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!!!!!
It comes down to a couple of issues:
To explain the latter point, I had Amex decide in my favor when I don't think any other card issuer would have done so. I had pre-paid for a year of service from an ISP, with the promise they would refund the unused portion if I cancelled.
The ISP was bought up by another one with abysmal service. After I was off-line for nearly a week because THEY screwed up, I switched to another ISP and cancelled. They refused to refund the unused portion, claiming their policy was no refund -- regardless of the acquired ISP's policy.
I told them upfront that I was going to dispute it, because I knew that repeated chargebacks will actually INCREASE their merchant fee (because they are considered a higher risk). But, they didn't care.
I filed the dispute with Amex, explaining the above. Amex sided with me because the ISP couldn't produce a signed contract/agreement that confirmed my acceptance of their no-refund policy.
We usually use it to stock the freezer with steak. :-)
AmEx shares dip as earnings plunge 11%
American Express posted quarterly earnings and revenue that missed analysts’ expectations on Wednesday, citing continued headwinds from a stronger U.S. dollar and a rise in marketing spending.
The financial services company reported third-quarter earnings of $1.24 per share on $8.19 billion in sales.
American Express attributed the performance to currency exchange rates as well as spending to attract new customers as its partnership with retailer Costco ends next year.
Anybody here know what in the hell happened between the two companies. Inquiring minds are curious”
$$$$$$
Anybody here know what in the hell happened between the two companies. Inquiring minds are curious”
$$$$$$
I think the AMEX fees are higher. They will go with the cheapest option, unless they think the AMEX crowd is going to spend a lot more money.
That could be.....I think the main thing is that AMEX was always higher than the rest.
These days, a small merchant can use Square:
Square's Payment Processing Fees and Pricing
It's 2.75% for swiped cards and online transactions (via their online portal). Period. No signup fees, no per-transaction fee. Manually-entered transactions are 3.5% + 15 cents.
And they accept most cards:
You need an iPhone or Android phone, and Square's reader. Their mag-stripe reader is free, and their combination stripe/chip/contactless card reader will be $49, once it is available.
My guess is that AMEX and Costco could not come to terms on the cut that AMEX should receive for processing Costco transactions. For a long time, AMEX had exclusive access to Costco customers and that had to have a significant value.
I don’t like cards that do the various %/rates for different segments. I’ve not found a higher return than my Visa.
The rates are constant. I know what you mean about the cards that have variables but this card is consistent on the rates all the time.
It’s especially good on groceries and gas.
Costco is a huge Democrat contributor. You shouldn’t be shopping there, anyway.
Costco will only accept Visa credit cards at its stores starting April 1, 2016. Customers will also be able to use Visa and MasterCard debit cards, or pay in cash. American Express credit cards will no longer be accepted on that date
“Costco is a huge Democrat contributor. You shouldn’t be shopping there, anyway.”
News flash: American Express’ CEO, Ken Chenault, is a big Obama buddy. AXP is a very lefty “progressive” company.
Have been on both as member.
Sams is superior and takes Amex.
For those who don’t know .. AEX or AMEX is AMERICAN EXPRESS.
Costco is a huge Democrat contributor. You shouldn’t be shopping there, anyway.
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Oops!! I just renewed my exec membership literally today. :<(((
Simple fix. They don't take my card, I don't buy their stuff.
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