Costco in Canada exclusively accepts Mastercard for credit card purchases due to long-term corporate partnership agreements and negotiated merchant processing fee structures. By restricting credit card acceptance to a single network, Costco can leverage its massive global purchasing volume to secure lower transaction fee percentages from credit card processors. These reduced processing overhead costs allow Costco to maintain its famously thin retail profit margins and pass substantial savings directly on to its warehouse members in the form of lower warehouse prices on groceries, electronics, and household goods.
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