Costco will no longer accept Amex next year

[DrZoidberg]

Costco is ending it's partnership with Amex after next year. 

This could be a good thing and hopefully they get Visa or MC. That wasy I can earn some real points. 

[yfan]

I do not like this news one bit. Not one bit. When there were murmurs about it late last year, I really wanted Amex to hold on to the Costco portfolio. This is like my two best friends breaking up. 

Hopefully Amex changes us to a product that's just as useful, and hopefully - if as it seems likely, Costco goes with Capital One - Capital One allows product changes to whatever cobranded card they will get with Costco.

[Anonymous]

I REALLY hope it isn't CapitalOne. But if it was...If I can PC my Venture to it that would be ace.

[BUN]

How do u know for sure?

[B335is]

Cap1 doesn't typically PC between co-branded cards. The GM Buypower card being one of them. But they usually only take 1 hard pull versus the normal 3-5.

This is a big blow to Amex - roughly 8% of their annual revenue. If Cap1 gets the contract I might finally join Costco. Hopefully it doesn't go to Comenity.

[CreditCuriosity]

---

@BUN wrote:
How do u know for sure?

---

Its all over the news... Amex is down 6% for the day cause of this news... Amex has been around long before costco and long after them most likely as well.  They will recover no doubt, just the market knee jerk reacting..  

[B335is]

Costco to ditch AmEx cards at U.S. stores next year
http://finance.yahoo.com/news/costco-stop-accepting-amex-cards-133314755.html
Warehouse club retailer Costco Wholesale Corp will stop accepting American Express Co's credit cards at U.S. stores from next year, threatening nearly 8 percent of the card company's worldwide billed business. AmEx, which had worldwide billed business of about $1 trillion in 2014, said the loss of the contract would hurt earnings for the next two years. "...This represents a large loss in our opinion," Jefferies analysts said in a report, noting that Costco also accounts for 20 percent of AmEx's worldwide loans and 10 percent of cards in force.

[longtimelurker]

---

@CreditCuriousity wrote:

---

@BUN wrote:
How do u know for sure?

---

Its all over the news... Amex is down 6% for the day cause of this news... Amex has been around long before costco and long after them most likely as well.  They will recover no doubt, just the market knee jerk reacting..  

---

Well, not really.   As it is 8% of the billed revenue, it is certainly rational that the share price dropped.    And, past results etc, lots of successful companies do eventually die as things change.

[DrZoidberg]

Costco had $113B in revenue. I can't believe Amex is walking away from that for basically doing nothing but allowing their system to be used. That's a huge chunk of profit they'll miss. 

[mongstradamus]

---

@DrZoidberg wrote:

Costco had $113B in revenue. I can't believe Amex is walking away from that for basically doing nothing but allowing their system to be used. That's a huge chunk of profit they'll miss. 

---

i am not so sure its amex walking away from the deal, i think costco may also want to use another CCC since amex is known to have the highest swipe fees. I am wondering what will happen to amex TE card. I am thinking maybe they will allow PC to BCE not so sure though. One thing about amex i like is they don't send their extended warranty to an third party like discover chase and an bunch of other CCC do.