American Express lost 10% of its card business when they lost the Costco deal. Here’s an inside account of how American Express lost the business. As costly as it was for American Express to lose Costco, it would have been more costly to retain Costco.
Details of what were expected to be the new Citibank Costco card were leaked in a regulatory filing, and we were led to believe it was basically the same product offer as the American Express Costco card — only a Visa rather than an American Express. It turns out that’s wrong, and the new Citi card is better.