PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Costco Credit Card Deal Cuts Into Profits

By Alex Johnson
December 10, 2015
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

The backlash from the Costco-AMEX split has been mostly falling on AMEX, but Costco’s most recent earnings report revealed a significant impact on the wholesaler’s business as well.

“The switch is chipping away at Costco’s profits, as it no longer is receiving a bounty for each new Amex cardholder it signs up, and Visa won’t offer a new card until next year.

On Tuesday, the warehouse retailer reported a drop in quarterly earnings and slowing revenue from membership fees. Shares fell 5.42% in New York trading Wednesday, closing at $159.72.

During a conference call Wednesday, Richard Galanti, Costco’s finance chief, said co-branded customer sign-ups during the quarter ended Nov. 22 had “greatly slowed and now ceased.” That reduced the company’s quarterly earnings by $15 million, or 2 cents a share, and he predicted the negative trend would continue possibly into the fiscal fourth quarter.”

Mr. Galanti emphasized that the transition away from AMEX had not affected membership sign-up rates, although membership fees only rose 1.9% in the latest earnings period, missing the 3% rise expected by industry analysts. Mr. Galanti also offered a quote on the AMEX transition that gives us an interesting glimpse into Costco’s underlying mentality when it comes to negotiating with vendors.

“It’s a royal pain to do this, but it’s what we do,”

Overview by Alex Johnson, Senior Credit Advisory Service at Mercator Advisory Group

Read the full story here

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Credit

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    samsung p2p

    Making Zelle Work Better for Users—and Banks

    April 10, 2026
    fraud escalate

    As Fraud Escalates, Taking a Beat Becomes a Critical Defense

    April 9, 2026
    privacy open banking

    As Open Banking Fuels Interconnectivity, Privacy Matters More

    April 8, 2026

    ACH Is Thriving, and Banks Are Struggling to Keep Pace

    April 7, 2026
    stablecoins, Klarna

    How Stablecoins Emerged as a Key Element of Cross-Border Payments

    April 6, 2026
    Cross-Border Payments

    How the U.S. Built Its Faster Payments Ecosystem

    April 3, 2026
    Young Latin woman applying powder on her face for beauty blog. Smiling woman sitting at table in cosy room holding powder box and brush looking at phone camera recording video. Make up and cosmetics blogging concept

    TikTok Aspires to Fintech Status with Payments, Credit Bids in Brazil

    April 2, 2026
    small business credit card

    What Banks Get Wrong About Small Business Credit Cards

    April 1, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result