Costco makes credit-card
processing simple and painless
By Will Fifield
IF YOU ARE A MERCHANT, you know that
consumers love buying things with their
cards. According to The Wall Street Journal,
2003 was the first year Americans began using
cards—credit, debit and others—to buy retail
goods and services more often than they used
cash or checks. Every day millions of consumers prove the popularity of plastic.
To help Costco business members accommodate their customers’ preferred method of
payment, Costco teamed up with NOVA
Information Systems, one of the largest
credit-card processors in the industry. This
program provides exclusive low rates on
credit-card processing for Costco members,
around-the-clock customer service and no
hidden fees.
Dr. William Buchanan, a Costco member
and psychologist in Alpharetta, Georgia, who
opened North Point Psychology in 2001, says
Costco’s Merchant Credit Card Processing
Program has worked very well for him.
“I decided to offer credit as a payment
option because so many of my clients prefer
the convenience of paying with cards,” says
Buchanan. He also notes that when he
began accepting credit as a method of payment, he found his business grew between
10 and 15 percent.
“Because I had experienced good customer service as a Costco member in the
past, I took home a brochure on their credit-card-processing program when I began
looking into services,” explains Buchanan.
“After extensive research, I went with
Costco’s program because the rates were
competitive and the process seemed much
more straightforward.”
If your small business could benefit by
offering customers the option of paying by
card, as North Point Psychology has, here’s a
step-by-step look at what’s involved in signing
up for Costco’s Merchant Credit Card
Processing service.
1Call NOVA toll-free at 1-800-848-6705
(priority code 83209). Have your
Costco membership number ready because a
team of agents dedicated specifically for
Costco members is ready to assist you. You’ll
be asked to provide the details of your business to your NOVA agent. He or she will help
you determine the best service to meet your
business needs and will help you throughout
the entire process.
2You will receive an information package
of about four to six pages, usually via
e-mail or fax. Your NOVA agent will have
“After extensive research,
I went with Costco’s pro-
gram because the rates
were competitive and the
process seemed much
more straightforward.”
— Dr. William Buchanan
filled out most of the packet for you based on
your previous phone call.
3Sign and return the processing agreement for approval. You will also be
asked to provide: (a) a copy of your business
license or seller’s permit; (b) a copy of a
voided business check; and (c) a sample of
marketing materials, such as a flyer, brochure
or rate sheet.
4Upon approval, you will receive a
“Getting Started” packet from NOVA,
with a phone number to call and schedule a
Process this
Here’s a look at the key features of
Costco’s Merchant Credit Card
Processing Program.
A 1. 64 percent processing fee
for retail-classified merchants for
Visa and MasterCard purchases
(plus 20 cents per transaction)
A 1.99 percent rate for mail-,
phone- or Internet-order-classified
merchants for Visa and
MasterCard purchases (plus 27
cents per transaction)
Processing rates for American
Express, Discover, debit and check
authorization vary
Twenty-four-hour customer service, seven days a week
The $25 application and $4.95
monthly service fees are waived
for Costco Executive Members
training session, or NOVA will automatically
call you within 48 hours to set up an appointment for training.
Signing up for this service is easy and can
cut your processing fees, as many members
have found. Even if you are already in a contract with another credit-card-processing
service, the low rates may offset any early-ter-mination fees.
To learn more about Costco’s Merchant
Credit Card Processing Program, log on to
costco.com and click “Services,” then click
“Merchant Credit Card Processing.” C
