Costco Wholesale Will No Longer Accept American Express as of April 2016

Costco Wholesale Will No Longer Accept American Express as of April 2016

Photo Sasabune Omakase Modified: Flickr/erin/CC 4.0

American Express has been Costco’s exclusive credit card for nearly two decades.  

As of April 2016, Costco members will not be able to use their American Express credit cards at locations of the wholesale warehouse in the United States, reports Reuters.

The companies failed to reach an agreement regarding the terms of a contract renewal, and the current partnership is scheduled to end on March 31, 2016.

The current deal dates back 16 years.

“We were unable to reach terms that would have made economic sense for our company and shareholders,” American Express CEO Kenneth Chenault announced in a statement.

The news could mean that Visa or MasterCard will partner with Costco next, once the AmEx deal lapses.

On Thursday, February 12, shares of both companies rose, while shares of American Express fell $5.06 to $80.95.

According to the National Retail Federation, Costco is currently the second largest retailer by revenue in the world. 

The company has 474 locations in the United States and 88 in Canada, where a similar deal with AmEx ended last year. 

The wholesale retailer also has a number of locations in the UK, Australia, Mexico, Taiwan, Japan, and South Korea. 

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