American Express makes last ditch effort to retain Costco customers

American Express makes last ditch effort to retain Costco customers
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Costco is ready to flip the switch on its new credit card partnership with Citibank come June 20. That’s going to leave its old credit card issuer — American Express — out in the cold.

So Am Ex is firing back with an aggressive marketing campaign to retain any Costco customers who don’t want to make the switch to the new Costco Anywhere Visa Card.

Read more: 66% of Americans don’t understand this crucial financial concept: Here’s how it works

What American Express is doing to keep Costco customers

When Costco announced last year that it was preparing to sever ties with Am Ex for its credit card business, it was just the latest in a trio of big blows the credit card issuer suffered. In rapid succession, Am Ex lost not only Costco but also its accounts with Fidelity Investments and JetBlue.

Yet losing the Costco account was a real doozy because the warehouse club represented a reported 10% of Am Ex’s outstanding credit card accounts.

So to counter that huge loss, Am Ex has started a mailing campaign promoting its Blue Cash Everyday Card, which is a reward card with no annual fee.

To sweeten the pot, Am Ex is offering anyone who signs up for Blue Cash Everyday a $250 statement credit after you spend $1,000 within the first three months. There’s also an introductory 0% APR for 15 months on purchases and balance transfers.

Here’s how the credit card reward of Blue Cash Everyday and the new Costco Anywhere Visa stack up against each other:

Blue Cash Everyday Card

  • 3% back at supermarkets (limited to $6,000 in annual purchases)
  • 2% back on purchases of gas
  • 2% back at select department stores
  • 1% back on everything else

Costco Anywhere Visa Card

  • 4% back on gas for the first $7,000 spent annually
  • 3% back on restaurants and travel
  • 2% back at Costco or
  • 1% back on everything else

Which one is right for you?

Both offers are pretty good, but Costco’s is superior. But here’s the great thing: You can have both cards! They are not mutually exclusive.

In fact, Consumer Reports says for most people in most cases, two reward credit cards are better than one. You can get the greatest total amount of rewards by using two for different kinds of purchases.

Meanwhile, if you’re looking for the best possible credit card to fit your exact spending patterns, check out

This site lets you drill down to how much you spend each month on 17 different categories. Then using that info, the site gives you unbiased recommendations for the best reward card for your individual life and spending habits.

Best of all, you can trust CreditCardTuneUp’s recommendations. As we discovered last year, the site receives no kickbacks from any bank whatsoever for steering you to one credit card over another.

It’s completely unbought and unbossed, which is how it should be! 

Read more: These 7 common credit myths could be costing you big bucks

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Theo Thimou About the author:
Theo has co-written several books with Clark Howard, including the New York Times #1 bestseller Living Large in Lean Times. As a single widowed parent of two young children, he strives to bring unique savings tips to men and women like him who must face life without their spouses. He can be reached at [email protected]
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