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Costco and Sam’s Club are two popular warehouse club retailers. Many shoppers join warehouse clubs to shop members-only deals to keep more money in their checking accounts.

Have you been considering joining Costco or Sam’s Club? Before paying a yearly membership fee, understanding the differences between each retailer is a smart idea. This way, you can choose the membership that is suitable for you. Let’s dive into a few major differences.

1. Membership fees

One of the most noticeable differences between Costco and Sam’s Club is the membership price. Sam’s Club members pay $50 to $110 per year.

A Club membership costs $50, and a Plus membership is $110. With a Plus membership, you can earn 2% back in rewards on eligible in-club purchases, for a total of up to $500 in rewards annually.

Costco members pay $65 to $130 annually. The standard Gold Star membership costs $65 per year. Meanwhile, an Executive membership costs $130. The top advantage to becoming an Executive member is you can earn 2% in rewards on eligible Costco purchases, for a total of up to $1,250 in earnings annually.

Consider your budget before paying a yearly membership fee. If you’re looking for the cheapest membership, Sam’s Club is the winner. But if the price isn’t a huge factor for you, it’s worthwhile to review the membership perks and inventory that each retailer offers to find the best fit.

2. Accepted payment methods

Another difference between both retailers is the payment methods they accept. You can use cash, debit cards, and credit cards at both retailers.

However, at Costco, you can only use Visa credit cards. You can also use cash, Costco Shop Cards and checks to pay for your Costco hauls. By using one of the top credit cards for Costco, you can earn valuable rewards.

You can pay with a bigger variety of credit cards at Sam’s Club. You can use American Express, Discover, Visa, and MasterCard cards in-club and online. You can also use cash, Sam’s Cash, prepaid cards, and paper checks to pay for your goods.

Regardless of your preferred retailer, we recommend using a rewards credit card to pay for your haul so you earn rewards when you shop. Want to earn cash back at Costco or Sam’s Club? Click here to review our list of the top cash back cards with big rewards.

3. Checkout options

Costco and Sam’s Club have regular checkout lanes, but Sam’s Club is more tech-friendly. All Sam’s Club members have the option to electronically check out using the retailer’s Scan & Go service. Shoppers can scan their items through the Sam’s Club mobile app, check out virtually, and pay for their purchases before they leave the club.

This service can reduce the time spent waiting in a crowded and busy store. Plus, members who use Scan & Go can access exclusive discounts on select purchases. Scan & Go discounts are marked on signs throughout the club.

Unfortunately, this kind of service isn’t available at Costco. You must wait in the regular checkout line to pay for your purchases. If a tech-focused self-service checkout process like this isn’t of interest to you, Costco may be a good membership option for your family.

Don’t ignore this easy way to maximize your savings

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Top credit card to use at Costco (and everywhere else!)

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Mastercard, and Visa. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.