American Express and Costco to Break Ties - Card Issuers News


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Card Issuers » American Express and Costco to Break Ties

American Express and Costco to Break Ties

The content is accurate at the time of publication and is subject to change.

American Express and Costco are ending their relationship, with the split slated to take effect on March 31, 2016.

Until next year, it’s business as usual at Costco which will continue accepting only American Express credit cards at their stores across the U.S and on The website has always taken all major credit cards including Visa and MasterCard, but American Express has been the only credit card available for use in Costco stores for the last fifteen years.

For Costco customers the unique partnership meant that they could not leave home without their American Express card, unless they wanted to pay with cash or a debit card when they shopped at the warehouse club.

The pair also have a co-branded credit card, which can be used at Costco as well as other retailers.  Cardholders can use the card wherever American Express is accepted until next year as well. It remains to be seen if Costco will strike up a new exclusive deal with another issuer or if they will start accepting all major cards.

Irreconcilable differences

The reason for the split according to American Express, was because they couldn’t come to terms that either party could live with.

“Taking a very disciplined approach, we began discussions on a possible renewal with Costco well in advance of the contract expiration. However, we were unable to reach terms that would have made economic sense for our company and shareholders,” said Kenneth I. Chenault, chairman and CEO of American Express.

“Instead, we will focus on opportunities in other parts of our business where we see significant potential for growth and attractive returns over the moderate to long term,” he added.

Costco Wholesale Corporation is a membership-only warehouse club, headquartered in Issaquah, Washington. It was founded in 1976 in San Diego as the Price Club, and today it has 671 warehouse clubs, located in the U.S, as well as United Kingdom, Australia, Canada, Taiwan, South Korea, Japan, Spain and Mexico.

American Express is a multinational financial service company, headquartered in New York City, and is best known for its charge and credit cards.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

EMV Credit Card Deadline Finds People Unprepared
EMV Credit Card Deadline Finds People Unprepared

Posted: September 30, 2015

Starting tomorrow, merchants are supposed to be ready to accept EMV payments from consumers—or face the possible consequences, which could mean picking up the tab. Continue reading

Upswing in Payment Card Revenue
Upswing in Payment Card Revenue

Posted: May 26, 2016

Visa, UnionPay, MasterCard, JCB, Diners Club/Discover, and American Express credit card brands all have one thing in common – in 2015 they saw an overall 16.1% upswing in revenues from merchants, generating $227.08 billion in purchase… Continue reading

Credit and Debit Card Spending Up
Credit and Debit Card Spending Up

Posted: April 09, 2015

Last year people spent $196 billion in debit and credit card transactions at merchants across the globe, according to a new Nilson Report. Spending on cards was up 14% over the year before. Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
The Citi Rewards+SM Card - the only credit card that automatically rounds up to the nearest 10 points on every purchase - with no cap.
For Excellent, Good Credit
Earn cash back twice. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
For Excellent, Good Credit
Perfect credit not required for approval; we may approve you when others won’t
For Fair/Bad Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!