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Costco started to transition from American Express to Visa as its exclusive credit card partner in June. As a result, delays and confusion have only gotten worse nearly two months later!

1. What were some of the biggest problems they faced?
2. Who is the issue of the new Costco Anywhere Visa and what has been their role in the fiasco? Give examples.
3. For the poor transition, what is the suggestion that one Costco customer, Carol Whitaker suggests? Do you agree or disagree that Costco has not done enough to deserve the loyal customers it has kept?
4. In the first three and a half weeks after the transition, what trend in purchases did Costco see? Why is this significant and what is the overall message for the retailer?
5. Why do you think Costco went with a co-branded card rather than a proprietary card?

Taylor, K. (2016). Costco Dropped AmEx and Now Only Takes Visa. The Result Is a Gigantic Mess. Business Insider, August 24 (Retrievable online at