Costco Credit Cards

2024 Author: Steven Freeman | [email protected]. Last modified: 2023-12-17 08:15

Costco's volume-out warehouses are a big draw for large families and small businesses looking for their products to stock up on large.

Logically, the account after a visit to Costco is not always cheap. Customers typically spend hundreds of dollars on each visit and their only form of payment - outside of cash and certain coupons and food cards - is the VISA logo credit card.

But why does Costco not accept other types of credit cards, such as American Express, Discover or Mastercard ?

The answer is simple: Although credit companies don't earn much on every transaction they process for Costco, they do so in volume.

Until March 2016, 10% of all American Express cards circulating in the United States were those that the company issued to Costco members.

In that month both companies separated and since then Costco no longer receives the Centurion card.

And it is that AMEXCO sold its exclusivity to VISA in a transaction that according to Business Insider generated a 1,000 million profit.

Thereafter Costco only began receiving VISA at its 500 locations around the country.

However, the transition to VISA is, in fact, best for Costco customers in one crucial detail: VISA does not issue credit cards, it is simply the company that processes credit transactions.

The banks and savings companies are the ones who issue the cards and actually “lend” the money to Costco members to make their purchases. This means that there are many more options for Costco customers when using the VISA card issued by the bank of their choice and enjoying the different incentives that each bank offers, ranging from double points, cash back, air miles, etc.