Costco members, you'd better make sure your checkbook is stocked. For 16 years, the wholesale market has accepted only American Express credit cards, along with cash, checks, and Visa and MasterCard debit cards. On Thursday, AmEx said that it had failed to reach a deal with Costco that "would have made economic sense," and that their unusual exclusive arrangement would end March 31, 2016. AmEx's stock price dropped 6.4 percent on the unexpected news.
American Express also offers a Costco-branded credit card, and those will stop working when the partnership dissolves. What will replace AmEx at the Costco checkout line? Costco isn't saying. Its Canadian operation has partnered with MasterCard and Capital One, and the U.S. unit could pair up exclusively with either one or Visa or Discover, or it could accept more than one credit card, The Wall Street Journal reports.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Crypto firm Coinbase hacked, faces SEC scrutinySpeed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress codespeed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirementspeed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff displaySpeed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loomSpeed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panelsSpeed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of businessSpeed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pausesSpeed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
