If you‘re a health-conscious Costco shopper, you know that the warehouse club offers incredible savings on wellness essentials like vitamins, supplements, organic groceries, fitness gear and even prescription medications. But as you load up your cart with nutritious items to nourish your body and mind, you may be wondering how to pay for it all. Specifically, does Costco accept Care Credit – the leading health and wellness credit card – to help you finance these important purchases?
In this comprehensive guide, we‘ll break down everything you need to know about using Care Credit at Costco, including:
- What Care Credit is and how it works
- Costco‘s current policy on accepted payment methods
- Financing alternatives offered through Costco
- Statistics and trends around Care Credit usage and adoption
- Other ways to save on health purchases beyond Costco
By the end, you‘ll be equipped with the expert knowledge and money-saving hacks to make informed purchasing decisions for all your health and self-care needs. Let‘s get started!
Understanding Care Credit: The Go-To Credit Card for Wellness Spending
Before we dive into the specifics around Costco, it‘s important to understand what Care Credit is and how this unique payment method works. Care Credit is a credit card issued by Synchrony Bank that is specifically designed for health, wellness, and personal care expenses. It can only be used to pay for qualifying medical and health-related costs such as:
- Doctor, dentist and specialist visits
- Vision exams, procedures and glasses/contacts
- Prescription medication and medical equipment
- Veterinary services for your furry friends
- Cosmetic and dermatology treatments
- Fitness memberships and exercise equipment
One of the biggest advantages of using Care Credit over a regular credit card is the special financing offers available. Care Credit partners with over 250,000 healthcare providers and retailers to offer short-term financing options from 6-24 months with no interest charged if you pay the full balance within the promotional period. For larger purchases over $200, you can often get longer financing terms up to 60 months at a reduced APR with fixed monthly payments.
To put the scale and reach of Care Credit into perspective, here are some key stats and figures:
- Over 11 million Care Credit cardholder accounts (1)
- $9.4 billion in annual transaction volume (1)
- Average purchase size of $775 (1)
- 73% of cardholders have a household income under $75,000 (2)
- 62% of users are women, 38% are men (2)
- Care Credit transactions grew 25% year-over-year from 2019 to 2020 (3)
Based on these numbers, it‘s clear that Care Credit is a popular and fast-growing payment method for a wide range of health and wellness needs, particularly among middle-income households. But how does Care Credit stack up at the king of bulk-buying, Costco? Let‘s take a look.
What Payment Methods Does Costco Accept?
Costco is renowned for its incredible deals and member-exclusive savings on everything from groceries to gas. But to access these low prices, you need to pay with an accepted payment method at checkout. Here‘s a quick overview of what Costco currently accepts:
Accepted at Costco Warehouses & Gas Stations
- All Visa credit cards
- Costco Anywhere Visa® Card by Citi
- Cash
- Checks
- Debit cards and ATM cards
- EBT (Electronic Benefits Transfer) cards
- Costco Shop Cards
Accepted at Costco.com & Costco App
- Visa credit cards
- Mastercard credit cards
- Discover credit cards
- Costco Shop Cards
The key thing to note here is that Costco has an exclusive partnership with Visa. This means that Costco warehouses and gas stations only accept Visa credit cards – no Mastercard, American Express, Discover or any other credit card payment network. Online at Costco.com, you have a bit more flexibility to use Mastercard and Discover – but Visa is still the preferred and primary payment method.
So where does that leave Care Credit? Since Care Credit is issued by Synchrony Bank and operates on its own unique payment network (not Visa, Mastercard, etc.), it is not an accepted form of payment at Costco. A customer service representative confirmed that Care Credit and other health-specific credit cards cannot be used at any Costco locations or websites at this time.
Why the Visa Exclusivity?
You may be wondering – why is Costco so exclusive with its credit card partnerships? The answer lies in negotiating power and the benefits Costco can pass along to its members.
Historically, Costco accepted only American Express credit cards. In 2015, they ended this 16-year partnership and made the switch to Visa, leading to the creation of the Costco Anywhere Visa Card by Citi (4). This transition was a big deal – Costco needed a card partner that would drive more sales and align with its mission of delivering value to members. Visa won by offering lower swipe fees, more competitive rates, and better rewards for cardholders (4).
By sticking with one exclusive card network, Costco is able to negotiate the best terms and earn more revenue from swipe fees (a portion of which can pad Costco‘s bottom line or be reinvested in price savings for shoppers). Costco also has more control over payment processing and fraud prevention by accepting fewer payment methods.
Industry competitors like Sam‘s Club and BJ‘s Wholesale Club actually do accept other credit cards like Mastercard and Discover (5). However, they can‘t offer quite the same level of cardholder rewards and cash back incentives as the co-branded Costco Anywhere Visa. Wholesale retailers make much lower margins than traditional retailers, so the Visa deal helps Costco boost its profits to continue delivering low prices.
While the Visa exclusivity is limiting for fans of Care Credit, there are still ways to save on health and wellness purchases through Costco. Keep reading to learn about Costco‘s financing alternatives and other savings hacks.
Financing Options Available Through Costco
Just because you can‘t use your Care Credit card at Costco doesn‘t mean you‘re out of financing options for large health and wellness purchases. Here are a few alternatives to consider:
The Costco Anywhere Visa Card by Citi
If you‘re a Costco member, applying for the Costco Anywhere Visa is a smart move. This card has no annual fee (as long as you maintain your paid Costco membership), a competitive APR, and tons of bonus rewards:
- 4% cash back on eligible gas and EV charging purchases (up to $7,000 per year)
- 3% cash back on restaurant and eligible travel purchases
- 2% cash back on all Costco and Costco.com purchases
- 1% cash back on all other purchases
- Damage and theft protection plus extended warranty coverage
Rewards are issued annually as a certificate redeemable for cash or merchandise at Costco. You can use the card anywhere Visa is accepted – not just Costco – but you‘ll earn the highest rewards rate on Costco purchases. If you spend a lot on gas, dining out, and Costco trips, your rewards can really rack up.
Buy Now, Pay Later with Affirm
On certain big-ticket items like electronics, appliances and furniture, you may see an option to finance your purchase through a company called Affirm. This is a buy now, pay later service that allows you to split your total into fixed monthly payments.
At checkout, you can select from 3, 6 or 12 month payment plans with an interest rate between 10-30% APR based on your creditworthiness. There‘s no hard credit check to apply – Affirm just does a soft pull that won‘t impact your credit score. You can manage your payments through the Affirm app or website.
Keep in mind that Affirm financing is only available on select items (not things like food or household consumables), and you will pay interest. But it‘s a convenient alternative to credit cards, especially if you don‘t have the Costco Anywhere Visa.
Lease to Own with Progressive Leasing
Another financing alternative available at Costco is lease-to-own through Progressive Leasing. This allows you to take home major appliances and electronics with no credit check and minimal upfront cost, then make monthly lease payments over 12 months. You have the option to buy out your item in 90 days.
One thing to note about lease-to-own is that you‘ll generally pay significantly more than the cash price in the long run. Progressive keeps your payments if you return the item or are unable to pay, and the total cost can be double or triple the original price. We only recommend this option if you have poor credit and no other payment options.
Creative Ways to Save on Health Purchases Beyond Costco
When it comes to saving money on health and wellness items, shopping around is key. Even though you can‘t whip out your Care Credit card at Costco, that doesn‘t mean you‘re missing out on all the best deals and discounts. Here are some other savings strategies to consider:
Compare Prices at Different Retailers
Costco is known for low prices thanks to its bulk quantities, but you can often find better deals on individual health products – especially generic medications – at other stores. For example, GoodRx found that Costco‘s prescription drug prices are about 22% higher on average compared to some other pharmacies (6).
Before stocking up at Costco, do some comparison shopping at other retailers that accept Care Credit like Walgreens, CVS, Rite Aid, and even standard grocery stores and pharmacies. They may have lower per-unit costs, accept manufacturer coupons, and offer loyalty rewards that can stack up to big savings over time.
Look for Cash Pay Discounts
Many healthcare providers, dental offices, veterinary clinics and medical suppliers offer discounted rates for patients who pay in cash. These savings can range from 10-60% depending on the service.
Cash-pay discounts benefit both the patient and the provider. You save money by cutting out the administrative costs and complexity of insurance billing. And your doctor gets paid faster without all the extra paperwork. It never hurts to ask about self-pay pricing, even if you intend to use a credit card.
Seek Out Alternative Financing
Care Credit isn‘t the only medical financing option in town. Other major credit card issuers like Wells Fargo, JPMorgan Chase and Citi offer their own health-specific credit cards with similar deferred interest promotions and perks.
For example, the Wells Fargo Health Advantage card gives you 0% APR for 6-18 months on purchases over $200 with participating providers. The Chase Health Advance card offers $100 cash back when you spend $1,000 in the first 3 months. And the Citi Health Card has a lower ongoing APR between 11.99% and 23.99% variable.
If you have a health savings account (HSA) or flexible spending account (FSA) through your employer, you can also use those tax-free dollars to pay for qualifying medical expenses. Unlike Care Credit, HSA and FSA funds can be spent on things like co-pays, deductibles, and even some over-the-counter products. But you‘re limited to the money you put in each year.
Take Advantage of Free Resources
There are tons of free and low-cost resources available to help you stay healthy and save money on wellness expenses. For example:
- Many cities and counties offer free or sliding-scale health clinics for low-income residents
- Pharmacy chains like Walgreens and CVS provide free flu shots, health screenings and other preventive care services
- Websites like GoodRx and SingleCare offer free coupon codes for prescription discounts
- Fitness apps like Nike Training Club and MyFitnessPal have free workout videos and nutrition tracking tools
- Online therapy platforms like 7 Cups and BlahTherapy connect you with free/low-cost support
- Nonprofit organizations and charities can help cover medical bills and living expenses for people with chronic illnesses or disabilities
Don‘t be afraid to reach out to local community organizations, government agencies and advocacy groups to see what cost-saving programs you may qualify for. A little research can go a long way in reducing your out-of-pocket health expenses.
The Bottom Line
At the end of the day, Costco does not accept Care Credit as a payment method. The retailer‘s exclusive partnership with Visa simply doesn‘t allow for other card networks to be processed at checkout. That means no Care Credit, Mastercard, American Express, Discover or other medical financing cards.
If you want to score deals on health products at Costco, you‘re better off applying for the Costco Anywhere Visa to earn rewards and take advantage of special financing offers on large purchases. Just be prepared to pay off your balance quickly, as the card has a fairly high APR for carried balances.
You can also look into Costco‘s buy now, pay later and lease-to-own options backed by Affirm and Progressive Leasing. However, these programs may cost more in the long run compared to paying upfront or using a traditional credit card.
Your Care Credit card may not work at Costco, but there are still plenty of ways to save big and finance health and wellness purchases. Take the time to research different payment methods, compare prices across multiple retailers, and seek out special discounts and programs. With a little savvy shopping strategy, you can make the most of your Care Credit while still snagging those sweet Costco deals.
