As families search for ways to stretch their food stamps further, many may wonder: does Costco take EBT cards? With its reputation for bulk deals and savings, it would seem like an ideal place for SNAP recipients to shop. But before deciding whether to pay that annual membership fee, it pays to understand exactly how EBT payments work at Costco locations.
The short answer is yes – those EBT cards issued for the Supplemental Nutrition Assistance Program (SNAP) can be used to purchase eligible grocery items at Costco warehouses across the United States. But there are also important limitations on where and how you can use your electronic food stamp benefits that you’ll need to be aware of.
Keep reading this comprehensive guide to get the full scoop on Costco’s EBT and food stamps policy, including:
- What items you can (and can’t) buy with SNAP benefits at Costco
- Tips for using your EBT card during checkout
- Hidden fees and key considerations before shopping there
- How to maximize your SNAP dollars through other grocery options
Plus find answers to frequently asked questions on getting the best value while using an EBT card at Costco.
A Quick Refresher: What Exactly Are SNAP and EBT Cards?
Before getting into the specifics on Costco, let’s review some SNAP basics first.
SNAP stands for the Supplemental Nutrition Assistance Program, which is the formal name for the federal government’s food stamps program. This welfare program helps supplement the grocery budgets of low-income individuals and families across America.
Participants get assistance through an EBT card – which stands for Electronic Benefits Transfer. This debit-like card is loaded up each month with your SNAP monthly benefits, allowing recipients to discreetly purchase food items at authorized retailers nationwide without needing to physically use paper food stamps.
Wondering if you might qualify for SNAP assistance? Eligibility and how much your monthly food stamp benefits will be depends on your:
- Household size
- Monthly income
- Assets/resources
Check directly with your state’s SNAP program for the latest requirements. If approved, your benefits will be transferred onto an EBT card each month to spend on groceries.
Does Costco Accept EBT/SNAP Payment?
The warehouse giant Costco is one major retailer that has participated in the SNAP program since late 2009.
So yes – as a company policy, Costco does accept EBT SNAP cards for payment at all its warehouse stores. Your EBT card essentially acts as a debit card, allowing you to purchase SNAP-eligible foods using your SNAP account balance.
Just note this EBT card acceptance policy only applies if shopping directly at Costco warehouses. You cannot use an EBT card for online orders at Costco.com, to shop at any Costco Business Center locations, or make any purchases inside Costco food courts.
There are also restrictions on what food items can be purchased using SNAP benefits at Costco, which we’ll outline next.
What Foods and Household Items Can You Buy With EBT at Costco?
While Costco sells everything from discounted gift cards to luxury beauty products, if you’re paying with an EBT card your purchases are limited to SNAP-eligible foods and grocery products only. These include:
- Dairy like milk, eggs, cheese, yogurt
- Meat, poultry, fish choices like ground beef, chicken, salmon
- Fruits and veggies – fresh, frozen or canned
- Breads and cereals
- Non-alcoholic drinks like juice, coffee, tea
- Seeds and plants to grow food (herbs, vegetables, fruits)
Under SNAP rules, there are also many items that cannot be purchased at Costco using EBT cards:
- Alcoholic beverages
- Tobacco products
- Hot deli foods or prepared meals
- Pet foods
- Paper products, toiletries, household supplies
- Vitamins, medicines, supplements
If shopping for a mix of SNAP-eligible and ineligible items at Costco, you would need to arrange split transactions at checkout to use your EBT card strictly for the approved items only.
And a final caution before assuming your monthly SNAP amount will stretch considerably further when bulk shopping at the popular warehouse store…
Can You Really Save Money Using SNAP Benefits at Costco?
On the one hand, buying pantry staples in bulk makes sense if you want to stretch every SNAP dollar. Families can stock up on basics like beans, rice, pasta and canned goods for the month at significant cost savings compared to other retailers.
However, discretion is also key when bulk buying to avoid food spoilage and wasting EBT funds in the long run. For example, a giant tub of fresh spinach or carton of blueberries risks going bad before a small family can finish them.
Likewise, freezing extra perishables requires available freezer space plus planning ahead to incorporate them into future meals.
These considerations become especially important given Costco’s $60-$120 membership fee. As a SNAP recipient, you’ll need to calculate whether the dollars saved from buying certain items in bulk exceeds this upfront annual charge.
Alternatively, some food stamp shoppers bring along a Costco member friend to shop without requiring their own membership. Just have that person present their card at entrance while you pay separately for EBT-eligible groceries only during checkout.
Bottom line?** Pay attention to unit prices and realistically weigh whether a bulk item in your cart makes sense before swiping that EBT card.** Let’s go over more tips for using your benefits during checkout…
5 Tips for Checking Out With EBT at Costco
Navigating any checkout line comes with its own set of unwritten rules. Here are a few pointers to smoothly pay for your EBT purchases at Costco:
1. Have the cashier ring up SNAP-eligible items separately
If buying any non-food household goods or other ineligible items, ask the cashier to ring up your EBT food purchases separately. This allows you to conveniently pay for whatever is covered under SNAP rules first.
2. Then use another payment method for non-EBT items
Once your EBT total appears on the register, insert your EBT card into the PIN pad to verify your SNAP balance can cover it. You’ll then be prompted to provide another form of payment to cover any non-EBT items.
3. Head to self-checkout if you prefer privacy
If you would rather not announce use of SNAP benefits publicly, most Costco warehouses now have self-service registers. Scan your own items while separating food from non-food items in your cart, then simply follow the prompts on screen.
4. Remember EBT cards cannot be used to withdraw cash
While your EBT account may have both SNAP and cash benefits, Costco registers do not allow withdrawing cash back. You’ll need to visit an ATM instead for cash withdrawals.
5. Keep all food Lion receipts as proof of EBT purchases
Finally, while rare, periodically EBT card accounts undergo fraud investigations to prove where SNAP benefits were actually spent. So remember to save any Costco food purchase receipts should questions later arise.
Now let’s switch gears to talk bigger picture – whether Costco truly makes financial sense as your go-to grocery destination if relying on food stamps each month. What other EBT-friendly options exist?
Should You Shop at Costco With SNAP Benefits?
Costco can undoubtedly offer convenience plus discounted prices when buying certain goods in bulk volumes. But a recurring Costco membership fee may not suit all EBT households’ budgets or shopping needs.
Here are some questions to ask yourself when deciding if it’s worth using SNAP dollars there:
🔎 Will you realistically eat all that food before it expires?
Remember, buying more in bulk only saves money long term if you fully consume the items while still fresh.
🔎 Can you store and freeze extra inventory if needed?
Stocking up requires available freezer space plus strategic meal planning.
🔎 Are unit prices truly better compared to other stores once you factor in the annual membership fee?
Calculate whether Costco’s bulk sizes still beat non-membership retailers by unit price.
🔎 Are there SNAP-friendly stores closer to home?
Weigh convenience if needing to drive substantially further.
For many families, it may prove difficult to justify paying up to $120 each year for an executive Costco membership. Especially if existing area grocers provide better food prices without membership fees cutting into SNAP benefits.
But of course there’s no one right answer across the board. Take your household’s unique grocery needs and transportation options into account when deciding what makes most financial sense long term.
9 Smarter Ways to Stretch Your Food Dollar Beyond Costco
While Costco accepts SNAP EBT payments, it is far from your only option to shop on a budget. Here are 9 alternative retailers that also allow using federal food assistance benefits:
1. Aldi – This nationwide discount grocery chain provides low prices on house brands without any membership fees.
2. Sam’s Club – Similar bulk warehouse model to Costco but with slightly lower annual membership cost.
3. Walmart – America’s leading retailer offers own brands plus price matching without a membership requirement.
4. Food Lion – Mid-Atlantic budget supermarket chain participating in the SNAP program at all locations.
5. Dollar General – While a dollar store first and foremost, many urban locations now sell groceries including fresh produce.
6. Amazon SNAP – Eligible recipients can order groceries online for delivery without needing an Amazon Prime membership.
7. Individual SNAP grocers – Many small regional chains or independent grocery stores accept EBT without extra fees.
8. Farmer’s markets – Certain seasonal farmer’s markets allow SNAP customers to receive matching discounts on fresh, local fruits and vegetables.
9. SNAP-ed nutrition classes – Some states offer free SNAP nutrition education programs teaching shopping savvy plus cooking skills on a tight grocery budget.
Whatever retailers or support services make the most financial sense for your household, remember the ultimate goal remains stretching SNAP benefits responsibly without waste each month.
Now let’s recap answers to some of the most frequently asked questions about using food stamps specifically at Costco.
FAQs About Using SNAP/EBT Cards at Costco
✅ Can I use SNAP benefits at the Costco food court?
Unfortunately EBT cards cannot be used to purchase prepared food items inside Costco food courts, cafes or concession stands, even for eligible goods like pizza slices or sandwiches. Federal rules restrict using SNAP benefits on “hot foods ready for immediate consumption”.
✅ If I’m with a friend, can they use their Costco membership for me to shop?
Yes, you may certainly accompany any existing Costco member during their warehouse shopping trip without personally paying the membership fee yourself. During checkout, simply have them scan their card at entrance then complete your separate EBT payment for food-only goods.
✅ What if I want to buy both food and non-food items at Costco?
Whenever shopping for a mix of SNAP-eligible groceries plus excluded items like paper towels, cigarettes, etc, confirm with the cashier before checkout begins so they can ring up each basket appropriately. Otherwise the EBT card will be declined when attempting joint payment.
✅ Can I withdraw cash from my EBT account at Costco?
Sorry, Costco registers do not allow getting “cash back” from your SNAP account even if it has both food and cash balances. You would need to visit a participating ATM, bank or retail location displaying the Quest logo to withdraw physical currency using an EBT card.
✅ Do I earn Costco Shop Card rewards on EBT purchases?
Unfortunately Costco (like all retailers) cannot provide any monetary incentives or rewards for purchases made using SNAP government benefit programs. So Shop Card reward certificates are only issued if using other qualifying payment methods.
We hope these EBT tips help you shop smart if buying approved grocery items at Costco warehouses using SNAP food benefits!
Conclusion: Final Thoughts on Using SNAP at Costco
As rising food costs strain many American’s monthly budgets, SNAP recipients must carefully weigh how to maximize their federal food assistance dollars at retailers like Costco.
The good news is Costco’s warehouse stores have participated in the SNAP program since 2009, accepting EBT card payments on all SNAP-eligible goods nationwide. So if strategically buying certain items in bulk there makes sense for your household’s grocery needs and consumption ability, Costco can certainly help offset bills.
Just be mindful of:
- Extra fees cutting into SNAP dollars (e.g. membership, potential spoilage if overbuying)
- Restrictions on where EBT is accepted within Costco locations
- Focusing on unit price comparisons, not just bulk savings hype
While not always a perfect fit, using SNAP benefits at Costco may still prove worthwhile for many families’ circumstances. Weigh their bulk dry goods, produce and protein deals against other discount retailers accessible to you.
Maximizing SNAP benefits ensures precious food dollars stretch as far as possible during these inflationary times. Hopefully this guide gave helpful insight navigating Costco specifically using EBT cards and food stamp benefits wisely.
What has your own experience been like using SNAP at big box stores? Share any shopping wisdom to help fellow EBT cardholders decide!
