CostCo USA dropping Amex for Citigroup VISA

[notposting]

By accepting only AMEX costco has excluded a lot of people from being able to charge their purchases. I like AMEX too, but not everyone has one. More people qualify for Mastercards than AMEX. This change will open the ability to charge to more customers. That has to be good for business and those who will now be able to charge at Costco.

Good. Keeps the riff-raff out. :sneaky:



We have all the different cards so I don't care, but would be a change of pace to stop using the all powerful Costco AMEX card of power.

edit: Ha, great minds and all that:

Helps keep out the riff-raff.

edit2:

AFAIK, the Costco AMEX has pretty mediocre rewards. Not sure why anyone would be sad if Costco moves away from AMEX.

3% on gas, 2% on travel and restaurants, 1% elsewhere. Add Executive membership at Costco and you will add 1% to all of your Costco purchases (ie 4% gas, 2% regular purchases). It's not that bad.

 

[rpanic]

Been using my visa atm card for a while at Costco in CA.

 

[SunnyD]

Haven't used my Amex at Costco in forever. But I don't have a MC card at all in my wallet.

 

[Mixolydian]

Pretty much everywhere that I shop takes Amex. Where do you live?

I've never encountered a situation where Amex wasn't accepted. I think that's largely a thing of the past. Unless, of course, you live out in the sticks.

 

[PliotronX]

What is so bad about Cap1? They gave me my very first card and have been good to me *shrug*

 

[IEC]

AMEX is great for the 1 year warranty extension...

 

[feralkid]

I've never encountered a situation where Amex wasn't accepted. I think that's largely a thing of the past. Unless, of course, you live out in the sticks.

Well I guess you haven't done everything, Hank.

Visa and Mastercard everywhere. Amex and Discover, not quite as much.

It has nothing to do with what you have or haven't encountered, nor is it related in any way to living out in the sticks.

 

[alkemyst]

What's the reason for only accepting one brand of credit card to begin with?

Guaranteed revenue would be one for the CC partner.

In return they offer cash back to the member.

 

[alkemyst]

AMEX is great for the 1 year warranty extension...

VISA and MC cards offer warranty extensions too.

 

[Mixolydian]

Well I guess you haven't done everything, Hank.

Visa and Mastercard everywhere. Amex and Discover, not quite as much.

It has nothing to do with what you have or haven't encountered, nor is it related in any way to living out in the sticks.

Also encountered very few places that don't take Discover.

 

[alkemyst]

I've never encountered a situation where Amex wasn't accepted. I think that's largely a thing of the past. Unless, of course, you live out in the sticks.

In coastal areas especially around here, sometimes CC's aren't even accepted at all. A lot of times when they are it's only Visa/MC.

Amex is more accepted in cities now, but still some small mom and pops don't take it or Discover.

 

[gevorg]

CapitalOne is the Comcast of credit cards

 

[kranky]

Since when does ANYONE accept American Express?

I haven't seen anything but Visa and Mastercard logos for years.

My everyday card is an Amex and I think there was maybe 2-3 times in 5 years I had to pull out a Visa or MC when making a purchase. According to my Quicken records, I've made about 1200+ transactions. So an acceptance rate of about 99.8%.

 

[alkemyst]

CapitalOne is the Comcast of credit cards

Capital one is the WalMart of credit cards, most Capital One users probably couldn't afford a $300/month comcast triple play bill

They did offer me some good balance transfer offers but even back in 2008 their rates were 14%+ when I was getting 10% or less from 'real cards'.

They are one of the first companies that offer new credit to B/K filers and those with judgements/collections for a high rate and annual fee. That's more their model.

As long as the points are the same with Costco, I don't really care what card I am using there.

That said, just the gas savings pays for the membership for my house hold and it's less than a 1/2 mile away and right next to our I95 on-ramp.

 

[Carson Dyle]

Guaranteed revenue would be one for the CC partner.

Obviously.

In return they offer cash back to the member.

That's not a benefit to Costco.

You seem to be talking about the benefits of co-branding a credit card, which many, many sellers do. Yet those same sellers typically accept most or all credit cards.

 

[alkemyst]

Obviously.



That's not a benefit to Costco.

You seem to be talking about the benefits of co-branding a credit card, which many, many sellers do. Yet those same sellers typically accept most or all credit cards.

I am sure Costco gets a cut of the 'fee' for using that card outside Costco or some other benefit like perhaps a vendor that's also owned by the same conglomerate.

The low-hanging fruit benefit would be offering at least one CC card for those that can't afford their groceries at the low end, nor paying that big screen TV in one month off at the high end.

Maybe it makes more sense now?

 

[Carson Dyle]

I am sure Costco gets a cut of the 'fee' for using that card outside Costco or some other benefit like perhaps a vendor that's also owned by the same conglomerate.

The low-hanging fruit benefit would be offering at least one CC card for those that can't afford their groceries at the low end, nor paying that big screen TV in one month off at the high end.

Maybe it makes more sense now?

You're still talking about the benefits of _issuing_ a co-branded credit card. I asked about why they would only accept a single card.

Understand the fucking question yet?

 

[alkemyst]

You're still talking about the benefits of _issuing_ a co-branded credit card. I asked about why they would only accept a single card.

Understand the fucking question yet?

I forgot you were a bad ass here.

Probably they get a much lower fee from the merchant bank.

Not sure if you are drunk or something, it's pretty basic.

 

[ponyo]

Costco pays no transaction fees with Amex. That's the agreement. In return, Amex gets sole access to Costco members.

 

[Mixolydian]

Costco pays no transaction fees with Amex. That's the agreement. In return, Amex gets sole access to Costco members.

Sounds like a good deal to me.

 

[alkemyst]

Costco pays no transaction fees with Amex. That's the agreement. In return, Amex gets sole access to Costco members.

Ahh, I thought it was just reduced fees not zero fees.

I'd buy that for a dollar.

 

[Carson Dyle]

Yeah, I'd be pretty amazed if it was zero. That's a lot of cash to leave on the table, even if they had offered something as ridiculously low as 1%. The only way it could be zero is if they sold the hell out of those co-branded cards and it made the issuer a shit-ton of money. I imagine many people only have the Costco Amex in order to make Costco purchases.

 

[CPA]

nm, looks to have been answered above.

 

[doubledeluxe]

I use my Amex for 98% of my purchases. The 2% does bother me but hell I just used it online in South America to buy a domestic plane ticket today so if it works here it pretty much works anywhere.

 

[AznAnarchy99]

I use my Amex for 98% of my purchases. The 2% does bother me but hell I just used it online in South America to buy a domestic plane ticket today so if it works here it pretty much works anywhere.

I'm the same way and I have an Amex Costco card. You can't beat 4% back on gas on top of their lower prices.

Also I broke my iPhone two weeks after I got it. Amex paid for my replacement. I had a few disputes with some hotels and they got my money back. I wouldn't give up my Amex for anything.