Costco Won't Accept Amex in U.S. From April '16

Discussion in 'General Discussion | Credit Cards' started by Zomby Woof, Feb 12, 2015.  |  Print Topic

  1. Zomby Woof

    Zomby Woof Silver Member

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  2. Sammich

    Sammich Gold Member

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    Yikes, the US now too. Can't say I didn't see that coming.
    AXP dropped 5.70 bucks today so far, about 6.6%...
     
  3. tondoleo
    Original Member

    tondoleo Gold Member

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    They have 14 months to kiss and makeup.

    I suspect that they will.
     
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  4. Zomby Woof

    Zomby Woof Silver Member

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    I would think Costco has the advantage. AMEX probably needs them more than Costco needs AMEX. I don't think Costco members would care too much unless Costco did something like only accept a Capital One card and/or they lose getting the current cash back benefits currently provided by AMEX.
     
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  5. satman40

    satman40 Gold Member

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    Costco is a great place to spend your gift cards, they do take debit cards,

    So OD, 5X. INK, a $200.00 spend can get you 1,000 points so fast...

    SPG 1.25 AA was a good ride...

    Times Change....

    I'd be a buyer on another 5% stock price dip???look for a kiss and make up 8% is a big loss.
     
  6. Betty Boop

    Betty Boop Gold Member

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    I'm confused. Costco' business card is an Am ex card. They're going to give that up and go for something else?
     
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  7. Betty Boop

    Betty Boop Gold Member

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    I sure hope they will
     
  8. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Yup, that seems to be the plan.
     
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  9. Newscience

    Newscience Gold Member

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    Yes, this sucks. However, from my POV, if Costco can continue to provide 3% cash back from gas purchases and an annual purchase rebate using any credit card, that's fine with me. And, as @tondoleo points out, 14 months is enough time for some good things to happen. ;)
     
  10. daninstl

    daninstl Gold Member

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    I have the Costco Amex card which is a fake Amex Platinum with low rewards (IMHO). It's actually one of my older cards but I don't have a major problem on this change of events unless....wait for it....Costco goes exclusive with another card company I don't like (I'm talking to you Cap One and Discover). If they go exclusive Cap One or Discover I will go across the street (literally for me) to Sam's club even though I like Costco much better.
     
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  11. Zomby Woof

    Zomby Woof Silver Member

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    Same here but I would just buy Costco cash cards online (free standard shipping) with my favorite rewards card.
     
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  12. daninstl

    daninstl Gold Member

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    Good point as well. Where would you buy them online with your rewards card with the best deal? I'm pretty dumb on this front.
     
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  13. satman40

    satman40 Gold Member

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    Canada is their test market, and we all know aAmex tried to raise the rate..l

    Most of my Costco is with a debit card, bought at OD, w a Chase Ink card so 5X on the points, unless we need the extended warranty.

    Costco beats SAMs in my area hands down..,coffee is great,

    Look for Delta and SPG, to end the game with Amex also.
     
    Last edited: Feb 13, 2015
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  14. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Except they both just renewed their contracts last year.
     
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  15. Zomby Woof

    Zomby Woof Silver Member

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    I've only bought them on the Costco site.
     
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  16. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    I would think it's highly unlikely that they will restrict their customers to either a particular issuer of Visa/MC or switch to Discover. I wonder if it is even "legal" for merchants to limit acceptance to a particular VISA or MC issuer or for credit card issuers (like Cap One) to enter such agreements for one of their VISA/MC-branded cards.
     
    Last edited: Feb 13, 2015
  17. Zomby Woof

    Zomby Woof Silver Member

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    If they can't, then they could offer some incentives for using the co-branded card. Maybe more cash back for Costco purchases.
     
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  18. satman40

    satman40 Gold Member

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    Amex lately has been renewing a number of its partnership agreements, she noted. It struck a new deal with Delta Air Lines Inc.DAL -0.76%, and is in talks with JetBlue Airways Corp.JBLU +0.42% Costco was next on the list. But the talks never went anywhere productive. “It just kind of deteriorated,” she said. “They couldn’t come to agreement on terms.” American Express, she said, felt that the things Costco wantedjust didn’t make economic sense for it.

    Moreover, she said, “the writing was on the wall,” after an agreement between Amex and Costco in Canada fell apart several months ago. So the U.S. partnership crumbling was just the other shoe dropping. The question now is how does American Express replace a partnership that represented one out of every 10 cards it issued, and where does Costco takes its business next.

    Bad news day, maybe they can work it out...
     
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  19. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    I wouldn't have guessed that the Costco Amex represented 10% of their overall cards.
     
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  20. satman40

    satman40 Gold Member

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    Other writer said 8%, but he got the Delta wrong also....

    Brian Williams reporting...we just repeat...

    Either one is a lot of bucks...I hope they work it out and pass on the cost, consider them both good companies, but bank mutual type funds are down a bit.
     
  21. bez7
    Original Member

    bez7 Gold Member

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    We've been milking the Costco Business AMEX for 4% on gas (and milk for that matter ;-) )
     
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