Feb 16 2015
American Express(AMEX) and Costco End Ten Year Exclusive Agreement in 2016
 

American Express(AMEX) and Costco End Ten Year Exclusive Agreement
March 2016 is when the agreement ends that made American Express cards the exclusive credit card payment at Costco, now a new soon to be announced partnership agreement is about to be announced.
Will it be another exclusive? Perhaps, speculation is that Capital One which is already in Canada, could become the exclusive card in the US.
What does this mean to consumers? Will the points still accumulate and be redeemable on existing AMEX cards? These details are still being worked out, there’s even talk that the Costco branded AMEX cards could be acquired in some negotiation.
Costco represents a huge portion of revenue for AMEX in particular fees being generated for transactions in the 2.5% per transaction, equates to billions in revenue yearly.
As a Costco member, you can still pay with your debit card, check, or cash even if the credit card selected is not a card you want to use.
Could there be a last minute agreement? Perhaps, but it doesn’t seem likely.

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