What to know about the changes coming to Costco

Posted at 11:29 AM, Jun 20, 2016
and last updated 2016-06-20 18:06:27-04

Costco is now starting the switch to credit card provider to Citi Visa from American Express.

The company said that means Costco’s American Express cards will no longer work at Costco or anywhere else.

What about your rewards? Not to worry.

The store said all remaining cash back rewards from your American Express card will transfer  to the new Citi Visa card.

American Express had the exclusive partnership with Costco for 16 years.

According to AMEX, losing the partnership with the bulk store impacts one in 10 cardholders.

Click here for complete information on the Costco changes.

Back in March the company said the new card will have an even better cash-back program.

The new Costco Visa, which can be used everywhere, will give shoppers 4% back on the first $7,000 of gas they buy, and 1% on purchases after that.

The old Costco card only gave 3% back on the first $3,000 of gas purchases.

The new card will give 3% cash back on restaurant and eligible travel purchases, compared to 2% on their American Express.

Additionally, it will give 2% back on Costco purchases and 1% back on all other purchases.

The Costco American Express paid 1% back on all other purchases, whether or not they were at Costco.

The new Visa card is among the best cash-back offer of any card available on the market, according to Virginia McGuire of NerdWallet.

“If you spend a lot on gas, restaurants and travel, this card has pretty great rewards,” she wrote in a recent review.

The new Visa card has no annual fee other than the $55 Costco membership, and Costco American Express cardholders will be automatically switched over to it.

Accumulated rewards will also transfer.

One hitch: The cash back that shoppers will get with the new card will be in a voucher that can only be redeemed at Costco, rather than at a bank.

The card holder can get cash, or use the money for a Costco purchase, which is obviously what Costco is counting on.