Hi Everyone!
It has been a couple of years (2016) since Costco US and Costco Canada switched their payment methods from American Express. Costco Canada now only accepts MasterCard (it can be any MasterCard credit card). Costco USA only accepts VISA (it can be any VISA credit card).
Everything that I have read indicated that Costco in the US would only accept VISA; however, on my last trip to Washington State, I was able to pay for my grocery bill and my gasoline with my Canadian Costco Capital One branded MasterCard! I don’t think this has been advertised anywhere and I don’t know how long this benefit has been available, but it definitely works!
The employees at the Costco I shopped at insisted that they only accepted VISA credit cards, but they allowed me to insert my card and the payment went through after I entered in my PIN code. They seemed really confused that it worked and told me that I must be using a debit card because I had to enter a PIN. I told them that this was a credit card and they told me that “things are much different here in the USA” I just shrugged. 🙂
I like the convenience of using one card to keep track of all my Costco purchases, since I make a lot of them!
For now, it seems like Costco Warehouse in the US will be taking the Canadian Costco Capital One branded MasterCard for all of its purchases. Please feel free to test this out and post your results!!!
UPDATE #1: thanks Don for letting me know that the Costco Capital one card is the only credit cards without an annual fee that does not charge a foreign exchange fee. Check out their terms and conditions here:
https://www.capitalone.com/media/doc/credit-cards/Credit-Card-Agreement-for-Costco-Cards-in-Capital-One-N.A.pdf
Transaction Fees
• Balance Transfer Fee None.
• Cash Advance Fee None.
• Foreign Transaction Fee None.
It looks like this information was from the US site. I contacted Capital One this morning and there is a 2.5% foreign exchange fee as stated in their disclosure statement. They just hide the fee so you don’t see it on your statement 🙁 https://costcoca.capitalonecards.com/web?locale=en_CA#/splash
UPDATE #2: Also, thanks to Deb for reminding me about the US Costco return policy! If you purchase something at any Costco Worldwide you can return it to any Costco location for a full refund! If you use your Costco Canada Capital One MasterCard, you should not even venture be charged a foreign exchange fee (see above)! I have purchased clothes that do not fit my little one from the US and have returned it successfully to a Costco in Canada! This is another great benefit since I didn’t want to make the trip all the way down to Bellingham to return a $10.00 shirt!
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CHECK OUT PART 2 – Spring Seasonal Items, Garden, Patio, BBQ, Camping
CHECK OUT PART 3 – USA (Washington) Costco Sales Items March 15 -April 8, 2018
Want to see what might be on sale next week? Take a look at my post from one year ago (next week)
Take a look at some pictures from Costco in Hawaii
Take a look at some pictures from Costco in the UK!
Take a look at some pictures from Costco in the Taiwan
Take a look at some pictures from Costco in the Australia!
Check out what you can but at the Costco Business Centre in Lynwood, WA Part 1, Part 2
Take a look at some unique Costco Items in Portland!
Take a look at some pictures from Costco Japan – Deli, Seafood & Sushi Items!
I just used my Costco Capital One Mastercard at the Seaside, California Costco with no problem. I didn’t say a word, just inserted my Mastercard and the sale went through. I’m not sure of any charges yet. On my Capital One online account, the total is only posted in Canadian dollars with no info on the original purchase price in US dollars or any fee info. I will have to try to figure out the exchange rate/fees myself.
Thanks for the post.. I actually didn’t know (despite some snarky comments about being old news). Much appreciate the post!
I used my Capital One MC at Kennewick, WA location and Kona, Hawaii location in April 2018, multiples times and including gas station. On each visit, store employees were knowledgeable as soon as we flashed the card that we could also use it to pay (in addition to it being our membership). I assume that all US locations will accept it now, but that perhaps it is a matter of Costco cashiers being knowledgeable about the changes that have occurred. Just ask if you can try it for payment and see what happens.
There’s quite a bit of inconsistencies surrounding the use of this card at Costco USA locations. I recall about a year ago Costco in Bellingham specifically said only their store would take the card. They were doing promotions for a while to encourage Canadians to use their credit card rather than by paying cash.
It’s puzzling why Costco is doing so in the first place and why it’s not across the board ie. all Costco locations do this? Hawaii is a popular destinations for Canadians so it makes sense they would accept it’s use there, but not at all locations? Accepting it also adds to the overall Costco expenses. Again, this is quite confusing.
Furthermore, Costco Capital One M/C leaves a lot to be desired. Many just use it for their membership only. Their website has ongoing issues especially with downloading your financial data. They have no plans to setup Apple Pay, and their exchange rates are horrible, even misleading at times. I recall seeing a pending transaction in USD one time and the exchange rate seemed decent. When the final bill came, I looked at the statement and the amount and math did not add up in any way. I contacted Capital One and asked for an explanation.
Nobody at Capital One had an explanation. I had my case escalated to management, but nobody ever called me back, despite making many repeated phone calls. Many cardholders are frustrated with Capital One should they have any issues. I am not alone.
Last fall, Capital One sent a replacement card to their customers back in the fall for no apparent reason. Only after contacting them, I was told the replacement might give customers better offers in the future. After researching the information, I found out that the replacement M/C may not be accepted at all merchants who take M/C. Accordingly, I told them to cancel the new replacement. I am currently using the regular Costco Capital One.
Finally, Chase Amazon was the only credit card that allowed USD or foreign transactions without a conversion fee. However, they cancelled everyone’s cards back on March 15. Sadly, their exchange was poor despite the absence of conversion fees. That’s VISA for you.
It would be nice if we could have a thread on credit cards that have no foreign currency fees. Search for Mastercard International and you will see the daily currency charge. You would add the currency transaction fee eg. 2.5%.
After reading all your comments I’m confused on the different approaches to using Cap 1 MC at Costco. As my earlier comment on using it in Nevada, when the charge is posted to your bill the exchange rate is included and I presumed as in any other Canadian to US$ transaction the fee is included with the exchange rate.
At the LV Costco when they switched over to Visa they told me they would accept my Cap1 MC for payment as that is my Costco ID. I think it was a year ago in the spring.
Have you check your credit card bill to make sure that they didn’t charge it as cash advance? I just want to make sure that it wasn’t the case. Also, I wonder if other mastercards work too. We don’t use the Capital One since their cashback is not the best for us but I would like to be able to use my other mastercard there.
We tried to use MasterCard in the Maui Costco in January and they would only accept a Visa or of course, cash.
Even though you can return US items to Canada, it is not an environmentally sound thing to do. They cannot sell the items in Canada so they just get destroyed.
The late physicist Stephen Hawking says unless mankind inhabits other planets, it will be doomed within a hundred years. So, I wouldn’t be so worried about the environmental impact so much, lol
I have been using Capitol One’s M/C since Nov/17 at the Bellingham store…unfortunately their exchange rate is huge even without their claimed 2.5% fee.
I now use a CIBC VISA US credit card.
– $35 annual fee, first year free
– zero exchange fees
– shop for best cad/usd rates when purchasing US cash to pay off card
Yes, it’s too bad about the annual fee. Only Chase Amazon didn’t charge an annual fee. Now, it’s been discontinued.
Good to Know! And also returning in Canada. I think I knew that, but thanks for the reminder.
Canadian Costco accepts Visa credit cards for online purchases.
They always have and Mastercard before Costco Canada had an agreement with Capital One.
Although you can return US purchases to a Canadian warehouse, it is my experience that the Canadian warehouse is not able to refund you any state tax that was paid on the purchase.
Can anyone confirm?
I think that’s correct. In any event, it would be foolish to return to Canada because you will get dinged the currency exchange fee which is the buying rate, not the selling rate that you bought the items at. If you plan on returning anything you buy in the USA, pay by credit card or Costco Cash Card (better option). The latter gives you almost the bank rate which is fantastic.
I went to apply online for this card and now there is a 2.5 % foreign transaction fee.
I was able to use the card in Hawaii Kona store in February as advised by Costco staff.
I’ve used my costco capital one m/c at Fargo ND costco for a while now, maybe 2 years?????
Old news…Costco Bellingham is the only location that accepts Capital One Costco Card.
Hi Diana, I used it at the Costco in Burlington, WA, two days ago and it worked. It doesn’t seem to be just Bellingham.
That’s a much better Costco than the one in Bellingham. I am surprised as well that Burlington takes the M/C. I wonder if the Marysville location takes it as well or any Mastercard?
You’re old news.
Not so Diana. I have been to Kalispell and they accepted my MasterCard last year. I did my fuel and grocery purchase in the store.
I love there’s no fee charge on top of purchase. I just got back from Kalispell this week and they are still accepting MC at the Costco there.
Use of the card is definitely YMMV as you can read from the mixed results posted.
Somebody posted this before on your site. It’s only the Bellingham Costco apparently..
I didn’t want to post until I tried it for myself!
A friend was in Phoenix, and the employees there said the Costco Capital One card was accepted there.
The Costco Capital One card should not be charging a foreign transaction fee.
https://www.capitalone.com/media/doc/credit-cards/Credit-Card-Agreement-for-Costco-Cards-in-Capital-One-N.A.pdf
Transaction Fees
• Balance Transfer Fee None.
• Cash Advance Fee None.
• Foreign Transaction Fee None.
Hi Don! Thanks for the research. I just assumed there was a foreign transaction fee like all cards. This is news to me but I’ll update my post to include this information
This information is incorrect. The there is a 2.5% foreign exchange fee. The pdf you provided may be from the old US Capital One Costco Card which no longer exists because they have switched to Citi Visa Card.
These terms look like they’re for the US. Do they apply to the Canadian card?
Nope. The Canadian card charges a 2.5% foreign transaction fee.