needs Kasheesh
Costco, the popular warehouse club, is known for offering bulk deals and great savings, but you might be wondering “Why can’t I use my Mastercard credit card at Costco?”. Many shoppers are aware that in recent years the warehouse club only accepts Visa credit cards in their physical stores. This has been a source of frustration for Mastercard credit cardholders who wish to take advantage of credit card benefits while shopping at Costco. However, in 2024, a new convenient solution is available that lets you use your Mastercard credit card at Costco—by utilizing the fintech payment service Kasheesh.
Can I use my Mastercard credit card at Costco?
Unfortunately, Costco does not accept Mastercard credit cards in their physical stores due to their exclusive agreement with Visa. However, you can still use your Mastercard for purchases on Costco.com and via the Costco app.
If you primarily have a Mastercard and want to shop at Costco's warehouse locations, you have a few options: pay with cash or checks, pay with a debit or ATM card, purchase a Costco Cash Card (gift card), or the most convenient solution; utilize the payment service Kasheesh to bypass Costco's Visa-exclusive restriction by digitally transforming your Mastercard credit card into a virtual debit card, allowing you to use your Mastercard credit card at Costco. Keep reading to learn how it works.
Why Isn’t Mastercard Credit Card Accepted at Costco?
Starting in 1999, American Express (AMEX) became Costco's exclusive credit card partner, making it the only credit card the retailer accepted for years. Customers wanting Costco-specific rewards needed to acquire a co-branded American Express/Costco card.
However, this partnership ended in 2016 when Costco and American Express parted ways. Costco then started collaborating with Citi as its sole credit card issuer, making Visa the only credit card network accepted at Costco locations in the U.S. and Puerto Rico. Since then, American Express has been fully replaced by Citi and Visa, causing frustration among shoppers without a Visa credit card.
Besides Visa credit cards, Costco also accepts payments via cash, checks, electronic benefit transfer (EBT), Costco Shop Cards, and, crucially: most debit and ATM cards—this is where Kasheesh comes into play.
Solution: Create a digital Debit Card funded by your Mastercard Credit Card
Kasheesh is a payment service that offers a flexible solution for consumers looking to manage how they pay for purchases. One of its key features is the ability to generate a digital debit card, which can be funded by any card in your wallet, including your Mastercard credit cards. This allows you to use your Mastercard credit card when shopping at Costco by generating a Kasheesh digital debit card linked to your Mastercard credit card, and then using the Kasheesh card to complete your purchase.
How It Works [2024 Step-by-Step Guide]
- Sign Up and Link Your Cards: Begin by creating a Kasheesh account and linking your Mastercard credit card, along with any other credit, debit, or prepaid gift cards you want to use.
- Create a Kasheesh Card: After linking your cards, you can generate a digital debit card within the Kasheesh platform. Choose your Mastercard credit card as a funding source, and Kasheesh will produce a virtual debit card that functions like any other card.
- Shop at Costco: Use the generated virtual debit card for your Costco purchases, whether online or in-store, without worrying about Visa exclusivity. The purchase will be instantly charged to your Mastercard credit card via the Kasheesh platform.
Split Payments Across Multiple Cards
Another huge perk that Kasheesh offers is the ability to split a purchase across up to five of your cards. This feature is especially helpful if you want to manage your credit card balances, maintain a lower credit utilization rate, or maximize rewards across different cards. With Kasheesh, you can divide your Costco purchase between several different cards, including credit, debit, and prepaid gift cards.
For instance, if you have a large Costco purchase, you can split the payment between your Mastercard credit card, a debit card, and a prepaid gift card, enabling you to manage spending and take advantage of various rewards programs.
Why Use Kasheesh at Costco?
- Convenience & Flexibility: Use any credit card, such as your Mastercard, at Costco. (It also works for shoppers who want to pay with AMEX at Costco!)
- Afford More: Split purchases across multiple cards to utilize credit cards fully and maximize rewards, regardless of your card's credit limit.
- Manage Your Credit Score: Spread large purchases across multiple cards to avoid maxing out a card or increasing your credit utilization rate.
Other ways to use a Mastercard Credit Card at Costco
While Costco’s physical stores in the U.S. generally accept only Visa credit cards, there are some ways you can bypass this policy and use a Mastercard at Costco:
- Buy Costco Cash Cards (Gift Cards): Purchase a Costco Cash Card online through the Costco website using your Mastercard. You can then use the Costco Cash Card to pay for purchases in-store.
- Buy Visa Gift Cards: Purchase a Visa gift card using your Mastercard at another retailer. Use the Visa gift card to pay for your purchases at Costco.
- Pay with Costco Shop Cards: Similar to the Costco Cash Card, you can purchase Costco Shop Cards online using your Mastercard and use them in-store. Shop Cards can be reloaded each time you want to shop at Costco.
The downside of each of these methods is that you need to re-purchase new cards for specific amounts every time you want to shop at Costco, or reload with more funds, whereas using Kasheesh allows you the benefit of reusing the same digital card as often as you want, without ever having to load your card with funds beforehand—with Kasheesh the transaction happens instantly, just like using a regular credit or debit card.
Conclusion
Kasheesh is a game-changer for Costco shoppers looking to use their non-Visa credit cards at a retailer that traditionally only accepts Visa. By generating a digital debit card through Kasheesh, you can bypass Costco's payment limitations and even split your purchase across multiple funding sources, offering unmatched flexibility and convenience.
