If you are running a business, Costco can be a great service provider that you can opt for. Costco has been known for its competitive pricing, and standard features such as inventory and transaction tracking. Apart from all that, Costco is committed to providing custom-made solutions for businesses. This makes Costco one of the most versatile payment processing service providers.

In this piece, we will have a look at the various aspects of Costco credit card processing services and what it is like for your business to use Costco as your credit card processing partner.


How Good it is for Your Business?

Undoubtedly, Costco is better and one of the largest credit card processors around. The company is currently serving more than a million merchants and is a part of the US Bank’s Payment Services Division. Usually, most of the payment processors do not share any fee information as the fees involve some overhead costs. As such Costco may not be the most perfect credit card processing company. But it is certainly better than many of its competitors.

Small business owners need to pay a flat 1.22% and a transaction fee of $0.12 for every transaction, which is one of the lowest as compared to many other credit card processors. There are no annual fees or reporting fees as per their website.

Costco is pretty good in terms of other ancillary features as well. It comes with a nice reporting dashboard that is of great help for businesses operating from one or more locations. Moreover, the sales reps at Costco are experts in providing custom solutions to business owners based on their specific requirements as well. For instance, if you are running a restaurant and need a POS system to handle customer tips, Costco can help you with that. If you would like to learn the differences between Payline Data and Costco, talk to a sales expert using the button below.

Understand the Difference


Fees and Features

Costco provides solutions for both small and large enterprises and both are priced differently. The pricing of large businesses is not disclosed as they are priced based on the requirements for each enterprise. 

In this article, we will focus on the fee structure for small and midsize businesses. Here is a fee structure for a small business.

Credit Card Processing Fees:

  • Transaction Costs : 1.22% + $0.12 (In person and on the go)

             1.99% + $0.25 (online transactions)

             2.49% + $0.07 (per swipe/per key-in or chip transaction)

  • Monthly Fee: no monthly fees
  • Card Reader Cost : $24.99 (Magtek aDynamo) to $499.00 (Ingenico iCT250)

Costco offers plans for both mobile credit card and storefront processing. There is however no price difference between both these plans apart from the equipment cost. The transaction costs mentioned above are on the lower side and are a part of fixed-rate plans. There is no mention of the interchange-plus pricing which if available would be helpful for businesses processing a lot of debit transactions.

As far as the card readers go, Costco card readers can process credit cards through Android Pay, Apple Pay, and Samsung Pay, or Google Wallets. Costco provides you the facility to accept payments online as well however the details on the pricing of the same are not available.


Costco Services Offered

There are various products and services that are being offered by Costco which are as follows:

  • Traditional Terminals – Costco provides countertop terminals with the latest technology that involves touchscreen and high security.
  • Smart Terminals – Smart terminals that are capable to accept payments from anywhere in the shop or restaurant.
  •  Point-of-Sale – Costco provides a talech mobile POS system that allows the user to access their data anytime and anywhere.

Apart from the above Costco accepts payments through mobile wallets such as Apple Pay, Google Wallet, etc. their payment gateways can be integrated into your existing payment gateways. The company makes use of its software platform Converge that allows customer payments in all kinds of payment environments. 

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What are the Benefits?

With Costco being one of the largest payment processing providers, there sure are many benefits to count if you happen to partner with them. Here are the benefits of using Costco as your credit card processing partner:

  • Cost-Effective – The pricing of Costco is better than most of the payment processing providers around. The pricing proves pretty cost-effective in the long run.
  • No annual or reporting fees – There are no annual membership or reporting charges for Costco members.
  • No Cancellation or Early termination fees – While many providers charge cancellation and termination charges, there are no such fees charged by Costco.
  • Special Benefits for Executive Members – There are no application or statement fees for executive members.
  • Zero Cost Credit Card Transactions – On all credit card transactions, cardholders just need to pay anywhere between 3 to 4 percent surcharge.
  • Supports POS, Mobile, and Online Payments – With Costco, you can get options to receive payments through POS terminals, online, and mobile payments.
  • Provides Custom Made Solutions – Though there are fixed-rate plans, Costco specializes in providing Custom-made solutions as well which are based on your specific business needs and requirements.
  • Dashboards to track transactions – Dashboards like MerchantConnect are used to get the reports and track transactions regularly.
  • Supports multiple modes for Credit Card payments – Costco various options of receiving payments such as Samsung Pay, Apple Pay, Android Pay, etc.
  • Excellent Customer Service – Costco is known for its amazing customer support and service team. There is an expert team of professionals who are always ready for your service.
  • Compliant to International Security Standards – The company is PCI DSS compliant that means improved security from the beginning till the end of any card transaction.


The Bottomline

Having seen all the amazing features, pricing, and other features of Costco’s credit card processing service, it is undoubtedly one of the best for all your needs of accepting payments. Whether you are a small business or a big thriving enterprise, Costco can certainly help you achieve the most effective payment solutions for your business. 

Use this article to make an informed decision. Now all your payments can be managed at your fingertips at the lowest transaction costs, thanks to Costco.


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