Earlier this summer we discovered that the TrueEarnings Card, a co-branded rewards card from Costco and American Express, would no longer be available to new applicants. The speculation was that Costco and American Express would end their long standing partnership.
Now it’s official – American Express cards will no longer be accepted at Costco stores in Canada as of December 31st, 2014, after negotiations broke down.
“I can confirm that American Express Cards will no longer be accepted at Costco in Canada after the end of this year. Additionally, American Express and Costco Canada will no longer be partnering to offer co-branded credit cards in Canada,” said Jolene Sonshine, Spokesperson, American Express Canada.
Costco Canada confirmed the end of its relationship with American Express in an email to customers, saying it will have more information on new payment options soon.
Customers with an American Express card will still be able to use their card at Costco across the United States, but the TrueEarnings Card will no longer be accepted at any merchants as of December 31st.
This news is a blow to the American Express card portfolio, as its customers will no longer be able to use their cards to earn rewards at Costco.
But the credit card company is making noise in the cash back rewards market with the introduction of its new SimplyCash and SimplyCash Preferred cash back cards.
“We are investing heavily in this segment and are about to launch a multi-million dollar, multichannel marketing and advertising campaign to support this Card and our push into the cash back segment of the Canadian market,” said Sonshine.
**Update: According to a report from the Globe & Mail, quoting an anonymous source, Capital One will be replacing American Express as the new card of choice at the wholesale giant starting January 1st, 2015.
That’s great news for fans of the Capital One Aspire Travel World MasterCard.