The fourth-largest retailer in the United States, Costco, is known for carrying various products and services. They offer their vast customer base numerous payment methods in over 2,600 of their stores. But is Venmo one of them? Let us know about “Does Costco Take Venmo?”
Unfortunately, Costco does not take Venmo. The big-box retailer does accept a couple of other viable payment options, including Visa, most PIN-based debit and ATM cards, the Costco Anywhere Visa® Card by Citi, Costco Shop Cards, and cash. But Venmo isn’t one of them.
If this is something you’ve been debating, this article is for you. Here’s why Costco will not receive your Venmo payment and alternatives you can use.
So, Why Does Costco Not Take Venmo?
We typically use this peer-to-peer payment platform to send and receive money from our friends and family. But Costco refuses Venmo due to several reasons:
- Venmo restricts it.
- It lacks the necessary features to support business, commercial, and merchant transactions.
- Inadequate customer protection.
- Privacy issues.
Venmo Restrictions
This is what Venmo states in its User Agreement:
Venmo may NOT otherwise be used to receive business, commercial or merchant transactions, meaning you CAN NOT use Venmo to accept payment from (or send payment to) another user for a good or service unless explicitly authorized by Venmo.
The digital money platform requests businesses who would like to use Venmo to buy merchandise, goods, or services not do so. They risk losing funds paid for goods or services into the personal profile of illegitimate sellers.
Lacks Necessary Features
Venmo is an online-based payment method. This system is more secure and reliable than traditional payment methods like cash and check, but it may not be as convenient for Costco.
Currently, Venmo only offers personal accounts. It runs on simple software to facilitate sharing money with people in your social circle. As such, it lacks sophisticated, specialized features that a company like Costco needs in a digital transaction system.
There are no monthly reports or records to aid in taxation – features that streamline the smooth running of companies’ financial practices. In addition, using the app would mean more manual work, translating to higher labor needs.
Inadequate Customer Protection
Costco may not be comfortable with the security and reliability of this system. Nowadays, there’s growing concern about data breaches at companies like Venmo, which is likely another reason why they are yet to integrate Venmo into their checkout process.
“But I’ve seen buyers who use Venmo to pay for goods or services!”
Yes, there are small businesses that allow customers to pay through this digital wallet. The buyer tags the payment to a personal profile as a purchase or credits it to an authorized business profile.
Although this is a way to bypass the ban imposed by Venmo, there are significant disadvantages. If you’ve used the app before, you know that once you hit the send button, there’s no room to change your mind. The only way to get your money back is if the recipient sends it back. Consumers risk losing funds to unscrupulous sellers online.
Privacy Issues
Venmo is like a social media site for payment processing. Transactions are public and visible to everyone on the account holder’s network unless marked as ‘private.’ This may not be a big deal to some people, but it could be an important factor for others who rely on Venmo to make payments.
Costco is just being considerate of its customers. I mean, who wants everyone to know every time they go grocery shopping, buy pet food, or book a hearing test?
What Form Of Payment Does Costco Take?
Because Costco does not accept Venmo as a form of payment, customers who wish to checkout using this method should consider alternatives. You can use the below payment options available at Costco:
- Costco Shop Cards
- The Costco Anywhere Visa® Card
- Cash
- Mobile Payment – Google Pay, Apple Pay, or Samsung Pay
- Visa
- Most PIN-based Debit/ATM Cards
You can only use Mastercard when buying from Costco.com. They also allow current members to checkout using personal and business checks, but only at warehouse locations.
The Bottom Line
Costco does not take payments made via Venmo. This is because the platform lacks adequate features to support business and merchant transactions. In addition, the app lacks robust security features to keep commercial transactions and personal data safe from hackers. Instead, you can use one of the many alternative payment methods accepted at Costco.
Frequently Asked Questions
- Can I use Venmo to buy from Costco?
You cannot use Venmo to pay for merchandise, goods, and services from Costco or costco.com.
- Can I use the Venmo Credit Card at Costco?
Yes, you can. Venmo’s credit card is endorsed by Visa, which is accepted at Costco stores. You stand to earn 3% cash back on your purchases.
