American Express introduced right this moment that it’s going to not be the one bank card accepted in Costco shops when its present partnership deal runs out in March of 2016 — in truth, it seemingly won’t be accepted at Costco in any respect. From right this moment’s press launch:
“We’re happy with the worth created over a few years for Costco, for our Card Members and for our shareholders,” stated Kenneth I. Chenault, Chairman and Chief Govt Officer of American Express. “Taking a really disciplined method, we started discussions on a potential renewal with Costco effectively in advance of the contract expiration. Nonetheless, we have been unable to achieve phrases that will have made financial sense for our Firm and shareholders. As a substitute, we are going to deal with alternatives in different elements of our enterprise the place we see vital potential for development and engaging returns over the average to long run.”
The inventory market was not assured about these “alternatives in different elements of our enterprise,” sending the share worth down by greater than 6% on the information.
The present partnership deal ends March 31, 2016. Till then, Costco will stay the one bank card accepted at Costco. There was no phrase from Costco on what playing cards could also be accepted in the long run, however the firm did lately swap from American Express to MasterCard in its Canadian shops, and struck a cope with Capital One for a co-branded Costco MasterCard.