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Last year, Costco announced it was cutting ties with American Express and signing an exclusive agreement with Citi to provide co-branded Visa credit cards for customers beginning April 1, 2016. Now that roll out has been pushed back until “early summer” because the transition has taken longer than expected.
Costco announced it was cutting its 16-year ties with Amex last year because of a tense relationship between the two companies, a big deal considering that 10% of the 112 million Amex cards are co-branded with Costco. Now because of the delay, the relationship between Amex and Costco will be extended until the Citi transfer takes place.
Once the transition to Visa is complete, the TrueEarnings Card from Costco and American Express will cease to exist and current cardholders will receive a new Costco Citi Visa. The transition has been delayed until June (or midsummer) while the exact details of the new Citi Visa card haven’t yet been released. However, once the transition is complete, all Visa credit cards — not just the co-branded Citi card — will be accepted at all Costco stores in the US.
The current card offers 3% cash back at US gas stations up to $4,000 per year, an annual reward coupon redeemable for cash or merchandise at Costco and also acts as a Costco membership card.