Costco has shared surprising news regarding their long standing partnership with American Express. In an unexpected move, Costco has announced that they will stop accepting all American Express cards as a source of payment at their Canadian stores, effective December 31, 2014.
After more than fifteen years as close partners, Costco and Amex could not reach an amicable agreement to continue their partnership. Instead, Costco has forged a new partnership with Capital One that will take effect on January 1, 2015. Costco will be introducing a new co-branded card with Capital One and MasterCard that will also act as a Costco membership card.
Currently, the details of the card are still under wraps and it is anyone’s guess as to what the program will look like. We do know this: as part of the new agreement, Costco will accept any branded MasterCard at their Canadian stores. This means that as of January 1st, you’ll be able to pay with MasterCard at any Costco Store across Canada!
As Costco members wait to hear more details about the new card and its features, we want to help you stay on top of the game with some tips for you to consider:
1. Do not rush to cancel you current Amex card with Costco
If you have had a Costco card for 2 or more years and actively use the card for more than 3 purchases per month, your credit score is closely connected to the card. By cancelling the card you may risk lowering your credit score. It is in your best interest to keep your current Amex card open and active until official news of the new card has been released. In the meantime, to keep your credit score from declining, you may want to consider lowering the limit on your Amex card and applying for the new Costco Capital One card when it becomes available.
2. At the moment, Capital One does not offer any cards specifically for businesses
It is in your best interest to start looking for a MasterCard specifically suited for your business needs. Check out Wallet Savvy’s Business Credit Cards to find the best card for your organization.
3. Costco.ca accepts all major credit cards online
This includes American Express, MasterCard and Visa. Shop with your favorite card online and enjoy all the benefits that your card offers without having to switch credit cards.
4. Make sure to visit Wallet Savvy to find out how the new Costco Capital One card measures up
Once all the details are released, our algorithm will be updated to account for new card features and benefits. Don’t feel pressured if you do not currently have a MasterCard; Costco accepts debit and cash as well. If you do decide to take the plunge, take your time to choose the right MasterCard for your personal or business needs
Check Wallet Savvy often for updates and breaking industry news!