Costco is a popular retail giant renowned for its bulk-buy deals and exclusive member benefits. However, when it comes to credit card acceptance, the warehouse club has some specific policies. Here we delve into the question, “What Card Does Costco Not Take?” and explore the alternatives that Costco offers for customers who only carry non-accepted cards.
Costco, due to an exclusive contract with Visa, does not accept credit cards from American Express, Mastercard, or Discover in its warehouses or at its gas stations. However, Mastercard and Discover cards can be used for online purchases at Costco.com or via the Costco mobile app. Most PIN-based debit/ATM cards are also accepted in-store, online, and at gas stations, regardless of the network.
Costco’s Credit Card Acceptance Policy
Costco’s exclusive contract with Visa means that it does not accept credit cards from American Express, Mastercard, or Discover in its warehouses or at its gas stations. This policy is part of Costco’s strategy to negotiate much lower credit card processing fees, which in turn helps the company maintain low prices for its customers.
However, there are exceptions. Mastercard and Discover cards can be used for online purchases at Costco.com or via the Costco mobile app. Moreover, most PIN-based debit/ATM cards are accepted in-store, online, and at gas stations, regardless of the network.
How Costco’s Credit Card Policy Has Evolved
Initially, American Express was the exclusive credit card company for Costco for 16 years. In 2016, Costco ended its relationship with American Express and named Citi as its exclusive credit card issuer, with Visa as the new exclusive credit card network.
Another significant change in Costco’s credit card policy is the removal of the extended warranty benefit for the Costco Anywhere Visa Card by Citi and the Costco Anywhere Visa Business Card by Citi. Previously, these cards offered extended warranty protection that added 24 months to manufacturers’ warranties. However, this benefit will end for both cards on January 22, 2023.
Alternatives For Customers With Non-Accepted Cards
Even if you only carry a non-accepted card, Costco offers several alternatives:
- Costco Cash Card: These cards function like a gift card and allow you to shop at any Costco location in the United States, Puerto Rico, Canada, and online at Costco.com.
- Shop Online: Non-members can shop on Costco.com and pay with a Mastercard or Discover card.
- Use Mobile Payment: Costco accepts mobile payments like Apple Pay, Google Pay, and Samsung Pay, which can be linked to your non-accepted card.
- Shop with a Member: You can accompany a Costco member and have them make the purchase on your behalf.
- Costco Shop Card: If a member purchases a Costco Shop Card and gifts it to a non-member, the non-member can use the card to make purchases in Costco until the card runs out of cash.
Consumer Reactions to Costco’s Credit Card Policy
Consumer reactions to Costco’s credit card policy have been mixed. The Costco Anywhere Visa Card by Citi offers impressive rewards rates across a wide variety of categories, with no annual fee for Costco members. However, some customers have faced issues with the card, such as disputes with Citi and poor customer service experiences.
Purchasing Without A Costco Membership
Several products and services can be purchased without a Costco membership. These include alcohol, prescription drugs, eye exams, health screenings, online shopping, Instacart, and Costco Shop Card. However, do note that non-members may not get the full benefits and discounts that members enjoy.
In conclusion, while Costco does not accept all types of cards, it offers a variety of alternatives for customers. Understanding these policies can help you plan your shopping strategy at Costco and make the most of your purchases.
Frequently Asked Questions
What is the Costco Anywhere Visa Card by Citi?
The Costco Anywhere Visa Card by Citi is a credit card exclusively for Costco members. It offers cash back rewards on purchases, including 4% on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants and eligible travel purchases, 2% on all other purchases from Costco and Costco.com, and 1% on all other purchases.
Can I use debit cards at Costco?
Yes, Costco accepts most PIN-based debit/ATM cards in-store, online, and at Costco gas stations, regardless of the network.
Can I use Apple Pay, Google Pay, and Samsung Pay at Costco?
Yes, Costco accepts mobile payments such as Apple Pay, Google Pay, and Samsung Pay. These can be linked to your non-accepted credit card.
Can non-members shop at Costco.com?
Yes, non-members can shop on Costco.com and pay with a Mastercard or Discover card. However, they may not receive the same benefits and discounts as Costco members.
Are there any products or services that can be purchased at Costco without a membership?
Yes, several products and services can be purchased without a Costco membership. These include alcohol, prescription drugs, eye exams, health screenings, online shopping, Instacart, and Costco Shop Card. However, non-members may not get the full benefits and discounts that members enjoy.
