Costco Fell out with Amex

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DBMaster

DBMaster

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This was just an interesting story to me. Interesting because it has annoyed for years that American Express is the only credit card accepted at Costco. I get cash back on all my credit card purchases and I've been stuck using my debit card at Costco. Looks like Visa will be it in the future. It'll be another year with Amex, though.

Costco
 
Similarly, Sam's Club does, or at least used to, take only Discover.

My wife and I have a few different credit cards from different companies, and all offer 5% cash back on a rotating calendar. Sometimes, Discover runs 5% cash back on fuel and Visa runs 5% cash back on groceries. Other times, Discover might run 5% cash back on home improvement stores while Visa runs 5% cash back on fuel. We have the calendars for each of our cards printed out and on our bulletin board on our way out the door of the house, so we make sure to use whichever card benefits us the most for whatever purchase we're about to make.

Stores that accept only one card crimp our style a little bit there, because we may not be able to use the card we want to use. In the end, purchases at warehouse clubs amount to a small percentage of our monthly purchases anyway...
 
On second thought, the way I read the article, it's not that Costco will no longer accept American Express...it's that American Express will no longer be the issuer of Costco-branded credit cards. If Costco does accept only American Express, the article doesn't seem to impart that...at least to me.
 
I have an Amex Costco card, so I expect AMEX to offer me one, as well as Costco. Understand that Costco Visa will be aligned with Citibank. I need to know what the rewards programs will look like before I make any decision. I use Amex a lot for travel and get rewards to doing so. Don't think any of my other credit cards offer the 2% for travel consistently.
 
Originally Posted By: DBMaster
This was just an interesting story to me. Interesting because it has annoyed for years that American Express is the only credit card accepted at Costco. I get cash back on all my credit card purchases and I've been stuck using my debit card at Costco. Looks like Visa will be it in the future. It'll be another year with Amex, though.

Costco


I stopped using my debit card anywhere. Except a bank ATM. At least the one linked to my main bank where my paycheck goes in. Its just too important to have money in that account that I can access, do not want someone taking out money because of a stolen card. Steal a credit card number of mine if you must steal one.
 
If Costco is unwilling to follow instructions from American Express they'll just have to go somewhere else for their business.

In the past I've come across several places that don't accept American Express cards. Evidently they were unwilling to follow instructions from American Express, as well.

If your business is unwilling to follow instructions then you can't have American Express either. You'll just have to forgo the prestige of paying higher processing fees an be content to do business elsewhere.

Not every business is cut out to do business with American Express.
 
Sams takes discover, debit, and mastercard

no visa or amex


I have an amex, discover and visa

all have 1-3% cashback with 5% bonus categories
also some just have "deals"
ex amex small business saturday where I spent 40$ locally and ended up with a 30$ credit (so 10$ cost for 40$ in goods)

I pay 0% interest and usually manage 500$ in cashback yearly.
And 500$ or so in free gas.

I like the amex because its 3% cashback on all grocery purchases which is easily 150$ a year for me.
and I tie it into 6-12% fuel rewards.

Costco will most likely totally drop AMEX and issue visa store cards.. And no longer take amex in-store.

Sometimes CC's can be annoying Chase canceled my 3% cashback (on everything) Mastercard subaru rewards card.

Because their business relationship ended. Then they issued me a freedom visa.. If I had applied for the visa I would have gotten 200$ bonus from spending 750$ in 3 month. Chase is both very bad and very good sometimes.

I liked the mastercard for 3% cashback at places like sams.
 
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I recently got the Citi double cash rewards card. Since I pay my bill in full every month that's 2% back on ALL purchases. I've not been in the mood to mess with rotating categories, limits, etc. Prior to this I was using the Capital One Quicksilver card. I go for the bill credit. I get back several hundred dollars a year. For "freeloaders" like me it's great. Freeloaders are what the CC industry uses as a term for those who pay no interest to them.
 
Sam's Club moved from Discover to MasterCard.

The upside of the Sam's Club MC is 5% cashback on gas purchases for the first $6000 of purchases on the card.

Originally Posted By: Hokiefyd
Similarly, Sam's Club does, or at least used to, take only Discover.

My wife and I have a few different credit cards from different companies, and all offer 5% cash back on a rotating calendar. Sometimes, Discover runs 5% cash back on fuel and Visa runs 5% cash back on groceries. Other times, Discover might run 5% cash back on home improvement stores while Visa runs 5% cash back on fuel. We have the calendars for each of our cards printed out and on our bulletin board on our way out the door of the house, so we make sure to use whichever card benefits us the most for whatever purchase we're about to make.

Stores that accept only one card crimp our style a little bit there, because we may not be able to use the card we want to use. In the end, purchases at warehouse clubs amount to a small percentage of our monthly purchases anyway...
 
I just got a new Amex card solely for usage at Costco so I wouldn't have to use my debit card. I'll probably keep it after the Costco deal expires (March 2016) - it has 3% back on all gas and 2% on groceries and others. The Amex deal with Costco was not a huge moneymaker for them other than they got extra affluent US customers - the Costco demographic. The Amex stock is cheap right now because of the backlash from the deal expiration - I bought some to hold - Warren Buffet still has a large holding.
 
Those looking at gas and grocery rewards should check out the Sallie Mae Barclay's card. 5% cash back on the first $250 spent in each category monthly. 5% at book stores for the first $750 spent. I'm told amazon qualifies for this. Other than that for me the only cards that get used are citi double cash back and fidelity Amex both at 2%, and occasionally the discover it card if it pays 5% in gas or is doing a promo so that I can cash in on a gift card at less than cost in points $45 points for $50 gift card. Amex blue only seems good now on small business Saturday or if they are running a promo.
 
Originally Posted By: javacontour
Sam's Club moved from Discover to MasterCard.

The upside of the Sam's Club MC is 5% cashback on gas purchases for the first $6000 of purchases on the card.


Indeed. May have to consider this one, too. We don't spend near $6,000 in gas annually. Thanks for the tip!
 
Originally Posted By: OneEyeJack

In the past I've come across several places that don't accept American Express cards. Evidently they were unwilling to follow instructions from American Express, as well.


This isn't about following instructions. It is all about the fees charged. Amex charges the most to process their cards.

Anybody that accepts credit/debit cards pays a fee to have them processed. The fee varies on the type of card. The more perks for the credit card holder, the higher the fee charged to the merchant.
 
There is a reason a lot more retailers take Visa, MC, Discover and not AMEX...

AMEX charges a larger transaction fee than the other three. This is because unlike most credit card banks that make the bulk of their profits on interest charges, AMEX makes the bulk of its money on annual membership fees and merchant fees.

My guess is that Costco had a lower rate deal with them and AMEX wanted to increase it. Since Costco actually cares about people (employees and customers) they chose not to pass that increased expense on to us. If this is the case then I applaud them.
 
Originally Posted By: michaelluscher
Maybe they'll finally update the card reader terminal and POS system for chip and pin and NFC.


Not to get off topic on my own thread, but it's funny you mentioned chip and PIN. I read an article recently stating that the U.S. was probably, for the most part, going to go "chip and signature" because U.S. consumers don't like the "inconvenience" of having to remember and enter a PIN. That defeats a good degree of the security of smart cards, doesn't it?
 
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