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Costco Merchant Services Review

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Costco Merchant Services Review

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Emily Hale

Emily Hale

Emily is a writer, strategist, and freelance consultant based in Indianapolis. She is driven to create content that empowers her readers and her clients to make better choices in their business and their lives. When she's not in the thick of researching and developing blogs for Merchant Maverick, she likes to cook from scratch for her family or escape outdoors and meander through nature with her rescue pup.



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16 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Michael Long

    Costco Merchant Services sponsor Elavon as the choice for Vendors credit card processing. Just got notified that Visa credit card processing fees will go up 39%. MasterCard remains the same at 2.07%. Anyone know why Costco/Elavon are discriminating against Visa? Til now Visa is used by about 80% of transactions in Canada. Might it have something to do with Costco Canada signing a MasterCard contract for exclusive credit card payments in their stores? I would say that is a pretty dirty strategy negatively affecting vendors unrelated to that contract. Does anyone understand why they would jack up Visa processing fees and not MasterCard?

    1

      This comment refers to an earlier version of this review and may be outdated.

      Jessica Dinsmore

      Hi Michael,
      Visa and MasterCard set their own interchange rates and transaction fees. Visa recently raised their rates (effective January 1st, 2019), and Costco/Elavon is probably just passing on the increase to their merchants.

        This comment refers to an earlier version of this review and may be outdated.

        Amy Wishart

        Organization Name: Do It Yourself Documents

        Second month in a row that 2 Elavon/Costco Accounts have a statement fee. We are EXECUTIVE MEMBERS. Called last month and was told it would be correct and refund issue. Yup, no refund and this month’s statement also has a statement fee. Do they really think that people don’t look at their statements? Maybe if they do it to enough of us we would qualify for class action status!

        3
        • Organization Name: Do It Yourself Documents

        This comment refers to an earlier version of this review and may be outdated.

        Marie Grace Faith Inc

        Organization Name: Oak Lake Med Spa

        Worst Customer service ever, needed to update my account information, called customer support, firts they provided me with the wrong form to fill, then they claimed that they have requested more info that they never received so they closed my account.
        I had to do Another application to re-open the account and still has not been reactivated.
        Very complex and compersome and certainly it seems that they don’t care about my business.
        So I will be taking my business some where else!
        Very bad experience!

        • Organization Name: Oak Lake Med Spa

        This comment refers to an earlier version of this review and may be outdated.

        LISA BIRD

        COSTCO continues to provide merchant services through Elavon, despite the overwhelming negative complaints and numerous unethical practices.

        Has Costco gotten so big that they now engage in unsavory relationships with crooked corporations?
        Costco has had a good reputation in the past. So disappointing and very sad, really.

          This comment refers to an earlier version of this review and may be outdated.

          Dan Bilbo

          Don’t trust the rate on this company, I can’t believe that Costco associates it’s self with these crooks. They claim 1.22-1.99% (that’s only on debit cards at 1.99%), my first statement, only one card qualified for 1.99%, everything else was @ 3.35%. what a scam, should have just stuck with PayPal at 2.75%, cost me an extra $500 for one month! ***DON’T DO IT***

          1

            This comment refers to an earlier version of this review and may be outdated.

            William Cline

            BEWARE!!! Elavon does absolutely nothing to represent or stand behind their merchants, so even if they offer slightly lower fees it just isn’t worth it as just one unjustified chargeback more than offsets any savings. We had a cardholder claim they returned an item back in February 2017 – it is now May 2017 – which they did not, and in their chargeback claim provided no documentation whatsoever of any such return. And yet, all Elavon did was route form letters to us ignoring all of the evidence we provided as to the charge, matches on address and security code, and authorization to process the charge. I don’t think they even took the time to read anything, instead just reflexively rolling over to allow this cardholder to commit overt fraud. Complete and total FRAUD. So do business with Elavon at your own risk, especially if you’re a small or medium size business that they take for granted. Of course maybe they take everyone for granted and are just running their own scam pocketing all the savings from their non-existent customer service and pathetically inadequate and incompetent transaction authorizations bordering on outright negligence.

            1

              This comment refers to an earlier version of this review and may be outdated.

              Jason Wolf

              Big scamThey make it easy to buy the terminal from evalon for about $725Then a month later they like to close the account. Then no refunds for terminal. All they are is an out let to sell over priced terminals. Horrible customer service.

              1

                This comment refers to an earlier version of this review and may be outdated.

                richard vogel

                i am the manager of a retail store in laguna hills,ca.i had an issue with my elavon credit card machine previous batch ,and called the merchant services phone number for service.i received an automated introductory message,which went on for it seemed 3 minutes;then it asked for my merchant #.then,more automated messages,and then the wait to speak with a human.the system placed me on hold with no further sound;not even canned music.after 10 minutes,i gave up and hung up.later in the day,i called again,and exactly the same thing occurred.it’s a good thing i didn’t have a customer waiting;i would have lost the sale.why bother with customer service? elavon apparently doesn’t have humans to answer;i guess it’s more cost effective.

                1

                  This comment refers to an earlier version of this review and may be outdated.

                  Bobbie

                  Have had Costco Elavon for going on 6 years – retail sales. Process about $200,000 a year through them. I thought since it was Costco it would be a good deal – ABSOLUTELY NOT!. Their processing fees are the highest I have found. The highest interchange on Visa that I could find is 2.10% and 2.40% if swiped – MY HIGHEST COSTCO ELAVON FEE IS 3.25% + .29 TRANSACTION FEEAND THAT’ AFTER NEGOTIAITNG 10% OFF. 35% OF MY MONEY VOLUME IS AT 2.55% AND 3.25%
                  I can’t believe that I really just started delving into this. Before it just seemed like to much to learn to weed through all the companies and rates. The cc processing sales reps are usually new to the job (it’s a tough job) and even though I didn’t know alot, they couldn’t provided answers.
                  Seriously, do your homework, i’m down to 2 companies and they are both able to beat Costco Elavon by 66% savings. Elavon is riding on the fact that people trust Costco. Costco Elavon bundles their cards, which if you investigate- HAS YOU PAYING THE PROCESSOR THE MOST AMOUNT OF MONEY.
                  The rep at Costco Elavon said “don’t you think we should make a profit? I said there’s a difference between a profit and raping someone who’s to stupid to figure it out”
                  OH AND THEN THE EMPLOYEE SUPERVISOR OF 8 MONTHS TOLD ME THAT I SOME PEOPLE DECIDE TO GO WITH ELAVON AND GET INTERCHANGE RATES.

                    This comment refers to an earlier version of this review and may be outdated.

                    Butlers

                    I’m using shopkeep as my POS system and would like a good merchant service $10.00 a ticket and 13K a month…give or hopefully not take.

                    5

                      This comment refers to an earlier version of this review and may be outdated.

                      DZ

                      I just got Costco Merchant Application.
                      We are an Executive card holder so here are the rates we were given.

                      Qualified 1.38% $0.19
                      Rewards Qualified 1.99% $0.19
                      Mid-Qualified 2.65% $0.29
                      Non-Qualified 3.35% $0.29
                      Opt. Comm. Card Tier 2.65% $0.29
                      Debit 12c a swipe.

                      Monthly minimum $20 and no other fees or contracts.
                      Trying to do a start-up medical type office with transactions $65 to $85 average. Swipe only.
                      Any thoughts?

                      Thanks

                        This comment refers to an earlier version of this review and may be outdated.

                        Tom DeSimone

                        Hi DZ,

                        This is not a good idea, in my opinion. Those tiered rates are not realistic. In many cases, the quotes here are below cost. This means that they would be losing money on your account, which is clearly not something they will allow to happen. To make up for it, they will either be increasing your rates almost immediately, or charging you a ton of money in hidden fees.

                        I would highly recommend choosing a different processor, and insisting on interchange-plus pricing without a monthly minimum. My first thought is that you should check out Helcim. They set up very cost-effective accounts.

                          This comment refers to an earlier version of this review and may be outdated.

                          Laurie Dion

                          Costco /Elavon
                          1. Qualified 1.56% per item $0
                          2. Rewards Qualified 1.99% per item $0
                          3. Mid-Qualified 1.99 % $0.0
                          4. Non-Qualified 2.07% $0.0
                          5. Opt. Comm. Card Tier 1.99 % $0
                          6. Debit 0.06 c a swipe.
                          plus no monthly service fees.

                          Elavon/Costco Canada offered me this morning Jan 19/2016

                            This comment refers to an earlier version of this review and may be outdated.

                            Scott Ebright

                            Abysmal, rinky-dink, completely USELESS service!! DON ‘T GET HOODWINKED by this amateur, inefficient company!!! COSTCO has really blown it now. You see, their sister company Elavon has recently been re-organized with ignorant, no nothing cheap helpers.Costco is just the pimp for Elavon services. They take their cut and then throw us COSTCO members out into the universal vacuum of terrible companies that don’t have the first clue about how to run any kind of service business!!! PURE RUBBISH!!! DO NOT BE A SUCKER FOR THIS RUSE…

                            1

                              This comment refers to an earlier version of this review and may be outdated.

                              Larry

                              I spoke with a rep today (10-22-12) and there is no contract and there are no fees anymore except if you don’t process during a certain month there will be a $20 minimum fee. However, if you are a seasonal business, that will be waived while you are closed. To me, this is the very best deal I have found so far.

                                This comment refers to an earlier version of this review and may be outdated.

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