![]() Read: Why Costco shareholders shouldn’t fear the transition to Visa from AmExĬiti has said new Costco customers who are hoping to apply for the Costco Anywhere Visa card won’t receive more information on the application process until June.Īmerican Express’s Chief Executive Ken Chenault has said losing the partnership with Costco will impact one in 10 AmEx cards in circulation and would likely eat into the company’s earnings in 20.įor some consumers, American Express’s exclusive relationship with Costco was the only reason to get an American Express card at all, said Eric Wasserstrom, a managing director at Guggenheim Securities LLC, who covers American Express. The timeline was later extended slightly, and June 20 is the first date when Costco will only accept Visa cards, cash, checks, debit and ATM cards, Electronic benefit transfer (EBT) and Costco Cash cards. Would replace American Express, starting in spring of 2016, and Citigroup would be the exclusive issuer of Costco co-branded credit cards, leading to a bump in share prices of both Visa and Citigroup There are a lot of bargains to be had at Costco, but the average transaction can be pretty steep (giant packs of paper towels, huge bottles of lotion, big-screen television sets and brontosaurus-sized steaks add up) and paying with a credit card offers shoppers more convenience and flexibility than cash or debit cards. Just after the news about the severed relationship, the credit-card company’s stock fell 6.4%, its largest one-day percentage decline since August 2011.Īnd cardholders were concerned. Announced a year ago they would be ending their exclusive partnership of 16 years, investors and consumers were worried.
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