At Costco, one of the main retailers in the United States, they only accept that you pay with a single type of card. Do you know what it is and why? In Globe Live Media we tell you
Costco is one of the most famous and popular retailers in the United States : its low costs, the ability to buy in bulk, its large warehouses have made it a retail store that stands out from its competitors. However, just as it has many advantages, it also has situations that do not favor it as much, such as the fact of only allowing people to pay with a single type of credit card.
And it is that for those who do not know, Costco stores and their service stations only accept debit cards and credit cards that are Visa. This is because they respond to a savings policy, even when charging their customers.
Costco negotiates a partnership agreement with a single payment network in exchange for much lower processing fees. So, therefore, it currently maintains an agreement with Visa, which consists of paying transaction fees of only 0.4%. By saving a certain percentage on fees , Costco is able to keep prices low on the rest of its products and sundries.
What is a network fee?
It is the one that is charged to businesses, and which implies that in order for card payments to be allowed in their line of business, a fee must be paid to the payment network in each transaction.
These credit card processing fees can be variable, but will generally range from 1.3% to as high as 3%. Everything will depend on the store that is involved and the type of credit card that is being used to make payments.
The fact is that businesses must be very open when it comes to accepting credit card payments, otherwise they would be missing out on a significant number of customers.
What happens at Costco?
Costco’s presence in the retail world is so important that it really doesn’t feel affected by only allowing payment to be made with one type of credit card, which in this case is Visa.
He sees several advantages in this regard, among which its huge customer base stands out, which gives payment networks a reason to keep the ball in their favor. And it is that the payment network that is associated with Costco will have the guarantee that in the retail store they will only have payment with this type of card.
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