Shopping at bulk stores like Costco can save large families a lot of money. But can you use SNAP or food stamps benefits to purchase groceries there?
The short answer is yes, Costco accepts EBT card payments in all warehouse locations. However, there are some limitations on what you can buy with your supplemental nutrition assistance program (SNAP) benefits at Costco.
In this comprehensive guide, we will cover everything you need to know about using your electronic benefit transfer (EBT) card and food stamp benefits at Costco stores across the US.
What is an EBT Card?
An EBT card is a payment card used by recipients of government assistance programs like:
- SNAP (Supplemental Nutrition Assistance Program): Provides benefits to supplement food budgets for low-income individuals and families. This program was formerly known as food stamps.
- TANF (Temporary Assistance for Needy Families): Provides cash assistance to very low-income families with children.
These government benefits are deposited into accounts each month, and recipients can use their EBT card to access the funds.
EBT cards work similarly to debit cards—recipients can use them to purchase food at grocery stores, convenience stores, farmers markets, etc. The funds for SNAP or TANF benefits are deducted directly from the EBT account.
This electronic system replaced paper food stamps back in 2004. All states now use EBT cards to provide SNAP and TANF assistance.
Does Costco Accept EBT Card Payments?
Yes, Costco accepts EBT cards at all 700+ warehouse locations in the United States. EBT cardholders can use their SNAP benefits to purchase food at Costco, just like any other grocery retailer that participates in SNAP.
However, there are restrictions on precisely what you can buy with EBT at Costco stores, which we’ll cover next.
What Food Items Can You Purchase With EBT at Costco?
Costco accepts EBT cards for purchasing a variety of SNAP-eligible food items including:
- Fresh produce like fruits and vegetables
- Meats, poultry, fish and seafood
- Dairy products like milk, cheese, yogurt
- Breads and cereals
- Snack foods and non-alcoholic beverages
Because Costco sells many products in bulk or large quantities, this can be an ideal place for large families relying on food stamps to stretch their benefits further.
You can use your EBT card at Costco to purchase any cold food items that are allowed under SNAP rules. Costco adheres to the guidelines on eligible foods as outlined by each state.
What Items Are NOT Eligible for EBT Purchase at Costco?
While Costco accepts EBT cards and allows cardholders to buy a variety of groceries and food items using their SNAP benefits, there are limitations in place. You cannot purchase the following items using an EBT card at Costco:
- Hot prepared food items
- Foods from the Costco Food Court
- Alcohol or tobacco
- Pet food
- Vitamins or medicines
- Household supplies like paper towels, diapers, cleaning products
- Any non-food items
So while EBT can be used to purchase the rotisserie chicken from the fresh food aisles, you cannot use benefits to buy a hot dog or pizza from the food court. EBT cards also cannot be used to pay for Costco memberships or shop cards used as payment within the warehouses.
These restrictions are in alignment with the United States Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP) guidelines. States authorize certain retailers to accept SNAP benefits—and rules prohibit the use of benefits to purchase anything except eligible foods.
Can EBT Cards Be Used at the Costco Food Court?
Unfortunately, Costco does not allow EBT cardholders to make purchases at the food court.
The prepared hot foods sold at the food court like pizza, hot dogs, churros and more are not eligible for SNAP benefit usage under federal regulations. So standard EBT card use is restricted to cold grocery items within Costco warehouses.
However, there are some exceptions in certain states. A handful of states have Restaurant Meal Programs (RMPs) that allow certain SNAP recipients to use benefits on prepared meals and at certain authorized restaurants.
For example, recipients in California who are elderly, disabled or homeless may qualify to purchase prepared meals at some fast food chains and restaurants with their EBT cards. But availability varies greatly statewide.
So for Costco specifically, unless you are qualified under an RMP program exception, food court purchases are strictly prohibited with EBT cards.
Can You Use EBT Card Benefits for Online Grocery Orders?
Unfortunately, Costco does not allow SNAP EBT benefits to be used for online grocery orders at Costco.com. The Costco website does not accept EBT as a payment method currently.
EBT cardholders must visit a physical Costco warehouse location and present their EBT card at checkout to purchase eligible food items using SNAP benefits. The benefits cannot be used online.
However, some other large retailers like Walmart, Amazon, etc. have introduced EBT online programs in recent years in select states. So EBT online ordering may expand to more stores soon. But Costco only allows in-store EBT purchases at this time.
Tips for Shopping at Costco With an EBT Card
If you are an EBT cardholder interested in stretching your food dollars further at Costco, here are some tips:
- Compare prices: Evaluate if Costco or another nearby retailer has better deals on the items you need before assuming bulk warehouse shopping will save money. Produce and meat may be cheaper elsewhere.
- Split bulk packages: Buy larger packages of rice, baked goods, snacks, etc. at Costco and consider splitting them with family/friends if you cannot consume or store them before expiration.
- Shop without a membership: You can shop at Costco with an EBT card without the $60 membership fee if you go with a cardholding friend willing to pay at checkout.
- Withdraw cash benefits: Those with cash benefits loaded onto their EBT card can withdraw funds from an ATM to pay for a Costco membership to access even more savings. Evaluate if worthwhile long-term.
- Inventory before bulk buying: Make sure you have storage space, can rotate most perishables for consumption in time, and take an inventory of current food before bulk buying more and risking spoilage.
Thinking through questions like these will help maximize your EBT benefits when shopping at warehouse clubs like Costco.
Pros and Cons of Using EBT at Costco vs Other Stores
Deciding whether to shop at Costco over other grocery stores really depends on your household’s unique situation. Consider weighing factors like these:
Potential Benefits of Using EBT at Costco
- Huge bulk package sizes can stretch SNAP benefits further
- Lower cost per unit on many staple items
- Access to organic options often lacking at smaller grocers
- Can find excellent deals on produce, meat, dairy
- One-stop shop to get majority of household needs
Potential Downsides of Using EBT at Costco
- Must pay for membership without EBT card (or shop with member)
- Produce prices not always lowest cost vs other stores
- Bulk sizes often too large for smaller households
- Easy to overbuy if not carefully budgeting
- No online EBT ordering available like some grocers
As with any shopping, some careful comparison and planning is prudent when deciding if and how frequently to shop at Costco with your SNAP benefits. But often, visiting occasionally for certain items that offer good bulk value can stretch limited food dollars quite far.
Frequently Asked Questions About Using EBT at Costco
Here are answers to some of the most common questions EBT cardholders have about shopping at Costco:
Can I pay for a Costco membership with my EBT card?
No, SNAP benefits cannot be used to pay the standard $60 Costco Gold Star or $120 Executive membership annual fees. You would need to pay the fee with a separate debit/credit card or cash.
What if I don’t have a Costco membership?
You can shop at Costco without a membership if you go shopping with a friend or family member willing to pay for your purchases with their card. You would then present your EBT card to pay after the cardholder checks out.
Can I use EBT to buy alcohol at Costco?
No. Similar to other retailers, SNAP benefits cannot be used to purchase alcohol, tobacco, or any other non-food items at Costco like household supplies or medicine.
Can I use my SNAP EBT card at Costco gas stations?
Unfortunately SNAP benefits cannot be used directly for fuel purchases. However, some EBT accounts also have cash benefits through Temporary Assistance for Needy Families (TANF) programs. If eligible, you could withdraw cash from these accounts at an ATM to then go purchase gas.
Are there limits to how much I can buy with my EBT SNAP benefits at Costco?
No, there are no limits imposed specifically by Costco. However your state may limit benefit amounts based on your household size and income level. And of course, you can only spend up to your available balance each month. There are also maximum daily ATM withdrawal amounts for those with cash benefits.
The Bottom Lines: Who Can and Cannot Shop at Costco Using SNAP EBT Benefits
In summary, here is who can and cannot use their food stamps or SNAP benefits to make purchases at Costco:
CAN Shop at Costco With SNAP EBT:
- Recipients of SNAP benefits via an EBT card to buy eligible food items
- Those shopping accompanied by a friend/family member with a paid Costco membership
CANNOT Shop at Costco With SNAP EBT:
- Those wanting to buy any non-eligible items like alcohol, medicine, pet food, etc.
- Anyone wanting to use EBT for Costco food court purchases
- Those wanting to pay for a Costco membership or shop card with EBT benefits
- Anyone wanting to shop online at Costco.com with EBT card
We hope this guide has helped explain clearly the ways you can and cannot utilize your SNAP food stamp benefits at Costco warehouse stores. Please shop at your local Costco location with your EBT card only for eligible food items.
Using benefits improperly could risk suspensions or card deactivations. Reach out to your caseworker or local EBT coordinator if you ever have any other questions!
