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What's the story?
Costco Canada is to stop accepting American Express cards from January 2015 and will instead welcome MasterCard credit cards. Once negotiations between the wholesale corporation and its current credit card supplier broke down last month, Costco Canada announced that it will cease to accept AmEx cards from New Year's Day in all 88 stores.
American Express is currently the only credit card accepted in Costco Canada stores. Costco stores in the US will continue to accept American Express cards as the move has only affected Canadian stores.
What are the changes?
Capital One is exclusively introducing a co-branded MasterCard with Costco Canada in the near future. The credit card will double as a membership card to the store. Shoppers need to join Costco Canada's membership program before purchases can be made and with Capital One's new card, it's so far unclear as to whether the usual $55 membership fee will apply.
How will this affect me?
If you're a Costco Canada member with a current TrueEarnings or American Express Platinum Cash Rebate card, you will only continue to earn cash rebates on those cards until December 31st of this year.
In terms of the new credit card, hopefully this will be designed to be beneficial to Costco Canada members with perks such as no annual fee, extra cashback earning possibilities and suchlike. Many AmEx cardholders have already stated that they won't be renewing their Costco membership with a MasterCard unless it's implemented without an annual fee like their American Express cards are.