American Express is ending next year a 16-year-old agreement with Costco Wholesale that calls for the exclusive use of its cards at the retailer's U.S. stores.
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The charge card company says it hasn't been able to agree with Costco on renewal terms that make economic sense for American Express. The deal lasts until March 31, 2016.
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American Express said Thursday morning that it charges Costco a significantly lower rate than the overall average it imposes on other retailers as part of the agreement.
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A company spokeswoman says a similar agreement involving Costco's Canadian stores ended last year.
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A Costco Wholesale Corp. representative did not immediately return a call from The Associated Press seeking comment.
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Shares of American Express Co. are falling in Thursday morning trading. (AP)
