Costco does not accept American Express due to a decision made in 2016 to switch to a different credit card processor.
This change was part of a broader strategy to partner with Visa, which allowed Costco to negotiate better terms and lower fees.
American Express charges higher fees to retailers compared to Visa and Mastercard. This makes it less appealing for stores like Costco that operate on thin margins.
Furthermore, Costco values its membership model and offers competitive pricing on products. Accepting cards with higher transaction fees could impact their pricing strategy.
The shift also aligns with Costco’s goal of providing the best value for their members. By accepting Visa, they can maintain lower prices across their stores.
Many customers have adapted to using Visa or other accepted payment methods. Costco has also introduced its own credit card in partnership with Citi, which offers benefits tailored to their members.
This partnership has created a more seamless checkout experience while keeping costs manageable.
Many shoppers appreciate the savings they get from using the Costco Anywhere Visa Card, which offers cash back on purchases.
In the end, Costco’s decision reflects its commitment to offering value and maintaining its low-price structure.
Why did Costco stop accepting American Express?
Costco stopped accepting American Express in 2016 to partner with Visa, allowing for better terms and lower transaction fees.
Can I use American Express at Costco online?
No, Costco does not accept American Express for online purchases either. Only Visa and a few other payment methods are accepted.
What credit cards does Costco accept?
Costco accepts Visa credit cards, debit cards, and its own Costco Anywhere Visa Card for purchases.
Are there any benefits to using the Costco Anywhere Visa Card?
Yes, the Costco Anywhere Visa Card offers cash back on purchases, including 4% on eligible gas, 3% on restaurants, and 2% on Costco purchases.
What if I only have American Express?
If you only have an American Express card, you can use it to purchase Costco gift cards at other stores that accept American Express and then use those gift cards at Costco.