Costco will no longer accept Amex next year

[longtimelurker]

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@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. 

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Sort of like the AA lounge access going away on the Plat.  We don't know what the competitors offered Cosco (money + lower swipe fees maybe), maybe enough for Amex to decide that keeping up was a loss maker.

[kdm31091]

I don't use Costco but this sucks for existing cardholders. I imagine it very well may be capital one that takes over since they did in Canada. I don't know if PCing to the new card would work though since it's cobranded.

Some people on other sites with this article are saying Costco could end up just taking cash and debit. That may be just a dumb rumor, but crazy if true. Then again Costco was originally intended solely for business. Not personal consumers.

[Anonymous]

It would need to be an issuer with a decent added warranty possibly a price protection program.

Citi or Discover come to mind.

[bdhu2001]

It would be great if it were FNBO or Citi.  Both have prestigious cards, decent limits, and provide free FICO scores.  Of course, I only have FNBO so I'm hoping it'll be FNBO.

[thom02099]

AMEX/Costco Exclusive Relationship To End

AMEX is not "walking away" from Costco.  The two companies could not come to a new agreement of terms for the current contract, which expires at the end of March 2016.

As of today/Thursday, there's no indication of any replacement, though one could logically presume that Capital One/Mastercard could be in the running, based on events in Canada.  This is not fact, however. 

As a sidebar, the True Earnings Costco card is still offered at the AMEX website.  There is still a year left on the contract.  It will be interesting to see when new applications for the card will be pulled. 

[celluloid17]

This is so disappointing.  I love the TrueEarnings card and it's the only Amex product I currently find useful for my spend.  I also value being an Amex cardholder in general and the quality of service and perks that come along with it.  I hope Amex creates a new product with similar or improved benefits to rollover the existing TE cardholders into rather than just selling us off to the new bidder (a possibility).  This also devalues the Fidelity Amex a bit as the ability to get 2% back at Costco was one of the upshots of having that card.  I really hope the new Costco credit card is a MasterCard so that the Citi Double Cash can be used there or maybe even Sallie Mae if Costco would be classified as a grocer. 

[CreditCuriosity]

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@longtimelurker wrote:

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@CreditCuriousity wrote:

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@BUN wrote:
How do u know for sure?

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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..  

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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.

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Yes it is a big portion of their profile, don't get me wrong.. Everything dies at sometime to your point though.  

[Anonymous]

Dang...I'm now anticipating when they announce who will be replacing them for sure.

[vikingred]

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@Anonymous wrote:
It would need to be an issuer with a decent added warranty possibly a price protection program.

Citi or Discover come to mind.

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@Anonymous, this is from the article:

Capital One Financial Corp replaced AmEx as Costco's card partner in Canada, raising speculation that the company could also replace AmEx in the United States.

Capital One, whose shares were up 2.3 percent, did not immediately respond to a request for comment.

I just got the E-Mail my Venture card is in the mail.  15k.  I am a Costco member.  PC?  At least by the time amex is out, the card will have aged some.  ;-)

[CreditCuriosity]

Mise well just change Costco to Dollar general if they start taking Cap1 as their card of choice.  Its all speculation who they will end up using though, at this point it could be anyone