If you’ve ever gone to pay with Mastercard at Costco, you have probably realized a little too late that they do not accept Mastercard as a form of payment.
Most stores are happy to accept many different credit cards, including Mastercard, so it can come as a surprise to Costco customers that the warehouse doesn’t accept Mastercard.
Why Doesn’t Costco Take Mastercard?
Costco doesn’t take Mastercard because they have an exclusive deal with Visa, who is a Mastercard competitor. Deals like this are common when companies want to form mutually beneficial relationships with payment processors.
The deal with visa has its roots in an earlier deal between Costco and American Express that fell through when the contract ended. AmEx and Costco couldn’t reach an agreement for a new contract, so Costco moved over to Visa and never looked back.
Keep reading to find details on Mastercard and Costco, as well as general information about payment methods accepted by Costco.
When Did Costco Stop Accepting Mastercard?
As mentioned above, Costco used to have a deal with American Express which ended in the summer of 2016. Since American Express and Costco could not reach an agreement for a new contract, Costco ended up partnering with Visa. This deal is now exclusive, and Mastercard is no longer accepted at Costco.
Costco stopped accepting Mastercard on June 20th, 2016. This was the date that Costco’s new deal with Visa came into effect. The deal was announced in early 2015 and took effect over a year later.
Costco Payment Methods
To provide their customers with convenient service, Costco accepts a number of different payment methods. Even though they no longer accept Mastercard credit cards, it is still possible to use a PIN-based Mastercard debit card at Costco.
US Costco locations accept the following forms of payment:
- All Visa cards
- PIN-based debit cards
- Costco gift cards
- Personal or Business checks from current costco members
- EBT cards
- Mobile payment apps including Apple Pay, Google Pay, and Samsung Pay
Costco gas stations in the US only accept Visa cards, PIN-based cards, and Costco gift cards. Additionally, Costco.com will accept payments with Mastercard or Discover cards as well as the above listed methods.
Read: Does Costco Optical Accept Kaiser Insurance?
Why Does Costco Only Take Visa?
Costco only takes Visa because they have an exclusive deal to only accept Visa credit cards in their stores. You can still use Mastercard or Discover cards for online purchases at Costco.com.
Does Costco Take Debit Cards?
As mentioned above, Costco accepts many different forms of payment in order to provide a convenient shopping experience for their customers. This includes most PIN-based debit cards.
Costco does take debit cards. They accept most PIN-based debit cards, including Mastercard Debit. They also accept cash, checks, gift cards, and EBT cards.
Most PIN-based debit cards can also be used for purchases made online at Costco.com. For more information on payment methods accepted at costco you can visit the customer service page on Costco.com.
Does Costco Take Mastercard Debit?
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. They accept most PIN-based debit cards in all of their stores as well as online and at their gas stations.
Read: Can You Use Someone Else’s Costco Card?
Why Doesn’t Costco Accept Discover?
Since they entered their exclusive deal with Visa in 2016, Costco only accepts Visa credit cards in their stores. They no longer accept Mastercard, American Express, or Discover. However, you can use Mastercard or Discover credit cards for purchases online at Costco.com.
Costco doesn’t accept Discover because they have an exclusive deal with Visa to only accept their credit cards in store. You can still use Discover online at Costco.com.
Does Costco Take American Express?
Costco did have a contract with American Express until 2016, when the contract ended. Costco and AmEx couldn’t come to an agreement for a new contract, so Costco signed an exclusive deal with Visa instead.
Costco does not take American Express. They only accept Visa credit cards or PIN-based debit cards in their stores. Customers without Visa will have to use a different payment method, such as debit or cash.
Costco’s exclusive deal with Visa may be frustrating for customers who like to use Mastercard for purchases at Costco. However, Costco still accepts many other forms of payment, including cash, checks, debit cards, and EBT cards.
Customers shopping online at Costco.com can still use Mastercard and Discover credit cards for their purchases. Most PIN-based debit cards should also work online. Purchases at Costco Gas stations will accept all Visa cards and most PIN-based credit cards.
If you have any questions or concerns, feel free to ask away in the comments section.
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