“Costco is seeking bids for both an issuer and a payments network for its U.S. cards, the people said, requesting anonymity because the matter hasn’t been made public. New York-based AmEx could be among the firms bidding on the contract,” according to Bloomberg’s report, which didn’t cite specific names.
Costco made a deal in September with Capital One and MasterCard to replace its co-branded credit cards in Canada at the end of the year after contract negotiations with AmEx failed to reach an agreement. At the time, AmEx was the only credit card accepted in Canadian Costco stores. If the U.S. contract is also cut, that would impact AmEx’s presence in 468 stores across the U.S. and Puerto Rico.
Bloomberg also reported that JetBlue Airways is looking at bigs to replace its AmEx relationship for its credit-card partner. That bidding process is said to involve “a deal with a different network to process transactions, as well as a new card-issuing bank.” AmEx may also re-bid their contract, Bloomberg said.