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American Express lost 10% of its card business when they lost the Costco deal. Here’s an inside account of how American Express lost the business.
Copyright jetcityimage / 123RF Stock Photo
- Costco now accepts Visa only (along with cash, checks, debit cards, and Costco cash cards)
- Existing Costco credit card customers should have new Citibank Costco co-brand cards
- It’s now possible to apply for the Costco Anywhere Visa Card by Citi. Applications are available online or in-store.
The no annual fee cards (that require Costco membership) offer:
- 4% rebate on gas on up to $7000 in spend per year (then 1% back)
- 3% rebate on restaurant and travel
- 2% on Costco and at Costco.com
- 1% on everything else
Citi basically increases cash back in each category by 1% compared to the American Express cobrand Costco card, with some minor differences (for instance the American Express business card had a higher gas allowance than the personal card, while Citi has the same benefits across personal and business — this is one of the few small business cards Citi offers).
This is a solid card, an improvement over the Aemrican Express offering that was a huge part of its consumer portfolio, despite the low merchant fees Costco pays. Folks who liked the Costco card will like this even more.
The big outstanding question is, what in the world will Amex do now?