Capital One Financial Corp. (NYSE:COF) along with MasterCard Inc. (NYSE:MA) entered into agreement with Costco Wholesale Corporation (NASDAQ:COST) in Canada for the issuance of co-branded credit card when the agreement of the retailer with the American Express Company (NYSE:AXP) gets over this year. According to Virginia-based Capital One as well as MasterCard separate statements, the credit card will also act as Costco membership card. Also, all other Master Card credit cards will be accepted by Costco at its Canadian locations.
According to Shane Holdaway, Capital One’s President, the company’s vision of continuous growth in credit card portfolio is fulfilled through partnership with Costco.
Costco will stop accepting AmEx cards
Costco also gave the notification that it will end the acceptance of all AmEx cards in Canada soon after the negotiations for the renewal of the contract fell through between the two companies. At Costco stores, the only credit card accepted was AmEx, based in New York, the largest issuer of the U.S. credit card by purchases.
Starting from January, MasterCard will be the only credit card which will be accepted at Costco in Canada, according to Serda Evren, spokeswoman from payments processor at New York. Richard Galanti, Chief Financial Officer of Washington-based Costco, avoided to comment.
Capital One declines of any secret contracts with schools or colleges
During a recent probe by Consumer Finance Protection Bureau on companies having secret banking contracts with schools or colleges, Capital One issued a statement. According to Capital One, it has a lease agreement with Maryland for banking on the campus. It does not pay the university for opening of accounts or issuances of the debit/ATM cards. The company also declared that it has no links with the program of federal state disbursement at Maryland or any different university. It does have a rights deal naming at Maryland.