailed out each February with your Costco membership renewal notice. You can redeem the certificate for merchandise or cash back at any U.S. Costco warehouse. While this once-a-year payout may be frustrating to some, it does incentivize shoppers to visit Costco at least annually to claim their rewards.
Additional Perks
Beyond the cash back categories, the Costco Anywhere Visa has a few other notable perks:
- No annual fee with a paid Costco membership
- No foreign transaction fees
- Damage and theft protection on purchases
- Extended warranty coverage
- Worldwide car rental insurance and travel accident coverage
These benefits are fairly standard among Visa credit cards, but can add value for frequent travelers or big-ticket purchasers. Of course, you‘ll need to weigh them against the card‘s high APR and the requirement of a Costco membership, which starts at $60 per year.
Alternatives to Consider
If you prefer a credit card without a store-specific rewards program, there are plenty of other Visa options that can earn bonus points on Costco purchases. Many Visa cards that earn high flat-rate cash back on all purchases would fare well at Costco, such as:
- Chase Freedom Unlimited: 1.5% cash back on every purchase
- Capital One Quicksilver: 1.5% cash back on every purchase
- Citi Double Cash Card: 2% cash back on purchases (1% when you buy, plus 1% as you pay)
These general-purpose cards offer more flexibility and faster reward payouts compared to the Costco Anywhere Visa. However, they may have annual fees or lack some of the ancillary perks like extended warranties. As always, the best credit card for Costco purchases depends on your individual spending habits and preferences.
Final Thoughts
Costco may not sell Visa gift cards, but that doesn‘t diminish its reputation as a go-to destination for savvy shoppers. The warehouse club‘s curated selection of merchant gift cards still offers compelling value, with discounts that often beat other big-box retailers. By focusing on quality over quantity, Costco has cultivated a gift card assortment that resonates with its customer base.
For those specifically seeking Visa gift cards, grocery stores, drug stores, office supply chains, and online marketplaces are all viable alternatives. Many of these retailers offer promotions and perks that can make Visa gift card purchases even more rewarding, such as fuel points or cash back bonuses. Just be sure to read the terms and conditions carefully to avoid any surprising fees or restrictions.
Ultimately, whether you‘re buying gift cards for yourself or others, a little research can go a long way. Comparing prices, discounts, and reward earning potential across multiple retailers will help you maximize the value of every gift card purchase. And if you‘re a faithful Costco shopper, don‘t forget to explore the Anywhere Visa credit card, which can amplify your annual cash back haul from the warehouse club.
As consumer preferences continue to evolve, it will be interesting to see if Costco expands its gift card offerings in the future. The retailer has shown a willingness to adapt its assortment and policies over the years, from adding more organic produce to eliminating food courts. Perhaps one day Visa gift cards will join the ranks of Costco‘s treasure hunt-worthy finds. Until then, shoppers have plenty of other options for picking up these versatile prepaid cards.
