Costco and American Express are severing ties.

costco_wholesale_214_64Attention all shoppers!  Yes, it’s true….Costco and American Express will terminate their 16 year relationship in March of 2016 and Costco will partner with Citi Visa as new credit card partners.  Apparently, the two companies could not reach a renegotiation agreement.  I am not sure how I feel about this.  However, I am leaning towards crying and rejoicing simultaneously. As I mentioned in my About Me page, I am a points junkie and although I don’t use the Costco Amex, I use my Delta Amex regularly at Costco and boy do we rack up a LOT of points through the year that of course gets applied to travel.  Delta just recently went to miles AND dollars to qualify for Medallian status (other airlines are following suit).  That basically means you must spend a certain amount of dollars flying to reach a certain tier.  For example to earn silver medallion status you must earn a minimum of 25,000 Medallion Qualifying Miles AND spend $2,500 on airfare.  Since we are always trying to find the lowest fares, this spending amount can actually be a challenge! Essentially Delta execs threw a wrench into the qualification system by making it more difficult to obtain status.  Welcome to the Hungar Games of flying.  However, back to Amex…Delta and Amex also have a partnership wherein you can actually get a waiver on dollar spending IF you can maximize Amex spending on your card…and where can we do this?  You guessed, Costco…  I did mention we spend a lot there…but it’s not all groceries and wine, it really is business spending! Anyway, I am not sure if this new partnership will completely terminate Amex usage but I am wiling to bet more people will shop at Costco if they can use Visa.  Although it has been possible to use Visa through their website, only using Amex or a debit card can be limiting at the store.  I guess this means I will be able to use my Alaska Air Visa more…and their points are much more valuable then Delta points.  If you are interested in the article here is a link. Let me know what you think!

http://money.cnn.com/2015/03/02/news/companies/costco-citi-visa/

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