prmetime

Could you please provide your source for knowing that the Costco branded Amex card's replacement is the SimplyCash card? No notification to me yet from Amex and I hold several of their cards including the Costco Platinum.

Mbha

I can confirm of the switch. Got a letter in the mail and confirmed with a CSR at Amex who said all members are currently being notified. You're probably going to get your letter in the next 2 weeks.

If you call Amex and ask they have a script ready to tell you about all the benefits of the new SimplyCash card.

fritzzz25

Calling in to cancel my AmEx now. They support Seaworld.

http://www.mysanantonio.com/business...on-5714151.php

prmetime

Thanks. So does this mean a hard pull if you want the SimplyCash (i.e. they are just promoting it) or are current Costco Amex cardholders going to automatically get this card?

Mbha

It's an automatic switch. I tried to get the CSR to allow me to switch to a better card with points (SPG etc) and she said I only had two options. The SimplyCash with no annual fee or the SimplyCash with the annual fee.

Only difference I believe was the points awarded and a few basic insurance benefits.

I told her I had the Gold Rewards and she said that the new SimplyCash will be the exact same number and expiry date and I wouldn't have to notify any merchants who have recurring charges on the card.

prmetime

Great. Thanks for the info.

cbn42

Costco is probably one of the few retailers that has enough scale and loyalty to get away with this. I don't know about Canada, but in the US Costco has almost a cult following. The "Who loves Costco?" thread on Flyertalk demonstrates this.

Besides, many people have a Mastercard of some type, and almost everyone has a debit card. I doubt very many people would stop shopping somewhere because they insist on using Amex.

Centurion

I spend a lot a Costco. How much? Enough that every time Costco sends their employees to check out lanes to upgrade regular members to Executive members I get a "wow" reaction when they look at my purchase amounts. I think I would move my buying to Amazon prime if Costco discontinues Amex

Mbha

Here's what I was able to scoop up at Costco this afternoon. I don't think they've officially launched yet but looks like Capital One Mastercard is the new card at Amex.

Kind of letdown that there's no incentive like the Costco Rebate that Amex used to provide.

https://www.dropbox.com/s/1h25xeaul0...06.54.jpg?dl=0

https://www.dropbox.com/s/nmjhyhfxy8...07.12.jpg?dl=0

krazykanuck

This is my thinking on it too, and I doubt that Costco USA would pursue a similar change. From my time living in Canada, I think that Amex cardholders are a smaller proportion than they are in the US, so maybe being only Amex was more of a pain in Canada than it is in the US. I'd be curious to know what the payment method split is between the two countries to compare Amex vs. Debit vs. cash/check.

trayvreller

I agree with you, in part. Costco can and will get away with this. But, I object to them wielding their clout in this fashion. I have a Visa and an Amex, and I'm not getting a MasterCard just so I can shop there, and yes, I know I can still use cash or debit. But in my view it's time they start accepting all major cards. So, maybe this will be my own little lonely protest.

Mbha

I'll join you. Hopefully, there is a sizable minority and the strength by numbers helps Costco reassess the situation.

CloudsBelow

You don’t know that at all.
Costco and Amex are used to being the dog and not the tail in negotiations. Just as likely Costco came to renewal contract discussions asking Amex to lower their already lower-than-usual margins. AX might have said no way, not interested. Costco has Cap One in their back pocket and not willing to sacrifice 0.5%? of cc sales to keep AX. They part ways.
Losing a deal is not a bad thing if the business case is under water from the onset.
No, They need to be sure their savings derived from an exclusive deal outstrip the lost sales from people like you who avoid them because they don’t accept your preferred card. I’m guessing their savings are north of 1% ...... Wonder what 1% of the annual credit card sales for Costco would amount to?

markandrew

Amex is the big loser here; Costco exclusivity added significantly to their brand awareness in the somewhat idle Canadian market where many people just snap up whatever their home banks issues to them, or issued a decade or more ago.

flipstah

Sad to see it go because after this card year, I won't be renewing my AMEX Platinum. I shop a lot at Costco and I get better incentives to use my MC.

It was fun while it lasted.

In Calgary, a user from another forum was able to use a non-Costco branded MC to pay.