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These cards can be used outside of Costco, where membership cards are not required. The reason they were able to negotiate such low fees is that Citi/Visa wante
by narrowrail 12y ago
These cards can be used outside of Costco, where membership cards are not required. The reason they were able to negotiate such low fees is that Citi/Visa wanted access to this customer base. The Amex CEO was quoted saying something like 'the math of Costco's proposed deal didn't make sense.'
- pmorici 12y agoIt doesn't matter what people do outside costco if I know that I will have significanty lower instances of fraud on transactions that happen at costco then it makes sense to offer them extremely low processing fees if their clientele is a customer base you want to attract.
- Terretta 12y ago> The Amex CEO was quoted saying something like 'the math of Costco's proposed deal didn't make sense.' According to the 4th paragraph of the article: “The numbers didn’t add up,” AmEx Chief Executive Officer Kenneth I. Chenault told investors last month. “We couldn’t accept their financial terms nor their contract terms, some of which would have meant taking on more risk than we were comfortable with.”