Costco will stop taking American Express cards early next year

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

(AP – Feb. 13, 2015) – American Express is ending next year a 16-year-old agreement with Costco Wholesale that calls for the exclusive use of its cards at the retailer’s U.S. stores.

The charge card company says it hasn’t been able to agree with Costco on renewal terms that make economic sense for American Express. The deal lasts until March 31, 2016.

American Express said Thursday morning that it charges Costco a significantly lower rate than the overall average it imposes on other retailers as part of the agreement.

A company spokeswoman says a similar agreement involving Costco’s Canadian stores ended last year.

A Costco Wholesale Corp. representative did not immediately return a call from The Associated Press seeking comment.

Shares of American Express Co. are falling in Thursday morning trading.

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.