Costco, the beloved warehouse club known for its bulk deals and Kirkland Signature products, has a peculiar payment policy: they don’t accept Mastercard. This decision has left many Mastercard holders scratching their heads, wondering why they can’t use their preferred card at their favorite store.
The History Behind the Mastercard Ban
In 2016, Costco ended its long-standing partnership with American Express opting for an exclusive agreement with Visa. This move was a strategic one allowing Costco to negotiate lower processing fees with Visa and offer members better deals on products. Mastercard, unfortunately, was left out in the cold.
Current Payment Options at Costco
So, what are your options if you’re a Mastercard devotee? Fear not, there are still ways to shop at Costco without abandoning your trusty card:
- Visa: This is the preferred payment method at Costco, both in-store and online.
- Costco Anywhere Visa Card by Citi: This co-branded card offers rewards on Costco purchases and other benefits.
- Debit/ATM Cards: Most PIN-based debit cards are accepted, regardless of the network they belong to.
- Costco Shop Card: This prepaid card can be loaded with funds online or in-store and used for purchases.
- Cash: The old-fashioned way is always an option.
- Personal Checks: Accepted for Costco members only.
- Business Checks: Accepted for Costco Business members only.
- Traveler’s Checks: Still a valid form of payment at Costco.
- EBT Cards: Accepted for eligible purchases.
- Mobile Payments: Apple Pay, Google Pay, and Samsung Pay are all accepted.
Clever Workarounds for Mastercard Users
If you’re determined to use your Mastercard at Costco, here’s a clever workaround:
- Purchase a Costco Cash Card: These prepaid cards can be bought online using your Mastercard and loaded with up to $2,000. Once you have the card, you can use it for in-store purchases at Costco, effectively using your Mastercard indirectly.
The Canadian Exception
Interestingly, the rules are reversed in Canada. Up north, Mastercard reigns supreme, while Visa is the outcast. So, if you’re a Canadian Costco shopper with a Mastercard, you’re in luck!
The Mastercard Mystery: Unanswered Questions
While the reasons behind Costco’s Mastercard ban are clear, some questions remain unanswered:
- Will Costco ever accept Mastercard again? This is a possibility, but it’s unlikely in the near future. The current Visa partnership is highly beneficial for both parties.
- Why does Canada have a different payment policy? This is likely due to different market dynamics and competition in the Canadian credit card industry.
The Bottom Line: Mastercard at Costco – A No-Go (Except in Canada)
For now, Mastercard holders in the United States will have to rely on alternative payment methods at Costco. However, the clever workaround using a Costco Cash Card offers a way to bridge the gap and still enjoy the benefits of your Mastercard. And who knows, maybe one day Mastercard will make its triumphant return to the aisles of Costco. Until then, happy shopping!
Our top picks of timely offers from our partners
Costco is one of the largest and most beloved membership warehouse chains, and for good reason. Although it is best known for its grocery selection, it also has one of the most lenient return policies available and offers discounts on gas, electronics, clothes, and more.
One quirk about shopping at Costco: your credit card may not be accepted at checkout.
Costco limits which type of credit cards you can pay with to only Visa-backed cards. Costco customers had to use Amex-issued credit cards at first, but that changed in 2016 when Visa became Costco’s exclusive credit card network.
If your preferred method of payment is a credit card that is backed by a different network, this could cause problems when checking out.
The credit cards that are accepted at Costco warehouses are reviewed below, along with a comparison of those that are not accepted at Costco. com and on the Costco app.
Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here.
Credit cards accepted at Costco
When you shop at Costco, you can use the warehouse clubs co-branded card, the Costco Anywhere Visa® Card by Citi (see rates and fees), as well as any other credit card backed by the Visa network.
Here are some credit cards that can be used at Costco warehouses:
In addition to using contactless payment methods like tap-to-go and mobile wallets (Apple Pay, Google Pay, and Samsung Pay), you can choose to swipe or insert your card at the register.
Given that the typical Costco customer spends $114 every visit, you should use a credit card that allows you to make the most purchases. Select determined that these credit cards are the greatest for Costco shopping due to features such as their rewards programs, sign-up bonuses, variable and introductory interest rates, and more.
In the end, Costco only accepts Visa due to an agreement it made with the card issuer to pay cheaper merchant fees and, ideally, pass those savings along to customers.
Remember that Costco accepts the majority of PIN-based ATM/debit cards, so the Visa-only restriction only applies to credit cards.
- RewardsEnjoy 4. 5% cash back is available for purchases made at drugstores and restaurants, including takeout and delivery services that qualify. 5% cash back on travel purchased through Chase Travel, our premier rewards program, which allows you to redeem rewards for travel, gift cards, cash back, and more; and 3% cash back on all other purchases (up to $20,000 spent in the first year). Following your first year or $20,000 spent, take advantage of $5 percent cash back on travel booked through Chase Travel, $3 percent cash back on drugstore purchases and restaurant meals, which includes takeout and eligible delivery service, and an endless 5% cash back on all other purchases.
- Welcome bonusINTRO OFFER: Earn an additional 1. 5 percent cash back on everything you purchase (up to $20,000 in the first year) is worth up to $300 in cash back!
-
Annual fee
$0
- Introduced at 0% APR for the first three months of 2015 following account opening, on purchases and balance transfers
-
Regular APR
20.49% – 29.24% variable
- Balance transfer fee: Introductory fee of either $5 percent or 3% of the total amount of each transfer, whichever is higher, on transfers made within 60 days of account opening Following that, either 5% or 5% of the total amount of each transfer, whichever is higher
-
Foreign transaction fee
3%
-
Credit needed
Excellent/Good
- Member FDIC. Terms apply.
-
Rewards
Unlimited 2% cash rewards on purchases
- Welcome bonus: After making $500 in purchases in the first three months, you’ll receive a $200 cash rewards bonus.
-
Annual fee
$0
- Intro APR 0% Intro APR for the first three months of 2015 from the account opening on purchases and qualifying balance transfers; balance transfers made within the first three months of 2012 qualify for the intro rate
- Regular APR20. 24%, 25. 24%, or 29. 99% Variable APR on purchases and balance transfers.
- Balance transfer fee 3% introduction for 120 days from account opening, followed by BT fee of up to 5%, min: $5
-
Foreign transaction fee
3%
-
Credit needed
Excellent/Good
See rates and fees, terms apply.
Why does Costco not allow Mastercard?
FAQ
Why is Mastercard not accepted at Costco?
Why is my Mastercard not working in Costco?
Can any Mastercard be used at Costco?
Why does Costco only accept Visa?
Does Costco accept credit cards?
At a Costco Warehouse, a number of other forms of payment are accepted: Costco accepts Visa credit cards in-store and at its gas stations but the only place to use a Mastercard or Discover card is online at Costco.com. Most debit cards are accepted at all three, but if you want to use your credit card, those are your options.
What if my debit card is not working at Costco?
Most debit cards are accepted at all three, but if you want to use your credit card, those are your options. If your Visa card isn’t working, we recommend talking to your card issuer, as the decline is likely unrelated to Costco’s systems.
Does Costco have a Visa card?
Back in 2017, Costco signed an exclusive agreement with Visa, making them the preferred payment method in their warehouses. Can I Use a MasterCard on Costco Gas? The only credit card you can use to buy gas at Costco is a Visa card. Besides a Visa, the only ways you can pay for gas is with your debit card or a Costco Shop card.
Can a Costco member use a Citi credit card?
Costco members can apply for the Costco Anywhere Visa® Card by Citi. Keep in mind that you can use Mastercard and Discover credit cards on Costco.com. If you have one of those cards that you like using, you could at least use it to pay for your online Costco purchases.