Dive Brief:
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Warehouse retailer Costco Wholesale Corp. said Monday that is has entered into a new credit card partnership with Citi and an incentive program with Visa, which replace its 16-year program with American Express.
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Citi, the world's largest consumer credit card issuer, will become the exclusive issuer of Costco co-branded cards. Visa will replace American Express as the credit card network for Costco in the U.S. and Puerto Rico, beginning in April.
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Costco and American Express Co. parted ways after their failure to come to terms on an agreement. As of March next year, the retailer will no longer accept American Express cards.
Dive Insight:
Costco and American Express Co. maintained a partnership for years that is unusual in retail: The retailer accepted only its branded AmEx card, and no others, in stores. Other forms of payment have been only available to those shopping at Costco online.
Under this new program with Citi and Visa, Costco members will accrue loyalty points using the co-branded Visa card. Costco said it will soon release information on how customers can transition to the new card.
