WTF Costco?

[Muse]

Amex has the best customer service. Without question. It's why their cardholders are so loyal compared to the competition. My preferred card is Amex but I'm not blind loyal like my business partner. He spends over million a year on his personal Amex card. When I suggested couple of other Visa and Mastercard for bigger rewards points, he said he didn't care because Amex takes care of him.

OK, I'd like to hear some stories, reasons. What does Amex do for you that Visa, Mastercard, Discover don't/won't do for you? AFAIK, the other CC companies have extended warranty coverage. 😕 AFAIK, the other CC companies don't put you on the hook for fraudulent charges. Just how does Amex customer service outshine that of the other credit cards?

 

[werepossum]

I'm reading a lot of conjecture in this thread.

I can fully believe that Citi may purchase the customer base from AmEx if they come to an agreement to do so. That would fall under the parameters of the agreement you have with AmEx. But take over the balance, no way. An individuals credit history in regards to the card will transfer? Uh-uh. Not gonna happen.

You want an AmEx, fine, here are the cards we're offering and a nice shiny new hard hit on your credit to make sure you qualify. You want a Costco Citi Visa to replace your Costco AmEx? Just submit an application and we'll do a hard hit on your credit report to see if you qualify.

I think some of you are forgetting that getting a Costco AmEx was an option, not a requirement. I've already talked to AmEx and they offered me a replacement card if I wanted it. Offered is the key word. I called about a fraudulent charge but once that was settled, I got the pitch for a replacement card. I was told that they expected a huge amount of activity regarding replacement cards and were strongly suggesting it be done sooner rather than later. They can't just automatically issue you a replacement card and even if they could, they'd be crazy to not do their due diligence as it relates to your financials. And Citi cannot just automatically issue you a Costco Citi Visa to replace the Costco AmEx. Once again, due diligence. Plus, I bet it's illegal as illegal gets.

Remember, we get credit card offers in the mail, not credit cards themselves.

I may be wrong about this, but if so, I bet I'm not far off.

We have several times received pre-approved credit cards we never solicited. Pisses me off greatly since all you have to is sign them and use them to activate the account. If they are interecepted or misdelivered - which isn't uncommon here, I have had fraud from misdelivered credit cards and multiple times have received cards addressed to other people in the same subdivision but on different streets - and if they change the address then we would have no way to know these were in my name until I took a hit on my credit score.

Interesting article about it:

http://www.bloomberg.com/features/2015-how-amex-lost-costco/

Interesting, thanks. I have a hard-on for Amex anyway because when they tried to get my father to accept them, their rates started at a whopping 35%, far beyond our profit margin on anything, and topped out at 12% at $200 if memory serves. At that time, Visa and MasterCard charged 4%, and as many times as the salesmen came by they never had any answer for why their product deserved such an outsized margin. Or as to why we would want to give them more than we earned to make a sale.

 

[overst33r]

Not sure if this was posted yet... http://www.doctorofcredit.com/leake...stco-citi-american-express-visa-partnerships/

 

[boomerang]

We have several times received pre-approved credit cards we never solicited. Pisses me off greatly since all you have to is sign them and use them to activate the account. If they are interecepted or misdelivered - which isn't uncommon here, I have had fraud from misdelivered credit cards and multiple times have received cards addressed to other people in the same subdivision but on different streets - and if they change the address then we would have no way to know these were in my name until I took a hit on my credit score.

I've received them too in the past. But, they weren't actual credit cards. Cardboard facsimiles of cards that obviously can't be used. I don't ever recall receiving an actual card. How long ago was this?

This has jogged my memory though. A number of years ago, I put us on a list for no credit card solicitations and for the very reason you're talking about. Our mailbox is out at the road quite a ways a way from the house. It's a fairly well traveled road with a speed limit of 55 mph. It's one of only a few roads that are paved out this way. I put a yellow flag on the mailbox that pops up when the door is opened so we don't end up walking out there in the rain or snow to find that there is no mail in the box. Several times each week that flag is popped up after we have picked up the mail. It's a metal box with a friction catch on the door. There is no way that door opens up on its own. Evidently people are making the rounds looking for something valuable to take from them and I'll bet CC solicitations are high on their list.

Anyway, I made a short story long but by placing our names on the no CC solicitation list, I have probably taken myself out of the loop on the current goings on.

I don't recall if this is where I opted out or not, but here it is.

https://www.optoutprescreen.com/?rf=t

 

[boomerang]

Not sure if this was posted yet... http://www.doctorofcredit.com/leake...stco-citi-american-express-visa-partnerships/

Thanks for posting that. I have not yet received my letter and was interested in seeing it.

I really don't like the idea of having a CC foisted on me without my intervention. A lot of my posts in this thread have been based on my thinking that it could not happen, but I am evidently wrong on this. I assume I will have the option of contacting Citi and saying I don't want this card, but the preferable situation to me would be to opt in versus having to opt out.

But, I suppose it's best to wait until more information is pushed to me before getting all jacked out of shape.

 

[waffleironhead]

If this transition from amex to visa goes like every other card transfer I have ever had to deal with, it is going to be painless and your credit history will transfer over. I have has MC cards transfer to Visa and Visa to MC. Ive also had store branded cards move between different banks.
The easiest way to think about is you have a Costco card. Forget about the fact of whose network you are on now. On the magical date on the future. 3/31/16? Your costco card will now be on a new network. Your balance and credit history will transfer over. Unless of course citi finds some way to funk it up.

 

[kt]

My first credit card ever was the Citi Forward card. The card itself is actually good with 5% back on restaurants and I keep it because it's my longest open account. They don't offer it anymore at all. However, throughout the years every time I had to call in for some reason or another their customer service was trash.

I had a Citi car with similar reward and stuck with it for a while because I never had to contact customer service. After 5 years or so of no incident, I got hit with a fraudulent charge on my card and contacted them (it was a small amount, like under $20). After numerous calls with them, I decided that I would just eat the cost of the fraudulent charge and the small credit score dip for cancelling the card. It was worth it just not having to deal with their customer service ever again and get treated like some low life scum.

 

[RossMAN]

http://www.fool.com/investing/general/2015/12/13/how-american-express-moves-on-from-costco.aspx