Costco has launched a digital wallet that lets you pay from your phone, what are its limitations?

Costco has introduced a new digital wallet that will allow its members in the U.S. to pay via their phones and manage funds accumulated on different gift cards from the company in a single place.

The tool, called Costco Wallet, is available within the mobile app and in the user's account on Costco.com. Its purpose is to consolidate the digital membership, Costco Shop Cards and a payment method, thereby reducing the need to carry physical cards.

As the company explains on its official customer service page, to activate the wallet, you must have a valid and previously verified membership.

How does Costco Wallet work?

Members can transfer funds from one or more Shop Cards, both physical and digital, to the wallet. To do so, they must go to the "Account" section, select "Costco Wallet" and enter the number and PIN for each card.

Once the transfer is complete, the original Shop Card balance is reset to zero, and the funds appear directly in the wallet. The accumulated funds have no expiration date, although their use may be affected if the membership is canceled.

At physical stores, users must enable the “Enable Auto-Apply” option and scan the QR code on their digital membership card at the register. The terminal will then ask if they wish to use the available balance.

On Costco.com, customers must activate the option for Shop Cards. During checkout, the system will first deduct the available funds from the wallet and charge any remaining amount to the saved payment method.

Only one Visa card can be linked

The wallet supports only one Visa credit or debit card associated with a U.S. billing address. To add it, the user must enter the expiration date, CVV code and ZIP code. The issuing bank may require additional verification.

Costco confirmed in its digital payment FAQs that, for now, it is not possible to save multiple cards or use a temporary card. Additionally, an internet connection is required to make a payment, as the system must update the security token.

What are the limits?

Costco Wallet sets a maximum of $10,000 in stored funds and a daily loading limit of the same amount. These limits apply to both physical and digital Shop Cards combined.

The app allows you to view transactions for six-month periods and retains a history of up to two years. Refunds for purchases made with a Shop Card will be credited directly to the wallet balance.

The platform can be used on Costco.com and at store checkout counters, including the food court, pharmacies and gas stations.

However, it does not replace other digital wallets. The official Costco information states that the digital membership card works exclusively within its app and cannot be added to Apple Wallet or Google Wallet. The physical card, meanwhile, will continue to be accepted as usual.