Posted on 10/22/2015 8:01:47 AM PDT by Allen In Texas Hill Country
I've had an AEX card for nearly 50 years. And we were members of Price Club before Costco bought them out so I've been a Costco member for I don't know how long. I can't remember when AEX and Costco kinda got together in a manner. My AEX card says AEX on the front and the back is my Costco membership. Like I said its been that way for quite awhile.
So about 6 months ago (maybe a bit longer) AEX sent me a letter saying that are parting ways with Costco. It will happen some time is the first half of '16. And I get a letter from Costco yesterday telling me to keep calm (:<)) and Costco will be moving on with VISA and Citi?? And that they will not be accepting AEX cards after the split. Now that sounds drastic!!!!!
Sam’s Club. Now Sam’s Club is featuring AMEX. It’s like coke and Pepsi.
I’ve noticed A LOT of places that used to accept AMEX don’t anymore.
I know a business owner who can’t stand them and refuses to do business with them. Guess they pulled the same trick on Costco as they did him.
This has been in the works for over a year.
AMEX charges a premium for CC processing - Costco must have struck a deal long ago with AMEX for lower processing fees.
No real big deal.
I don’t have the answer, but I’m happy about this. I earn a lot more points with Visa, than AmEx.
Amex probably made a deal with a competitor.
I haven't been a member at Sam's for a few years, but when I was, it was Discover Card.
Funny - my wife has the Costco Amex - hated to use it. So I went in the other day - and I noticed the self-help register just had Amex logo - not Costco Amex - and I asked the lady. She said ‘No, we take ANY Amex - always been like that.’. I never knew that - would have helped sometimes when short on cash.
I’ve been with AMEX since 81. I’ve found that companies that don’t want to take an AMEX are those who aren’t willing to take the rake-off % AMEX charges to use and process the card. I’ve heard it is higher than VISA and MASTERCARD.
Usually when large vendors want to be able to have AMEX cards as an option, they work out some kind of deal with AMEX for a smaller cut. My guess is that AMEX doesn’t want to continue the relationship and smaller cut.
Obama’s economy.
Now I'll be glad to get rid of the AmEx since I don't use it for anything but Costco.
On the other hand in the little town I live in many small stores now do accept AEX. They didn’t when I first moved here in ‘06.
Probably - under normal circumstances, without special deals, Amex and Discover charge higher transaction fees. I use Discover a lot and there are business, especially smaller ones, that will not take it.
My guess is real simple - low priced bidder.
Costco’s contract with AMEX was coming up to recompete and Visa provided them a better deal financially.
While I’m fairly certain the cashier didn’t know the details . . . one told me AmEX was expecting Costco to give up too much in % of rewards.
I’d like to know why too. But I’m good with Citi or Chase. Although I have earned 2-3% on AmEX and only 1% on my Chase cards and miles on my Citi card.
I usually get back enough rebate check from Costco to pay for my membership and most years get around 400.00 from AmEx.
Which AMEX do you have?
I have the blue preferred card that pays 6% on groceries, 3% on gas and 1% for everything else.
That’s the highest cash back card that I know of out there, so I am curious to what you are using.
Mr. GG2 always gets a nice Costco rebate check too. It comes in handy.
Sam’s switched to Sam’s Master Card about 18 months or so ago. No more Sam’s Discover.
I was happy several years ago when I realized I could cash that check @ Costco vs just spending it @ Costco. Feels more like a reward when they hand over several hundred bucks cash money.
I thought in years gone by it was 2% for Visa, MC and Discover to the merchant and more like 3% or even 4% for AmEx which is why so many don’t accept it.
Not sure what the %’s are in 2015.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.