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All U.S. Costco warehouse locations accept Electronic Benefit Transfer (EBT) cards for eligible food items. However, this acceptance is contingent on a critical condition: shoppers must have a paid Costco membership to enter and make purchases.
Under federal regulations, the annual membership fee cannot be paid for with EBT funds. Understanding this rule is the first step for any Supplemental Nutrition Assistance Program (SNAP) recipient looking to use their benefits at Costco. The process also involves specific guidelines for checkout, rules on eligible items, a distinct method for online orders, and a clear policy for returns.
Access to Costco warehouses is exclusive to members, a policy that applies to all shoppers regardless of their payment method. This is the most important factor for any household planning to use SNAP benefits at the retailer.
The Mandatory Membership Rule
To shop at a Costco warehouse, an individual must hold an active membership. The primary options include the Gold Star Membership at approximately $60 per year and the Executive Membership for about $120 annually. This requirement is enforced at all U.S. locations and is a necessary first step before an EBT transaction can occur.
Paying the Annual Fee: A Critical EBT Restriction
Federal regulations strictly define how SNAP benefits can be used. The program is designed for purchasing eligible food items and explicitly prohibits using benefits for services or membership fees. Consequently, the Costco membership fee cannot be paid with an EBT card.
Prospective members must use an alternative payment method, such as cash, a debit card, or a Visa credit card, to cover this annual cost. This requires a careful cost-benefit analysis for low-income households to determine if the potential savings from bulk purchasing will justify the initial cash expense.
Once a membership is secured, using an EBT card at a Costco warehouse is a straightforward process. The checkout system is designed to handle split payments efficiently, creating a seamless experience.
The Standard Checkout Process
At a cashier-operated lane, the process begins when the cashier scans your Costco membership card. To pay, you swipe your EBT card at the point-of-sale (POS) terminal and enter your Personal Identification Number (PIN), just like a debit card transaction.
Costco's system automatically identifies and separates SNAP-eligible items from non-eligible ones. The cost of eligible groceries is deducted from your EBT card's balance. If your cart contains non-eligible items, the register will show a remaining balance that must be paid with another payment method.
Using EBT at Self-Checkout
Costco's self-checkout lanes are fully equipped to accept EBT payments. The process is nearly identical to using a cashier lane.
The system automatically calculates the total for SNAP-eligible products and prompts for a second payment method if a balance remains. For security, it is always wise to inspect any card reader for signs of tampering before use.
Handling Transaction Issues
An EBT transaction may occasionally be declined due to insufficient funds, an attempt to purchase only non-eligible items, or a system error. If your SNAP balance is too low to cover all eligible items, the transaction might be rejected.
In this situation, you can tell the cashier the exact amount available on your EBT card. The cashier can manually enter that amount to charge to the EBT card, and the remaining balance for the groceries can be covered by another payment method.
Shopping at Costco Business Centers
EBT cards are also accepted at Costco Business Center locations for in-warehouse shopping. These centers, which are open to all members, follow the same USDA guidelines for eligible products. However, EBT payments are not accepted for any online purchases made through the Costco Business Center website.
Costco must adhere to the guidelines set by the U.S. Department of Agriculture's (USDA) SNAP program. These rules are based on the principle that benefits are for food intended for home preparation and consumption. A simple rule of thumb is that products with a "Nutrition Facts" label are typically SNAP-eligible, while those with a "Supplement Facts" label are not. For a complete list, visit the USDA's official website.
SNAP-Eligible Staple Foods
The USDA categorizes eligible items into several staple food groups, which means a wide variety of products at Costco can be purchased with an EBT card.
The same federal regulations that define eligible items also create a clear list of prohibited products. These restrictions apply to all SNAP-authorized retailers.
General SNAP Prohibitions
Certain categories of products are never eligible for purchase with SNAP benefits. These include:
Costco-Specific Ineligible Items
Two of Costco's most popular offerings are frequent sources of confusion for EBT users, as they are classified as ineligible prepared foods.
While Costco.com does not accept EBT, there is a way to use SNAP benefits for online grocery delivery through a partnership with a third-party service.
The Difference: Costco.com vs. Costco via Instacart
It is crucial to distinguish between Costco's two main online platforms. The primary website, Costco.com, does not accept EBT as a payment method. The only way to use EBT for a Costco home delivery is through the "Same-Day Delivery" service, which is operated by Instacart. This service is part of the USDA's SNAP Online Purchasing Pilot.
How to Use EBT on Instacart for Costco Orders
To place an order, you must have an Instacart account. The process is as follows:
Covering Non-SNAP Costs
Using EBT via Instacart involves additional costs that cannot be paid with SNAP benefits. A separate credit or debit card must be used to cover these charges. These out-of-pocket expenses include:
The Restaurant Meals Program (RMP) is a specialized part of SNAP that allows certain recipients to buy prepared meals, but it is often misunderstood.
What is the RMP?
The RMP is a state-level option that allows specific SNAP recipients to purchase prepared meals from authorized restaurants. Eligibility is strictly limited to households where all members are elderly (60 or older), have a disability, or are experiencing homelessness.
State Participation is Key
Participation in the RMP is not nationwide; each state must choose to implement it. Only a few states, including California, Arizona, Michigan, and New York, currently operate an RMP. An eligible individual can only use this benefit in a state with an active program.
Costco Food Courts Do Not Participate in RMP
Despite online rumors, Costco food courts are not authorized vendors in the Restaurant Meals Program in any state. A restaurant must be formally approved by its state agency and the USDA to accept EBT for hot meals. A review of official RMP vendor lists confirms Costco is not a partner.
Costco's generous return policy applies to items purchased with an EBT card, but the refund method is governed by strict federal regulations.
How EBT Refunds Are Handled
If a SNAP-eligible food item bought with EBT is returned, the refund is credited directly back to the shopper's EBT card. Costco's system can identify the original payment method from the member's purchase history and will process the refund accordingly.
The "No Cash Back" Rule
The policy of refunding to the EBT card is a federal law, not a store decision. A core anti-fraud rule of the SNAP program prohibits retailers from providing cash refunds for items bought with food benefits. This ensures that benefits intended for food cannot be converted into cash.
For households that decide a membership is a worthwhile investment, strategic shopping is key to maximizing the value of SNAP benefits.
Strategic Bulk Buying
The primary advantage of Costco is its bulk pricing. To leverage this, focus on non-perishable staples like rice and pasta, as well as items that can be frozen, such as meat, vegetables, and bread. Planning meals and shopping with a list are essential to avoid impulse buys and ensure bulk quantities are used before they expire.
The Value of the Kirkland Signature Brand
Costco's private-label brand, Kirkland Signature, offers products that are often of high quality at a lower price than name-brand counterparts. Choosing Kirkland Signature versions of SNAP-eligible items is an effective strategy for stretching food assistance dollars even further.
Yes, all U.S. Costco warehouse locations accept EBT cards (also known as food stamps or SNAP benefits) for in-store purchases. This policy is consistent nationwide, so you can confidently use your card at any warehouse you visit, but not at Costco Business Centers or online.
Your Costco EBT card can be used to purchase SNAP-eligible grocery items. This includes foods like fruits, vegetables, meat, fish, dairy, bread, cereals, and non-alcoholic beverages. Items such as vitamins, alcohol, tobacco, pet food, and prepared hot foods are not eligible.
Yes, you must have a valid Costco membership to shop in the warehouse and use your EBT card. While Costco accepts SNAP benefits as a payment method, it does not waive the membership requirement needed to enter the store and make purchases at the register.
No, you generally cannot use your Costco EBT card at the food court. Food court items like hot dogs and pizza are considered prepared hot foods, which are explicitly prohibited from being purchased with federal SNAP benefits under USDA guidelines.
At the checkout lane, simply swipe your EBT card at the terminal like a debit card and enter your PIN. The cashier will separate your SNAP-eligible items from any non-eligible goods. You will need a separate form of payment for any items not covered by SNAP.
No, Costco EBT payments are not accepted for online purchases made through Costco.com. EBT card transactions, including those for grocery delivery or pickup, can only be processed in person at a physical Costco warehouse location at this time.
If your EBT funds are insufficient to cover all eligible items, you can use another payment method to pay the remaining balance. Costco accepts Visa credit cards, debit cards, cash, or Costco Shop Cards to complete your split-payment transaction.
Yes, if your EBT card has Cash benefits loaded onto it, you can use it at Costco just like a debit card. These funds can purchase any item in the store, including non-food products, and you can also get cash back at the register.
No, Costco is not an authorized WIC vendor. While all warehouses accept Costco EBT for SNAP food benefits, you cannot use WIC (Special Supplemental Nutrition Program for Women, Infants, and Children) benefits to purchase WIC-approved items at any Costco location.
Costco's standard return policy applies to purchases made with an EBT card. However, any refund for an item bought with SNAP benefits will be credited directly back to your EBT card. You will not receive a cash refund for these items.
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