What is the primary impact of this announcement for American Express?

The primary impact is the impending termination of a major partnership with Costco, which has been a significant source of business for American Express's U.S. co-brand and merchant acceptance operations.

What specific agreements are ending?

The agreements ending are the U.S. co-brand agreements, which likely involve co-branded credit cards, and merchant acceptance agreements, which allow Costco to accept American Express cards.

Is there any indication of what will replace the Costco business?

This particular filing (8-K Item 7.01) only announces the termination and does not provide details on replacement strategies or the financial impact beyond the termination date.

AXP 8-K: Regulation FD — Feb 12, 2015

Q: When will the partnership with Costco officially end?

The U.S. co-brand and merchant acceptance agreements with Costco Wholesale Corporation will end on March 31, 2016.

Summary

American Express Company (AXP) has announced a significant development impacting its relationship with a key partner. On February 12, 2015, the company disclosed that its U.S. co-brand and merchant acceptance agreements with Costco Wholesale Corporation will not be renewed and are scheduled to terminate on March 31, 2016. This news marks the end of a long-standing partnership which has been a substantial contributor to American Express's business, particularly in its U.S. Card Services segment.

Key Highlights

1Termination of U.S. co-brand and merchant acceptance agreements with Costco Wholesale Corporation.
2The agreements are set to expire on March 31, 2016.
3This announcement signifies the end of a significant, long-term partnership for American Express.
4The press release detailing this event was filed on February 12, 2015.
5This development is a material event requiring disclosure under Regulation FD.

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Feb 12, 2015)

Summary

Key Highlights

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