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Is this true? If you have a Costco True Earnings AMEX, does it automagically renewal the membership and charge your AMEX?

I don't remember signing anything to have auto-pay system to Costco. Maybe it was on the ToS?

I just saw this charge in my account.

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I was also told that you can opt out of this, but got hit with it in the past. Even worse, in New York, memberships are ... (more)

billrubin (Mar. 04, 2009 @ 9:09a) |

Don't forget if you do not let AMEX auto renew on the card, you will lose the rebate you earn on purchases.

(http://www20... (more)

GoCalBears (Mar. 04, 2009 @ 6:10p) |

I could be wrong, but I think they're saying you lose the rebate on the membership fee.

billrubin (Mar. 06, 2009 @ 12:31p) |

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It did on my personal Costco True Earnings but not Business True Earnings.

Yes. It is true.

Yes, because the AMEX card is only valid for the duration of your Costco membership (I think). If you cancel membership, you cancel the card.

However, Costco guarantees you will be satisfied or they will refund your membership fee at any time. If you don't want to be a member, go in and ask them to credit you.

They asked if I wanted to have the membership dues charged to the AMEX card. But this was in 2004.

You can opt out of the auto renewal if ask at the customer service desk.

Assuming you go to Costco once a month you should opt out of the auto-renewal.

Example: Your membership fee is due on April 1 so you make your Costco trip on March 31 which will hold you over until around May 1 at which point you make your trip and renew your membership.

In following this schedule you are extending the usefulness of your membership by one month every year, or in other words, you will recieve one free year for every twelve.

If I remember it right, if you cancel auto-renewal of membership then there is an annual fee for the credit card


genux said: Yes, because the AMEX card is only valid for the duration of your Costco membership (I think). If you cancel membership, you cancel the card.

ajohnamous said: Assuming you go to Costco once a month you should opt out of the auto-renewal.

Example: Your membership fee is due on April 1 so you make your Costco trip on March 31 which will hold you over until around May 1 at which point you make your trip and renew your membership.

In following this schedule you are extending the usefulness of your membership by one month every year, or in other words, you will recieve one free year for every twelve.


makes sense.. now i am questioning whether the "AMEX annual fee" will kick in, in that month...

ajohnamous said: Assuming you go to Costco once a month you should opt out of the auto-renewal.

Example: Your membership fee is due on April 1 so you make your Costco trip on March 31 which will hold you over until around May 1 at which point you make your trip and renew your membership.

In following this schedule you are extending the usefulness of your membership by one month every year, or in other words, you will recieve one free year for every twelve.



Wow, a way to make a free $50 in only 12 short years in exchange for standing in a long line 12 times - that's awesome!

ltcm said: Wow, a way to make a free $50 in only 12 short years in exchange for standing in a long line 12 times - that's awesome!

Are you new here?

ajohnamous said: ltcm said: Wow, a way to make a free $50 in only 12 short years in exchange for standing in a long line 12 times - that's awesome!

Are you new here?



No, not at all - but it's called (1) opportunity cost and (2) the net present value of $50 received 12 years from now.

(1) opportunity cost - when the desk isn't busy you'll be in and out in 5 minutes. 5min x 12trips = 60 minutes of standing for a free year.

(2) the net present value of $50 received 12 years from now - Assuming Costco dues track inflation you will be covered.

This plan isn't for everyone.

ajohnamous said:

This plan isn't for everyone.



Fair enough!

ajohnamous said: Example: Your membership fee is due on April 1 so you make your Costco trip on March 31 which will hold you over until around May 1 at which point you make your trip and renew your membership. In following this schedule you are extending the usefulness of your membership by one month every year, or in other words, you will recieve one free year for every twelve.You sure this works; have you done it or just guessing ?

Did not work for me 5 years ago. If you go in on May 1st and renew, it retroactively renews the one or 2 months you "missed".

xoneinax said: ajohnamous said: Example: Your membership fee is due on April 1 so you make your Costco trip on March 31 which will hold you over until around May 1 at which point you make your trip and renew your membership. In following this schedule you are extending the usefulness of your membership by one month every year, or in other words, you will recieve one free year for every twelve.You sure this works; have you done it or just guessing ?

Did not work for me 5 years ago. If you go in on May 1st and renew, it retroactively renews the one or 2 months you "missed".

you probably have to cancel first.

ajohnamous said: (1) opportunity cost - when the desk isn't busy you'll be in and out in 5 minutes. 5min x 12trips = 60 minutes of standing for a free year.

(2) the net present value of $50 received 12 years from now - Assuming Costco dues track inflation you will be covered.

This plan isn't for everyone.

You aren't cashing out in 12 years, so you can't think of it like that. Take $50/12.
The question you need to ask is:
Is it worth it to take the time to cancel, and then wait in line to sign up in order to save $4.16?

riznick said:
You aren't cashing out in 12 years, so you can't think of it like that. Take $50/12.


You are progressively cashing out over the entire period you pull this, only used the 12 year timespan to illustrate that it could eventually pay a full year of dues. In reality you save one months worth of dues at each renewal, so the savings work out to be $DUES$/12 each year. Your savings keep up as inflation and dues go higher.

If you can skip going to Costco for 2 months the savings increase.

you can let your membership expire then create a new one with any promotion they have. right now it's $40 in free items. most often it's a $10 gift card which makes your cost $40 for membership. if you get the gift card you will get a free membership every 5 years which beats the above by 7 years

ajohnamous said: riznick said:
You aren't cashing out in 12 years, so you can't think of it like that. Take $50/12.


You are progressively cashing out over the entire period you pull this, only used the 12 year timespan to illustrate that it could eventually pay a full year of dues. In reality you save one months worth of dues at each renewal, so the savings work out to be $DUES$/12 each year. Your savings keep up as inflation and dues go higher.

If you can skip going to Costco for 2 months the savings increase.

Yeah, but thinking of it in a 12 year span is quite simplistic. That assumes you will continue to be a member for 12 more years.

If you can wait 2 months between expiration and re-up, you don't need to bother with the cancellation step. From their renewal page:

"Renewal Policy Memberships renewed within 2 months after expiration of the current membership year will be extended for 12 months from the expiration date. Memberships renewed more than 2 months after such expiration will be extended for 12 months from the renewal date."

I was also told that you can opt out of this, but got hit with it in the past. Even worse, in New York, memberships are taxable, but in Connecticut, where I typically shop at Costco, they are not, so I was paying sales tax on the membership, and for some reason they were charging the sales tax rate at a club (where I very rarely shopped) that has higher tax than my mailing address. I used the $40 coupon book this time to renew (which also saved me the sales tax) and will do it again next time if it is still avaialble, but I think I disabled the auto-renewal last time I spoke to customer service.

Don't forget if you do not let AMEX auto renew on the card, you will lose the rebate you earn on purchases.

(http://www201.americanexpress.com/apply/Fmacfservlet?csi=54/2400...

If you wish to pay your Costco membership fee by check, please call (800) 774-2678 upon receipt of your new Card. Costco membership fees paid by any means other than direct debit to the The TrueEarningsSM Card from Costco and American Express will not be eligible for the rebate as described in the above terms and conditions.

GoCalBears said: Don't forget if you do not let AMEX auto renew on the card, you will lose the rebate you earn on purchases.I could be wrong, but I think they're saying you lose the rebate on the membership fee.



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