The retail giant has announced that it will end its use of a debit card payment system in some areas, including in the Midwest.
In the United States, Costco’s decision to switch to a debit payment system was first reported by the Associated Press.
The move will affect about 10 million customers, the company said.
Customers in Iowa, Michigan, Ohio, Pennsylvania and West Virginia will not be affected.
Costco said it is continuing to work with local merchants to implement the new system.
“We’re pleased to see Costco continue to support the growth and success of its U.S. retail network and to continue its commitment to providing its customers with great, value-driven shopping experiences,” Costco CEO Mike Williams said in a statement.
“We believe this move by Costco to adopt a new payment method will make it easier for our customers to make purchases and is consistent with our goal to serve our customers at an affordable price.”
Costco says the decision will allow it to offer “value-based” discounts at its full-service pharmacy, which is where most Costco customers shop.
Costco said it will offer a new Costco Pharmacy Rewards Card, which will offer more perks and discounts, including a $5 off-price membership fee, and a $10 discount on certain Costco purchases.
It will also offer a $1.99 gift card and a new membership for a one-year membership to Costco Pharmacist.
“These new features will make Costco Pharmacists more accessible and enable us to continue to offer our customers an exceptional shopping experience, and we look forward to continuing to grow the company,” Costco said.