Costco US to drop American Express partnership in early 2016

Posted on February 13, 2015 by in Best use American Express Membership Rewards

Reuters reports that Costco is about to drop American Express as their preferred co-branding partner by March 31, 2016.

According to the article, American Express and Costco were unable to find a commercial agreement. I find it astounding that American Express would not continue the agreement. All the investment is in place and the partnership must have signed up a huge amount of new American Express customers.

From April 2016, it is likely that you will not be able to use an American Express credit card at Costco at all – instead MasterCard and possibly Visa credit cards. Costco does accept debit card payments, though.

I was once a very devoted fan of Costco, but was always annoyed that American Express would classify it as wholesale and not groceries, so the 2x grocery bonus would not apply. Oh well – I don't have to worry about this anymore.

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