Costco and AMEX

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anticrastinator
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Costco and AMEX

Post by anticrastinator » Fri Apr 17, 2015 7:03 pm

As announced recently, Costco will replace AMEX as the preferred credit card next April.
Would it still be a smart choice to open an AMEX Costco card until then?

edited for accuracy and clarification
Last edited by anticrastinator on Fri Apr 17, 2015 7:56 pm, edited 1 time in total.

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CABob
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Re: Costco and AMEX

Post by CABob » Fri Apr 17, 2015 7:33 pm

anticrastinator wrote:In the light of poor performance, Costco will replace AMEX next April.
Would it still be a smart choice to open an AMEX card until then?
Whose poor performance? Costco is changing their "preferred' credit card, but, I haven't heard about it being due to anyone's poor performance.
What do you mean by "smart choice"? If you want an AMEX card then apply. I don't see that wanting the card has anything to do with Costco changing cards.
But, maybe you have heard or read something pertinent. If so would you care to share?
Bob

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Re: Costco and AMEX

Post by DSInvestor » Fri Apr 17, 2015 7:35 pm

If you get a Costco branded AMEX card, I think they will shift those accounts to the new provider (Citibank VISA?) subject to approval. I do not think you can keep using your costco amex card anywhere after Costco's agreement with Amex is terminated.

If you get a non-costco branded Amex card, that card can be used at Costco until next April but you'd still have an amex card for other spending. If you find an Amex card that you like that has rewards that you like, it may make sense to open an Amex.
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anticrastinator
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Re: Costco and AMEX

Post by anticrastinator » Fri Apr 17, 2015 8:06 pm

CABob - post edited for accuracy and clarification

DSInvestor - I was just interested in the Costco savings that AMEX offers, I have other cards for my other purchases. I was kinda trying to see if getting a new card for less than one year would be something that others would consider.
We spend about 25K/year there (about 3K in gas) and the Executive membership gets us back about $450-500/year. Getting the AMEX would get us maybe $300-400 more back. Is it worth it?

centrifuge41
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Re: Costco and AMEX

Post by centrifuge41 » Fri Apr 17, 2015 8:32 pm

I don't care for the Costco Amex. Shopping done at Costco and Costco.com isn't even a bonus rewards category on the Costco Amex!

If you want an Amex, you might as well as get one with a signing bonus (such as a Hilton 60k point card, Starwood Amex, Delta Amex, Amex Everyday/Preferred etc). Or get one that gives more rewards per $ spent. My picks here would be the Fidelity Amex (2% on everything) or Starwood Amex.

penumbra
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Re: Costco and AMEX

Post by penumbra » Fri Apr 17, 2015 8:36 pm

We did it, a few months back. Sounds like it would still pay for you too. the extra Executive benefit more than pays for the cost of the card. Plan to cancel at renewal (in January, for us).

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Re: Costco and AMEX

Post by kjvmartin » Fri Apr 17, 2015 8:38 pm

You can get 2% cash back at Costco with a Fidelity American Express. The only other in store options are your cash (0%), your debit card (0%), or the True Earnings Costco American Express Card (1%).

The gas reward of 3% is significant for me, considering I go through a lot of gas for work.

I'd say get the card - it's a win-win. You'll get extra cash back that you wouldn't have gotten and it won't take up a slot in your wallet, it just replaces your Costco membership card. You can re-evaluate at the end of 2016 when they switch their contract to Visa. Knowing Costco, my guess is the new reward card will be competitive with other good reward ones on the market and you'll switch painlessly.

Mike

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CABob
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Re: Costco and AMEX

Post by CABob » Fri Apr 17, 2015 9:10 pm

Getting the AMEX would get us maybe $300-400 more back. Is it worth it?
If you can get this much back as a rebate that you wouldn't get using another card I would think it is worthwhile.
I have a Costco AMEX and have already received a solicitation from AMEX for an "upgrade" to what I assume is a non-branded card without any special perks. I passed on the offer.
Bob

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Re: Costco and AMEX

Post by Alan S. » Fri Apr 17, 2015 10:44 pm

You can probably bet that as the final year for the Amex-Costco arrangement winds down, there will be plenty of Amex card offers, perhaps different better ones for larger spenders on the expiring card.

Seattlenative
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Re: Costco and AMEX

Post by Seattlenative » Sat Apr 18, 2015 2:11 am

The Costco-Amex alliance dates back to 1999. Before then, Costco was allied with Discover. My belief is that American Express' contract with Costco Wholesale was essentially a loss leader for Amex.

Something many of you might not realize that since a 2004 settlement by VISA and Mastercard over anti-competitive practices, other banks have been licensed to issue American Express cards. However, these third-party American Express cards haven't been promoted much in recent years. For several years, I have used a Bank of America-issued American Express card, and it's particularly useful for purchases at Costco Wholesale warehouses. See this link:
http://www1.amexnetwork.com/cardresources/

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jeffyscott
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Re: Costco and AMEX

Post by jeffyscott » Sat Apr 18, 2015 8:43 am

DSInvestor wrote:If you get a Costco branded AMEX card, I think they will shift those accounts to the new provider (Citibank VISA?) subject to approval. I do not think you can keep using your costco amex card anywhere after Costco's agreement with Amex is terminated.
I expect that both Amex and Citibank will want most of the Costco customers. Amex can just convert the current account to one of their other cards and issue new cards, probably to something similar with no fee and some bonus reward categories, like blue cash everyday.

Since Citibank does not have the accounts, I would think they would do something like offer preapproval by mail and at the stores, but the customers would still have to apply in order to get the cards. I don't think they can just automatically issue a Citibank Visa to someone who does not apply.

I'm assuming the current accounts are owned by Amex, not Costco.

FWIW, the new card in Canada has 3% on restaurant purchases, 2% on gas purchases and up to 1% on all other purchases: http://www.capitalone.ca/credit-cards/costco/
press on, regardless - John C. Bogle

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CABob
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Re: Costco and AMEX

Post by CABob » Fri Apr 24, 2015 12:39 pm

More information regarding Costco and their credit card.

http://www.bloomberg.com/news/articles/ ... group-deal

Sounds as if it was a money decision on the part of Costco and it worked. Thanks to Finance Buff for the link.
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Re: Costco and AMEX

Post by Broken Man 1999 » Fri Apr 24, 2015 1:30 pm

I suppose I will get another American Express card, assuming AE transfers me with the length of time I had the card. They did so when I replaced a regular AE card with the AE/Costco card.

AE is the "oldest" credit card account I have; I don't want to upset Mr. FICO by losing oldest account history.

My hope is my Priceline Visa will work at Costco, 'cause I really don't want (or need) another credit card.

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CABob
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Re: Costco and AMEX

Post by CABob » Fri Apr 24, 2015 2:25 pm

Broken Man 1999 wrote:I suppose I will get another American Express card, assuming AE transfers me with the length of time I had the card. They did so when I replaced a regular AE card with the AE/Costco card.
I have already received an offer from Amex to transfer from the Costco card.
Bob

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Re: Costco and AMEX

Post by wrongfunds » Fri Apr 24, 2015 3:24 pm

Nice thing about Costco is that it knows how to squeeze Amex/Visa but acts generously towards its employees.

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Re: Costco and AMEX

Post by quizzer25 » Fri Apr 24, 2015 5:27 pm

CABob wrote:
Broken Man 1999 wrote:I suppose I will get another American Express card, assuming AE transfers me with the length of time I had the card. They did so when I replaced a regular AE card with the AE/Costco card.
I have already received an offer from Amex to transfer from the Costco card.
What options did you get?

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Re: Costco and AMEX

Post by texasdiver » Fri Apr 24, 2015 8:57 pm

CABob wrote:More information regarding Costco and their credit card.

http://www.bloomberg.com/news/articles/ ... group-deal

Sounds as if it was a money decision on the part of Costco and it worked. Thanks to Finance Buff for the link.
Reading this article it sounds like Costco will be accepting VISA in general and not just Costco-branded VISA cards. So strictly speaking for the majority of us Costco consumers who already hold VISA cards, this deal means we probably won't have any meaningful reason to replace our Costco AMEX with a Costco VISA. The only reason I actually got the Costco AMEX in the first place was for shopping at Costco and Costco Gas. If any VISA card in my wallet will do the trick I think I'll be very unlikely to replace the AMEX with some new VISA card when I already have 2 of them unless there are some other extremely compelling benefits that come with it.

I will be sorry to see the AMEX premium car rental insurance disappear as I use it for long term car rentals in foreign countries.

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CABob
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Re: Costco and AMEX

Post by CABob » Fri Apr 24, 2015 11:37 pm

quizzer25 wrote:
CABob wrote:
Broken Man 1999 wrote:I suppose I will get another American Express card, assuming AE transfers me with the length of time I had the card. They did so when I replaced a regular AE card with the AE/Costco card.
I have already received an offer from Amex to transfer from the Costco card.
What options did you get?
I have now forgotten and have tossed the information. As I recall it was very similar to the current Costco AMEX and nothing special.
My primary reason for the Costco AMEX is that I used the card for both a CC and a membership card so I didn't have to carry an extra card. I will most likely do the same with the new card. There was nothing compelling that made me want to apply for the replacement AMEX card.
Bob

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Re: Costco and AMEX

Post by carolinaman » Sat Apr 25, 2015 6:52 am

I have had Costco Amex CC for years. It used for mostly gas and some other purchases. I usually get $40 to $50 credit at EOY. For us, it would not be worth it to sign up for just one year. We do plan on keeping our Amex card until their deal with Costco expires though.

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jeffyscott
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Re: Costco and AMEX

Post by jeffyscott » Sat Apr 25, 2015 7:05 am

My theory is they'll offer blue cash everyday, with 3% on groceries and 2% gas, if you don't buy them at Costco.
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englishgirl
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Re: Costco and AMEX

Post by englishgirl » Sat Apr 25, 2015 7:16 am

quizzer25 wrote:
CABob wrote:
Broken Man 1999 wrote:I suppose I will get another American Express card, assuming AE transfers me with the length of time I had the card. They did so when I replaced a regular AE card with the AE/Costco card.
I have already received an offer from Amex to transfer from the Costco card.
What options did you get?
I don't think I have received an offer yet. My Costco Amex is my business card, and I would like to keep it an Amex business card, but have been thinking of ditching my Costco membership since Aldi came to town and I hardly make the drive to Costco any more. I was hoping for a sweet offer to entice me to stay with Amex.
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detroitbabu
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Re: Costco and AMEX

Post by detroitbabu » Sat Apr 25, 2015 7:43 am

I got an offer from AE to get a Blue Cash Everyday card.
I am holding off until next year.
I will then get both AE Blue Cash and the new Costco CITI card.

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CABob
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Re: Costco and AMEX

Post by CABob » Tue May 05, 2015 1:20 pm

CABob wrote:
quizzer25 wrote:
CABob wrote:
Broken Man 1999 wrote:I suppose I will get another American Express card, assuming AE transfers me with the length of time I had the card. They did so when I replaced a regular AE card with the AE/Costco card.
I have already received an offer from Amex to transfer from the Costco card.
What options did you get?
I have now forgotten and have tossed the information. As I recall it was very similar to the current Costco AMEX and nothing special.
My primary reason for the Costco AMEX is that I used the card for both a CC and a membership card so I didn't have to carry an extra card. I will most likely do the same with the new card. There was nothing compelling that made me want to apply for the replacement AMEX card.
I just received another offer to "Upgrade" my Costco Amex to a Blue Cash Everyday Card. The perks were:
• 3% Cash Back at US supermarkets, up to $6,000 per year in purchases (then 1%)
• 2% Cash Back at US gas stations
• 2% Cash Back at select US department stores
• 1% Cash Back on other purchases

Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
I am wondering if I apply for this replacement will my existing card no longer be valid? This is of concern since I use it as my Costco membership card as well as a credit card. Does anyone know?
Bob

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Re: Costco and AMEX

Post by powermega » Tue May 05, 2015 1:27 pm

CABob wrote:I am wondering if I apply for this replacement will my existing card no longer be valid? This is of concern since I use it as my Costco membership card as well as a credit card. Does anyone know?
We just applied for the Amex Hilton HHonors Preferred card. You don't have to get the Blue Cash card if you don't want to. Amex sent out that offer since it is the card that is most like the existing Costco Amex card. The result is that I now have two separate Amex cards, and I will close and cancel my Costco Amex card in February, after they send the cash back bonus check out. If you close your Costco Amex card before then, you lose the cash back bonus amount. It's a little bit of a hassle, but worth the effort for me since we had a decent cash back bonus amount.
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Re: Costco and AMEX

Post by miles monroe » Tue May 05, 2015 1:37 pm

i haven't gotten any info or offers re the costco amex card situation.

i'm sure i'll accept the card deal they offer - turn down the credit card then you have to carry a standalone membership card anyway.

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Re: Costco and AMEX

Post by madbrain » Tue May 05, 2015 1:53 pm

miles monroe wrote:i haven't gotten any info or offers re the costco amex card situation.

i'm sure i'll accept the card deal they offer - turn down the credit card then you have to carry a standalone membership card anyway.
Personally, I'm not really sure. I recently had my wallet stolen with 5 credit cards in it. They were all used fraudulently within hours of the theft, before I could file a police report and finish reporting them all stolen.

One of them was the Costco Amex, which I use only as a membership card, and never charge anything on.

After it was replaced, I went to Costco to get a membership-only card, so I don't have to carry this Costco Amex card anymore.

Unless the terms of the new Citibank Costco VISA are favorable, I may not accept it. I might convert my Costco Amex to another Amex for purpose of retaining credit limit and credit history, if that's possible.

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Re: Costco and AMEX

Post by detroitbabu » Tue May 05, 2015 3:00 pm

I was wondering about what will happen to the extended warranties I get on big purchases I charged on my CosCo AMEX if I cancel it next year.
Are they still valid or they go away with the card?

I may keep my AMEX just for that purpose.

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Re: Costco and AMEX

Post by bbrock » Thu May 28, 2015 1:21 am

That is a great point detroitbabu. Wife and I are in the same boat. We have made some big purchases on the card specifically for the extended warranty. I think we'll call them and ask about this.

Our plan is to take the Amex Blue Everyday that they will offer wife (as it is in her name), but also open up a new Costco Visa or whatever it will be. We do a ton of shopping there. We have a Chase Sapphire Visa (the no annual fee one), and it is good for points, but personally we infrequently use it and turn to a cash back card.

I am going to look at Nerdwallet.com and compare cash back cards though to see what's available.
bbrock

HIinvestor
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Re: Costco and AMEX

Post by HIinvestor » Thu May 28, 2015 1:39 am

Gee. we've gotten no offers from AmEx, which surprises me. We had an AmEx card before we got the Costco one and then had two Costco AmEx cards. Oh well, if they offer to let us swap and let us keep the extended warranties, we may swap. I otherwise have little use for AmEx (except for that small business Saturday after Thanksgiving). ;)

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ray.james
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Re: Costco and AMEX

Post by ray.james » Fri Oct 30, 2015 1:43 pm

Updating an Old thread but with new information:

Amex started putting out offers for rolling accounts to their Regular blue card(3% groceries). However when I spoke to Amex representative they cannot predate the card starting date. So the history is lost.

However if one does nothing (OR even accept Amex offer), the current Costco-Amex card will automatically and does rollover to a citi card. This will keep the credit history along with Costo membership information.

I would like to keep Amex, but having less cards/Costco membership card convenience is more important. The only way Amex can make me take new card is if they predate and give it credit history too. Any thoughts on this/offers other members received?

(BTW, some documents that were filed online by Costco mention that rewards with new citi card will be same as the old Amex card (3,2,1%) but there was no confirmation from Costco.)
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miles monroe
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Re: Costco and AMEX

Post by miles monroe » Fri Oct 30, 2015 1:59 pm

i got an offer in the mail yesterday from amex reminding me that their tie in with costco will expire next year and offering me $200 if i get a new card and spend 1,000 in the first 3 months.

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Hayden
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Re: Costco and AMEX

Post by Hayden » Fri Oct 30, 2015 4:26 pm

ray.james wrote:Updating an Old thread but with new information:

Amex started putting out offers for rolling accounts to their Regular blue card(3% groceries). However when I spoke to Amex representative they cannot predate the card starting date. So the history is lost.

However if one does nothing (OR even accept Amex offer), the current Costco-Amex card will automatically and does rollover to a citi card. This will keep the credit history along with Costo membership information.

I would like to keep Amex, but having less cards/Costco membership card convenience is more important. The only way Amex can make me take new card is if they predate and give it credit history too. Any thoughts on this/offers other members received?

(BTW, some documents that were filed online by Costco mention that rewards with new citi card will be same as the old Amex card (3,2,1%) but there was no confirmation from Costco.)
Thanks for posting this. I have a credit freeze. Do you know whether they will require a credit pull?

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jeffyscott
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Re: Costco and AMEX

Post by jeffyscott » Fri Oct 30, 2015 4:38 pm

miles monroe wrote:i got an offer in the mail yesterday from amex reminding me that their tie in with costco will expire next year and offering me $200 if i get a new card and spend 1,000 in the first 3 months.
I was offered only $100, with same spend requirement, when I logged on to account recently. We've already got that card, anyway.
press on, regardless - John C. Bogle

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Re: Costco and AMEX

Post by goodlifer » Sat Oct 31, 2015 12:06 am

I'm putting my house on the market in March, so I don't want a hard pull on my credit right when I'm looking for a mortgage. The Amex CSR I talked to said it would be a hard pull for both a new Amex card and the Citi card. There should be a way to opt out of getting the new card. I just received a letter the other day stating that more information would be coming in the next few months from Costco. Since they will be accepting all Visa cards, I really don't need another one anyway.

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RE:Costco and AMEX

Post by TheGreyingDuke » Sat Oct 31, 2015 12:16 am

When I joined Costco decades ago, I had a small business so got the business card (at the time it allowed me into the store an hour early.) The business is closed and the offers I get from AMEX are for business cards. They do offer the $300 cash bonus but I think I really should get a personal card from them.

They earned my allegiance when they handled a car rental fender bumper with not a hiccup, I was out of pocket $0 and there was no difficulties along the way. This was not the extra car rental program they have but the one you get for charging the rental to the card.
"Every time I see an adult on a bicycle, I no longer despair for the future of the human race." H.G. Wells

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Re: Costco and AMEX

Post by Elsebet » Thu Mar 10, 2016 1:41 pm

Got this email today at corporate:

Costco's transition from American Express to Visa, in the United States & Puerto Rico, will occur on June 20, 2016.

● American Express cards will continue to be the only credit cards accepted at Costco warehouses through June 19, 2016.

● Beginning June 20, 2016 Costco will accept Visa cards in the U.S. & Puerto Rico.

● Beginning June 20, 2016 Costco will no longer accept American Express cards in its warehouses, gas stations or online at Costco.com.

● Warehouses will receive banners and handouts next week to help communicate this information to members.

● Look to the Credit Card page under Marketing on the intranet for more information as it becomes available.

● Costco will continue to accept our private label Capital One credit card.

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teacher
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Re: Costco and AMEX

Post by teacher » Thu Mar 10, 2016 1:54 pm

All I care is that the new credit card company sends out reward CHECKS, rather than put credit on the card for future purchases.
This Nana needs cold hard CASH back to spend on the grand babies. :happy

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CABob
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Re: Costco and AMEX

Post by CABob » Thu Mar 10, 2016 3:35 pm

● Costco will continue to accept our private label Capital One credit card.
What's this?
Bob

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Re: Costco and AMEX

Post by harikaried » Thu Mar 10, 2016 4:08 pm

Elsebet wrote:● Beginning June 20, 2016 Costco will no longer accept American Express cards in its warehouses, gas stations or online at Costco.com.
Looks like Costco is /really/ cutting off from American Express. Costco.com currently accepts VISA, MasterCard, Discover, American Express.

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Re: Costco and AMEX

Post by sport » Thu Mar 10, 2016 4:13 pm

It is interesting that they plan to change all at once. One day Amex and the next day Visa. I would have expected a transition period of maybe a month or so.

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Re: Costco and AMEX

Post by TheGreyingDuke » Thu Mar 10, 2016 4:51 pm

My recollection is tat when they went from Discover to AMEX there was also no transition, but I may be mistaken.
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Re: Costco and AMEX

Post by jeffyscott » Thu Mar 10, 2016 5:17 pm

harikaried wrote:
Elsebet wrote:● Beginning June 20, 2016 Costco will no longer accept American Express cards in its warehouses, gas stations or online at Costco.com.
Looks like Costco is /really/ cutting off from American Express. Costco.com currently accepts VISA, MasterCard, Discover, American Express.
Thanks for highlighting that bit. I've been debating whether to go for a credit card sign-up bonus on an Amex card, with a $3000 spend requirement. The only (or easiest, anyway) way we can meet that in 3 months would be to buy some Costco cash cards. So I guess I will go for that now as it will be more hassle if I do it after June.
press on, regardless - John C. Bogle

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Re: Costco and AMEX

Post by aced411 » Thu Mar 10, 2016 8:15 pm

Elsebet wrote: ● American Express cards will continue to be the only credit cards accepted at Costco warehouses through June 19, 2016.

● Beginning June 20, 2016 Costco will accept Visa cards in the U.S. & Puerto Rico.

● Beginning June 20, 2016 Costco will no longer accept American Express cards in its warehouses, gas stations or online at Costco.com.
Costco is retarded for jacking their customers around with payment methods. They charge their customers for the priveliege of being their customers. They can't give a little on transaction fees?

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jeffyscott
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Re: Costco and AMEX

Post by jeffyscott » Thu Mar 10, 2016 9:38 pm

Maybe if the credit card companies had reasonable fees, they'd accept them all.

Costco is paying Amex about 0.6%, they'll be paying Visa about 0. What do other retailers pay?

Many customers, like myself, get their annual membership fee and more back with the 2% rebate for executive membership.
press on, regardless - John C. Bogle

criticalmass
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Re: Costco and AMEX

Post by criticalmass » Fri Mar 11, 2016 12:17 am

Why is Costco removing Amex as a payment option from their website? They currently accept Visa, Mastercard, Discover, and Amex at costco.com. After June, at least one of the four options will be gone.

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Re: Costco and AMEX

Post by takeshi » Fri Mar 11, 2016 10:26 am

aced411 wrote:Costco is retarded for jacking their customers around with payment methods.
Assuming that payment method is all that matters or a significant issue for Costco seems to be a bit dubious to me. It may be a hassle from your perspective and others certainly share that sentiment but it clearly hasn't been a problem for Costco.
aced411 wrote:They can't give a little on transaction fees?
No idea on can/can't but it's clear that they won't which is why their deal with AmEx fell through.

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Re: Costco and AMEX

Post by Da5id » Fri Mar 11, 2016 10:42 am

aced411 wrote: Costco is retarded for jacking their customers around with payment methods. They charge their customers for the priveliege of being their customers. They can't give a little on transaction fees?
Costco has very narrow profit margins, much of the profit reportedly coming from those same membership fees. Any additional costs incurred by using credit cards with higher interchange fee will be presumably passed on to customers. I assume Costco knows their customer base and figures more prefer the lower prices to the broader array of payment methods. I know that I prefer the lower prices myself. And that paying with Visa is much less of a hardship than paying with Amex -- I didn't even have an Amex until I joined Costco...

JohnF
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Joined: Mon Sep 02, 2013 7:29 pm

Re: Costco and AMEX

Post by JohnF » Sat Mar 12, 2016 12:13 pm

Is Costco going to send me a Visa card?

Will my Costco Amex card work at other locations after June 19?

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Stewie
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Location: Harrisburg, PA, USA

Re: Costco and AMEX

Post by Stewie » Sat Mar 12, 2016 12:21 pm

Citi will send a new Costco cobranded Visa card sometime before the changeover date in June. The Costco cobranded AmEx will stop working at that time. Many holders of the Costco cobranded AmEx have received offers from AmEx for other cards to retain their business. I received and accepted a pre-approved offer (no credit pull) from AmEx for a Blue Cash Everyday with an incentive of $300 back for a $2500 spend in the first 3 months.

Boglegrappler
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Re: Costco and AMEX

Post by Boglegrappler » Sat Mar 12, 2016 3:48 pm

Costco has very narrow profit margins, much of the profit reportedly coming from those same membership fees.
If you take a look at Costco's financial statements, you'll find that the revenue from membership fees is very close to the reported pretax profits number each year. That implies that if they didn't have the membership fees, that they are essentially selling things at cost, in the aggregate.

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