Costco Canada does not accept Visa or American Express credit cards in its stores or online. To obtain the greatest benefits at Costco, you need to use your Mastercard. 

This card will help you get the most rewards if you wish to use a credit card at Costco. Costco Canada has exclusively accepted Mastercard for warehouse payments except for cash and debit cards.

Why Is Visa Not Accepted in Costco Canada? 

Costco operates differently in Canada as compared to Costco in the United States. The Visa affiliation of Costco in the United States does not apply in Canada.

Why Does Costco Only Accept Mastercard as a Form of Payment?

Costco only takes Mastercard as a means of payment because of fees. When a card is swiped at a store, it is the merchant’s responsibility to pay interchange fees to the relevant payment network – Visa, American Express, Mastercard, etc. 

In most cases, it is in 2 to 3 percent. American Express was the sole credit card accepted at Costco a few years ago. Costco was able to negotiate a cheaper interchange charge than the industry standard.

When Costco requested a reduced interchange charge, Amex refused to agree, and the relationship between Amex and Costco ended. 

Costco signed an arrangement with Mastercard in 2014 after their Amex contract ended. As a result of this policy, Costco only accepts Mastercard. Because Costco only works with one payment network, the corporation can negotiate reduced rates and pass those savings on to its customers.

How Can You Use a Visa Credit Card at Costco? 

The Costco warehouse in Canada has only allowed Mastercard payments for a few years at this point, in addition to cash or debit card payments. 

You cannot use a Visa credit card in the warehouse. However, there is one place where you may use your Visa credit card: the Costco.ca website. 

Costco‘s website accepts Visa credit card payments. The things listed on the website are quite convenient. These products, however, are more expensive than those available in the warehouse on a regular basis. 

This is something to keep in mind when shopping for electrical appliances for households. But we are excited by the concept of acquiring shop cards that can be used in the warehouse using a Visa credit card.

The Costco shop cards are Costco’s gift cards. To pay for your goods and services, you may use your Costco shop card in the warehouse, at Costco gas stations, and on the costco.ca website. 

Costco shop cards are available in various values ranging from $50 to $2000, and you can purchase them using your Visa credit cards. 

Furthermore, you may now get them in digital form, so you do not have to wait for delivery by mail and can use them right away. People who are not Costco members can use these Purchase cards as well.

Members of Costco can transfer their membership to another person in return for using their credit card to purchase a shop card, for which they will issue you a reimbursement in the form of an Interac. As a result, your Visa credit card will reward you with points and cashback.