Costco announces new partnership with Visa and Citi
Now that Costco's deal with American Express is over, Citigroup Inc. will start issuing the company's credit cards and Visa Inc. will be the credit-card network beginning in 2016.
For the last 15 years, American Express was the only card accepted at Costco, and the partnership, which ended last month, represented 8 percent, or $80 billion, of the credit card company's billed business and 20 percent, or $14 billion, of its interest-bearing credit portfolio, the Los Angeles Times reports.
On April 1, 2016, transactions will be processed by Visa and Citi will be the exclusive issuer of co-branded credit cards, with the company also accepting debit cards, cash, and other Visa cards as forms of payment. The company said in a statement that the deal is still subject to the purchase of Costco's existing co-branded credit card portfolio by Citi, but they expect it to be sold.
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Catherine Garcia is night editor for TheWeek.com. Her writing and reporting has appeared in Entertainment Weekly and EW.com, The New York Times, The Book of Jezebel, and other publications. A Southern California native, Catherine is a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
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