Boston, MA 09/19/2014 (wallstreetpr) – According to reports, the largest warehouse-club chain of USA Costco Wholesale Corporation (NASDAQ:COST) has announced that it would not accept cards of American Express Company (NYSE:AXP) anymore at its Canada stores. The decision will be materialized from the starting of next year. The main reason behind this split is said to be a breakdown in negotiation deal between both the companies.
Insights of relationship breakdown between COST and AXP:
It’s been very long since both American Express Company (NYSE:AXP) and COST have been working as partners. December 31, 2014 is the date of renewal of the agreement between both the companies, but it won’t be renewed this time. The information was made available by Lorelle Gilpin, Vice president of marketing membership and marketing for Costco Wholesale Corporation (NASDAQ:COST) Canada through an e-mail to all the Canadian customers. AXP is the largest credit card issuer of U.S in terms of purchases and one of the most prominent credit card companies of the world. It was the only company whose credit cards were accepted at COST showrooms across the country. AXP has worked with COST for many years in order to issue various co-branded cards.
The breakdown of their commercial relationship will not cross Canadian boundaries as of now as COST U.S. stores will continue to accept American Express Company (NYSE:AXP) cards, avoiding American Express Platinum Cash Rebate and TrueEarnings features of cards issued in Canada. David Barnes, an AXP spokesman, told the reporters that renewal of the contract was coming closer and both the companies couldn’t reach on a mutual point in terms of various negotiations. According to him, this decision was country bounded and specific to only Canadian location. No one from Costco Wholesale Corporation (NASDAQ:COST) came forward and spoke about this issue immediately, but the company informed all the customers through a main that they would get information about new payment option very soon.