AMERICAN EXPRESS AND COSTCO LAUNCH TRUEEARNINGSSM CREDIT CARDS, MAKING EARNING CASH REBATES AS EASY AS 1-2-3
Cardmembers Can Earn 3% Cash Back for Eating Out, 2% for Traveling and 1% Virtually Everywhere Else, including at Costco, When Using the No-Fee Card
NEW YORK, September 1, 2004 -- American Express and Costco today announced two new co-branded Credit Cards that reward Costco members with rich cash rebates for purchases, including attractive rebates for eating out and traveling. The TrueEarnings Card for consumers, which is available now, and the TrueEarnings Business Card, which will be available for small businesses next month, offer one simple, easy-to-understand rewards structure:
- 3% cash back for eating out, even for takeout or delivery
- 2% cash back for traveling on airline tickets, for hotel stays, car rentals and cruises, including when booking through a travel agency
- 1% cash back virtually everywhere else, inside or outside of Costco warehouses1
The fee-free Credit Cards give consumers and businesses the flexibility to extend payment over time, and offer a 0% Annual Percentage Rate on purchases for the first 90 days of Cardmembership.2 Cardmembers receive an annual rebate as a coupon that can be redeemed for cash or used for purchases at Costco warehouses around the United States.
“The new TrueEarnings Cards are another example of the creative, innovative products that we develop through our partnership with Costco,” said Beth Lacey, senior vice president, Strategic Alliances and Cobrands for American Express. “Eating and traveling are two of the most popular pastimes, and now our Cardmembers can earn even more generous rebates at Costco simply by using their TrueEarnings Card to enjoy their favorite things.”
“The new TrueEarnings Cards can pay a rebate on everything you purchase,” said Ginnie Roeglin, senior vice president, Marketing for Costco. “Because they pay a rebate on purchases inside and outside of Costco, including dining out and travel, the new Cards can generate a substantial rebate.”
In addition to a cash rebate, the TrueEarnings Cards offer a number of Cardmember benefits and services, including Purchase Protection Plan3, Buyer's Assurance Plan4 and Car Rental Loss and Damage Insurance Plan.5
TrueEarnings Business Cardmembers can enjoy automatic savings with partners when using the Card to purchase long distance services, shipping services, car rentals and more.6 They also have access to customizable Expense Management Reports that help businesses track their spending on the Card.
American Express and Costco Strengthen a Growing Relationship
The TrueEarnings Cards are the latest evolution of the growing American Express-Costco relationship. In 1999, the partners launched their first co-branded cards – the American Express® Costco Cash Rebate Credit Card and the American Express® Costco Business Charge Card. In April 2004, American Express and Costco announced a multi-year extension of their strategic partnership agreement that includes auto and homeowners insurance services for Costco members; installment loans and lines of credit from OPEN: The Small Business NetworkSM from American Express; and financial planning services from American Express Financial Advisors Inc.7
About American Express
American Express Company is a diversified worldwide travel, network, and financial services provider founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking.
About Costco Wholesale
Costco currently operates 434 warehouses, including 321 in the United States and Puerto Rico, 63 in Canada, 15 in the United Kingdom, five in Korea, three in Taiwan, four in Japan and 23 in Mexico. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com. The Company plans to open an additional seven new warehouses prior to the end of its fiscal year 2004 on August 29, 2004.
1 Eligible Purchases earn a rebate of 1, 2 or 3 percent, as follows: 3% at restaurants, 2% for travel purchases from airline, lodging, car rental, cruise line, travel agency and tour operators; and 1% on all other Eligible Purchases. “Eligible Purchases” do NOT include returned purchases, Fees, Finance Charges, Cash Advances, Balance Transfers, purchase of American Express Travelers Cheques, American Express Gift Cheques, and other cash equivalents. Only the first $100,000 of Eligible Purchases are eligible for a rebate in each Rebate year. Rebates are awarded every February in the form of an in-store coupon redeemable for cash or merchandise at any U.S. Costco Warehouse. To receive the Rebate your Account must be open and you must present the coupon at Costco prior to the coupon expiration date. Rebates less than $1 will be forfeited. Forfeiture rules for late payment also apply.
2 0% introductory Annual Percentage Rate (APR) for the first three months on purchases made with the Card only. Then, the Prime Rate plus 8.99% will apply to purchases made with both the TrueEarnings Card and the TrueEarnings Business Card.
3 Underwritten by AMEX Assurance Company, Administrative Office, Green Bay, WI. Coverage is subject to the Terms, Conditions, and Exclusions of Policy AX0951. See Description of Coverage for full details.
4 Underwritten by AMEX Assurance Company, Administrative Office, Green Bay, WI. Coverage is subject to the Terms, Conditions, and Exclusions of Policy AX0953. See Description of Coverage for full details.
5 Underwritten by AMEX Assurance Company, Administrative Office, Green Bay, WI. Coverage is subject to the Terms, Conditions, and Exclusions of Policy AX0925. See Description of Coverage for full details.
6 Payment must be made with an American Express Business Card. OPEN SavingsSM participation and offers are subject to change without notice. Terms and conditions apply. For more information please visit open.americanexpress.com/savings.
7 Securities and Investment Advisory Services are offered through American Express Financial Advisors Inc. Member NASD. American Express Company is separate from American Express Financial Advisors Inc., and is not a broker dealer.
Costco and American Express are not affiliated companies.
