Costco does not accept Mastercard at its warehouses because the company has an exclusive contractual agreement with Visa for in-store credit card payments. This long-standing partnership means that Visa is the only credit card network accepted for purchases made within Costco's physical stores.
The Exclusive Visa Partnership
At the core of Costco's payment policy is an exclusive contract with Visa. This agreement dictates that only credit cards processed through the Visa network can be used for transactions directly at Costco's warehouse locations. Consequently, major credit card networks such as Mastercard, American Express, and Discover are not accepted for in-person purchases.
This exclusivity helps Costco manage transaction fees, often leading to lower operational costs, which can contribute to the competitive pricing members enjoy.
Where Mastercard is Accepted
While Mastercard is not accepted at Costco warehouses, there are specific instances where you can use it for your Costco purchases:
- Costco.com: For all online shopping conducted through Costco's official website, Mastercard credit cards are a valid payment option.
- Costco App: Purchases made via the Costco mobile application also permit the use of Mastercard.
This distinction is important for shoppers who primarily use Mastercard and wish to make purchases from Costco without visiting a warehouse.
Accepted Payment Methods at Costco
To provide a clearer picture of payment options, here's a summary of accepted credit cards based on the purchase location:
| Purchase Location | Accepted Credit Cards |
|---|---|
| Costco Warehouses | Visa credit cards only |
| Costco.com & Costco App | Visa, Mastercard |
This ensures that while in-store options are limited to Visa for credit cards, members have more flexibility when shopping online or through the app.
