American Express is dumping its U.S. co-brand and merchant acceptance agreements with Costco. The current contract expires March 31st.
Until that time, all American Express credit cards will be accepted at Costco warehouse stores in the U.S. and on Costco.com. All co-branded cards from American Express and Costco can be used any place American Express cards are accepted through March 31, 2016.
AmEx says it began discussions on a possible renewal with Costco well in advance of the contract expiration. However, AmEx was unable to reach terms that would have made economic sense and will focus on opportunities in other parts of its business where there is significant potential for growth and attractive returns over the moderate to long term.
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