What Costco’s New Visa Deal Means for You

Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend.

Image Not Available

It’s out with American Express and in with Visa.

After ending a 16-year, exclusive partnership with AmEx, Costco has struck a new deal with Visa and Citigroup. The warehouse superstore will begin accepting Visa cards April 1, 2016, the Associated Press reports.

Citi will be the exclusive issuer of Costco’s co-branded credit cards.

Here are a few things you should know about the change:

  • What cards will be accepted? Beginning April 1, 2016, Costco will accept all Visa-branded credit cards, as well as Visa and MasterCard debit cards, the AP said.
  • I have a Costco-branded AmEx. Now what? According to the Los Angeles Times, when the switch occurs, existing cardholders will receive new Visa cards issued by Citibank in the mail, to replace the AmEx cards.
  • What kind of rewards will the new Costco-branded Visa card have? The Costco AmEx cards provide a cash-back feature. Costco spokesman Bob Nelson told the LAT that the new card would “provide generous rewards” but was unable to provide further details. “Hopefully,” he said, “the offering we will have at the end of the day will be very compelling.”

What do you think of Costco’s new partnership with Visa and Citigroup? Share your comments below or on our Facebook page.

Get smarter with your money!

Want the best money-news and tips to help you make more and spend less? Then sign up for the free Money Talks Newsletter to receive daily updates of personal finance news and advice, delivered straight to your inbox. Sign up for our free newsletter today.