Friday, September 30, 2016

Costco earnings get boost from switch to Visa

Image result for costco and visa cardCostco Wholesale Corp.'s June switch to Visa Inc. is paying off.

The warehouse club chain reported higher quarterly profit Thursday boosted by lower credit card fees and other terms from its new deal to accept Visa-brand cards, replacing a long-term alliance with American Express Co.

For the quarter ended Aug. 28, Costco's profit rose 1.6% to $779 million despite higher wages, lower gasoline sales and deflationary pressure on food items including meat and eggs. Those expenses were "offset in particular with everything related to this credit card transition," Chief Financial Officer Richard Galanti said on a conference call.. . . more

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