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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.
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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.
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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.
Here’s what you can expect when signing up for Costco Merchant Services:
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.
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:
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.
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).
Here’s what to keep in mind before enrolling:
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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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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