Thank you for posting that! The deal looks much worse for our spending pattern.
Me thinks some heads might roll at Amex. Flattening out your earnings for the next 2 years and wiping billions in future profits plus tanking the stock… What a smart decision, indeed.
Ironic that I voiced my concerns just as this was happening. Now if I could only voice those powerball numbers!
stay tuned… 
I was shocked to read the story in the WSJ this morning. I used my Costco amex primarily at costco. (I found it interesting that 70% of purchases are not at costco). I will be dropping it, as its otherwise not a useful card in the us and worthless outside North America. (My former dutch employer switched all employees to corpoate Amex cards in 2010. The ones in amsterdam were not happy, as it is not readily accepted in Europe).
Long term, I bet this will be a huge negative for Amex. Shockingly the stock is only down 3% today. It’s a screaming short IMHO.
The stock was down 7% or so yesterday per Yahoo article. If Amex keeps their no annual fee and cash back rewards promise, I do not see any reasons why I would drop its use, but if the cash back is dialed down, out in the trash bin the shredded card will go. In some aspects, Amex was much more convenient to use than Visa or MC because of their fantastic website, and I had no issues with using it in Europe - even in Russia back in 2008.
I do not think adoption of MC instead of Amex has ANYTHING to do with Costco trying to improve data security.
Costco is the best retailer globally. (I used to be an investment analyst and covered costco). They have the best handle on their expenses and supply chain than any other retailer. They treat all stakeholders fairly - employees, customers, shareholders, bond holders and suppliers. Like I said, Amex will regret this decision.
The SallieMae MCard gives 5% back on cash, so that could be used when AmEx is no longer accepted 4/1/2016. I will likley get this card & like having 3% back on restaurants.
Salliemae MasterCard only give 5% rebate on gas and groceries for the first $250 purchase every month. I’d switch to that in a flash if there is no catch.
I’m sure the Costco deal with capital one will be better than Amex in the future. We shall see.
I have an old AmEx (no fee, but no benefits either) that I keep as a back up card. Last week, my Visa was compromised and it could be a week before I get my new card. I ended up using the old AmEx when my Visa was declined due to fraud.
Dh and I are both on the Costco AmEx, but the other is in my name only. I’ll keep that one no matter what. I had some problems with poor customer service from MasterCard years ago, but would expect that a Costco MC would be better supported.
No Costco near here. So this is one worry I don’t have! Nearest one is a 45 minute drive away at least.
We don’t have Amex, and we have no intention of getting Capital One…if a Costco opens closer and we join.
As noted by others…there are ATM machines in Costco stores.
Costco does allow payment by debit cards too, so no need for ATM.
latest is that the new card issuer has bought the Costco Amex client list and will be issuing new cards to exiting Costco Amex cardholders, (if they want it) so no new application etc. Details about benefits (cash back etc.) still to come. I’ve been thinking that Amex users statistically have a much higher rate of paying off their cards in full each month, the new card issuer (MC or Visa?) has a lot more play numbers-wise given the additional revenue they will gain from those who do not pay off their cards monthly.
Also this definitely has no connection to data breach concerns, just that the contract was up.
Costco takes any debit card and you can get cash back, I think up to $60 per transaction. It’s about the only place I use my debit card.
Oops… didn’t see Himom’s post yet.
I wrote about ATMs as an option for people who would rather not swipe their debit card at Costco registers in fear of data breaches (but have no issues with using ATMs).
Dang. I really like Amex and use it preferentially, and I don’t have a mastercard – and don’t especially want one. But, I don’t use my debit card on anything other than bank ATM’s, so I suspect I’m going to have to stuff a mastercard in my wallet.
Amex’s customer service has been above and beyond good, and unlike Visa (and, I believe, Mastercard) each family member with a card has a card with a different number even though they’re all on the same account. When D lost her purse it was only her Amex card that needed replacement, but all our Visa cards had to be disabled until the new ones arrived. Given the frequency of data breaches these days it is especially aggravating.
ATMs aren’t secure. They’ve even found tiny skimmers attached to ATMs in bank lobbies. Card skimmers are now extremely small. I would trust Costco not having skimmers more than most ATMs, particularly any not physically located in an actual bank branch.
It’s also becoming apparent that hackers - Russian in particular - have been able to get inside a number of banks and have been able to access and control ATMs.
I’ve never seen an ATM in my Costco.
I remember when Costco just took Discover. I never use my Discover card anymore. The same will probably happen with my American Express. Don’t have a MasterCard and I don’t like that I will need to get another credit cars.
I have never used the ATM in Costco, as I have their AmEx, but IIRC, it is one of those little ones that look as though it could be wheeled away. I am sure I am kidding myself to think that the one installed in the wall of a bank is any more secure, but I avoid those free-standing types.
This discussion of Costco AmEx prompted me to take a look at their rewards program and it appears to have become a bit less attractive since the last time I looked at it. Card pays 1.5% on amounts charged above $7500 annually, and some lesser amount for the first $2500 and then $2500-$7500. I have the feeling that I should investigate other options as we charge a lot on that card annually.
I only use the card for Costco purchases, gas and electronics due to extended warranty. They do have the best customer service on the AmEx card.