Here are the 3 major differences between Costco and Sam’s Club

Costco and Sam’s Club are two popular department store club retailers. Many shoppers join warehouse clubs to purchase member-only deals so they can keep more money in their checking accounts.

Have you thought about joining Costco or Sam’s Club? Before paying an annual membership fee, it’s a smart idea to understand the differences between each retailer. This way you can choose the membership that suits you. Let’s dive into a few key 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 costs $110. With a Plus membership, you can earn 2% in rewards back on qualifying club purchases, for a total of up to $500 in rewards per year.

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

Consider your budget before paying an annual membership fee. If you’re looking for the cheapest membership, Sam’s Club is the winner. But if price isn’t a big factor for you, it’s worth checking out the membership benefits and inventory 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 stores.

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 transportation. By using one of the best credit cards for costcoyou can earn valuable rewards.

At Sam’s Club you can pay with a wider variety of credit cards. You can use American Express, Discover, Visa and MasterCard cards in the 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 merchant, we recommend using a rewards credit card to pay for your transportation so you earn rewards when you shop. Want to earn cash back at Costco or Sam’s Club? Click here to see our list of the best cash back cards with big rewards.

3. Checkout options

Costco and Sam’s Club have regular cash registers, but Sam’s Club is more technology-friendly. All Sam’s Club members have the option to pay electronically through the retailer’s Scan & Go service. Shoppers can scan their items through the Sam’s Club mobile app, checkout virtually and pay for their purchases before leaving the club.

This service can shorten the wait time in a busy store. Additionally, members who use Scan & Go have access to exclusive discounts on select purchases. Scan & Go discounts are signposted throughout the club.

Unfortunately, this type of service is not available at Costco. You must wait in the regular checkout line to pay for your purchases. If a technology-focused self-service process like this doesn’t appeal to you, Costco may be a good membership option for your family.

Don’t ignore this simple way to maximize your savings

You can maximize your savings by earning rewards when you shop at your favorite stores, like Sam’s Club and Costco. Do you want to save even more money? Check out our list of credit cards with the best rewards to find out how you can save more.