Costco, American Express to End Exclusive Partnership in U.S.
The exclusive relationship between American Express and Costco will end in the retailer’s United States stores on March 31, 2016, the credit card issuer announced this morning.
The Canadian division of Costco made a similar decision in September of last year, replacing American Express with a partnership between Capital One and MasterCard.
According to Reuters, the warehouse club retailer accounted for almost 8% of American Express’ worldwide billed business.
American Express has been the exclusive credit card used in Costco for 16 years.
“Taking a very disciplined approach, we began discussions on a possible renewal with Costco well in advance of the contract expiration. However, we were unable to reach terms that would have made economic sense for our Company and shareholders,” Kenneth Chenault, Chairman and CEO of American Express, said in a statement.
Costco operates a total of 468 stores in the United States and Puerto Rico, yielding over $112 billion a year in revenue.