AMEX no longer accepted at Costco (from May 1st, 2016)

Related Stores

Costco Wholesale

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  [Deactivated] on 11/03/2016 - 13:02

  +1

  Greed gets in the way of business again.

  • 

    ProjectZero on 11/03/2016 - 13:14

    Whilst it is a shame, I don't think this would affect them in anyway as people that shop there will most likely continue to shop there.

    AMEX really should change their own business model else they're just going to keep losing customers lol.

  • 

    Jamesx on 19/03/2016 - 14:23

    1. AMEX is greedy, always charges much higher fee >3% generally, that's why they offer credit promos, ie spend $100 at Dan M and get $15; and offer more QFF points, no free lunch
    2. Costco's real profit is almost equal to their membership fees a few years back, not sure about now, they dont earn much profit in goods;
    3. For those who don't want to pay membership fees, you're not loosing too much if you buy everything on good specials at other shops
    4. If you can make more than $60 savings each year shopping CostCo, then why not pay for it, their petrol price is always a few cents higher than wholesale, which mostly lower than others
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  SnoozeAndLose on 11/03/2016 - 13:04

  what a shame, spend about $10,000 per year in them with Amex , now all QFF is gone.

  • 

    [Deactivated] on 11/03/2016 - 13:14

    If you sign up with one of the big 4, you'll get an Amex and a Visa or MC to earn QFF points with. Yes, you'll get a reduced rate of points earning with non-Amex cards but it's better than nothing, right?

    • 

      SnoozeAndLose on 11/03/2016 - 13:16

      Are they earn the same rate as Amex express card?

      I have Black reward card Visa and Amex ANZ and I think Amex card early more QFF.

      • 

        [Deactivated] on 11/03/2016 - 13:18

        The earn rate is indeed different. For example, Westpac Altitude Black gives 1 point per dollar spent using Amex, and 0.625 points per dollar spent using MC.

        But it still tops cash and EFTPOS cards, which earn a massive 0 points per dollar.

      • 

        SnoozeAndLose on 11/03/2016 - 13:20

        @KaptnKaos:
        So the only reason I use Amex is more value for money, but it is obviously not to Costco.

      • 

        [Deactivated] on 11/03/2016 - 13:26

        +1

        @LoveBargain15:

        I try to use Amex wherever I can as well, because if I use MC or cash I see it as a lost opportunity of earning more points. But then I think, well, at least I'm getting something in return for my purchases, though I wouldn't pay more to use one card over the other. Points are generally not worth any surcharge or fee that a retailer chooses to charge.

        What Costco could've done is instead of blocking Amex altogether, they could've placed a small surcharge on Amex cards to cover their incurred costs. That way, customers who prefer to use Amex wouldn't be effectively barred from doing their business at Costco.

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        SnoozeAndLose on 11/03/2016 - 13:31

        @KaptnKaos:

        I think this is because Qantas is the root cause of this. My normal Amex (Standalone) card have also eased the connection with Qantas which it will not able to earn Qantas point if I don't pay $80 member per year. I think this move makes Amex to lift up their rate to Costco which they think that it is too much for them to take it up.

        Small surcharge is acceptable but on the other hand everyone who shop in there have paid $60/$55(for business) shouldn't being charge for CC surcharge.

      • 

        [Deactivated] on 11/03/2016 - 13:40

        @LoveBargain15:

        American Express is renowned for charging interchange fees which are over and above those that are charged by their direct competitors, such as Visa and MasterCard. In a credit card or debit card transaction, the card-issuing bank in a payment transaction deducts the interchange fee from the amount it pays the acquiring bank that handles a credit or debit card transaction for a merchant.

        As this effectively reduces the monetary amount that businesses receive for goods and services, businesses are less inclined to accept cards which have higher fees attached with their use. So, from a retailer perspective, especially low cost retailers like Aldi and Costco, they would rather you 1) pay cash or 2) use a card with a lower interchange fee, than 3) use a card with a high interchange fee and them getting less of the sale.

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  holdenmg on 11/03/2016 - 13:15

  This sucks…
  Do this:

  "If there's a special restaurant, shop or business that doesn't currently accept your American Express® Card, why not let us know about it? We want your Card to be accepted everywhere, especially at your favourite places. Take a moment to provide us with a few details and we'll follow up on your request."
  https://www316.americanexpress.com/iFormsSecure/un/iforms.do…

  • 

    [Deactivated] on 11/03/2016 - 13:16

    +2

    Costco? Special? lol.

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    JohnHowardsEyebrows on 11/03/2016 - 16:45

    It's a nice thought, but I'm sure Costco already considered the potential blowback, and concluded that, much like Aldi, the ability to earn that extra half a point per dollar on an Amex will not deter people from seeking good prices.

    Amex at Costco was great while it lasted. You now have until April 30 to stock up, and maybe buy a few gift vouchers (which are apparently refunded in cash when you don't spend them in their entirety).

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  FW190 on 12/03/2016 - 07:31

  +2

  don't care, don't shop at Costco anyway

  personally, I am against this practice of paying for the privilege (ie costco's membership fees) to give someone my hard earned cash………..

  (and I will probably get negged big time for this :))

  • 

    djones145 on 13/03/2016 - 09:12

    Costco is a cult! come be one of us!

    one of us
    one of us
    one of us

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  abc on 30/07/2018 - 15:27

  +2

  Just stumbled across this forum post. It brings back memories of one of the best Ozbargain posts ever -> https://www.ozbargain.com.au/node/126000