Several weeks ago, Costco announced that they would be dropping American Express as the issuer of their co-branded credit card, and also as the in-store preferred payment system.
Now, Costco has selected a new co-brand card issuer and new in-store preferred payment provider.
The new credit card will be issued by Citi
While there isn’t more information currently available, the new credit card will act as the membership card for entering Costco, and also be accepted anywhere Visa is accepted.
Visa will be the new in-store preferred payment system
It sounds as if this will be an exclusive agreement, replacing American Express. Now, you’ll be able to pay with any Visa branded card.
The changes don’t start until April 1, 2016, so there’s still almost a year before these changes kick in.
From Costco’s press release:
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.
How does this effect returns?
Previously, if you bought an item online using a Visa card and attempted to return in-store, you’d be refunded in either cash or check. Now, purchasing via a Visa could be refunded directly to the card, once this transition takes place. What’s interesting here is if Mastercard and American Express purchases would be eligible for cash and check refunds.
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