Costco to Accept AmEx until June 19
SAN JUAN – Costco’s 16-year agreement with American Express (AmEx) as its exclusive credit card partner is about to come to an end.
The membership warehouse club giant has announced June 19 as the final date on which AmEx cards will be accepted at its 702 locations in the mainland U.S., Puerto Rico, Canada, Mexico, Japan, Taiwan, Korea, Australia, Spain and the United Kingdom.
At the same time, Costco is about to begin a new partnership with AmEx credit card’s rival, Citi.
In fact, Costco’s AmEx-carrying members have already started receiving mailed notifications regarding the new Costco True Earnings Citi credit card they will be getting this summer, which will be carrying the Visa logo.
According to analysts, the loss of Costco as a partner will be significant for AmEx, as an estimated 10% of its cards bear the Costco logo. Although Costco has not given an official reason for dumping AmEx, analysts believe the warehouse club had wanted lower fees on its store cards.
Last month, Citigroup purchased AmEx’s portfolio of Costco credit cards for a reported $1 billion. The transaction is expected to be completed before March 31.
Costco operates four stores in Puerto Rico: two in Bayamón, one in Carolina and one in Caguas. These have consistently ranked among the franchise’s top sales performers.