topic Re: Costco AMEX restaurant reduction in Credit Cards

Costco AMEX restaurant reduction

Anonymous — Tue, 07 Jun 2011 19:50:04 GMT

Maybe I missed this, but I don't remember it being mentioned/posted...

- just went and checked my last statement and didn't see any mention of the change. Maybe an updated T&C will arrive with the next statement

http://bucks.blogs.nytimes.com/2011/06/01/american-express-costco-card-to-lower-restaurant-rebate/

Re: Costco AMEX restaurant reduction

UFGuy2006 — Tue, 07 Jun 2011 20:16:28 GMT

@Anonymous wrote:
Maybe I missed this, but I don't remember it being mentioned/posted...

- just went and checked my last statement and didn't see any mention of the change. Maybe an updated T&C will arrive with the next statement

http://bucks.blogs.nytimes.com/2011/06/01/american-express-costco-card-to-lower-restaurant-rebate/

I am going to keep an eye out for the updated T&C... fingers crossed this is just a bad nightmare!

Re: Costco AMEX restaurant reduction

jaysdad2k — Tue, 07 Jun 2011 20:17:38 GMT

My statement cuts on the 3rd. So, yes it was on mine.

They are reducing the restaurant rebate to 2%. They are also re-structuring the minimum payment. It's pretty complicated, but the new minimum appears to be $35, sort of like the Discover minimum of $40.

Re: Costco AMEX restaurant reduction

Anonymous — Tue, 07 Jun 2011 20:40:34 GMT

This is too bad! I like using this card for restaurants....

Resaurants and hotels are the only things I use the card for.

Ray

Re: Costco AMEX restaurant reduction

UFGuy2006 — Tue, 07 Jun 2011 21:01:34 GMT

@Anonymous wrote:
This is too bad! I like using this card for restaurants....

Restaurants and hotels are the only things I use the card for.

Ray

I just got this card and am using it only for restaurants (since that's my largest monthly expense)... and am not too happy about this change. Oh well.

Re: Costco AMEX restaurant reduction

tray — Tue, 07 Jun 2011 23:02:59 GMT

I have read another thread on this issue that after August of this year the 2% cash back for restaurants will begin for any new applicants, but I quess this is not true, but after reading the first thread on this matter, I changed my mind about holding off on apping for this card until the holidays, I decided today to app for the card in store and was approved, the Costco clerk was going over the benefits with me, and I did question her on the subject about the decrease to 2% for restaurants, at first she asked me where did I get this information, and I said online she then stated that it was not true, that costco has a contract with Amex and would not be able to do this, but I quess this employee doesn't have a clue neither!!!. But if you go on the Amex website all the Costco TrueEarnings information has not changed so what really gives here.

Tomorrow I will call Amex to see if I can get any further information.

Re: Costco AMEX restaurant reduction

UFGuy2006 — Wed, 08 Jun 2011 13:26:30 GMT

@tray wrote:
I have read another thread on this issue that after August of this year the 2% cash back for restaurants will begin for any new applicants, but I quess this is not true, but after reading the first thread on this matter, I changed my mind about holding off on apping for this card until the holidays, I decided today to app for the card in store and was approved, the Costco clerk was going over the benefits with me, and I did question her on the subject about the decrease to 2% for restaurants, at first she asked me where did I get this information, and I said online she then stated that it was not true, that costco has a contract with Amex and would not be able to do this, but I quess this employee doesn't have a clue neither!!!. But if you go on the Amex website all the Costco TrueEarnings information has not changed so what really gives here.
Tomorrow I will call Amex to see if I can get any further information.

Interesting! Keep us posted on what AMEX says!

Re: Costco AMEX restaurant reduction

Lel — Wed, 15 Jun 2011 05:11:24 GMT

I just received my Costco Amex statement, and it does describe the reduction in restaurant rewards. However, for those who have recently opened a new account (or open an account before July 31), they will get 12 months at 3% before the reduction.

"However, if your account was opened between August 1, 2010 and July 31, 2011, you will continue to earn 3% on eligible purchases at restaurants until the start of your 13th billing period. You will then earn 2% on eligible purchases at restaurants as described in the Agreement."

Re: Costco AMEX restaurant reduction

Anonymous — Wed, 15 Jun 2011 10:39:07 GMT

Soooo... Those of us who opened Costco Amex cards prior to August 10th, 2010 will continue to get 3% rewards at restaurants???

My last statement closed on May24th, so I haven't gotten the disclosure yet. I guess I'll see it this month.

Re: Costco AMEX restaurant reduction

Anonymous — Wed, 15 Jun 2011 16:20:07 GMT

@Anonymous wrote:
Soooo... Those of us who opened Costco Amex cards prior to August 10th, 2010 will continue to get 3% rewards at restaurants???

No, only those who opened after August 10th, and only for a limited time in order to be in accordance with the credit card law (terms are fixed during the first year).

Re: Costco AMEX restaurant reduction

haulingthescoreup — Wed, 15 Jun 2011 16:23:36 GMT

Any ideas how this will work for those of us whose cards fall in that date range, but who have an older year for the "member since" part? Presumably they'll know when the card itself was opened, but it could be a surprise mini-backfire on AmEx backdating.

And what about AU's who were added during this period? --I'm guessing that it will go by the "real" cardholder's opening date, not when the AU was added.

Re: Costco AMEX restaurant reduction

RockinRay — Wed, 15 Jun 2011 16:26:02 GMT

An excellent point!

I just opened my card about two months ago. Like my Zync, it is back dated to 1979. Statement will arrive next week so I will read and report!

Ray

Re: Costco AMEX restaurant reduction

Anonymous — Wed, 15 Jun 2011 16:29:36 GMT

Well, the law is the law, backdating or not. Amex is bound to the conditions they told you when you opened the card for one year.

Re: Costco AMEX restaurant reduction

Lel — Wed, 15 Jun 2011 16:31:09 GMT

Shoulda posted the entire disclosure...

"With billing periods starting in August 2011, we are reducing the reward percentage earned for eligible purchases at restaurants from 3% to 2%. Accordingly, effective with your billing period starting in August 2011, in the Supplement to the Cardmember Agreement describing How Your Reward Program Works, "3% for eligible
purchases at restaurants" is deleted and replaced with "2% for eligible purchases at restaurants". However, if your account was opened between August 1, 2010 and July 31, 2011, you will continue to earn 3% on eligible purchases at restaurants until the start of your 13th billing period. You will then earn 2% on eligible purchases at
restaurants as described in the Agreement."

So, for those of us who got cards before August 1 of last year, we get dropped to 2% in August.

For those who have had the card for less than a year, they will get 12 months at 3%, but then it will drop to 2% after that.