Urgent Statement from Costco: A Last-Minute Decision Affects Thousands of Customers

Commercial relationships between large companies don't always last. Often, changes in agreements can have significant effects on consumers. Costco, one of the leading wholesale warehouse chains, has just made a decision that's affecting thousands of its customers in the United States.

The company has decided to end its historic alliance with American Express; from now on, this company's cards will no longer be accepted in Costco stores. The chain has established a new agreement with Visa, marking an important change in payment conditions for customers. This change has caused a lot of surprise and has left many users searching for new alternatives.

Costco and American Express: End to a 16-Year Collaboration

For 16 years, American Express was the only credit card provider accepted at Costco. This collaboration allowed customers to use exclusive brand cards, which included a rewards system. The card, very popular among regular customers, offered benefits like discounts and rewards for purchases made within Costco.

Despite its long duration, the relationship couldn't be renewed. Costco was looking to adjust the terms of the agreement, but negotiations ultimately didn't succeed, according to Mental Floss. American Express didn't accept the new conditions proposed by Costco, which led to the breakup of the relationship. This disagreement left open the possibility of seeking a new financial partner, resulting in the agreement with Visa.

Visa Takes Over: New Benefits for Consumers

The change in the alliance brought with it the launch of the new Costco Anywhere Visa Card by Citi. This card replaced the previous American Express card and has introduced several changes in benefits for consumers. One of the most important aspects is the adjustment in the rewards system, which offers benefits in new categories, such as gas, restaurants, and purchases within Costco.

Although some customers have received the new cards automatically, the transition hasn't been easy. Many of the regular American Express users have been surprised by the need to switch to Visa.

Citigroup, which acquired Costco's customer portfolio, has sent out the new cards, but some users have experienced delays in activation. Additionally, some customers preferred to continue using American Express, so they are now looking for alternatives to make their purchases at Costco.

Meanwhile, Costco hopes that the global acceptance of Visa cards will ease the adaptation for its customers. Unlike American Express, Visa is accepted in many more stores, which could make the transition easier for most shoppers. This versatility is key for the chain, which hopes to keep its sales volume without the lack of American Express causing a negative impact.

The breakup of the agreement with Costco also had repercussions for American Express. It was estimated that approximately 10% of the company's active cards were used in operations related to Costco.

The loss of this contract has significantly reduced the volume of transactions processed by American Express. Although the company has tried to compensate for this loss with other initiatives, the impact on its operations has been notable.