What happens to our Amex TE cards if Costco and Amex divorce?

[Luscher]

COSTCO could also choose to stay with AMEX, you never know. They are taking bids from everybody right now, if AMEX offers them something they can't refuse, Im sure they will stay with them.

[jwduke]

So does my Costco Amex card CL go from 15k to 1.5k with Crapital 1? And the interest rate go from 9.99% to 19.99% too?

[enharu]

---

@jwduke wrote:

So does my Costco Amex card CL go from 15k to 1.5k with Crapital 1? And the interest rate go from 9.99% to 19.99% too?

---

Amex may or may not sell the portfolio to Cap1 (if Cap1 wins the bid).

It depends on the original contract Amex inked with Costco. If the terms stipulate Amex must transfer the customers to the new company, then Amex has to and there's nothing they can do to retain existing TE cardholders. Or whomever that wins the bid may also offer Amex a nice amount of money to buy over the cardholders. 

[dabrian]

Canceling mine soon so I'm not concerned either way.

[insidious28]

So what would happen to business TE card holders?

[weehoo]

The TE card has a pretty lackluster reward program so it shouldn't be a huge loss to cardholders

[celluloid17]

---

@weehoo wrote:

The TE card has a pretty lackluster reward program so it shouldn't be a huge loss to cardholders

---

I actually think they have a pretty decent rewards program.  3% back on gas purchases (4% if you have a business membership), 2% on restaurants and all travel expenses, 1% everything else.  The only drawback is that you only get your cashback in the form of a Costco check once a year that can be cashed out at any Costco.  For a no AF Amex (if you don't count the annual Costco membership), it's a pretty decent card to have and use.

[TiggerDat]

I can't believe I am going to do this, but I will partially defend CrapOne. 

If you get approved for an upper tier card with them, they do treat you better.  I had two subprime cards with them.  I closed one after the two year mark when I asked that they remove the annual fee, they refused to even waive it for the year, so I closed the card.  Going forward I contacted the EO (twice) and got a CLI on my other account with them, which now has even gotten a CLI with the luv button!  Then HSBC also sold my card with them to CrapOne and I got an increase with them through the EO.  I still hated having to go through the EO, and the CLI button wasn't working well at that point.  So I opened a Prime level card with them.  I got the Signature version of the QS with a $5000 limit.  And let me tell you the customer service with that card did change!  (However, it does seem to be getting a bit less in niceness recently.)

So if they did get the contract they would probably have two tier levels.  This would mean that it could potentially open up sales for Costco.  In fact it might actually be a good thing for Costco to consider in the bid!  However, I also think that there is probably a better chance that Costco customers have better credit, since Amex was being accepted.  No matter what, opening up the doors to a different processing network would be a thing for Costco.  If they were to accept Discover, Visa, or MC it would probably also increase their sales a bit.  Visa and MC might have the better benefits to them since most people have at least one of either of these cards. 

I would be covered no matter what.  I have all four, as many other do also!  (I even have a cobranded Ames through FNBO, including two Amex Amex's.) 

Now my question would be; Can I change one of my Amex cards to being the cobranded Costco card?  In this way, if and when they do split with it be easier to PC it later to a card I want.  (I had the Delta card and found out it really wasn't worth it to me to have the card after I got the signup bonus.  They will now only PC it to another cobranded card, however Costco was never mentioned.  So if I can convince them to switch it to a Costco card and they then cancel the contract and Amex retains the card, I could possibly then get a card that I do want!  Say a BCE!  Hopefully, I can remember to do this after the holidays.)

[Anonymous]

---

@TiggerDat wrote:

I can't believe I am going to do this, but I will partially defend CrapOne. 

If you get approved for an upper tier card with them, they do treat you better.  I had two subprime cards with them.  I closed one after the two year mark when I asked that they remove the annual fee, they refused to even waive it for the year, so I closed the card.  Going forward I contacted the EO (twice) and got a CLI on my other account with them, which now has even gotten a CLI with the luv button!  Then HSBC also sold my card with them to CrapOne and I got an increase with them through the EO.  I still hated having to go through the EO, and the CLI button wasn't working well at that point.  So I opened a Prime level card with them.  I got the Signature version of the QS with a $5000 limit.  And let me tell you the customer service with that card did change!  (However, it does seem to be getting a bit less in niceness recently.)

So if they did get the contract they would probably have two tier levels.  This would mean that it could potentially open up sales for Costco.  In fact it might actually be a good thing for Costco to consider in the bid!  However, I also think that there is probably a better chance that Costco customers have better credit, since Amex was being accepted.  No matter what, opening up the doors to a different processing network would be a thing for Costco.  If they were to accept Discover, Visa, or MC it would probably also increase their sales a bit.  Visa and MC might have the better benefits to them since most people have at least one of either of these cards. 

I would be covered no matter what.  I have all four, as many other do also!  (I even have a cobranded Ames through FNBO, including two Amex Amex's.) 

Now my question would be; Can I change one of my Amex cards to being the cobranded Costco card?  In this way, if and when they do split with it be easier to PC it later to a card I want.  (I had the Delta card and found out it really wasn't worth it to me to have the card after I got the signup bonus.  They will now only PC it to another cobranded card, however Costco was never mentioned.  So if I can convince them to switch it to a Costco card and they then cancel the contract and Amex retains the card, I could possibly then get a card that I do want!  Say a BCE!  Hopefully, I can remember to do this after the holidays.)

---

CapitalOne and Costco simply don't mix.

[weehoo]

---

@celluloid17 wrote:

---

@weehoo wrote:

The TE card has a pretty lackluster reward program so it shouldn't be a huge loss to cardholders

---

I actually think they have a pretty decent rewards program.  3% back on gas purchases (4% if you have a business membership), 2% on restaurants and all travel expenses, 1% everything else.  The only drawback is that you only get your cashback in the form of a Costco check once a year that can be cashed out at any Costco.  For a no AF Amex (if you don't count the annual Costco membership), it's a pretty decent card to have and use.

---

Its hardly anything to write home about but to each their own.