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

Have you considered joining Costco or Sam’s Club? It’s a smart idea to understand the differences between each retailer before paying an annual membership fee. In this way, you can choose the membership that suits you. Let’s look at a few key differences.

1. Membership fees

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

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

Costco members pay between $65 and $130 annually. The annual fee for a standard Gold Star membership is $65. Meanwhile, the Executive membership costs $130. The biggest benefit of being an executive member is that you can earn 2% rewards on eligible Costco purchases, totaling up to $1,250 annually.

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 examining the membership perks 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 and credit cards at both stores.

However, you can only use Visa credit cards at Costco. You can also use cash, Costco Store Cards, and checks to pay for your Costco moves. Using one of the following Best credit cards for CostcoYou can win valuable prizes.

You can pay with a wider variety of credit cards at Sam’s Club. You can use your American Express, Discover, Visa and MasterCard cards within 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 retailer, we recommend using a rewards credit card to pay for your shipping so you can earn rewards when you shop. Want to earn cash back at Costco or Sam’s Club? Click here to check out our list of the best cash back cards offering great rewards.

3. Payment 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 pay electronically using the retailer’s Scan & Go service. Through the Sam’s Club mobile app, shoppers can scan their items, pay virtually, and pay for their purchases before leaving the club.

This service can reduce the time spent waiting in a crowded and busy store. Additionally, members using Scan & Go can enjoy special discounts on certain purchases. Scan & Go discounts are noted on signs 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 you’re not interested in a technology-focused self-service checkout process like this, Costco may be a good membership option for your family.

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