Costco, American Express to End Exclusive Partnership in U.S.

Costco, American Express to End Exclusive Partnership in U.S.

February 12, 2015         Written By John H. Oldshue

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.



The information contained within this article was accurate as of February 12, 2015. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


john-oldshue

About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
View all posts by John H. Oldshue
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back TWICE. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus