What credit cards does costco take?
Updated: July 22, 2024An Overview of Costco's Payment Policy
Costco, the popular wholesale retailer, has a unique payment policy that often leaves customers puzzled about which credit cards are accepted. Unlike many other retailers that accept a wide range of credit cards, Costco has a more restricted policy. This policy differs between the United States and other countries where Costco operates. Understanding these nuances can help shoppers plan their purchases more effectively.
Costco's Credit Card Policy in the United States
In the United States, Costco has an exclusive agreement with Visa. This means that, as of now, Costco only accepts Visa-branded credit cards for in-store purchases. This policy was implemented in 2016, when Costco switched from American Express to Visa. The change was significant because it offered lower transaction fees for Costco, which can translate to lower prices for customers.
Why Only Visa?
The decision to accept only Visa cards is based on various factors:
1. Lower Merchant Fees: Visa offers lower interchange fees compared to other credit card networks like MasterCard and American Express.
2. Exclusive Agreement: Costco and Visa have an exclusive partnership, which means that Visa provides incentives and benefits to Costco that other credit card networks might not be able to match.
3. Streamlined Operations: Limiting the types of credit cards accepted can simplify the checkout process and reduce the complexity of managing different payment systems.
Accepted Visa Credit Cards
While Costco only accepts Visa, this does not mean you are limited in your choice of Visa cards. Here are some popular Visa credit cards that are accepted at Costco:
1. Costco Anywhere Visa® Card by Citi: This card is specifically designed for Costco members and offers 4% cash back on eligible gas purchases, 3% on dining and travel, 2% on Costco purchases, and 1% on all other purchases.
2. Chase Sapphire Preferred® Card: Known for its travel rewards, this card can be a good option for Costco shoppers who also love to travel.
3. Capital One Venture Rewards Credit Card: This card offers 2 miles per dollar on every purchase, making it a versatile option for Costco members.
Other Payment Methods Accepted at Costco
In addition to Visa credit cards, Costco accepts several other forms of payment:
1. Debit Cards: Visa and PIN-based debit cards are accepted.
2. Cash: Always a reliable option, cash is accepted at all Costco locations.
3. Checks: Personal checks are accepted, but you will need to provide proper identification.
4. Electronic Benefit Transfer (EBT): EBT cards are accepted for eligible items.
5. Costco Cash Cards: These can be used by both members and non-members and can be a convenient gift option.
6. Mobile Payment Options: Costco accepts mobile payment methods like Apple Pay, Google Pay, and Samsung Pay, but only if they are linked to a Visa card.
Costco's Credit Card Policy Outside the United States
Costco's credit card policies differ in other countries. For example:
1. Canada: Costco accepts MasterCard credit cards in Canada. This is due to a similar exclusive agreement with MasterCard, akin to the one Costco has with Visa in the United States.
2. United Kingdom: In the UK, Costco accepts all Visa and MasterCard credit cards.
3. Australia: Both Visa and MasterCard are accepted in Australian Costco stores.
4. Mexico: Visa, MasterCard, and American Express credit cards are accepted.
Historical Context and Changes
Costco's credit card policy has undergone significant changes over the years. Originally, Costco had an exclusive agreement with American Express, which lasted for 16 years. This partnership ended in 2016, when Costco switched to Visa. The switch was a strategic move aimed at reducing transaction fees and offering better benefits to customers.
Impact on Customers
The switch from American Express to Visa was not without its challenges. Many long-time customers who had American Express cards had to switch to Visa, which involved applying for new cards and updating their payment information. However, the benefits of the switch, including lower fees and better rewards, have generally been well-received by customers.
Tips for Costco Shoppers
For those who frequently shop at Costco, here are some tips to make the most of your shopping experience:
1. Get a Costco Anywhere Visa® Card by Citi: This card offers excellent rewards, especially for Costco purchases.
2. Use Mobile Payments: Linking your Visa card to a mobile payment app can make the checkout process faster and more convenient.
3. Consider Other Payment Methods: If you don’t have a Visa credit card, you can still use debit cards, cash, checks, or Costco Cash Cards.
4. Plan for International Travel: If you’re a Costco member traveling abroad, be aware of the different credit card policies in other countries.
How to Apply for a Costco Anywhere Visa® Card by Citi
Applying for a Costco Anywhere Visa® Card by Citi is straightforward. Here are the steps:
1. Visit the Citi Website: Go to the Citi website and navigate to the Costco Anywhere Visa® Card page.
2. Fill Out the Application: Provide the necessary personal and financial information.
3. Submit the Application: After reviewing the terms and conditions, submit your application.
4. Wait for Approval: Approval times can vary, but you will typically receive a decision within a few days.
5. Receive Your Card: Once approved, your card will be mailed to you. Activate it to start enjoying the benefits.
Potential Future Changes
While there have been no recent announcements, credit card policies can change. Costco continually evaluates its partnerships and may consider new agreements in the future. Keeping an eye on Costco’s official announcements can help you stay informed about any changes that might affect your shopping experience.
The intricacies of Costco's credit card policy reflect a blend of strategic business decisions and customer convenience. These decisions impact how shoppers interact with the retailer and manage their finances. As Costco continues to evolve, the potential for future changes in its credit card acceptance policy remains an area to watch closely.
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