What Credit Cards Are Accepted At Costco Canada?

Most of us buy in bulk when we shop at Costco, making it pretty intuitive to use your credit card instead of your debit card when purchasing from this wholesaler.

Unfortunately, unlike most retail stores, Costco Canada does not accept all credit cards. So, knowing which payment methods are accepted at this retailer before visiting is important.

This article goes over which credit cards are accepted at Costco Canada and other payment methods you can use for your in-store purchases.

Does Costco Canada Accept Mastercard?

Yes, Costco Canada accepts Mastercard. In fact, it’s the only type of credit card that the wholesaler currently accepts as a strategy to save more money.

See, when customers make purchases using credit or debit cards at business institutions, the merchant often has to pay an interchange fee that amounts to about 2% to 3% of the transaction amount.

It goes without saying that most companies will try to negotiate and lower these fees with various card networks and issuing banks. With that, one of the most effective ways to lower the interchange fee is for businesses to exclusively use one card network, just like Costco is currently doing.

In exchange for getting charged a lower interchange fee, Costco exclusively accepts Mastercard credit cards at its warehouses.

A decade ago, Costco was in a similar agreement with American Express, but that partnership ended in 2014, and Mastercard took over.

Does Costco Canada Take Visa Debit?

Yes, Costco Canada accepts Visa debit cards because the wholesaler accepts every Canadian-issued debit card as a payment method.

So, as long as you have a sufficient balance in your Visa debit, you can freely use it for payments at checkout.

Costco Payment Methods in Canada

Despite the restriction of only accepting Mastercard credit cards, Costco Canada still accommodates various payment methods for its customers.

Like most retailers in Canada, this wholesaler accepts cash, any Canadian-issued debit card, personal cheque, and digital wallets such as Apple Pay and Google Pay as payment methods.

Of course, you also have the option to buy a Costco cash card or gift certificate and use them to make payments at Costco.

So, if you want to use your non-Mastercard credit card’s balance to shop at Costco, you can use the credit card to buy a gift certificate instead, then use the latter when purchasing at the Costco warehouse.

Is There A Costco Credit Card In Canada?

Yes, there is an official Costco credit card in Canada called the CIBC Costco Mastercard, which acquired the previous Capital One Costco Mastercard portfolio in early 2022.

Every Costco member can apply for this credit card for free as long as they have a minimum annual income of $15,000.

Despite not having an annual fee, the CIBC Costco Mastercard allows you to earn up to 3% cash back on your eligible purchases and provides insurance coverage, including purchase security and an extended warranty. 

The interest rates are 19.75% APR for purchases and 21.49% for cash advances. Unfortunately, you’ll only receive your accumulated cash back once a year in January, and it’ll be redeemed as a Costco cash back gift card certificate rather than actual cash.

Best Costco Credit Card Alternatives

Consider these options if you’re interested in getting another credit card suited for shopping at Costco.

Tangerine Money-Back Credit Card

If you don’t want to pay an annual fee, the Tangerine Money-Back credit card is going to be one of your best options for shopping at Costco. It offers an unlimited 2% cash back on the spending categories of your choice and 0.50% cash back on other purchases.

Heads up, though, Tangerine does not classify Costco as a grocery store. Hence, purchases you make at Costco will only receive a 0.50% cash back instead of 2%.

Apart from the cash back rewards, this card offers a free purchase assurance and an extended warranty. Additionally, it allows you to request additional free cards for authorized users of your account.

Neo Money card

Of course, when talking about Mastercards, I can’t leave out prepaid cards such as the Neo Money Mastercard. Technically, this works just like a debit card because you must first deposit money before you can use your card for spending.

However, as this card has many benefits similar to credit cards, I always recommend it as a must-try alternative to other credit cards.

The Neo Money card pays an average of 5% cash back at 12,000 locations in Canada. While you won’t earn this high at Costco, Neo Money guarantees a 0.5% cash back on all purchases (up to a monthly limit).

For $4.99 a month, you can upgrade to a Premium account and earn even higher cash back, plus perks like credit monitoring, insurance benefits, and more.

You don’t need any credit history to apply for this card.

Tangerine World Mastercard

The Tangerine World Mastercard is another reliable zero-fee credit card that you can use at Costco warehouses. Similar to Tangerine’s money-back credit card, this Mastercard offers up to 2% unlimited cash back on eligible purchases part of the spending categories of your choice.

This card also provides more comprehensive insurance coverage, which includes mobile device insurance, car rental collision or damage insurance, and access to exclusive Mastercard airport experiences provided by Loungekey.

The Tangerine World Mastercard charges a 19.95% APR on all transactions, including purchases, balance transfers, and cash advances.

National Bank World Elite Mastercard

If you love travel rewards and benefits, consider getting a National Bank World Elite Mastercard. It provides up to a $150 refund per year on your travel expenses and allows you to earn 5 points for your daily purchases, which you can redeem for items or cash.

It’s worth noting, however, that this credit card has an annual fee of $150, which can be considered pricey compared to other credit cards. Its 20.99% APR on purchases and 22.49% on cash advances are also quite high compared to other options on this list.

Conclusion

Costco primarily only accepts Mastercard credit cards in-store. However, this doesn’t mean you’ll have no other alternatives for buying from Costco without a Mastercard.

You can always still pay through debit, cash, or personal cheques at this wholesaler, and as you know by now, there are plenty of Costco-eligible credit cards you can apply for, with or without a credit history.

Related:

• Costco Canada Return Policy
• Costco Membership Benefits in Canada
• Best Credit Cards for Groceries