Costco Announces New Credit Card Partnership With Citi, Visa

It seems Costco is not one to sit around pining for old flames very long, as the shopping club announced today that it’s rebounding from the end of its relationship with American Express with a new partnership with Citigroup and Visa.

Costco has dubbed the two companies as its new credit partners starting in April of next year, reports the Wall Street Journal. Previously, only AmEx credit cards and debit cards were accepted at the wholesale retailer.

This means only Citi will be able to issue Costco co-branded credit cards, and it will make Visa the exclusive credit-card network for Costco’s stores. While it’s clearly a big win for Visa and Citi, Costco hasn’t revealed any financial terms of the deal.

It would seem that whatever the agreement involves, it’s more favorable for Costco than the arrangement it had with AmEx: Costco had been trying to come to new terms in its AmEx deal, but the two sides couldn’t reach a mutually beneficial decision, the company said. Instead, Costco said that ending its relationship with AmEx was about saving money for customers.

As of March 31, 2016, AmEx Costco-branded credit cards will be useless, giving customers just over a year to make the switch — if they want to. Customers can still use debit cards from either Visa or MasterCard, as well as Costco cash cards, which can be purchased online.

Costco Names Citi, Visa as New Credit Partners [Wall Street Journal]

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  1. StevenB says:

    So what about other Visa cards?

    • IMakeMyOwnSnarkAtHome says:

      Other visa card will work fine. Citi will be able to make the Costco Visa card that is also a membership card, similar to the Costco AmEx Membership card. You can use non costco branded AmEx cards at costco still (or should I say have been able to? Side note, does anyone actually have an american express card? That’s like having a mastercard, like what the heck is the point?) to make your purchase as long as you have a valid membership

      • ophmarketing says:

        You’ll only be able to use Amex cards for the next year–once the Visa thing kicks in, no Amex cards will be accepted at Costco.

      • Mapache says:

        Costco Amex gives you good cashback on purchases, so yeah having an Amex is not as bad.