It\u2019s easy to rack up big bills at Costco. For that reason, the wholesale club seems like the perfect place to use a credit card that collects loyalty points. However, Mastercard credit cards are the only credit cards accepted at Costco Canada warehouses.<\/p>
Learn what loyalty and reward Mastercard credit cards will help you rack up points quickly, plus how to use any point card \u2014 including Visa and American Express \u2014 to make Costco Canada purchases.<\/p>
It all comes down to fees. Whenever you swipe your card at a store, the merchant pays an interchange fee of 2% to 3% to the relevant credit card payment network \u2014 such as Visa, Mastercard or American Express.<\/p>
Up until the end of 2014, the only credit card network you could use to pay in Costco warehouses was American Express. This was because Costco had a deal in place with Amex for reduced interchange fees. But when that deal ended and Costco and American Express couldn\u2019t reach a new agreement, Costco Canada struck a deal with Mastercard.<\/p>
Costco\u2019s Mastercard-exclusive policy is about cost savings. By working exclusively with one payment network, the company can negotiate lower fees and pass on the savings to Costco shoppers.<\/p>
What does this mean for Costco shoppers? It means you can use a Mastercard credit card, including a prepaid Mastercard credit card, to make in-store purchases at Costco.<\/p>
However, there are other options for Visa and Amex cardholders.<\/p>