Costco Canada Replaces American Express with Capital One
The credit card relationship between Costco Wholesale Canada and American Express will be ending at the end of this year.
American Express was the only credit card company accepted at Costco in Canada. In an email sent to their customers last week, Costco informed customers that the True Earnings and American Express Platinum Cash Rebate cards can be used until December 31, 2014.
Costco Canada will instead form a partnership with Capital One and MasterCard.
These changes do not affect Costco operations in the United States.
“The terms of the contract was up, AmEx and Costco entered into negotiations and were unable to come to terms,” David Barnes, a spokesman for American Express in Canada, said in an interview with Bloomberg.
The new co-branded credit card will also serve as a Costco membership card.
Shane Holdaway, president of Capital One Canada, says that partnering with Costco “aligns with our vision to continue growing our credit-card portfolio in Canada.”
Costco has 88 stores in Canada, and another 468 Costco stores in the United States and Puerto Rico. Costco’s Canadian operations earned $17.2 billion in revenue in 2013, making it an attractive contract for a credit card company.