After 17 years of featuring American Express, Costco on Monday officially began accepting only Visa and debit cards. With millions of Americans impacted by the change, Jim Cramer dug deeper to find out how to make a profit for portfolios nationwide.
"This is the kind of investable story that is easy to notice in your everyday life. But that doesn't mean you should immediately buy Visa and sell American Express the moment you get home from Costco," the "Mad Money" host said.
Costco generated $116 billion in revenue in 2015, with much of that coming from credit cards. Additionally, over $10.5 billion in receivables from Costco's AmEx cards has now been acquired by Citigroup.
The stock of American Express fell 6.4 percent the day Costco announced the separation in February 2015. Since that time, it has continued to trend lower, down to $62 from $86 the day the news broke.
It is estimated that American Express lost 7 million member accounts, and as much as $76 billion in Costco related billings last year, $12 billion in related loans and a major potential international expansion.
AmEx has also suffered the same headwinds as all other financial institutions, hit by lower interest rates and increased competition from online lenders. It also lost relationships with Fidelity and Jet Blue.