Costco replacing Amex with Citi co-branded VISA, March 2016
Mar 2, 2015, 6:29 am
#1
Suspended
Original Poster
Join Date: Aug 2005
Location: BOS
Posts: 15,027
Costco replacing Amex with Citi co-branded VISA, March 2016
Citi to become Costco credit card issuer.
Starting in 2016.
http://www.marketwatch.com/story/vis...ist=beforebell
Starting in 2016.
http://www.marketwatch.com/story/vis...ist=beforebell
Mar 2, 2015, 7:24 am
#2
Join Date: Jun 2014
Posts: 290
Costco replacing Amex with Citi co-branded VISA
Mar 2, 2015, 8:24 am
#3
Join Date: Sep 2012
Location: Evansville
Programs: HHonors Gold;Amex Platinum
Posts: 15
Costco replacing Amex with Visa and Citi
Guess I'll start using my citi card.
Mar 2, 2015, 8:27 am
#4
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,969
Moderator action
1. Thread transferred to Citi forum because Citi will be the issuer of the new co-branded card.
2. There is already extensive discussion in the American Express forum:
http://www.flyertalk.com/forum/ameri...ch-2016-a.html
2. There is already extensive discussion in the American Express forum:
http://www.flyertalk.com/forum/ameri...ch-2016-a.html
Mar 2, 2015, 9:03 am
#5
Join Date: Dec 2009
Location: Los Angeles
Programs: Hyatt, Hilton, Marriott // WN, AA, BA, UA, AS // Avis
Posts: 1,314
It could be a big boost to the thankyou rewards program if there is a card that gets bonus points for Costco spend. I hope to see this happen instead of just a cash back card
Mar 2, 2015, 9:33 am
#6
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,969
Citi is pursuing an interesting strategy in issuing co-branded cards. They have partnered with one airline (AA), one hotel chain (Hilton), one online travel agency (Expedia), and now one club store (Costco). (I think they also issue cards for some other retailers, such as Macy's, haven't kept track.) This allows them to fully support their partners because they are not also issuing cards for a direct competitor.
Costco is also on an unusual course by accepting VISA in the USA, but MasterCard in Canada. This has the benefit of maintaining a relationship with both networks, but it means consumers who shop cross border may be confused or inconvenienced.
Costco is also on an unusual course by accepting VISA in the USA, but MasterCard in Canada. This has the benefit of maintaining a relationship with both networks, but it means consumers who shop cross border may be confused or inconvenienced.
Mar 2, 2015, 9:37 am
#7
Join Date: Jan 2015
Programs: Marriott Titanium and LTP, Hilton Gold, United Silver
Posts: 786
The real strategy question in my mind is whether the co-branded card is a cash-back card to a Thank You Points card.
Mar 2, 2015, 10:37 am
#8
Join Date: Jun 2014
Posts: 290
@mia There is a small niche of people living on the Canadian border who this *might* impact. As far as I know, Canadians are the only ones who benefit from lower grocery prices by shopping across the border. I know the Bellingham, WA location is an example of a Costco that is bombarded by Canadians in search of cheap milk, though this might have died down a bit with the strengthening USD.
My guess is that the majority of these Canadians pay cash anyway due to forex fees on Canadian-issues credit cards, so the Visa/MC thing isn't an issue anyway.
My guess is that the majority of these Canadians pay cash anyway due to forex fees on Canadian-issues credit cards, so the Visa/MC thing isn't an issue anyway.
Mar 2, 2015, 2:49 pm
#9
Join Date: May 2013
Posts: 258
How does a switch line this usually work? Will Amex close the existing account and then you have to re-apply with Citi?
Mar 2, 2015, 4:02 pm
#10
Join Date: Jul 2013
Location: DFW,OVB (Russia)
Programs: AA HH Gold SPG Gold BA
Posts: 1,823
in most cases Amex will just close your account and Citi will open a new account for you under the new bank/ownership (usually without a new credit pull)
Mar 2, 2015, 4:06 pm
#11
Join Date: Jun 2014
Posts: 207
A bit disappointed that its a visa. 2% cash back on amex and mc... no 2% visa. Maybe this will change that.
Mar 2, 2015, 4:32 pm
#12
Join Date: Apr 2013
Location: Lehigh Valley, Pennsylvania
Programs: Milege+, SkyMiles, AAdvantage, HHonors Diamond, Marriott Gold
Posts: 1,685
Citi is pursuing an interesting strategy in issuing co-branded cards. They have partnered with one airline (AA), one hotel chain (Hilton), one online travel agency (Expedia), and now one club store (Costco). (I think they also issue cards for some other retailers, such as Macy's, haven't kept track.)
Citi will be a good partner for Costco customers. They did a brilliant job for me when Sears would not credit me over $785 for selling me an "out of stock" TV.
Last edited by mia; Mar 2, 2015 at 6:24 pm Reason: formatting
Mar 2, 2015, 4:35 pm
#13
Join Date: Dec 2010
Location: Indianapolis
Programs: Hilton-Diamond Lifetime Platinum AA UA, WN-CP, SPG Gold.
Posts: 7,377
You can bet Citi Reps will have a table at Costco, and the 2% will be there, plus 4% gas
Look for a nice sign up bonus,
Costco has been using V MC online orders for a while...
Who knows may get some AA Miles..
Look for a nice sign up bonus,
Costco has been using V MC online orders for a while...
Who knows may get some AA Miles..
Mar 2, 2015, 4:40 pm
#14
Join Date: Jul 2013
Location: DFW,OVB (Russia)
Programs: AA HH Gold SPG Gold BA
Posts: 1,823
Who knows, maybe even "free" costco membership if you know when/who to ask.. As we know, Citi can be very giving when they want to be (thanks citi for the continuous batches of AA miles, I've put them to good use)
Mar 2, 2015, 4:43 pm
#15
Join Date: Jan 2005
Programs: UA GOLD MM,WN CP A+list, HH Gold,MR LT Titanium
Posts: 2,184
If the earning structure changes dramatically from the current one, I see no personal advantage to using a new Visa over the 6-8 that I already carry.