For 16 years, Costco warehouses in the United States have accepted only American Express cards. But recently, American Express announced that its cards won’t be accepted at Costco anymore, because the two companies couldn’t agree to the terms of a new deal. The agreement between AmEx and Costco is set to end on March 31, 2016.
Make room for Citibank! Yesterday, Costco Wholesale Corporation (“Costco”) (NASDAQ: COST) announced it has entered into a new co-brand credit card program agreement with Citi.
Under the terms of the agreements, Citi, the world’s largest issuer of consumer credit cards, would become the exclusive issuer of Costco’s co-brand credit cards and Visa will replace American Express as the credit card network for Costco in the United States and Puerto Rico beginning April 1, 2016. Once issued, Costco’s co-brand Visa credit card would provide generous rewards to Costco members, serve as the Costco membership card, and would be accepted at Costco locations in the United States and Puerto Rico, as well as all merchants worldwide that accept Visa credit cards.
Costco will provide its members with additional information in the coming months regarding the anticipated transition from its existing co-brand credit card program.