First, let’s clear up some confusion. Costco does accept MasterCard debit cards. However, you cannot pay with a MasterCard credit card at Costco when shopping in person.
That said, you can shop with any MasterCard when making purchases on Costco.com. So, the only time you cannot use a MasterCard at Costco is when shopping in person with a MasterCard credit card.
Most of the information available online is very misleading and indicates that MasterCard is not accepted at Costco under any circumstances, which is not true. As a Costco shopper myself, I can verify that MasterCard debit cards work with no issues at Costco Warehouse registers.
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Why Costco Does Not Take Mastercard Credit Cards
The reason why Costco does not accept MasterCard credit cards for in-person purchases is very simple–they have an exclusive contract with Visa which was put in place in 2016. Some sources claim the switch happened in 2017, but this is incorrect.
Prior to the 2016 switch to Visa, Costco only accepted American Express credit cards in stores. The switch to Visa represented a boon for most customers, as Visa is a much more common credit card provider for the average US shopper.
You might be wondering why Costco would sign an exclusive agreement with one credit card company, which is an understandable question. But it actually makes a lot of financial sense for Costco.
By entering into an exclusive partnership, Visa agreed to lower their transaction fees for all Costco purchases made with Visa credit cards. In other words, every time you make a purchase at Costco with a Visa credit card, Costco only has to pay about 0.4% on that purchase, whereas standard credit transaction fees are around 2-3%, which is obviously much higher.
So, by remaining exclusive with one credit card company, Costco saves immense amounts of money which they then pass on as savings to their customers.
Credit Cards Accepted at Costco
In stores, Costco exclusively accepts Visa credit cards.
However, when shopping on Costco.com, you can pay with virtually any credit card you happen to have on hand, including Visa, MasterCard, and Discover. Unfortunately, Costco no longer accepts American Express cards under any circumstances, regardless of whether you shop in person or online.
Remember that these rules do not apply to debit cards. So, regardless of who your debit card provider is, you should be able to pay with that card anytime you’re shopping at Costco, as long as you have a PIN.
To learn more about the payment methods accepted at Costco, click here.
Costco Anywhere Visa Credit Card
If you want to take full advantage of the relationship between Costco and Visa, consider signing up for a Costco Visa credit card from Citibank.
Commonly known as the Costco Anywhere Visa, this credit card earns you competitive rewards on your purchases, including 2% rewards on all purchases made at Costco. And yes–this comes in addition to the 2% rewards you already earn through an Executive Costco membership.
When Does Costco Accept Mastercard?
As discussed above, there are several circumstances in which Costco gladly accepts MasterCards, as we will discuss in more detail below…
MasterCard Debit Cards
If your debit card bears the MasterCard logo, don’t worry. You can absolutely use this card to shop at Costco anytime. I can vouch for this from personal experience, as I routinely make my in-store Costco purchases with my MasterCard debit card.
Costco.com
When shopping on Costco.com, the Visa exclusive partnership does not apply. In other words, Costco.com accepts most major credit cards, including Visa, MasterCard, and Discover. However, they do not accept American Express.
Costco Canada
Although it’s difficult to confirm this as a US resident, many sources online state that Costco Warehouse locations in Canada are exclusive with MasterCard. This means that when shopping at Costco in Canada, you will only be able to pay with a MasterCard credit card for your in-store purchases, or any major debit card.
Other Payment Methods Accepted At Costco
The following payment methods are accepted at Costco Warehouse locations in the US…
- All Visa credit and debit cards
- Most PIN-based debit cards
- Costco Shop Cards
- Cash
- Personal checks from current Costco members
- Business checks from current Costco Business members
- Traveler’s checks
- EBT cards
- Apple Pay
- Google Pay
- Samsung Pay
When purchasing fuel at a Costco gas station, you can pay with…
- All Visa cards
- Most PIN-based debit cards
- Costco Shop Cards
And finally, when shopping on Costco.com, you can pay with…
- All major credit cards (except for American Express)
- Most PIN-based debit cards
- Costco Shop Cards
FAQs
Can you use a non-member credit card at Costco?
Yes. The name on your credit card does not have to match the name on your Costco membership.
Does Costco accept tap-to-pay?
Yes. In most cases, you can tap to pay when making in-store purchases at Costco.
Does your debit card have to match your Costco card?
No. As long as your debit card is valid and you can provide the correct PIN, it does not have to correspond to your Costco card.
Does Costco offer installment payments?
As far as we can confirm, no. Zip ( formerly known as QuadPay) claims to work at Costco, but Costco does not list this as one of their accepted payment methods. The only guaranteed way to pay overtime when shopping at Costco is to pay with a credit card.
