Costco finishes handling of American Express cards in 2016

ByRyan Ozawa

Costco of the membership wholesale chain announced in March 2016 that it will close a US partnership agreement with American Express (Amex). In the domestic stores, handling of the Amex card is terminated, and handling height decreases, which leads to the fall of Amex's stock price.

Costco to ditch AmEx cards at U.S. stores next year - Yahoo Finance
https://finance.yahoo.com/news/costco-stop-accepting-amex-cards-133314755.html

As a result of this decision, AMEX will lose treatment at Costco which accounted for 8% of total transaction volume. Amex's CEO Kenneth Schnount stated that the termination of this partnership would affect Amex as a whole for two years and stated that "we could not reach an agreement on conditions that enable us and shareholders to find economic significance" Has been announced. Following this announcement the market is disgusting and Amex's share price has declined 6.1% on the New York Stock Exchange Market. Costco rejected comments.

ByLexnGer

According to JP Morgan analyst Tien-tsin Huang "Amex will lose the handling of 80 billion dollars (about 9.5 trillion yen) including expenses outside the shop due to the termination of partnership with Costco I guess it will be. " Costco and Amex's business tie-up started in 2000, and at this moment Costco can only use Amex.

In Costco, in the past Canada has also resolved business alliance with Amex, as its successorCapital OneWhenmaster CardWe have a new alliance. Observations say that these two companies will partner together in the market in the market as well. In response, Capital One's share price has increased by 2.6%, MasterCard up by 2.7%.