Costco advertises unbeatable credit card processing rates of 1.64% and 1.99% in their November magazine. The problem? It's like a national long distance provider advertising a flat $.05 per minute that actually only includes your zip code.
And the first benefit Costco touts regarding their services? "No Hidden Fees"
Any business that accepts credit cards will tell you that this advertisement is misleading. If a merchant were to actually sign up, expecting to pay these rates, they would be unpleasantly surprised to find out that the actual rates are:
* 1.64% and $.20 for swiped transactions
* 1.99% and $.27 for non swiped transactions
* 2.96% and $.32 for rewards, business, corporate, non-AVS, authorizations not settled within 24 hours, and a host of other conditions.
* 3.80% and $.32 for government or international cards
I don't know about you, but that's a minor * that I would want to know about before buying.
Come on Costco, you're a brand we trust. We realize others in the industry do the exact same thing, but your customers deserve better.