AMEX Costco card

[Anonymous]

rewards will be better. My GM just came back from Seattle and he mentioned a few things from the meeting.( I work for Costco) what im hearing , just hearing lol so dont take it serious just yet haha, is that it will be 5 % gas 3% dinning/ travel 2 everything else.again that's just something i heard. CSR don't really know what they're talking about , there just trained to say whats in front of them (no disrespect.) Im sure when the time gets near there will be a product change, or better yet when they do honor the Citi TE visa that the portfolio will continue to keep your AAOA since itll be a co branded card chances will be greater for approvals even with BK only thing to worry about is your SL so make sure to transfer those trade lines to another amex !

[MASTERNC]

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@Anonymous wrote:

rewards will be better. My GM just came back from Seattle and he mentioned a few things from the meeting.( I work for Costco) what im hearing , just hearing lol so dont take it serious just yet haha, is that it will be 5 % gas 3% dinning/ travel 2 everything else.again that's just something i heard. CSR don't really know what they're talking about , there just trained to say whats in front of them (no disrespect.) Im sure when the time gets near there will be a product change, or better yet when they do honor the Citi TE visa that the portfolio will continue to keep your AAOA since itll be a co branded card chances will be greater for approvals even with BK only thing to worry about is your SL so make sure to transfer those trade lines to another amex !

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So basically matching Sam's Club and their 5/3/1 card.  Not bad.

[-Cain-]

What will happen to those that have a balance? Will they get a due bill upon closing? 

[thelethargicage]

If those turn out to be the rewards on this card, Citi will curse the day they got mixed up with Costco. After all, they're only getting 0.4% of every transaction at Costco. I doubt that card will get much 1% spending, even at Costco.

[Open123]

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@thelethargicage wrote:
If those turn out to be the rewards on this card, Citi will curse the day they got mixed up with Costco. After all, they're only getting 0.4% of every transaction at Costco. I doubt that card will get much 1% spending, even at Costco.

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Citibank is the worst run of all the major American Banks, and it would be a mistake to underestimate their propensity to make financially cancerous deals.  While it's universally accepted that their stupidity knows no bounds, not even they would be dumb enough to offer 5/3/2 on a no annual fee card.  

Just curious, how do you know they're only getting 0.4%?

[thelethargicage]

I got 0.4% figure from an article that listed the reasons Amex walked away from the Costco partnership (and not the other way around)

[thelethargicage]

http://www.fool.com/investing/general/2015/05/02/10-dirty-details-behind-costco-and-american-expres....

Actually, Visa's interchange fee is 0.4%. Who knows how much Citi is getting, but it can't be much, given that Amex got 0.6% using their closed-loop network

[Open123]

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@thelethargicage wrote:
http://www.fool.com/investing/general/2015/05/02/10-dirty-details-behind-costco-and-american-expres....

Actually, Visa's interchange fee is 0.4%. Who knows how much Citi is getting, but it can't be much, given that Amex got 0.6% using their closed-loop network

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Thanks!

In my view, while a hit to short term base revenue numbers, Amex will likely be better off in the long-term without Costco.

[thelethargicage]

@Open123

My feelings exactly. The deals with Sam's and Schwab should help too

[srchick]

Not to hijack the thread, but I'm planning on doing some shopping at Costco in the next couple of weeks.  Exactly what cc's can I use for my purchases? (Don't have AMEX, but wondered if I can use my FNBO?) Anybody please respond.