Originally Posted by
Alcibiades
Why would CITI introduce a payment method which does not have the capability of earning any interest ?
I don't know, but if Amex did it with Walmart and Target, there is no reason Citi can't do it with Costco.
Originally Posted by
Alcibiades
And without a signup bonus, why get and swipe a CITI CC at all ?
I doubt there is going to be any sign-up bonus, because the whole reason for Citi to take this offer was the ready-made pool of customers. It's cheaper for them to acquire accounts this way than to advertise themselves and have a sign-up bonus.
Originally Posted by
Alcibiades
And make higher profits. And IIRC, Costco customers have among the lowest default risk.
The flip side of low default risk is less people carrying a balance, so less interest payments.
The idea of the MS Revolution is interesting. If it costs Costco almost nothing to accept Visa credit cards, they can allow people to buy GC with CC much more economically than other stores. For example, they could lower the standard $4.95 or $5.95 fee for variable load cards and still make a profit on the sale. I don't know if it will happen, but it's fun to think about.