What Credit Card Does Costco Take in Canada

Costco, one of the biggest wholesale retailers in Canada, has a unique payment acceptance policy.

Especially that you can buy things in their warehouse, you can buy things at their gas station (Costco Gas), or their website (Costco.ca) too, and each accepts different payment types!

Costco, one of the largest wholesale retailers in Canada, has a unique payment policy that can be confusing for shoppers. Unlike most retailers that accept both Visa and Mastercard, Costco only accepts Mastercard credit cards at its warehouses and gas stations, while Visa can be used exclusively on its website, Costco.ca. In this guide, we’ll explain everything you need to know about Costco’s accepted payment methods, why they only take Mastercard, and which credit cards can help you maximize rewards and savings when shopping at Costco.

So in this post, we will thoroughly answer the question What Credit Card Does Costco Take in Canada, so the next time you are going there, you don't worry if your payment method is accepted or not.

Acceptable Payment Methods

Almost any place in Canada accepts both Visa and Mastercard credit cards. Many of them accept American Express too!

But Costco might be one of those rare exceptions! The only credit card you can use is a Mastercard to buy anything at their warehouse or their gas stations. On their website, costco.ca, you can still use a Visa card to purchase things, but American Express is not accepted anywhere Costco-related.

In addition to Mastercard-branded cards, Costco in Canada accepts all Canadian debit cards, cash, and Costco Cash Cards. The Costco Cash Card is a prepaid card offered by Costco that can be loaded with any amount between $25 and $2,000. It allows you to shop at Costco without requiring a credit or debit card and can be used by non-members.

For all these reasons when comparing the different credit card networks in Canada, Mastercard is the superior network for Costco.

Why Does Costco Only Accept Mastercard?

Costco only accepts Mastercard due to an exclusive payment processing agreement between the two companies. Credit card networks charge merchants a percentage of the transaction fee, and with this agreement, Costco has lowered the fee they pay. Therefore, if you regularly shop at Costco, you should make your purchases with one of the best Mastercard credit cards in Canada to maximize your rewards.

What are some of the best credit cards to use at Costco?

Costco itself has a credit card called the CIBC Costco Mastercard.

Ironically, this card doesn’t offer any extra cashback at Costco warehouses andit only provides additional cashback on purchases made at Costco.ca and Costco gas stations. This makes it a less-than-ideal choice for in-store shopping.

Additionally, Costco is not categorized as a grocery store, so credit cards that offer bonus rewards for grocery purchases don’t perform particularly well there either. Therefore, opting for a Mastercard with a high base cashback rate is the smartest approach.

Among Mastercards, the Rogers World Elite Mastercard currently has one of the highest base earn rates, making it a great option.

To learn more about this card, read our Rogers Red World Elite Mastercard Review.

Ways to Benefit from Costco Without Holding a Membership

There are indeed several tactics to explore Costco's offering without having to invest in a membership:

• Leverage the Costco Cash Card: As previously mentioned, a prepaid card known as the Costco Cash Card serves as an excellent tool for non-members. If you're lucky enough to have a friend or family member with a Costco membership, you could ask them to buy this card and load it with money on your behalf. This card gives you the freedom to enjoy Costco's goods and services without a membership.
• Online Shopping: Costco's website provides a selection of items available for purchase by non-members, although a minor surcharge may apply. Bear in mind that the online selection may not be as broad as what's available in-store. It's also important to note that only a portion of the promotions and deals are accessible to non-members.
• Pharmacy Services and More: In Canada, there are provisions allowing non-members to use Costco's pharmacy, optician, and hearing aid services. It's always a good idea to check with your local store to understand the details and restrictions.
• Indulge in Food Court Delights: While some Costco locations limit their food court to members, others welcome non-members to savor their delectable and pocket-friendly food court delights.

However, to fully leverage Costco's value-packed offerings and savings, getting a membership is your best bet. Costco offers an array of membership options tailored to different needs and preferences. If you're a frequent shopper or buy in bulk, it could be a smart move to consider becoming a member.