FlyerTalk Forums - View Single Post - Merchant discount rates: AMEX vs Visa/MC

Feb 2, 2010 | 9:42 am

#20

jackal

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Quote:

Originally Posted by apados

Costco used to be Discover only, but they signed a deal a few years back to exclusively accept AMEX in stores. In their online store, they can accept other cards, but in-store credit card purchases are restricted to AMEX cards. Debit cards can be used ( I believe as mentioned above for non-signature i.e. pin transactions).

I don't recall what the exact agreement was, but i'm guessing it resulted in a discounted merchant fee for each transaction etc. along with the costco branded amex card etc.

When was Costco only Discover? I don't recall that being the case.

You sure you're not confusing this with Sam's Club? Sam's was Discover-only until a couple of years ago, when they started accepting MasterCard as well.

I didn't get my own Costco membership until 2002, after they went Amex-only, but growing up in a family that shopped Costco heavily, I never recall anyone in the family having to use a Discover card at Costco (though they mostly wrote checks).

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