For more than a year now, Costco has been preparing to take its store-branded credit card business in a new direction. Specifically, it’s transferring its credit card network from long-time partner American Express to Citigroup and Visa. After hitting a few snags in the road, the shopping club now plans to make things official in June.
USA Today reports that that’s when the retailer will officially transfer its Costco-branded credit portfolio to Citibank and cardholders will receive their new plastic.
Under the deal, which was supposed to close in April but was delayed, Visa will become the exclusive credit-card network for Costco stores, and Citi will be able to issue the retailer-branded cards.
Once the transition is official — a specific date is still to be determined — current American Express cards will no longer work at the retailer.
Current Costco/American Express cardholders will continue to earn rewards on their cards until the deal goes through, USA Today reports, and rewards accrued before the deal is finalized will be paid out.
Of course, customers can still use debit cards from either Visa or MasterCard, as well as Costco cash cards, which can be purchased online.