If you’re one of them, here’s what you need to know.
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Costco first announced it decided not to renew its partnership with AMEX a year ago. It can no longer be used at Costco or anywhere else after the 19th. Returns made from purchases made on the old Amex Costco cards will be handled on a case by case basis by the merchant. Some people only had American Express cards because of the partnership with Costco, Eric Wasserstrom of Guggenheim Securities, told MarketWatch.
Members who use Costco’ TrueEarnings American Express credit cards for their purchases are out of luck.
“Shoppers at wholesale retailers tend to spend more than the average consumer and also be more affluent – an ideal target customer for credit card issuers”, McQuay says. Also, you won’t have to reapply to get the new card. And Bank of America added wholesale clubs as a bonus cash-back category for its BankAmericard Cash Rewards credit card.
New co-branded credit cards signup stopped several months ago.
That’s a relatively small financial fallout, though it’s possible that come June 20 if the process doesn’t go as smoothly as planned they could incur more financial damage.
Is there an annual fee for the new Visa card? Having Costco’s standard $55 membership entitles Visa cardholders to 2% cash back, but Costco’s Executive members get an additional 2% on top of that.
Visa is taking over as the exclusive credit card for Costco, which means all other non-Visa credit cards will no longer work. Costco customers using Chase Freedom cards will get cash back for their purchases at Costco. Other Visa cards will be accepted.
Costco will continue to accept cash, checks, debit cards, Electronic benefit transfer cards, Costco Cash cards and other forms of payment.
The new Costco Anywhere Visa Card by Citi is a solid choice.
The Costco Visa card also doubles as a membership card.
A USA Today report informed, “Costco will not be conducting credit checks of its customers”.
Once you receive your new Visa, follow the instructions on it to activate it, and do not forget to sign the back.
If your Costco card from American Express earned Membership Rewards points, these points will not transfer to your new card. With generous cash back opportunities and benefits, the new cards enable cardmembers to earn cash back rewards on all purchases.
The new cards won’t offer the roadside assistance service that the old cards did.
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Purchases at Costco and online with Costco.com will also get 2% cash back, in comparison to 1% before. CFO Galanti said that the company will see an increase in new signups after June 20.
