Business Services Industry

The Boston Globe Consumer Column.(Knight Ridder/Tribune Business News)

Knight Ridder/Tribune Business News, March, 2000 by Mohl, Bruce

Mar. 19--CUT LOOSE, DISCOVER TAKES SWIPE AT COSTCO WITH BID TO CUSTOMERS: Like a jilted lover, the Discover card is out for revenge on its longtime retail partner, the chain of more than 300 Costco warehouse stores.

The two companies parted ways last Monday after eight years during which the only credit card accepted by Costco was the Discover card. Costco replaced Discover with American Express, but Discover isn't going quietly into the night.

Using a tactic unheard of in the credit card business, Discover last week sent letters to more than a million cardholders who shop at Costco, urging them not only to complain to Costco store managers but to take their business to rival Sam's Club, which accepts the Discover card. Discover even gave the...

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