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Costco Postpones Switch From Amex to Visa


LindaH

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Some good links to follow in the page linked to in the original post.

 

AMEX has been a decent card for us but it just isn't worth keeping once Costco drops it, we'd only use it a couple times a year and one of our other cards will work just fine as a replacement for the times we'd have used it only with a bit smaller rebate.

 

We'll look carefully at the Costco / Citi offer and see if it gives us enough more than our current Visa card before deciding to add it to our collection or switch to it.

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Have had an AMEX Cash Rewards card for nearly 10 years now - no fee and no interest when I pay it off every month. I use if for EVERYTHING and get a few hundred back is cash rewards every year. Well worth keeping in my mind.

 

Lenp

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Have had an AMEX Cash Rewards card for nearly 10 years now - no fee and no interest when I pay it off every month. I use if for EVERYTHING and get a few hundred back is cash rewards every year. Well worth keeping in my mind.

If you're talking about the Amex card that's linked to Costco, it's my understanding that you won't be able to use it after Costco's deal with Citi/Visa is finally a done deal.

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You are correct but I am still keeping my AMEX card! I like the rewards!

What I meant by "you won't be able to use it," is that the card is going to go away for all uses, not just at Costco. If you want to stick with an Amex card, you'll have to switch to one of their other cards. At least that's been my understanding from all the articles I've read.

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Sorry Linda, I neglected to say this is not a Costco branded card - just an AMEX cash rewards card that anyone can get and I use everywhere AMEX is accepted. It gives 5% cash back on gas, groceries and pharmacy purchases but only at stand alone gas stations (not Walmart or other grocery stations) and 1% on everything else.

 

Sorry for the confusion.

 

Lenp

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Len, Do you get the Costco rebates on your non-Costco Amex card when you shop there?

For anyone, I'm going to have the same question when it comes to the new Visa, if I use my existing Visa at Costco rather than using theirs will it qualify for the rebates and discounts?

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Have had an AMEX Cash Rewards card for nearly 10 years now - no fee and no interest when I pay it off every month. I use if for EVERYTHING and get a few hundred back is cash rewards every year. Well worth keeping in my mind.

 

Lenp

The same things can be done with MOST cards. None of them charge interest when paid in full monthly by due date.

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Stan

 

I think that the Citi Visa Card will have it's own reward program within Costco but they will now accept any Visa and of course you will collect what ever rewards that are associated with that card. Your Costco Executive Card Membership rebate for the 1 percent is not tide to the AMEX. I get two rewards check a year one from each. Almost $400 this year and we don't even have a Costco in Arkansas. Come April of 2016 we will have a Costco in Tulsa, Ok which is the next state west. The first one in OK. 124.5 miles door to door.

 

Dennis

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Two sides to every story. But this has been a cluster from both companies perspectives:

 

1) Costco = Poor communication on what is going on. And for sure and inconvenience to their members.

 

2) AE = Costco AE Memership being 10% of your business base, you do all that you can to retain that large of group.

 

 

Usually this comes down to two stories. One is always about money. Costco probably wanted more of the action/kickback from AE. And AE probably wanted to retain a larger piece of the hunk too. And two, is the ego's of those that are the decision makers.

 

Does not matter who was right/wrong on this one - as IMO, they both lose... AE will lose the significant hunk of their Costco generated AE holders. and Costco will have some of their membership ticked off - as many just do not like change. And, many do not want yet another credit card in their wallets....

 

Doubt we'll ever know what really happened on this one,

Smitty

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  • 2 weeks later...

I received a letter 6/2/2015 from AMX saying I could use the Costco branded AMX until 3/31/2016.

 

I just came across this article today dated January 29, 2016:

https://www.nerdwallet.com/blog/credit-cards/costco-amex-cardholders-get-new-card-number-not-new-account/

 

Here is a partial excerpt: Costco announced last year that it was changing its co-branded credit card from an American Express to a Visa issued by Citi. Citi is expected to purchase AmEx’s TrueEarnings credit card portfolio by March 31. In that transaction, Citi will acquire the accounts of existing Costco cardholders, including information about debt owed and credit ratings. Current holders of the TrueEarnings® Card from Costco and American Express will get a new card — a Visa — as well as a new card number, because Visa and AmEx have different account-naming conventions. But it will likely show up as the same old account on your credit report.If you have the TrueEarnings® Card from Costco and American Express, you’ll probably get a new card in the mail from Citi and Costco sometime this summer, according to an SEC filing from Costco. But you won’t have to apply for the new card, and it probably won’t result in a separate entry on your credit reports.

I have looked at the SEC filing (that is referred to and linked to the article above) in the past; it is lengthy and full of legaleze but if you scan it there is a lot of info about what is going on.
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  • 1 month later...

A little new information on the Costco transition From AMEX to VISA:

Beginning June 20, Costco stores will accept the Citi Visa, as well as all other Visa cards, along with cash, checks, and debit cards but not AmEx cards. After June 19, Costco-branded American Express cards will become invalid at all merchants.
But the new Visa cards will yield bonuses for Costco shoppers.
All Costco AmEx holders will receive a new Citi Visa in the mail in May or June and don't need to apply for the new card. Through the Visa, cardholders will receive significant savings such as cash back on gasoline purchases of 4%, versus 3%; a 3% bonus on restaurant and travel; 2% cash back on all Costco purchases; and 1% on everything else.
The new situation appears to be a win-win for Costco and shoppers alike. Increased shopping rewards equal increased customer loyalty.
The entire article can be found here.
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  • 2 months later...

Received our new Citi Costco Visa cards yesterday.

 

Same credit limit. Chipped, however, the numbers and other information that used to be raised for running in the old carbon copy type machines has very little texture. Guess that is really old school now.

 

Same expiration date as our Costco Amex cards that had been renewed last month. :)

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We also got our new VISA Costco card earlier this month.

 

I'll be glad to get rid of the Amex card because not all places accept Amex, so we have had to carry two credit cards. Now we'll only have to carry the one.

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We also got our new VISA Costco card earlier this month.

 

I'll be glad to get rid of the Amex card because not all places accept Amex, so we have had to carry two credit cards. Now we'll only have to carry the one.

 

We always carry two, Dave has one, I have the other. That way when (not if anymore) one card is compromised we have another to use.

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We have one card used solely for automatic deductions. Our other card is used for restaurants, groceries, store shopping and online purchases. If that card is compromised at least we don't have to change our automatic deduction account number to a new card. We never used American Express except for Costco shopping and gas. Not sure what we'll do now with the new Costco Visa. Our other cards give us good cashback.

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We always carry two, Dave has one, I have the other. That way when (not if anymore) one card is compromised we have another to use.

 

Oh, we have more than one credit card, but I don't like carrying more than one in case my purse or DH's wallet is lost or stolen. Since we'll want to use our new Costco VISA card for everything, for me to carry one card and DH a different card defeats the purpose of having everything on one card.

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