Why doesn’t Costco accept Mastercard? (Many people don’t know this!)
If you’ve ever paid with Mastercard at Costco, you probably realized it was a little too late that they didn’t accept Mastercard as a payment method.
Most stores happily accept many different credit cards, including Mastercard, so Costco customers may be surprised that the warehouse doesn’t accept Mastercard.
Why doesn’t Costco accept Mastercard?
Costco doesn’t accept Mastercard because they have an exclusive deal with Mastercard’s competitor, Visa. Such deals are common when a company wants to develop a mutually beneficial relationship with a payment processor.
The Visa deal stems from an earlier deal between Costco and American Express that fell through at the end of the contract. American Express and Costco couldn’t come to an agreement on a new contract, so Costco switched to Visa and never looked back.
Read on to find out more about Mastercard and Costco, as well as general information about the payment methods that Costco accepts.
When will Costco stop accepting Mastercard?
As noted above, Costco’s previous deal with American Express ended in the summer of 2016. Costco ended up partnering with Visa because American Express and Costco couldn’t come to an agreement on a new contract. The deal is now exclusive, and Costco no longer accepts Mastercard.
Costco stopped accepting Mastercard on June 20, 2016. This is the date Costco’s new deal with Visa goes into effect. The deal was announced in early 2015 and went into effect more than a year later.
Costco payment methods
To provide convenience to customers, Costco accepts a number of different payment methods. Even if they no longer accept MasterCard, you can still use your PIN-based Debit MasterCard at Costco.
US Costco locations accept the following payment methods:
- All Visa cards
- PIN-based debit card
- Costco Gift Card
- cash
- Personal or business checks for current costco members
- EBT card
- Mobile payment apps, including Apple Pay, Google Pay, and Samsung Pay
Costco gas stations in the US only accept Visa, PIN and Costco gift cards. Additionally, Costco.com will accept payments using Mastercard or Discover cards and the methods above.
Read: Does Costco Optical accept Kaiser insurance?
Why does Costco only accept visas?
Costco only accepts Visa because they have exclusive deals and only accept Visa credit cards in their stores. You can still shop online at Costco.com with your Mastercard or Discover card.
Does Costco accept debit cards?
As mentioned above, Costco accepts many different payment methods in order to provide customers with a convenient shopping experience. This includes most PIN-based debit cards.
Costco does accept debit cards. They accept most PIN-based debit cards, including Mastercard debit cards. They also accept cash, checks, gift cards and EBT cards.
Most PIN-based debit cards can also be used to shop online at Costco.com. For more information on the payment methods accepted by costco, you can visit the Customer Service page on Costco.com.
Does Costco accept MasterCard debit cards?
Although Costco no longer accepts MasterCard credit cards, PIN-based MasterCard debit cards are still an acceptable form of payment. This is true both in-store and online at Costco.com.
Costco does accept Mastercard debit cards. They accept most PIN-based debit cards in all stores as well as online and at gas stations.
Read: Can you use someone else’s Costco card?
Why doesn’t Costco accept Discover?
Costco has only accepted Visa credit cards in its stores since an exclusive deal with Visa in 2016. They no longer accept MasterCard, American Express or Discover. However, you can use your Mastercard or Discover credit card to shop online at Costco.com.
Costco doesn’t accept Discover because they have an exclusive agreement with Visa to only accept their credit cards in-store. You can still use Discover online at Costco.com.
Does Costco accept American Express?
Costco did have a contract with American Express until the end of the contract in 2016. Costco and AmEx were unable to reach an agreement on a new contract, so Costco signed an exclusive agreement with Visa.
Costco does not accept American Express. Their store only accepts Visa credit cards or PIN-based debit cards. Customers without Visa will have to use a different payment method, such as a debit card or cash.
in conclusion…
Costco’s exclusive deal with Visa may frustrate customers who prefer to use their Mastercard to shop at Costco. However, Costco still accepts many other payment methods, including cash, checks, debit cards, and EBT cards.
Customers who shop online at Costco.com can still make purchases with Mastercard and Discover credit cards. Most PIN-based debit cards should also work online. All Visa cards and most PIN-based credit cards will be accepted for purchases at Costco gas stations.
If you have any questions or concerns, please feel free to ask them in the comments section.
