Why Does Costco Only Accept Visa Credit Cards?

Ever wondered, “Why does Costco only accept Visa credit cards for payments?” We’ve got you covered!

Costco is one of the world’s most popular retailers, with approximately 136 million members worldwide as of 2024.

The American members-only, big-box chain is known for providing customers with consistently low prices in the form of bulk-purchase groceries, clothing, household products and other goods.

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While card-carrying Costco members are used to paying an annual fee (currently $65) to access the company’s stores and be able to shop, something Costco customers have also likely noticed over the years is that when it’s time to pay at the checkout counter using a credit card, Costco only accepts Visa.

While that might seem annoying or limiting, there’s actually a very good reason Costco only accepts Visa. Find out more, below!

Why Does Costco Only Accept Visa?

Like most corporate decisions, it all boils down to saving money—but in this case, the customer also benefits.

Credit card companies typically charge a merchant a transaction fee of up to 3 percent, and the amount of business Costco does can cost the retailer millions of dollars a year.

In 2015, Costco and Visa struck a partnership so that customers could only use Visa credit cards to pay on-site, and in return, the credit card company greatly lowered its merchant fee.

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By negotiating a deal to only accept Visa, the retailer has been able to keep costs down for itself and its customers. Lower merchant fees means the savings can be passed on to the chain’s members by way of lower prices at Costco warehouses and gas stations.

Costco originally had a similar deal with American Express, but after 16 years, the two companies severed their relationship. Visa, seeing an opening, swooped in and partnered with the big-box retailer.

Can You Use Any Other Credit Card at Costco?

Although Visa is the only credit card company Costco members can use to pay with, Costco accepts almost any debit card—even debit cards issues via Visa rival Mastercard.

Costco also accepts cash, checks, food stamps, Apple Pay and traveler’s checks as valid forms of payment.

However, if a Costco member only has a credit card issued by Mastercard, they can still shop on Costco’s website.