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Costco AMEX card

MarkMark
edited August 2015 in Off-Topic
This card will apparently go defunct sometime in early 2016. From all indications it does not seem as though AMEX will be continuing the rewards program on this particular card. Too bad because the cash back rewards have been fairly decent.

So in looking for a substitute I see that Fidelity is offering an AMEX card with 2% back on everything which, based on my spending habits, would reward me better than my Costco card.

Does anyone know of a better deal?
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Comments

  • rmt
    Did you look at Citi Double Cash Mastercard?
  • TedTed
    AMFO Members: What's In Your Wallet ?
    Regards,
    Ted
  • MarkMark
    Sorry Ted but 2% beats 1.5% even with the new math. However, I suppose I could pair that with the Amex card for places that don't accept Amex but I already have a Fidelity Visa card which pays 1.5%. One disadvantage however is that I have to accumulate $5000 in spending charges before I get $75 deposited into my account. None of this will matter I suppose if I transfer out of Fidelity because of their new and improved, but utterly crappy, website.
  • davfordavfor
    I have the Fidelity AmEx card and the Citi Double Cash Mastercard as my 2 primary cards. Each has quirks. You need to build up points...as I recall they need to equal at least $50....to be able to redeem them for cash to your Fidelity account. With the Citi card, 1% is available to turn into cash at the end of the billing cycle, the other 1% when your monthly payment posts (assuming you pay in full monthly). I actually have a third card with Amazon which is a VISA card that I use only for Amazon purchases (so I don't even carry it in my wallet). It pays 3% on Amazon purchases.
  • VintageFreakVintageFreak
    I would give the Amex card back. One less CC never hurt anyone.
  • scott
    edited August 2015
    I don't have it but family members have the Amex BlueCash card (3% cashback on groceries up to $6,000, 2% cashback on gas and department stores, 1% on everything else; there is a $75 a year version with 6% on groceries up to $6000) and they use that at Costco instead of the Costco Amex.

    I'm sure that Amex would be more than happy to switch out cards to keep you as an Amex member even after the Costco Amex is no longer taken at Costco.
  • VintageFreakVintageFreak
    Seriously guys. Many cards are giving 3%, 2%, 1% on this, that, other. In fact one MC, Visa, Discover all do that. I for one am going to be happy with one less CC. I had Amex only because it was the only CC Costco accepted.

    What I am more interested in right now, is if Costco is going to sign exclusive deal with some other CC or not. I'm not going to be happy customer if I cannot pay using CC at Costco.
  • scott
    edited August 2015
    VintageFreak said:

    Seriously guys. Many cards are giving 3%, 2%, 1% on this, that, other. In fact one MC, Visa, Discover all do that. I for one am going to be happy with one less CC. I had Amex only because it was the only CC Costco accepted.

    What I am more interested in right now, is if Costco is going to sign exclusive deal with some other CC or not. I'm not going to be happy customer if I cannot pay using CC at Costco.

    Costco has already signed a deal with Visa. Visa will be the Costco card from April 2016 onwards.



  • PRESSmUPPRESSmUP
    That means I will sign up for a Costco Visa card....a Chase Mastercard United Airlines card for everything else.

    I love Costco. Seriously. I just need to figure out what to do with my AE points.
  • rmt


    Costco has already signed a deal with Visa. Visa will be the Costco card from April 2016 onwards.


    And Citibank is the credit card provider for Costco Visa
  • msf
    The best store membership card I've seen pays a flat 3%. It's JCB Marukai Premium card, and the store is Marukai Japanese Supermarket. First year is free, after that it's $10 for the Marukai membership plus $15 for the CC.

    The card is a JCB card, which is now accepted on the Discover network as well as the JCB network. Unfortunately, you have to live on the west coast or in Nev. to get the Calif. card, or in Hawaii to get the Hawaiian card.

    The highest paying no-fee card I know of is the BofA Visa Travel Rewards, when coupled with a Merrill Edge account. It pays 1.5% (redeemable against travel charges, which can be transit passes, hotels, train tickets, etc.). If you've got over $100K in combined BofA/Merrill accounts, it will pay 2.625%. If you've got over $50K, it will pay 2.25%. If you've got over $20K it will pay 1.875%. If you've just got a BofA account (any amount), it will pay 1.65%. No foreign transaction fee.

    The Cap One card@ 1.5% beats the Fidelity Amex 2% for foreign transactions, since the Fidelity card charges a 1% fee, while the Cap One card does not.

    Costco has signed an exclusive CC deal with Citibank, but will accept only Visa CCs (and Visa and MC debit cards). This will be interesting to watch, since Citibank has a strong MC bias.

    They recently closed a ten year deal with MC to move most of their accounts to MC. Several years ago, Citibank wanted to issue cards with only its brand on the front, and the network logo on the back. MC agreed - see the DoubleCash card; Visa did not. Citibank switched then from favoring Visa to promoting MC.

  • davidrmorandavidrmoran
    I don't know of any quirks at all w/ the Fido Amex card. Maybe I should read the fine print re minimums. We use nothing else unless merchant does not take, and thus total many hundreds of dollars in auto-deposits into Fido account every year. Nothing else I know of comes close, BoA, anything.
  • MarkMark
    Thanks everyone. Like any other account theres much to consider. @msf - good to know on the foreign transaction fee. I hadn't considered that, However, when traveling out of country I've found few merchants willing to accept the Amex card while all of them will eagerly take Visa or MC.
  • [Deleted User]
    edited August 2015
    The user and all related content has been deleted.
  • msf
    While Amex will be happy to see you maintain any Amex card (to keep receiving network fees), they're not going to be that happy about your transitioning to a Fidelity card issued by FIA (BofA subsidiary). They'll lose the portion of the fees that are paid to the issuing bank.

    The Costco card is a "real" Amex card issued by Amex/Centurion Bank, as are the Blue Cash cards (Everyday and Preferred).

  • davidrmorandavidrmoran
    Maurice, I am confused, or maybe you are. Costco canned Amex. They wanted an even better deal for themselves and customers. No more Amex at Costco, Fido's, nor their own, nor any other, period.
    Nothing to do here with retaining a customer; not following. You could spend a mil a year at Costco and would get nothing special from them. They canceled a heeyuge Coke contract for the longest time when Coke did not give them absolute best terms.

    Many places do not take Amex, as it is slightly more expensive (higher fee) to the merchant than the others. Including lots of places where you can buy things for $3k. Happens all the time, has been the case for decades.
  • VintageFreakVintageFreak
    Okay so if I have a Visa I don't have to get Costco Visa right? I mean I may not get cash back without Costco Visa, but I can still pay using any Visa. Is this correct?
  • scott
    VintageFreak said:

    Okay so if I have a Visa I don't have to get Costco Visa right? I mean I may not get cash back without Costco Visa, but I can still pay using any Visa. Is this correct?

    Yep.
  • davidrmorandavidrmoran
    Right, Costco is not abandoning credit cards, I bet. Maybe I am mistaken and they will continue taking Amex if not offering their own special deal, but I believe I heard otherwise from them.
  • MarkMark
    Costco appears to accept only one brand of "credit card" at a time for payment along with cash, check (if you have a Costco membership), their own cash cards and debit cards. Beginning March/April 2016 that credit card will be Visa and Amex will be out.
  • Old_JoeOld_Joe
    edited August 2015
    I know that we've had this conversation some time ago, but I've forgotten the determination that we reached.

    Ladies, and gentlemen, I hold here in my very hand a Costo credit card. No, folks, it is not an Amex, Visa, or any other commonly encountered card. It is a COSTCO combined ID and credit card, and we have been using it to charge copious amounts at Costco since 1993. (Is it even possible to get out of a Costco without a copious amount?)

    AND, I am a "Gold Star" member (whatever that means), so there!

    Edit/Add: The only mention of any organization other than Costco on this card is "Capital One" in very small print.
  • davidrmorandavidrmoran
    OJ, ask the next time you go to Costco, at C/S, about its imminent death and disuse. I did recently, and yes, was surprised. I have the exact same thing. Use it get in the door.
  • little5beelittle5bee
    AFAIK Costco will eventually be using Visa only. Still love my Amex Blue Cash Preferred, though...mainly for outstanding customer service and security reasons. I like that they send me an email whenever a charge is made remotely. I was hacked a couple of months ago and they caught it instantly. At least the hacker was charitable...all the charges were to animal-friendly charities:)
  • msf
    For a peek into the future, one can look at costco.ca, where they switched over to MC at the beginning of this year. (If it asks you for province, just pick one.)
    http://www.costco.ca/capital-one-platinum-mastercard.html

    Curiously, according to this article (see its second reason 3), Capital One did not buy the Costco Canada accounts from Amex, unlike Citibank that did buy the US accounts.

    What's gonna be in your wallet?
  • scott
    msf said:

    For a peek into the future, one can look at costco.ca, where they switched over to MC at the beginning of this year. (If it asks you for province, just pick one.)
    http://www.costco.ca/capital-one-platinum-mastercard.html

    Curiously, according to this article (see its second reason 3), Capital One did not buy the Costco Canada accounts from Amex, unlike Citibank that did buy the US accounts.

    What's gonna be in your wallet?

    When Costco went Mastercard in Canada, I thought it was only a matter of time until they dropped Amex in the US.
  • [Deleted User]
    The user and all related content has been deleted.
  • davidrmorandavidrmoran
    k

    what ding happens when a card you use, or don't use but have, gets canceled ?
  • little5beelittle5bee
    @Mark Check out this website: www.onemileatatime.com. I saw this guy on CNBC about a month ago. He claims he doesn't own a house...just travels around on credit card points and airline miles...a little extreme, IMO, but he does review some of the better credit card rewards deals out there.
  • [Deleted User]
    The user and all related content has been deleted.
  • johnNjohnN
    edited August 2015
    BOA visa - 1.5% on very thing, 3.5% on groceries and 4.5% on gas purchases - if you have platinum benefits [if you have > ?25 or 50K in your bank including check/saving/investments Merrill lynch]. think this is the best deal I found out there
    https://www.google.com/#q=boa+cash+rewards+platinum+plus+visa
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