Costco has millions of customers just counting those within the United States. That is why it is not surprising that the question of What Credit Cards Does Costco Accept? It is extremely common throughout the country.
That is why today we are here to talk about What Credit Cards Does Costco Accept? How did the change from American Express to Visa affect Costco members? What Costco cards and other Visa cards exist. How it saves you money that both companies have associated and much more.
What Credit Cards Does Costco Accept?
In case you want to be part of the large number of people who buy at Costco or you are already one of them, you most likely want to know how you can pay for your purchases, what credit cards the store accepts.
In its beginnings and for a long time, customers could only cancel their purchases with American Express cards, it was the only credit card accepted in their stores. As of 2016, an agreement was signed with the Visa network and now their cards are the only ones accepted for the payment of items.
Costco ‘s privilege with American Express skyrocketed the companies involved because Costco grew by pushing huge dollars from its canceled sales with American Express, eventually joining a larger network like is Visa.
However, something similar happened when in 1999 it changed from receiving Discover cards to AmEx cards, because at that time it had a greater number of members.
At Costco you can also pay with ATM debit cards, cash, Cost Cash Cards, checks and EBT Electronic Benefits Transfer.
Does this affect Costco members?
At the time of answering the question of What Credit Cards Does Costco Accept? We must also consider how it affects its members.
Between the years 1999 and 2016, the company only accepted American Express credit cards. This was originally done because the AmEx was paying them to gain exclusivity within their stores.
This meant that of its nearly 80 million members at the time, some had no way of paying in paper money. If you forgot or did not bring money, you should pay with American Express.
AmEx always viewed Costco’s large number of customers as very profitable. It made it much more likely that people would opt for their credit cards. But this deal would end up dissolving in 2017, where Visa switched places with AmEx .
Thanks to this, as the only form of payment by credit card was Visa , it agreed to lower its commercial rate to 0.4%. This was a deal that greatly benefited Costco. Because Visa had 276 million customers while AmEx only had 23.3 million.
That is why Costco prefers that its customers pay with Visa Cards and customers could access a much broader list of cards.
Costco Credit Card and other Visa Cards
Another important part about What Credit Cards Does Costco Accept? is knowing that other Costco and Visa cards are accepted.
The other modification that Costco made with the change of provider was that the American Express Costco card be replaced by another product. Currently, Citi’s Visa Costco Anywhere card fills the gap left by its predecessor.
In general, customers much preferred the exclusivity of Visa over that of American Express since they were much more common. The new card that was implemented is available with no annual fee for people who are members of Costco.
It also offers higher rewards compared to its predecessor. It has bonus points that can earn you a 4% rebate each year (no more than $7,000) on gas purchases. After that rank they will continue to give you a discount but only 1%.
On the other hand, you can also get up to 3% back at restaurants and 2% back at Costco with the card. Points can also be redeemed for certain rewards at any store or through Costco’s official website .
How does the Visa-Costco partnership save customers money?
From the Visa-Costco society , this network has total exclusivity for the payment of purchases in its branches. Credit card payments are the goal of payment networks
The process is as follows when canceling with a credit card, the credit card processor sends said information to the Visa payment network. The bank that issued that card could be Chase or Citibank, for example, it receives the information through this network.
Upon arrival at the bank, the credit available to the cardholder is studied and the transaction being requested is rejected or approved, sending this information to the network through the processor so that it is finally received by the store.
In other words, it is Visa who, on behalf of Costco, speaks with the bank so that the funds, if approved after their evaluation, are sent.
The merchant must pay a commission for making use of a payment network, this value is a percentage of the total amount, the standard of that commission is almost always between 2 and 3 percent, in this particular case Visa offered them for its exclusivity to charge the modest value of 0.5 percent equivalent per transaction.
This means that the Costco store can lower its costs , maintaining competitive prices in the market, because it does not have to include in the prices the percentage that must be paid for the use of the network.
With this advantage, it is difficult for its competitors to match their prices, having to pay 3%, since they sell their products with little profit margin with an amount as if it were almost wholesale.
Are there other ways to pay at Costco?
If you belong to Costco’s large portfolio of clients or if you want to be a member of its establishments, you will have to have a Visa card, this is because it is the only credit card with which you can pay to purchase your products or items, due to because it has already closed its agreement with American Express.
You do not have a Visa card, do not worry Costco has other payment options in those cases, you can write a check, make the payment in cash, use ATM debit cards, Costco Cash Cards or through Electronic Transfer of Benefits EBT.
You already know the range of options to cancel, but you should keep in mind that they do not receive payment in checks, cash or through EBT, at car washes or Costco gas pumps.
The payment for the membership will depend on which one you choose and also where you are located. In this case we will detail in particular the Business Executive and the Gold Star Executive additionally the Gold Star and Business :
For clients located in the USA, with a cost of 60 dollars per year in the case of Business and Gold Star memberships. On the other hand, there are exclusive memberships, such as the Gold Star Executive as well as the Business Executive, both with a price that doubles the simple one, they have an annual value of 120 dollars.
What other option do you have to buy at Costco if you do not have a membership?
When you go to the store you must do it with a member , you choose your items to purchase and when you cancel, it will be done as follows.
The companion or member will cancel the total price of your order and theirs, 2 orders must be issued separately. Later when leaving the warehouse you will cancel the member. You can do it the way they want or have agreed, it can be by check or cash.
You can also use the prepaid card when going with a member you can buy the prepaid cards for them to purchase. There are several denominations and can reach 1000 dollars. These are usually used when purchasing items with a high cost. Because you will not have to pay the membership fee for a single product.
The good thing is that by obtaining them in advance you can go without the need for the member to accompany you to purchase your item(s).
Another option is to use a commercial quota , you can do it only if the company where you work has the commercial membership in Costco. In this case, you should ask your boss to place your data on the account list.
And that’s it, with this we have finished this article in which we have explained everything related to What Credit Cards Does Costco Accept? We are sure that you will have no doubts about the subject and that now you can make the decision that best suits you.