What Is Costco Merchant Services?

This Elavon reseller doesn't offer the same kinds of discount rates you'd expect from the Costco brand, but it does offer a robust POS system.

WRITTEN & RESEARCHED BY
Erica Seppala
Editor & Senior Staff Writer

Sep 8, 2025

UPDATED

Our content reflects the editorial opinions of our experts. While our site makes money through , we only partner with companies that meet our standards for quality, as outlined in our independent .

Key Takeaways

Costco Merchant Services is powered by Elavon, so you’re essentially signing up with Elavon under the Costco name.
The advertised low rates only apply to a narrow set of transactions; most businesses will pay more than they expect.
While Costco offers solid hardware and a few perks for Executive members, better pricing and transparency are often available elsewhere.

Costco is best known for bulk groceries and bargain hunting, but many business owners don’t realize the retail giant also offers credit card processing through Costco Merchant Services.

Powered by Elavon, this program promises exclusive rates for Costco members, flexible equipment options, and waived fees for Executive members, but is it worth it? Let’s break it all down so you can understand what Costco Merchant Services is and if it’s right for your business.

Table of Contents

What Is Costco Merchant Services?
Core Services & Features
What Does It Cost?
Benefits For Businesses
What To Consider Before Enrolling
Should You Sign Up For Costco Merchant Services?

What Is Costco Merchant Services?

Costco is famous for its bulk goods and low prices, but its lesser-known merchant services don’t deliver the same value. Costco Merchant Services is essentially a reseller of Elavon, one of the largest payment processors in the U.S. That means when you sign up through Costco, you’re really getting an Elavon merchant account — with Elavon handling the actual processing, customer service, and contracts.

Despite Costco’s reputation for low prices, merchant accounts through Costco don’t reliably deliver deep discounts. Most of the time, you’ll get terms similar to signing up directly with Elavon.

Core Services & Features

Here’s what you can expect when signing up for Costco Merchant Services:

Merchant Accounts: All accounts are underwritten and managed by Elavon.
POS Systems: Options include Poynt smart terminals, Elavon countertop devices, and the Talech POS platform for retail and restaurants.
Omnichannel Payments: Costco Merchant Services offers Elavon’s Converge omnichannel payment platform, which combines the functions of a payment gateway and a virtual terminal.
Mobile Payments: The Converge Mobile app pairs with a card reader for on-the-go processing.
eCommerce Support: Converge also enables online payments, billing, invoicing, reporting, and hosted checkout pages.
Security Tools: Encryption, tokenization, and PCI compliance services are included.

Costco Merchant Services Hardware

One area where Costco doesn’t fall short is its payment processing hardware. Here’s a breakdown of the options:

Ingenico Desk 3500	Countertop terminal
talech Mobile	Mobile terminal
talech Terminal	Smart terminal
talech Standard	Smart terminal
talech Premium	All-in-one POS

The Elavon Payment Gateway for accepting mobile payments is also available.

You can buy equipment outright or rent it, but rentals often cost more in the long run — buying upfront is usually the smarter choice.

Costco members may also qualify for a “free” terminal, but these deals typically come with strings attached. Always check the fine print before accepting any “free” equipment offer.

What Does It Cost?

In addition to hardware costs, you’ll also pay processing fees. Costco advertises several pricing options:

Tiered Pricing	1.1% + $0.12 per qualified transaction (in-person); 1.9% + $0.25 per qualified transaction (online)
Credit Card Surcharge Pricing	Customers pay a 1-3% surcharge on credit transactions; debit transactions do not qualify
Built Around You Pricing	2.3% + $0.10 per swiped or chip transaction
Enterprise Pricing	Custom rates for merchants that process $1M+/year

The low advertised rates of tiered pricing only apply to “qualified” transactions, while most real-world transactions fall into higher-cost categories that Costco doesn’t disclose upfront.

The flat-rate plan is simpler and more predictable, though it’s often more expensive than interchange-plus pricing from other processors.

The “zero-cost” plan, which has customers cover credit card fees through surcharges, isn’t available in every state and comes with strict equipment and software requirements.

Beyond processing rates, merchants should also factor in extra account fees. These include:

Monthly minimums may apply
Monthly statement fees for non-Executive members
Chargeback fees
Potential software costs
Hardware costs

While Costco waives some smaller fees for Executive members, the savings are minimal and don’t outweigh the higher processing costs. As with any merchant account, it’s important to read the fine print carefully to avoid hidden fees and surprises in your contract.

Benefits For Businesses

Signing up with Costco Merchant Services/Elavon does have some benefits. Costco offers a robust selection of POS hardware and a capable POS platform for retail and restaurant use.

The Converge platform supports both in-person and online payments, and Costco/Elavon’s security measures meet PCI standards. Costco also waives certain fees for Executive members, and the company discloses its relationship with Elavon (something many providers don’t do).

What To Consider Before Enrolling

Here’s what to keep in mind before enrolling:

Pricing structure: Tiered pricing can be expensive. While flat-rate pricing is available, it’ll likely be more expensive than interchange-plus pricing.
Contract terms: Standard contracts are three years with automatic renewal clauses. Although there are no ETFs, you’re still bound to the full term and must follow contract rules to avoid auto-renewal.
Equipment rentals: Rental agreements can carry penalties, such as a restocking fee. Keep in mind that buying is often cheaper than long-term rental.
Customer support: Support is handled by Elavon, but Elavon’s customer-review record is mixed. (On the plus side, self-service options and 24/7 support are available.)
Cancellation hassles: Closing an account isn’t always straightforward, so follow contract cancellation steps to avoid unwanted renewals.

Should You Sign Up For Costco Merchant Services?

Costco Merchant Services provides solid POS hardware and a capable platform, but it rarely delivers the deep pricing advantages shoppers expect from the Costco brand. Tiered pricing and undisclosed non-qualified rates are going to be more expensive than alternatives, and equipment rental terms and contract renewals add potential costs and headaches.

While the hardware offerings and the lack of an early termination fee are positives, the pricing models still make this a hard sale. Unless you can negotiate an interchange-plus deal or qualify for the surcharging plan in your area, we would recommend looking for more cost-savvy options, starting with our list of the best credit card processing companies.

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Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick

Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.

View Erica Seppala's professional experience on LinkedIn.