Targeted Offers for Amex Costco Cardholders
In perhaps the biggest credit card related news of the year, Costco decided to dump Amex in an effort to save on interchange fees. They ultimately settled for Citi & Visa who gave them a sweet deal.
As part of the deal, it was reported that Citi would be purchasing the approximately $14 billion portfolio of Costco credit cards from Amex. This basically means that Amex will be losing a lot of clients.
A Very Nice Targeted Offer
The other day I received a call from my father who is a very proud Costco customer and holder of the Costco Amex credit card. He had just received an offer in the mail for a new American Express card.
It just so happens that the Costco card is my dad’s only Amex card and he is most likely a customer they want to keep. The offer was for the Blue Cash Everyday card. This card normally doesn’t come with a sign-up bonus, but they were offering $200 after spending $3k within the first three months.
An offer on the Blue Everyday card makes sense since it pays 3% at grocery stores and 2% at gas stations. In other words it has decent bonus categories that match up well with Costco type spending.
Is It A Good Deal?
Since Amex limits the bonus on each personal card to once per lifetime, I absolutely recommend considering offers like this. In this case, Amex has never had as high a public bonus on this card.
While some hobbyists may have better cards on their radar from Amex, I certainly told my dad this is a great deal, since it is the best offer I have ever seen for this card and it doesn’t keep him from getting those other cards later.
I do expect more of these offers to surface as the changeover date inches closer. Everyone should obviously consider their individual goals and needs, but these offers should definitely be considered.
Conclusion
If you are a current holder of the American Express True Earnings Costco credit card, keep an eye posted for lucrative offers from American Express. With all of the negative attention they have received in the press, their back is against the wall, which means customers like my dad may be able to cash in.
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Small correction: “This card normally doesn’t come with a sign-up bonus”
Standard sign up bonus is $100 after $1,000 in spending. You can currently get a bonus of $125 by using the Universal Studios Theme Park links. It also came with a year of free amazon prime for awhile as well.
I also got the offer, but I was puzzled since it didn’t really seem like a good match for Costco members. That 3% for groceries and 2% for gas? Yeah, doesn’t apply at Costco (warehouse clubs excluded), so you won’t get much benefit from it this year. I guess the thinking is you won’t be able to use AMEX at Costco next year anyway, so they can try and get you used to using it at non-Costco locations now .
I think they are trying to get people to get a no annual fee card that will stay in their wallet for everyday purchases. They definitely want to hold on to those relationships after the changeover.
My wife received an offer on the Everyday card recently. It was a $250 bonus for $3k spend. We’d normally not go for this card because the value is in transferring points to airlines and we don’t fly much at all. The bonus was too good to pass up however and we’ll simply get gift cards to places we normally shop (bad value with statement credit).
She has only an AU (Costco) amex so what you’re saying definitely makes sense, as I’m sure they’d want to keep her. I’ve received no such offer, however I already have the Blue Cash Preferred which probably excluded me from targeted offers.
It’ll be interesting to see what Amex does with the conversion of Costco cards. It’s my oldest Amex and as long as it has no annual fee it’ll be kept.
i was offer 25,000 Membership Rewards points w/ 2000 spend in 3 month on the Amex EveryDay Credit Card. No annual fee and 2x points at US supermarkets. Is this a good deal? Usual offer is 10,0000 MR points
That is the highest targeted offer I have heard of for this card, so I would say it is a good deal, but your decision as to whether to apply or not will depend on a number of factors.
I receive an offer 25,000 Membership Rewards® points after you make $2,000 in 3months w/ Amex EveryDay Credit Card.No annual fee, 2x points at US supermarkets, on up to $6,000. Is this a good deal? usually you get 10k when signing up w/ $1,000 purchase.
Sorry, but it would b a pass for me…
Yeah, I got this offer last week and Costco was my only Amex. I’ve since signed up for the PRG 50,000 offer but we’ll take them up on this one, too. Just wish it was a MR earning cardI…