Mogul of Pineapples
- Centurion Member
- Posts: 1271
- Joined: Sun Jun 01, 2008 11:32 pm
- Location: Smogland
Hi and welcome to the forum. As far as I know there are no plans for American Express to end the Costco Cash Rebate card. Right now Amex has an exclusive partnership with Costco, where Costco only accepts American Express cards for payments at their stores. This is a very lucrative partnership for Amex from all the business that generates for them. As part of this deal, Amex is the exclusive issuer also of the Costco credit cards. With that being said, even if the Costco credit cards perform bad, Amex would never get rid of them since they are part of that lucrative exclusive agreement.
The Amex Costco Cash Rebate card that has gone to the backburner is mostly the Business version of the card. Because of the economy small business credit cards are very high risk and a loser for the industry. This is why Amex has stopped pushing the Amex Costco Cash Rebate Business card. It's still available and will be because of their partnership, but it's not something they're exactly encouraging people to get.
If your parents have the regular Costco Cash Rebate card (non-business version) I would say they are probably safer than if they had a regular credit card. That exclusive contract with Costco really ensures Amex will offer that card "no matter what" because they would not want to lose Costco as a partner.
I'm also going to go out on a limb here and say that Costco members are probably lower risk than the rest of the population. If they care about saving money they probably care about paying their bills on time and in full too. Except for the business version of the Costco credit card, I bet the regular version is still a very profitable enterprise for Amex.
But you said their card is platinum? I didn't know the Costco credit cards had a distinction level- Gold, Platinum, etc.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.
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