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Email this12:54 pm
October 21, 2013
Online
In fact, I just checked further, and it's not even 1% on all other purchases. It's .5% for the first $3000/yr, and 1% thereafter, so it would average out less than 1%.
For the first 3 months, there is a promo where you get double rewards, but only temporary.
2:03 pm
February 20, 2013
Offline
Loonie, I agree that Costco/Amex haven't handled this well and I find it perplexing that Amex and Costco would leave their customers with a card that accumulates no rewards for over 3 months.
The new MasterCard is actually a bit better than the old Amex card in terms of the spending requirements on the first $3000. I think the insurance included on the MasterCard is also a bit better. The MasterCard also doesn't have any purchase limits on the gas rebate like the Amex card did. However there are purchase limits for the 3 month introductory offer on the MasterCard.
Here is the link to the old Amex card if you are interested in seeing the differences (Old Costco Amex Offer).
I think Costco probably has a lower rebate on in-store Amex purchases because it does offer an Executive membership that gives you a 2% rebate on top of any you get from Amex. The Executive membership doesn't give you a Costco gas rebate so the card would. I guess the restaurant thing is a perk to make the card look more attractive.
If you are a travel rewards collector it seems to me that the Capital One Aspire Travel World MasterCard would be the one to get and use at Costco after January. If you tend to buy flights over $600 you effectively get a 2% rebate on your Costco purchases. The card also allows you to choose a cash rebate but it looks like that return is only 1.5%. The card's annual fee is $120 but every year you get a points bonus worth $100 if you use the points for travel or $75 if you ask for cash back.
2:50 pm
October 21, 2013
Online
Yes, one sure way to lose "loyalty" (which is what this is all about, right?) is to leave customers in the lurch for 3 months! And it is well known in the marketing world that Canadians LOVE their points and rewards.
Another option might be the MBNA Smart Cash cards. The no-fee one gives 2% on gas/groceries with a monthly ceiling of $400 in purchases; but the one with a fee is unlimited 2% on everything, which is worth it if you spend a lot on the card. People would have to figure out their own break-even point on the latter but probably something above $10,000/yr. purchases.
It's important to remember that we are not limited to Capital One! We can use any Mastercard.
In the meanwhile, buy and use Costco gift cards. You can use whatever credit card you want to buy them.
3:11 pm
February 20, 2013
Offline
I didn't think about the cash card option (good suggestion). You just have to buy it online.
I use Costco when I am in the U.S. so I guess I could try the Cash Card option or I will still have to get a new Amex card 
.
3:46 pm
October 21, 2013
Online
Some people have complained about the nuisance factor in having to activate the cash cards.
I don't know if the gift cards would be a good idea for US purchases. I wonder what their exchange rate would be or if they would have a problem with gift card in Cdn$ - or maybe you'd get lucky and they wouldn't notice! Worth a shot though. At worst, you come home and use it here.
There's always cash. I believe they still accept it! - it's very helpful in making sure you don't overspend. And the only sense of "loyalty" that it requires is to your own pocketbook.
5:57 pm
December 23, 2011
Offline
Great information.
Onions to Costco
1. Thanks for the less than personal method of telling me about the changes.
2. Thanks for telling me before September 25 that I would not gain any cash back.
3. Thanks for telling to watch for my voucher in the next 2-3 weeks. Cuz my bills are emailed and I would just trash the one in the mail as a useless duplicate.
4. Thanks for not telling me about your new Capital One MasterCard that I don't want to stick my neck out for a credit rating check as I just added a Sears Master card to my wallet, and now Amex will provide a replacement to the Costco Amex card to put away in the safe with the other 2 Amex cards I never use.
Onions to Amex.
1. I don't really want your reissued new cash back card that I can't use at Costco.
A total lack of communication to "the customer base" ...... The customers that use the card and pay YOUR bills!
So where are the roses?
7:04 pm
October 21, 2013
Online
Come to think of it, when I was in there the other day, I saw someone having it out with one of the staff near the CS desk, and it had something to do with cards. He was very not happy. I didn't pay too much attention as I was busy and had to move on, but I think it was about the Amex issue. That would have been last Wednesday, which was the 24th. Perhaps this customer had figured something out or had asked the right questions.
7:06 pm
October 21, 2013
Online
kanaka said
So where are the roses?
In the flower department, of course - YOU have to pay for them.
7:39 pm
December 23, 2011
Offline
Loonie said
Come to think of it, when I was in there the other day, I saw someone having it out with one of the staff near the CS desk, and it had something to do with cards. He was very not happy. I didn't pay too much attention as I was busy and had to move on, but I think it was about the Amex issue. That would have been last Wednesday, which was the 24th. Perhaps this customer had figured something out or had asked the right questions.
This is will cause a huge reduction in loyalty and I am sure they know.
And no doubt there front line is going to go through some trying days for the next months......and I will also help to not make their day a good one. And I don't feel sorry for the poor person walking around the store asking, suggesting or giving out brochures offering their new MasterCard. I am going to think twice about shopping there for items that do not apply to the Executive Membership card...and also mention that as well.
7:40 pm
December 23, 2011
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Loonie said
kanaka said
So where are the roses?
In the flower department, of course - YOU have to pay for them.
11:21 pm
October 21, 2013
Online
If only I'd had the Amex card, I could really get into complaining.
Maybe I'll complain anyway, as I've been in the dark since July. And they still haven't communicated any of this to their members.
Shame on them! All their executives should be required to spend a week here: http://www.costco.ca/Tuff-N-Ru.....47462.html
12:21 am
October 21, 2013
Online
I was just looking at some of the fine print on the Capital One application.
Things to be wary of:
2.5% foreign currency transaction fee (in addition to the usual MC fee). Someone else can perhaps comment more on this. Does Costco allow you to use MC in the US? If so, Sears card would be good, as it is MC and has no foreign fee (and kanaka has a shiny new one!). If not, cash might be a better bet.
$29 fee if you exceed your credit limit with them. However, there is no way to know before you apply what your credit limit will be. On threads on other websites, there have been complaints that Capital One tends to have low credit limits, and there is speculation that they do this in order that you would incur a fee and/or to prevent people accumulating large cashbacks. I don't know if this is true or not, but it is something to consider if you apply.
There is no limit to the amount of cashback that you can earn in any calendar year (but again, this is subject to credit limits.)
Rebates are ONLY issued in January, based on purchases of the previous calendar year. Therefore, the best time to apply for this card is early January, so that whenever you discontinue it, you will get all your cashback. If your Costco membership expires at a different time of year, then you will be SOL for a few months but you can always use a different MC for that interim period. SO, it's best to resist all efforts to get you to sign up before January!!
The cashback comes in the form of a COUPON which can ONLY be redeemed at COSTCO. So, it is not, strictly speaking, cashback. Don't cancel Costco membership before January!
There is complete information sharing about you between Capital One and Costco. Thus, one of the benefits to Costco is that they get a rundown on where else you shop and how much you spend there and what you buy. This is probably more than they got from Amex because you probably didn't use Amex as much as you might use this card or some other card issued by Capital One.
so-called "Privacy Policy" of Capital One says, in part: "We may share customer information with other parties who have financial, employment or business dealings with you." This may not be much different than other credit card policies, but I thought people might like to know. I don't know what gives them the nerve to call it "privacy", as this essentially opens the floodgates. What other kinds of "dealings" are there that matter other than financial, employment and business?
9:59 am
February 20, 2013
Offline
I decided to talk to Amex and then to Costco's customer service and the story I got was different than what I got at my Costco store (see my previous post). However the new story is more in line with what you would expect on a transition like this.
Amex said they were sending out their new cash back card with a rebate cheque for my old Costco card. The date they gave me was Oct. 16. The rebate cheque would cover my rewards up until a certain date. If I accept (by activating) the new card, my old Costco card would no longer be active and I would only receive rewards from the new card which you could use at Costco until the end of the year. If I don't activate the card I still get the rewards from my old Costco card until year end or until I activate the new card after which I get another rebate cheque for the remaining reward balance on the old card.
I then phoned Costco customer service and they confirmed this.
I also confirmed with Costco that their U.S. counterpart will still only accept Amex cards for in-store purchases after Jan. 1, 2015. The new Costco Mastercard will not be accepted in U.S. Costco stores.
I apologize for the confusion. I was just trying to pass on what I had been told.
10:17 am
December 23, 2011
Offline
Gary great info. No doubt the Financial Post did not have everything right.....BUT.......Costco and/or Amex should have contacted us by now.
Based on the FP article I have archived our Amex Costco cards and resurrected our member ship card and Air Miles Amex for use in Costco Canada and USA til December 31. Then will use Air Miles MasterCard at Costco Canada and Air Miles Amex in the USA. Costco's stick handling on this is totally third rate and the 3 month promo on the new Costco MasterCard is just that a useless promo....maybe the better suck up option for Costco would be to offer a 3 year promo.
I doubt if I will accept the new Amex card as long as I get a voucher for the old one.
11:37 am
October 21, 2013
Online
Thanks for the updates.
I agree with kanaka, the roll-out on this was terrible. I can only compare to the big switch at Shoppers Drug with the last year or so. I never had a Shoppers Drug credit card, nor do I shop there very often, but even I was well aware of the changes and the options.
9:39 am
December 23, 2011
Offline
Recent email from Costco
*****note no mention about when cash back ceases******
Thank you for your recent inquiry through Costco.ca.
The credit card relationship between American Express and Costco Wholesale Canada will not be renewed when it expires on December 31, 2014.
All American Express Card members can continue to use their Credit Cards at Costco warehouses and gas stations in Canada until December 31, 2014.
There is a new co-brand credit card/membership card being offered exclusively for Costco members in Canada. Please visit your local Costco for more details.
If you have any further inquiries, please reply to this e-mail or call our member service agents at 1-800-463-3783, Monday to Friday, between 9 a.m. and 6 p.m. EST. They will be happy to assist you.
1:12 pm
October 21, 2013
Online
Honestly, kanaka! I can't believe they sent you this. (Well, I can, actually.)
They actually expect that you will go into the store and line up at CS so that you might possibly get some info about the new CC which THEY are promoting, or at least ought to be? They don't even know that it's already on the internet??
5:19 pm
December 23, 2011
Offline
Loonie said
Honestly, kanaka! I can't believe they sent you this. (Well, I can, actually.)
They actually expect that you will go into the store and line up at CS so that you might possibly get some info about the new CC which THEY are promoting, or at least ought to be? They don't even know that it's already on the internet??
I just wonder.....did some one email them the URL to this forum?
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