accidental damage or theft
for 90 days.* Additionally, Cardmembers enrolled in the Membership RewardsÒ program will be able to earn points on all their purchases at
Costco. Membership RewardsÒ points can be redeemed for
shopping or travel rewards.
Costco has also long been focused on serving the needs of small businesses. Now, these
individuals can purchase office supplies and other work-related items at Costco using
their American Express Corporate Card. The Corporate Card helps more than 2 million small
businesses manage their expenses and cash flow. Small businesses spend more on the Card
than on any other commercial card product.
The American Express Cardmember benefits further extend the high level of customer
service available to Costcos members, including Costcos money-back guarantee
on membership fees and merchandise.
New Cards for Costco Members
American Express and Costco also announced plans for two new cobranded cards, one for
consumers and one for small businesses, to be introduced in November, 1999. These
cobranded cards will also act as Costco membership cards and can be used anywhere that
American Express is welcome.
The new consumer credit card will have no annual fee and will reward Cardmembers with
Costco rebates based on all spending placed on the card. It will offer a competitive
interest rate and will provide consumers with the retail services and benefits they have
come to expect from American Express, including Buyers Assurance** and Purchase
The new small business charge card developed for Costco members will
have no annual fee with a paid Costco membership and no pre-set spending limit. It will
also offer discounts on a range of products and services directly from companies like IBM,
Federal Express, Mobil, Hilton and Hertz.
Card applications will be available on the Internet and on site at Costco locations in
November. More details about the cards will be announced later this year.
"Our partnership with Costco is a giant step forward in our strategy to increase
retail coverage and charge volume and to expand the number of customers we serve,"
said David C. House, president, Establishment Services Worldwide, American Express.
"The partnership will also increase loyalty among our small business Cardmembers
because Costco is an important retail establishment for them."
"We see this partnership as a tremendous business opportunity for both companies
and believe it opens up a wide spectrum of marketing and business opportunities. Through
this initiative, both Costco and American Express will have the opportunity to grow their
individual membership bases and to further enhance customer satisfaction," said James
Sinegal, president and CEO of Costco, noting that customer demand was a driving force that
brought the two companies together.
About American Express
American Express Travel Related Services Company, Inc., is a wholly-owned subsidiary of
the American Express Company -- a diversified worldwide travel, financial and network
services company founded in 1850. It is a leader in charge and credit cards, Travelers
Cheques, travel, financial planning, investment products, insurance and international
banking. For more information about the company, visit www.americanexpress.com
Costco is the original membership warehouse club, founded in 1976 in San Diego. Costco
operates over 200 locations in the United States, Canada, United Kingdom, Japan, Korea,
and Taiwan and 16 warehouses in Mexico through a joint venture. As the leading membership
warehouse club, Costco serves over 4 million businesses and over 12 million consumer
households by bringing them top quality brand name merchandise at low warehouse prices.
For more information about the company, visit www.costco.com.
Note to Editors: Photographs available at