Costco, which is replacing American Express in Canada, is also seeking bids for both an issuer and a payments network for its U.S. cards, a move that may result in a replacement for American Express in the States, according to two people familiar with the matter.
New York- based Amex, the retailer's current carrier, could be among the firms bidding on the contract, the people said, requesting anonymity because the matter hasn't been made public.
In September, Costco struck a deal with Capital One Financial Corp. and MasterCard Inc. to issue co-branded credit cards in Canada when the retailers contract with Amex ends this year. Issaquah, Washington-based Costco notified customers that it will stop accepting all American Express cards in Canada on Jan. 1 after negotiations between the two companies to renew the contract fell through.
American Express, the largest U.S. credit-card issuer by purchases, was the only credit card accepted at Costco stores in Canada. Amex has a separate contract with Costco in the U.S. The retailer operates 468 stores in the U.S. and Puerto Rico, and 88 in Canada, according to its website.
Representatives for Costco and American Express declined to comment.
JetBlue Airways Corp. is also soliciting bids to replace American Express as its credit-card partner, two people briefed on the matter said last month. That could result in a deal with a different network to process transactions, as well as a new card-issuing bank, one of the people said. Amex may also be among bidders for JetBlue, another person said.