BUSINESS

Costco Will Stop Accepting AmEx Cards Next Year

02/12/2015 08:33 am ET | Updated Apr 14, 2015

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Feb 12 (Reuters) - American Express Co said Costco Wholesale Corp would stop accepting its cards in the United States from next April, after the companies failed to reach terms on renewal of an agreement.

American Express shares fell about 3 percent to $83.65 in premarket trade.

Costco has already replaced American Express with Capital One Financial Corp as its credit-card issuer in Canada, starting this year.

"We were unable to reach terms that would have made economic sense for our company and shareholders," American Express CEO Kenneth Chenault said in a statement.

The current agreement is set to end on March 31, 2016, American Express said.

Costco has 468 warehouses in the United States and Puerto Rico, and caters to relatively higher-income customers than Wal-Mart Stores Inc and Target Corp.

(Reporting by Avik Das in Bengaluru; Editing by Savio D'Souza and Sriraj Kalluvila)

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