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Costco Payment Processing Review

Costco is known for wholesale products and great deals, but that reputation doesn’t really hold up for payment processing. Costco Payment Processing is offered through Elavon.
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As a reseller of Elavon services, Costco Payment Processing provides transaction processing for a wide range of payment types through the most popular payment channels, including in-store, online, and with mobile devices. In this Costco Payment Processing review and profile, we will break down the services it offers and take a look at whether it’s the right choice for your business.

What payment services are offered through Costco?

Costco provides the ability to accept a wide range of payments, including traditional credit cards, PIN-based debit, electronic checks, gift cards, fleet cards, EMV chip cards, corporate cards, contactless payments like Apple Pay, and, EBT. Acceptable credit cards include MasterCard, Visa, American Express, Discover, Diners’ Club, and JCB. Costco also offers the ability to accept payments in foreign currencies using Dynamic Currency Conversion. You can accept payments in person using point-of-sale systems and countertop terminals, via mobile device, or using a virtual terminal. Additionally, Costco Payment Processing includes Elavon’s U.S.-based 24 hour customer service.

Costco merchant services homepage

In Person Processing

If you’re in a traditional brick-and-mortar business with a storefront, Costco Payment Processing offers in-store payment options. You can use point-of-sale equipment or countertop terminals to accept and process payments at the time of sale.

Mobile Processing

Costco Payment Processing utilizes Elavon’s mobile applications to allow you to use almost any existing smartphone or tablet as a secure payment device. Payments can be accepted almost anywhere with a wireless connection, and you can easily process credit cards and signature-based debit cards.

Virtual Terminal

Costco offers Elavon’s Converge Virtual Terminal (formerly called VirtualMerchant) for those who prefer to accept payments with their existing computer. Converge is a hosted payment solution and can accept payments in person, by mail, or by phone. Payment types that can be accepted include credit cards, debit cards, electronic checks, gift cards, and EBT cards. Additionally, you can set up recurring billing for any goods or services offered on a set schedule, such as monthly memberships.

Check Acceptance

Elavon offers an Electronic Check Service that converts paper checks into electronic transactions. You will receive funds from these transactions in 24-48 hours.

Gift Cards

Offering gift cards can be a great way to encourage repeat business. Elavon offers this convenience, as well as information about how using gift cards can help your business grow.

What equipment and software are offered?

Costco offers countertop terminals and mobile devices for processing. Specific features vary by model, but may include options such as LCD screens, hand-held designs, and the ability to accept newer payment technologies such as EMV chip cards.

As for additional software, Elavon offers MerchantConnect for reporting. This tool can help you gain insight and manage your business with account activity, chargeback and retrieval statuses, and other helpful options.

Are there any security benefits to working with Costco?

Costco offers secure PCI compliant products and services to help ensure cardholder and business safety. Clients also benefit from Elavon’s fraud monitoring, designed to help identify suspicious transactions to limit chargebacks.

Costco Payment Processing Rates and Fees

Costco Payment Processing publishes the following rates:

Swiped rate: 1.38% + $0.19 per transaction

Swiped rate: 1.99% + $0.35 per transaction

Swiped rate: 1.38% + $0.19 per transaction

Rates listed are for qualified transactions. This indicates a tiered pricing model. Additional fees for non-qualified transactions, monthly minimum charges, application fees, and statement fees beyond the published rates are likely to pop up. To get a fully disclosed Costco Payment Processing quote, you can request a quote through CardFellow. Our quote request tool is free to use and we keep your contact info private.

Costco Payment Processing Reviews

Costco Payment Processing doesn’t have a large reputation online, but is generally viewed negatively due to unexpected fees and expensive tiered pricing. Elavon, however, has been accredited with the Better Business Bureau since 2009. It has an A+ rating but, 170 complaints closed in the last 3 years and 62 closed in the last 12 months. The complaints that are viewable allege issues with cancelling the account, problems with the Converge Virtual Terminal and poor tech support, generally being unable to get through to customer service when issues do arise, hidden fees, problems with equipment, and incorrect billing. The main reason for wanting to cancel seems to be that pricing was more expensive than expected.

Ripoff Report has 45 complaints on file for Elavon, essentially reiterating what was voiced at the BBB. They also have a 1 star rating on Yelp, the lowest it can go. Not everyone who uses Elavon goes through Costco, but some complaints mention using them through Costco and having the same issues. So, while you might not find much information on Costco Payment Processing itself, you can probably expect the same quality of service that Elavon clients are claiming in their reviews.

You can get further information on Costco according to CardFellow by reading our article Costco Merchant Account Services.

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Posted by Lisa Padgett on Jul 27, 2017


Although the intention is to convey to the members that Costco is involved in the merchant processing relationship, the reality is: Costco members are provided these special terms, however, if a Costco member is not happy with "Costco" Elavon Merchant services, Costco may provide some assistance, but ultimately the Costco member is disputing Elavon not Costco.