# Costco's "our credit card only" policy. **URL:** \ **Category:** Factual Questions\ **Created:** [January 10, 2009, 7:41pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700 "2009-01-10T19:41:17Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [January 10, 2009, 7:41pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/1 "2009-01-10T19:41:17Z")
Two questions: Costco accepts only their own American Express credit card. Do any other merchants share this policy? Has this policy ever been challenged in court?. I have no idea under what theory it _would_ be, but the practice seems kinda odd. They do accept other debit cards, and cash. BTW; they did pressure me a little to apply for their cc when I signed up for their “membership”. Peace, mangeorge Late title edit: That should, of course, be “Costco”, not cosco. ---
**Author:** ![garygnu](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/garygnu/32/2924_2.png) [@garygnu](https://boards.straightdope.com/u/garygnu)\ **Post date:** [January 10, 2009, 7:51pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/2 "2009-01-10T19:51:44Z")
How would it be challenged in court? Any store has the right to decide what tender is accepted. I assume that in exchange for exclusivity, American Express has given Costco a good rate. ---
**Author:** ![Markxxx](https://avatars.discourse-cdn.com/v4/letter/m/5daacb/32.png) [@Markxxx](https://boards.straightdope.com/u/Markxxx)\ **Post date:** [January 10, 2009, 7:51pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/3 "2009-01-10T19:51:59Z")
There’s no obligation to accept any form of payment you don’t want to. The thing I found interesting is now many banks are issuing American Express. Before it was only American Express that was issuing their cards. Now I got an Amex from Bank Of America, that is exactly like the Visa I have from them. The rate, credit amount, everything is the same only the lable is different. When I shopped around for merchant accounts for a hotel I was working for, the cost of taking a credit card can be made up by one sale per month of a hotel room. ---
**Author:** ![ZipperJJ](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zipperjj/32/211_2.png) [@ZipperJJ](https://boards.straightdope.com/u/ZipperJJ)\ **Post date:** [January 10, 2009, 7:53pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/4 "2009-01-10T19:53:55Z")
Sam’s Club used to only accept cash, check or Sam’s Club card. Now they accept [Discover and Mastercard but not AmEx or Visa](http://samswest.custhelp.com/app/answers/detail/a_id/193/session/L3NpZC9DRURxWkFuag==/sno/0) - which is pretty stringent compared to most other stores. ---
**Author:** ![meanoldman](https://avatars.discourse-cdn.com/v4/letter/m/7ab992/32.png) [@meanoldman](https://boards.straightdope.com/u/meanoldman)\ **Post date:** [January 10, 2009, 7:55pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/5 "2009-01-10T19:55:37Z")
Well, first I should admit I am a HUGE Costco fan. Biased in their favor. I believe they only accept the forms of payment that don’t cost them a percentage of the sale. Most credit card companies charge the merchant a fee, _IF_ I remember correctly. Their business model would have that fee cut into what profit margins they do have. Their Amex card won’t cost you a penny as long as you are a member. So you are free not to use it. Though they do offer “cash back” options etc for using the card, so it could be like getting your Costco (and other) items at a slight discount. ---
**Author:** ![Deeg](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/deeg/32/2955_2.png) [@Deeg](https://boards.straightdope.com/u/Deeg)\ **Post date:** [January 10, 2009, 7:58pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/6 "2009-01-10T19:58:13Z")
At least until recently most stores that I frequented didn’t accept AmEx. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [January 10, 2009, 8:04pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/7 "2009-01-10T20:04:21Z")
> [@Markxxx](#): > > The thing I found interesting is now many banks are issuing American Express. Before it was only American Express that was issuing their cards. Now I got an Amex from Bank Of America, that is exactly like the Visa I have from them. The rate, credit amount, everything is the same only the lable is different. It used to be that AmEx only issued their “charge cards” directly – there was no credit and you have to pay the balance off each month. (They still do these.) But in recent years they’ve licensed their brands to banks to issue regular credit cards just like MC and Visa, under their “blue” line and others. ---
**Author:** ![sugar\_and\_spice](https://avatars.discourse-cdn.com/v4/letter/s/e8c25b/32.png) [@sugar\_and\_spice](https://boards.straightdope.com/u/sugar_and_spice)\ **Post date:** [January 10, 2009, 9:07pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/8 "2009-01-10T21:07:41Z")
I thought they took any AmEx card? I have an AmEx credit card that I got at my bank and I’ve been able to use it Costco. This was in the last year or so. ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [January 10, 2009, 9:18pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/9 "2009-01-10T21:18:39Z")
> [@garygnu](#): > > How would it be challenged in court? Any store has the right to decide what tender is accepted. > I assume that in exchange for exclusivity, American Express has given Costco a good rate. Well, that was my second question. Kinda, anyway. Besides, they accept their own AE card. And aren’t merchants required to accept cash? I might add that I’m single, and don’t have much use for “Massive Quantities”. Except for toilet paper and such. Since joining, I’ve price shopped, and a lot of their fresh foodstuffs aren’t that great a deal. I can set the shopping app on my iPhone to track price. 🆒 ---
**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\ **Post date:** [January 10, 2009, 9:18pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/10 "2009-01-10T21:18:46Z")
Sears used to only accept Sears credit cards or Discover cards (which Sears introduced). I assume it was a bottom line thing – Sears paid lower bank fees with their own in-house cards. It also helped to establish Discover – if you shopped at Sears, you’d apply for a Discover card. Merchants have to pay a fee for processing a credit card; reduce the fees and you increase your bottom line. ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [January 10, 2009, 9:19pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/11 "2009-01-10T21:19:30Z")
Sears used to only accept its own cards–Sears and Discover. [http://findarticles.com/p/articles/mi\_hb4298/is\_199308/ai\_n14947377](http://findarticles.com/p/articles/mi_hb4298/is_199308/ai_n14947377) ---
**Author:** ![Danalan](https://avatars.discourse-cdn.com/v4/letter/d/76d3ee/32.png) [@Danalan](https://boards.straightdope.com/u/Danalan)\ **Post date:** [January 10, 2009, 9:20pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/12 "2009-01-10T21:20:39Z")
My corporate AMEX works just fine at Costco, and so does a friends personal AMEX. It clearly doesn’t have to be a ‘Costco’ AMEX. ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [January 10, 2009, 9:21pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/13 "2009-01-10T21:21:46Z")
> [@sugar\_and\_spice](#): > > I thought they took any AmEx card? I have an AmEx credit card that I got at my bank and I’ve been able to use it Costco. This was in the last year or so. Maybe so. I’ll check. If so, I’ll get a real (no balance) AE and use that. ---
**Author:** ![panache45](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/panache45/32/64_2.png) [@panache45](https://boards.straightdope.com/u/panache45)\ **Post date:** [January 10, 2009, 9:22pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/14 "2009-01-10T21:22:55Z")
> [@mangeorge](#): > > Has this policy ever been challenged in court? I’m trying to figure out why anyone would ask a question like this . . . as if the government should dictate which credit cards a company should accept. ---
**Author:** ![flyboy](https://avatars.discourse-cdn.com/v4/letter/f/4da419/32.png) [@flyboy](https://boards.straightdope.com/u/flyboy)\ **Post date:** [January 10, 2009, 9:27pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/15 "2009-01-10T21:27:27Z")
> [@](#): > > _Originally posted by **sugar and spice** _: > I thought they took any AmEx card? Yeah. I have an Amex Skymiles card and it works just fine at Costco. ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [January 10, 2009, 9:29pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/16 "2009-01-10T21:29:44Z")
> [@panache45](#): > > I’m trying to figure out why anyone would ask a question like this . . . as if the government should dictate which credit cards a company should accept. Shoulda, woulda, coulda. Snowed in, are we? 😃 ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [January 10, 2009, 9:34pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/17 "2009-01-10T21:34:10Z")
The one out here will accept any AMEX as well as cash or debit cards. ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [January 10, 2009, 9:35pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/18 "2009-01-10T21:35:11Z")
I called them moments ago (original idea, huh?) and she verified that they do indeed take any AmEx card. I just misunderstood the clerk who sold me the membership. They don’t give a senior discount (for the membership) though. ---
**Author:** ![Ponderoid](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ponderoid/32/19221_2.png) [@Ponderoid](https://boards.straightdope.com/u/Ponderoid)\ **Post date:** [January 10, 2009, 9:36pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/19 "2009-01-10T21:36:49Z")
> [@mangeorge](#): > > And aren’t merchants required to accept cash? That bit about legal tender printed on U.S. banknotes only applies to pre-existing debts. One usually doesn’t go into debt to the merchant in the course of normal shopping. \*\*\* Ponder ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [January 10, 2009, 9:51pm UTC](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700/20 "2009-01-10T21:51:35Z")
> [@Ponderoid](#): > > That bit about legal tender printed on U.S. banknotes only applies to pre-existing debts. One usually doesn’t go into debt to the merchant in the course of normal shopping. > > \*\*\* Ponder Under some circumstances, requiring the purchaser to use only payment service, _and_, as part of that refusing to accept cash, could be found to be a tying arrangement. [Antitrust and Tying Arrangements - Competitive Intelligence / Competitive Strategy, by Arik Johnson](http://www.aurorawdc.com/arj_cics_tying_arrangements.htm) That’s obviously not happening here. [Next page](https://boards.straightdope.com/t/costcos-our-credit-card-only-policy/480700.md?page=2)