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American Express & Costco to End Partnership
American Express announced today that they were unable to come to an agreement with Costco to extend their relationship. The current contract between the two companies will end on March 31, 2016.
Since the agreement still has more than a year, I find it surprising that an announcement would be made so soon. It is my guess that American Express and Costco were too far apart to agree to terms. Costco has already adopted Capital One as their credit card partner in Canada which may be an indication that they are looking to go in another direction.
According to the press release, “Until that time, all American Express credit cards will be accepted at Costco warehouse stores in the U.S and on Costco.com. All co-branded cards from American Express and Costco can be used any place American Express cards are accepted through March 31, 2016.”
It will be interesting to see what happens with the co-branded cards once the agreement ends. It is clear that they will no longer be accepted at Costco, but not much else has been announced.
In my opinion, this isn’t a huge deal for anyone other than possibly American Express. I am interested to see if Costco will begin accepting either Visa or Mastercard when they find their new partner. Of course Sam’s Club also recently kicked Discover to the curb as well. A Discover/Costco partnership would be interesting!
You can find the full text of the press release here.
HT: flyertalkerina2 on Twitter