Does Costco accept MasterCard? (Why Costco Customers Are Angry!)
If you’ve never been to your local Costco, or if you just recently opened up a membership at the mega-retailer, you might be surprised to learn about an inconvenient quirk about the wholesale shopping supercenter.
Here’s everything you need to know about the relationship between Costco and Visa, and Mastercard’s place in it.
Does Costco accept MasterCard?
Costco does not accept MasterCard credit cards at any of its locations. However, Costco members can pay with a Mastercard PIN debit card in-store and at Costco Gas. Additionally, Costco only accepts Mastercard credit cards when shopping online at Costco.com.
MasterCard is widely used around the world, so existing and potential Costco customers may be very inconvenienced without this option.
Read on to learn more about why Costco doesn’t accept Mastercard credit cards as a payment method in its brick-and-mortar stores.
Costco strikes deal with Visa
Costco doesn’t allow its customers to use MasterCard credit cards to buy from their stores because the wholesale chain has an exclusive deal with MasterCard competitor Visa.
The deal began in June 2016, when Costco and American Express were unable to reach an agreement when their previous contracts expired.
Visa Transactions ensures that Costco can only accept customers’ Visa credit cards in its stores. Many people who don’t shop at Costco but are considering membership don’t like this.
For new customers who are considering becoming a member, this move can be very frustrating. It could even convince them against Costco memberships altogether.
Creating more barriers for consumers to shop in stores is a gamble Costco is willing to take. The deal is beneficial to both parties.
Perhaps the most frustrating experience for shoppers occurs when existing customers who have been using American Express credit cards at Costco for years find out that their preferred payment method is no longer accepted.
Will Costco accept debit cards from other carriers?
Although Costco has an exclusive deal with Visa for credit card transactions, customers can use their preferred debit card without hassle.
That’s good news for those whose banks only issue debit cards from MasterCard, Amex, or other companies.
Payment methods accepted by Costco include:
- Any credit card issued by Visa
- cash
- Most PIN-protected debit cards are PIN-protected, no matter which company issued them
- EBT card
- Checks from current Costco members
Costco’s deal with Visa doesn’t limit warehouse stores to accepting a wide range of payment methods.
This is great news for frustrated customers, as it gives them multiple options to pay at checkout. This helps those who don’t use Visa credit cards.
Even though Costco accepts multiple payment methods at its stores, customers are still annoyed by the serious inconvenience.
Many people choose to shop with a credit card in order to maintain a healthy amount of credit activity each month. If their credit card is not Visa, they will have to find a new way to shop.
To learn more about the different payment options at Costco, you can check out our related posts on whether you can pay with PayPal at Costco, use Apple Pay at Costco, and whether Costco has pre-orders.
in conclusion
Costco’s exclusive deal with Visa probably won’t hinder customers who currently use Visa credit cards, but it does affect those who use other brands. This could be a serious deterrent to customers who want to shop at Costco and pay with a Mastercard credit card. People always want the easiest shopping experience possible.
Costco puts a frustrating hurdle for its customers every time they plan to shop in its stores. Whenever the current deal with Visa expires, there may be another change. Until that day, however, customers will have to stick with Visa credit or choose a different payment method entirely.
