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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCostco Weighs Dropping AmEx as U.S. Card Partner
Costco Wholesale Corp., the retailer that replaced American Express Co. as its credit-card issuer in Canada, is considering a similar move with its larger U.S. portfolio, according to two people familiar with the matter.
Costco is seeking bids for both an issuer and a payments network for its U.S. cards, the people said, requesting anonymity because the matter hasnt been made public. New York-based AmEx could be among firms bidding for the contract, the people said.
In September, Costco reached a deal with Capital One Financial Corp. and MasterCard Inc. for the warehouse-club chains co-branded credit cards in Canada, replacing AmEx at the beginning of 2015. Issaquah, Washington-based Costco notified customers that it will stop accepting all American Express cards in Canada on Jan. 1 after negotiations between the two companies to renew the contract fell through.
The change in Canada gives us reason to believe this is a sign of things to come for the U.S. relationship, Jason Arnold, an analyst at RBC Capital Markets, said in a research note in September. If the U.S. indeed follows, it certainly will represent a significant relationship loss for AmEx.
http://www.bloomberg.com/news/2014-11-06/costco-said-to-weigh-dropping-amex-as-u-s-card-partner.html
liberal N proud
(60,336 posts)There is a Costco 5 miles from our house, the nearest Sam's club is 9 miles. We mostly have membership for gas.
Sheepshank
(12,504 posts)Lord knows I have 800 of them to find a use for!
liberal N proud
(60,336 posts)Sam's Club works the same way inside.
You need to use a Discover Card, Cash or Check.
At the pumps they use Visa and Master Card so I can use my Check Card there, can't do that at Costco.
Sheepshank
(12,504 posts)and gas or no gas is not a deal breaker for me.
I feed a pretty huge household and a couple of persons with sensitive gastric issues, I can accomodate with the HUGE selection of organic and gluten free foods. Easily a better and more cost effective option to the local grocery store.
gollygee
(22,336 posts)for convenience when I shop there. I don't want to have to get a new credit card from them. (Though AmEx seemed like an odd choice.)
WhiteTara
(29,718 posts)transfer your balance from one to the other.
betsuni
(25,544 posts)(in Japan) and I'd assumed I could use my Visa. Nope. Had to pay cash. Luckily I always carry lots of cash, otherwise I'd still have a big grudge and refuse to wait in line for 45 minutes JUST TO GET INTO THE STORE ever again.
Art_from_Ark
(27,247 posts)Last year, a Costco also opened up in my city. I'm tempted to go check them out, but it probably wouldn't be worth my while to sign up for a membership. I wonder if they have black cheese hamburgers?
betsuni
(25,544 posts)It's quite a drive and I have to get the husband to take me on weekends when it's hellishly crowded. We stagger out after a couple hours exhausted and never want to see people again. The first two times I mostly bought Kirkland brand things like nuts, dried fruit, vitamins, green laundry and dish washing detergents, organic tomato paste, huge bags of organic tortilla chips and potato chips and two bags of bagels for about ¥600, long rectangles of Tillamook cheese -- those are terrific bargains. Didn't find much else to be that much cheaper, and lots of Japanese brands. No interesting wines. Meat didn't look good, turkeys the gross kind pumped full of salt and preservatives. Only the last time did I find more things I wanted, like spices, jasmine rice, organic popcorn. I guess it depends on what stock they have in at the time.
We didn't renew membership. They plan to expand in Japan so if one opens closer I'd join again. Or maybe I'll give in and go back when I run out of vitamins.
They have big-ass American hot dogs that EVERYONE eats, because cheap. Most people put ketchup on them. This is incorrect. Mustard and sauerkraut. No black cheese .... yet.
I was going to email Costco to force all my improvement suggestions on them, but nobody listens to me. It's so fun to see the first-time shoppers there going nuts at all the giant sizes.
Art_from_Ark
(27,247 posts)without having a membership? The Tillamook cheese sounds interesting, but I don't want to get a membership just to buy that.
Around here, the big superstore is Joyful Honda, a massive complex of garden, light fixtures, bicycle, grocery, home improvement, pet, furniture and general merchandise outlets, but one does not need a membership to buy stuff there. And it's also hellishly crowded on weekends
betsuni
(25,544 posts)I used to order Costco items online from the Foreign Buyer's Club, but I haven't in years because they're Republican/Libertarian (first I typed "Livertarian" among other reasons. The Flying Pig has Costco, too. That reminds me, I want to order a nice French turkey from The Meat Guy if they have any. He's a liveral -- I did it again, liberal, and has good meat, whole rack of ribs reasonably priced.
Art_from_Ark
(27,247 posts)Mainly big bags of tortilla chips. I had no idea of their political leanings.
I guess I'll pass on the Costco if I have to join before I can even enter the store, and stick with my usual regimen of buying produce from greengrocers, shopping at stores that offer store or T-card points, and other shops that regularly mark down (mainly food) items. Seiyu, for example, regularly offers chicken breasts at 30 yen/100 grams (after markdown) if it's a couple of days away from its "sell by" date. And I got a good deal on Koshihikari rice the other day at a local mini-supermarket-- 950 yen for 5 kilograms.
betsuni
(25,544 posts)It's owned by Walmart. On the other hand, they accept credit cards and none of the other small supermarkets in my neighborhood do. This is very convenient the week before payday. It's also the only place I can get fresh cilantro. I have sold my soul to the devil of Walmart for a few sprigs of cilantro.
I know when all the different supermarkets start marking things down, it's great! Friday afternoons are when my local market marks down its basil if it hasn't sold it all by then. I'm sure the staff refers to be as the Basil Gaijin. I do not care.
Art_from_Ark
(27,247 posts)But their web site says that Wal-Mart is the parent company.
The stores I frequent mark down stuff at odd times, so I usually have to be in the right place at the right time. But the greengrocers are almost always cheaper than the stores, and that includes Seiyu. And all the stuff I buy at Seiyu (probably half a handbasketful, every 2 weeks) is marked down, sometimes dramatically, so they probably aren't making any money off of me.
WhiteTara
(29,718 posts)not republican or libertarian; they are democratic. Enjoy your shopping. I order my coffee from there because of the great price and free shipping.
betsuni
(25,544 posts)I knew someone who asked him and he told her he was Libertarian, she suspected that meant Republican. This was after Iraq was invaded. Maybe after eight years of Bush he became a Democrat! Excellent.
shanti
(21,675 posts)all you need to do is tell the door monitor that you are going to buy alcohol. you don't need a membership card to buy alcohol.
global1
(25,253 posts)through the years I've had bad experiences with AmEx and I carry very little cash and use credit cards as much as I can. I pay my bills in full every month.
I won't join Costco until they rid themselves of AmEx. I really would like to join because there is one less then 1 mile of where I live.
kcr
(15,317 posts)You just can't use it as credit, you have to use it as debit.
global1
(25,253 posts)oldandhappy
(6,719 posts)Lefta Dissenter
(6,622 posts)because I JUST finally broke down and got the Costco AmEx card. No annual fee, a bit of a rebate, and more convenient than cash or check.
SomethingFishy
(4,876 posts)And frankly if they only took AmEx I would just write a check.. Costco rocks!
frazzled
(18,402 posts)Online, Costco.com accepts the American Express, Discover, MasterCard, and Visa cards. The website also accepts PayPal Credit accounts for payment.[29]
http://en.wikipedia.org/wiki/Costco
Or maybe you're using a PIN-based debit card.
TreasonousBastard
(43,049 posts)and since pretty much anyone with a checking account can get a debit card (or just buy one in the dollar store and load it up) I don't see the problem.
frazzled
(18,402 posts)We are talking about credit cards; and I said at the end of my post that you must be using a PIN-code debit card.
Am-Ex has been the only credit card Costco has accepted for years. We happen to have an American Express card, and have used it at Costco, but many people do not. And many people, especially poorer people, can't use a debit card because .... well, because maybe they need something right now for their children, like milk and eggs, but their bank account is down to the dregs or the rent is also due, and they don't get paid for another week and a half. So they put it on credit and pay at the end of the month.
So it matters.
DavidDvorkin
(19,479 posts)AmEx is not required. I use my Visa debit card.
You can also pay with cash.
uppityperson
(115,677 posts)Sheepshank
(12,504 posts)....finally, a place I can use up my stash
oldandhappy
(6,719 posts)and it has been great. I use my rewards each Spring to buy all the necessities for the house for the year. Free TP!!
sendero
(28,552 posts)....card because I don't care for their business practices over the years and because their discount (the amount they take out of your purchase before remitting to the retailer) is gigantic compared to Visa or MC. (This is one of the reasons you will notice that many retailers refuse to accept AmEx, last I heard their discount was around 4%, i.e. absurd).
That didn't stop me from being a CostCo member, I usually just paid with a check.
djean111
(14,255 posts)For those without insurance, it is a life saver.
My son's PTSD is treated with, among (too many) other drugs, venlafaxine ER.
At one point, 90 days of all of his scripts cost $170.95 at Costco, $1447 at CVS, $1199 at Walmart, $1573 at Publix.
I literally broke down and cried when I saw how much Costco cost.
The drugstores cannot/will not match Costco prices, it is contractual or something.
You can call the pharmacy and ask them for a price, and you do not have to be a member, just tell the person at the door you are going to the pharmacy.
I love Costco immoderately for this.
dhill926
(16,347 posts)much cheaper. Now making me get a little piece of paper to take up to the pharmacy, but it usually doesn't take long. But I would never join too many damn people.