Costco is known for having a set of strict store policies, and recently, one shopper’s experience with the self-checkout system has left many questioning their credit card acceptance rules. A TikTok user shared his “embarrassing” moment when his American Express (Amex) card was rejected at the checkout. Not only did the system loudly announce that his card wasn’t accepted, but it also left him frustrated and confused about why it was happening. Here’s what you need to know about Costco’s payment policies and why this issue arose.
Costco’s Policy on Credit Cards
Costco has a long history of changing its credit card partnerships. For years, American Express was the exclusive credit card partner for the warehouse chain, but that partnership ended in 2016. Since then, Costco has switched to Visa as its exclusive credit card network and Citi as its official credit card issuer. This means that, while Costco no longer accepts American Express cards, they do accept other forms of payment like Visa, debit cards, and Costco’s own store-branded Citi card.
Despite these changes being in place for nearly a decade, many customers are still caught off guard by the store’s payment policies, as seen in the recent TikTok video shared by the frustrated shopper. When his Amex card was rejected, the self-checkout machine loudly announced, “Card not accepted!” This public rejection left him feeling exposed and embarrassed, prompting him to call out the tone of the system.
Customer Reactions and Costco’s Rules
Many people in the comments section of the video pointed out that Costco’s policy about not accepting American Express is well-known and has been in effect for several years. One comment noted, “Where have you been? Costco hasn’t taken American Express in 10 years!” Another user asked, “Is it your first time at Costco?” Despite the clear communication when signing up for Costco membership, some customers still forget or aren’t aware of this specific rule.
This incident highlights how important it is for shoppers to be familiar with store policies, especially regarding payment methods. While the TikTok user felt embarrassed by the loud rejection, it’s clear that Costco’s policy is widely known to many regular shoppers.
Why Costco Doesn’t Accept American Express
The decision for Costco to stop accepting American Express cards wasn’t random. The retail giant made the switch because American Express charges higher merchant fees compared to Visa. According to Mark Tremblay, an economics professor, this switch helped Costco maintain its low-price model. While some shoppers were disappointed by the change, it was necessary for Costco to balance offering low prices while keeping costs manageable. Accepting Amex would mean paying higher fees, potentially leading to increased prices for customers.
Payment Methods Accepted at Costco
So, what payment methods does Costco accept now? Shoppers can pay using Visa credit cards, Costco’s co-branded Citi card, debit cards, ATM cards, Costco Shop Cards, EBT cards, checks, and cash. While Amex is no longer an option, these alternatives ensure that most customers can still make purchases without issues.
Costco’s New Payment Features
In addition to its credit card policy, Costco has also started testing new checkout methods. These changes have received positive feedback from shoppers, with many calling it a much-needed update. However, there’s still some frustration about how slowly these new features are being rolled out, with some customers wishing the process would speed up to match the technology used by other retailers.
While Costco’s rejection of American Express cards may have caused some confusion for a few shoppers, it’s a well-established store policy that’s been in place for several years. Understanding the reasons behind Costco’s decision to stop accepting Amex, and the payment methods it does accept, can help avoid future misunderstandings. Despite the occasional frustration, these policies allow Costco to maintain its commitment to low prices, which many customers appreciate. If you’re planning to shop at Costco, make sure to bring one of the accepted payment methods to ensure a smooth checkout experience.
