Old Jun 25, 19, 8:10 am
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Originally Posted by mikesyr18 View Post
Didn't Visa win the Costco deal, and then the bank assigned to carry out the lending was Citi?
My recollection is that VISA and Citi made a joint proposal, but I do recall Citi reassuring investors that even though Costco was bragging about net zero transaction fees, there would be positive fees for Citi (implying that VISA would reimburse Costco). In any event Citi should be doing fine on the Costco contract due to the finance charges from cardholders who carry balances, and cardholders who use the Costco cards elsewhere.

Is there ANY evidence linking Citi's decisions to make changes in their card portfolio to problems in the Costco portion? Citi has always tinkered with rewards and benefits, and there has been turnover in senior management. I don't see any connection to Costco.
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