It's here.
The Costco switchover from American Express to Visa is Monday, opening up the ability for millions more customers to use plastic. After only accepting American Express for the past 16 years, Costco will begin an exclusive credit partnership with Visa and will use Citigroup as its provider.
Any member using their Costco American Express for automatic bill pay must make sure they notify those companies and provide their new card information.
Losing the multi-billion dollar chain is a major hit to American Express. The Associated Press reported Costco accounted for eight percent of American Express billed business, 10 percent of its cards in force, and 20 percent of its worldwide loans last year.
Purchases made with the new Costco Anywhere Visa will earn Costco Cash Rewards. It includes:
4% cash back on eligible gas worldwide, including gas at Costco, for the first $7,000 per year and then 1% thereafter
3% cash back on restaurant and eligible travel purchases worldwide
2% cash back on all other purchases from Costco and Costco.com
1% cash back on all other purchases
Here are three more things you need to know:
1. When will Costco stop accepting American Express?
Beginning Monday June 20, Costco will only accept Visa, cash, checks, debit/ATM cards, EBT and Costco cash cards.
2. How do I get the new Citicard?
Members with AmEx Costco cards should have received their new Visa cards in the mail by now. They were to arrive between May 16 and June 19. Members can start using them June 20 after confirming it was received.
3. What happens to my rewards?
Cash-back rewards earned on the American Express Costco card will automatically transfer to the new Citibank Visa card. All customers will maintain their current credit line.
If you have questions about the changes to your existing card, the phone number for American Express is on the back. For more information on the new Visa cards, go to Costco's website or Citi'ssite.
