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Update on Costco Cards


Velos

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As we are on the road we sometimes miss news releases. We recently received a letter from Costco saying that as of April 2016 they will no longer be accepting AMX for purchases. Up till now there had been various credit card deals discussed but it looks like this may be close to the final plan but the specifics on how to get your new Costco card is not clear yet.

 

I had been looking for an article on the subject and found this that may be of interest to others that shop at Costco:

 

June 8th, 2015......So what does this mean for current Costco American Express credit card holders? It seems that cardholders will be able to switch their Costco American Express card to a Costco Citi Visa card, which will offer extra benefits to Costco members who are cardholders. Details of exactly what these member benefits may entail are currently being worked out, and they will be announced by the store at a later date. While most Costco American Express cardholders will not need to re-apply for the Costco Visa card, it’s possible a small number of people will not be approved for the Citi card. American Express and Citi have different credit standards by which they authorize credit approval. For the vast majority, though, approval with Citi will not be a problem.

 

The complete article here: http://www.savingadvice.com/articles/2015/06/08/1034353_costco-american-express-to-visa-switch.html

 

 

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I plan to keep my Amex. I have another card with Citi and am not pleased with their customer service.

 

I expect that the current Costco AMEX cards are going to die and go away based on how much pressure I am getting from American Express to apply for a new one to replace the Costco one.

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Without the Costco rebate, we will get rid of the Amex. We switched to the Sam's Club MasterCard. Rebates are nearly doubled and it's accepted at more businesses too.

I know to take advantage of rebates you should not keep a monthly balance or pay in full every month but is the percentage rate really 14.9?

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If you have a mail forwarding service your cards should be forwarded to you. Ours always have been by using Escapees. The cards are sent to your 'address' (the forwarding service) and the forwarding service bundles it up along with your other mail to be forwarded. It's not like the postal service forwarding it.

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I plan to keep my Amex. I have another card with Citi and am not pleased with their customer service.

 

You may want to double check to see what the annual fee will be on your new AMX card?

 

With the soon to be history Costco AMX card their was no separate annual fee, just your annual Costco dues.

 

I have been receiving offers for AMX cards to replace the closing Costco AMX card that offer no annual fee, and cards with air miles etc.

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You may want to double check to see what the annual fee will be on your new AMX card?

 

With the soon to be history Costco AMX card their was no separate annual fee, just your annual Costco dues.

 

I have been receiving offers for AMX cards to replace the closing Costco AMX card that offer no annual fee, and cards with air miles etc.

 

Yes, me too. I hate to loose a card with a 16 year history though but looks like I will.

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We have had no problems with Escapees and forwarding of our cards.

 

Yes, if you are a fulltime RVer and the Escapees mail forwarding service (or any mail forwarding service, for that matter) is your legal domicile address, then, of course, your credit cards get forwarded to you.

 

The problem FOR US is that we are not fulltime RVers any longer. We have a sticks and bricks house and snowbird in the winter. When we leave our sticks and bricks house, we have the USPS forward our mail to our Escapees mail forwarding address. The USPS will NOT forward credit cards! This isn't a problem for any of our other credit cards since their expiration dates are within the time that we're at our sticks and bricks house. It WILL be a problem getting our new Costco card!

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If you have a mail forwarding service your cards should be forwarded to you. Ours always have been by using Escapees. The cards are sent to your 'address' (the forwarding service) and the forwarding service bundles it up along with your other mail to be forwarded. It's not like the postal service forwarding it.

 

Only if you are a fulltime RVer. See my previous reply to accumack...we are no longer fulltimers, so the USPS will NOT forward credit cards to our Escapees mail forwarding address during the period we're doing our snowbird thing.

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This article predates my original post but has some additional information that may be of assistance:

At this point, there’s not a lot of information on what that change will look like.

What We Know

The agreement between Costco and Citi is contingent on Citi purchasing the existing co-branded card accounts — that’s something to be worked out between Citi and American Express. That transaction would mean existing cardholders will have their TrueEarnings Card from Costco and American Express replaced by the co-branded Citi Visa.

“Assuming the portfolio is sold, and hopefully it will be, Citi will just send you a new card,” said Bob Nelson, Costco’s vice president of investor relations. “Any balances will just transfer over to Citi.”

Emily Collins, Citi’s director of consumer public affairs, told Credit.com that Citi is not sharing any more details about the coming card other than it will begin offering the co-branded card beginning April 1, 2016.

Through next March, Costco will continue accepting American Express cards — it’s the exclusive credit card network in Costco warehouses — but come next April, anyone wishing to use a credit card in Costco will need a Visa.

 

CLICK HERE for the complete article:

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Will we be able to use any Visa credit card or must it be a Citi co-branded Visa credit card?

 

It's not clear.

 

Dave

 

Good question. With the Amex card, you could use other Amex cards (we got a Blue shortly after the announcement and have used it a couple of times to see if it worked).

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Will we be able to use any Visa credit card or must it be a Citi co-branded Visa credit card?

 

It's not clear.

 

Dave

 

 

Good question....I found this article*** http://www.nerdwallet.com/blog/credit-card-benefits/visa-credit-cards-mastercard-difference/ explaining the differences between Visa and MasterCard.

 

***"The first thing to understand is that neither Visa nor MasterCard actually issues or distributes credit cards. The cards themselves are issued by banks. Visa and MasterCard are networks that process payments between banks and merchants for purchases made with the cards."

 

If the agreement is between Costco and Citi and is contingent on Citi purchasing the existing co-branded card accounts I am GUESSING that the VISA cards used would need to be CITI cards?

 

 

Potentially TMI: American Express, Discover

Whereas the Visa and MasterCard systems engage many organizations, American Express and Discover are akin to one-stop shops. That is, they issue their own cards, authorize purchases and settle both with consumers and merchants.

American Express's roots date to the mid-19th century when the company was a competitor to the U.S. Postal Service. It invented travelers checks in 1891 but didn't enter the credit card business until the late 1950s when it introduced a charge card for travel and entertainment expenses. AmEx was first to market with a plastic card, although it didn't allow revolving payments until 1987; prior to then, it required customers to pay their balance in full at the end of each month.

American Express generally charges merchants a higher fee. That may account for its lesser reach than Visa and MasterCard. American Express says its cards are accepted in more than 130 countries.

Discover was introduced in 1985 by retailing giant Sears in its expansion into the financial services industry. It was sold to Dean Witter, which was later acquired by Morgan Stanley. In 2007, Discover became its own company, Discover Financial Services. In 2008, the company purchased Diner's Club, and in doing so, broadened its acceptance overseas.

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I know to take advantage of rebates you should not keep a monthly balance or pay in full every month but is the percentage rate really 14.9?

I believe so but a non-issue as (you stated) we pay off every month. Never had a balance, never will so I really don't even look at the interest rate.

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Will we be able to use any Visa credit card or must it be a Citi co-branded Visa credit card?

 

It's not clear.

 

Dave

 

I read yes that you will be able to use any VISA card. It was in a newspaper article when the switch was announced. I am skeptical. But would be pleased if that was the case.

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Vladimr

 

Some how I do not believe that is correct. The deal is not with Visa, the deal is with Citi Bank. Now just like today any Debit/Visa Card is usable at Costco and I am sure that will not change. However if you are going to want to "Charge It" and run a balance then you will need a Citi Visa Card otherwise cash/check or debit. Citi Bank is counting on X percentage of folks running a balance and paying interest.

 

Dennis

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