kulflyer

While I love AMEX customer service (never had an issue with them, ever), I think they're going to have to step up their game. Their built in benefits and perks lag behind many competitor cards and now they're losing their best card. I've been a stout AMEX user for many years now but this year I've been slowly swapping my spend over to Citi's Visa. Primarily I've been traveling more both for work and pleasure. The Citi Hilton Visa has no foreign transaction fees, built in baggage benefits, flight delay benefits and a host of other minor benefits all with no extra charges. I've also been staying more at Hiltons vs Starwood due to availability in smaller cities/towns and price.

It's sad but I think by the end of the year, the only AMEX I'll still charge to is the old Blue Cash card for the purchase protection (easier claims process than the Citi visa).

I Love to Travel

The WSJ article states that the TrueEarnings cards will be discontinued at that time and offer new types of cards to those customers. Besides the TrueEarnings cards, I also have the Amex Costco Business Charge card, which was discontinued to new applicants when TrueEarnings was introduced. That charge card is a no-fee card with a paid Costco membership. I will be interested to see what they will do for those of us with that type of account.

fliesdelta

But don't forget the question she asks first:

"You get paid on commission, right?"

Both apply equally well, I think.

KRSW

Well...this stinks. I've enjoyed Costco and Amex over the past 7 years. Amex has always done me well. It's been my go-to card for those 7 years.

Just curious, what other cards (besides the Costco Amex) are other people carrying?

I also spend 5 figures at Costco each year, which Amex will be losing out on.

FYI, Google that headline and click on the link from Google...you'll then get full access to that article, gratis. This works with quite a few news sources, btw.

username

I guess the downside is you don't get any credit card benefits such as purchase protection and extended warranty?

jamesteroh

I don't think the Costco card is the great of a deal for everyday use since it's only 1% back outside of Costco and bonus merchant categories, and has a foreign transaction fee and AmEx isn't as widely accepted as visa and mastercard.

The Chase Freedom and Discover both give 1% cash back and have 5% quarterly bonus categories.

I use the freedom and discover only at quarterly cash back bonus merchants and no where else, except for using discover at Sam's. Once in a while I will use my discover card at a grocery store if I need cash back and don't want to stop at an ATM. Use my discover bank debit card most mornings for my $1 coffee refill at 7-11 since the 10 cent cash back on each purchase is like a 10% return.

If there is a bonus category for a purchse that card get used first and then the first $100K of spend goes on my personal and business Delta Am Ex cards so I can get the 40K MQMs. In the past the next $10K went on my Hilton visa for the free night but now that Hilton has really ticked me off and I'm giving a lot more stays to SPG, the next $40K is going on the Hilton visa to achieve diamond. I have already met the $100K in am ex spend and am upt to $37K on the visa and will achieve it by month end-I have a LOT of big business expenses that I can put on credit cards and get immediately reimbursed-so of like manufactured spend for me.

After the $40K spend is met, if it's not a merchant that qualifies for a credit card bonus, the spend goes on my 1.75% cash back PNC Visa. If someone knows of a better cash back card let me know.

For foreign transactions those go on either my citi Hilton or PenFed visa

mia

No reason to settle for less than 2%:

http://www.flyertalk.com/forum/credi...solidated.html

http://www.flyertalk.com/forum/citi-...ted-1-1-a.html

jamesteroh

Citi card might work. I have a regular Hilton card I was churning and stopped once the deval went in place but never closed it. Wonder if I can convert it to the double cash back and not have to take a hit on my credit report.

JimL

I converted my Citi Hilton to Double Cash by calling the number on the back of the card and requesting it.

paytonc

Or create an entirely new card product -- after all, this is 1/10 of their customer base.

It used to be that AmEx and Discover were the only networks willing to bargain with merchants over interchange fees -- 2.5% is a very healthy chunk of the Costco's famous 9% margin. AmEx could do that because it's both the issuer and the network,* whereas Visa/MasterCard would need to get buy-in from their issuing banks before slicing into their fees.

* OK, so Citi issues some AmEx cards, but almost all payments going over the AmEx are to/from its own bank.

mia

As do Bank of America, Barclays, Wells Fargo, etc

http://www.forbes.com/sites/greatspe...ards-business/

BoeingOrNotGoing

It only gets 1% at Costco as well

Eujeanie

Last week, before this announcement, we were getting gas at Costco and an employee was walking around with a clipboard car to car to sign people up for a credit card - we waved her away without any further information because we're perfectly fine using our Starwood Amex at Costco - but I wonder what card she was trying to peddle?

jft3

Probably the Costco AMEX card? AMEX will continue to pay Costco a bonus for each cardmember they sign up, the cutoff date is still more than a year away.

Also the business version will net you 4% cash back on gas, that might be more value than 1 starpoint, unless you're trying to make bonus minimums.

Hawaiian717

Amex TrueEarnings no doubt. They'll be pushing that card right up until it no longer exists. Barclays is still pushing the US Airways card; they want to get as many cardholders as they can before Dividend Miles folds into AAdvantage and only Citi will be able to take sign ups.