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 considered joining Costco or Sam’s Club? Before paying an annual fee, understanding the differences between each retailer is a good idea. You will then be able to choose the membership that suits you. Let’s look at some major differences.

1. Contributions

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

A Club membership costs $50 and a Plus membership costs $110. With a Plus membership, you can earn 2% rewards on eligible purchases within the club, for a total of up to $500 in rewards per year.

Costco members pay between $65 and $130 per year. The standard Gold Star membership costs $65 per year. Meanwhile, an executive membership costs $130. The main 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 fee. If you’re looking for the cheapest membership, Sam’s Club is the winner. But if price isn’t an important factor for you, it’s worth looking into the membership benefits and inventory offered by each retailer to find the best fit.

2. Payment methods accepted

Another difference between the two 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 groceries. Using one of the best credit cards for Costcoyou can earn valuable rewards.

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

3. Payment Options

Costco and Sam’s Club have regular checkouts, 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. Shoppers can scan their items through the Sam’s Club mobile app, pay virtually and pay for their purchases before leaving the club.

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

Unfortunately, this type of service is not available at Costco. You must wait at the usual checkout to pay for your purchases. If a tech-driven self-checkout process like this doesn’t interest you, Costco may be a good membership option for your family.

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