Citi and American Express have inked a deal for Citi to acquire Costco’s U.S. co-brand credit card portfolio.
The sale is expected to close June 2016, at which time all eligible Costco American Express Card cobranded accounts will be transferred to Citi. Additional details will be provided to Card Members in advance of the partnership end date.
The ultimate gain on sale will be determined based on the assets actually sold, and as previously disclosed, American Express estimates a gain of approximately $1 billion. Given that the close is still several months away, and the Card Member borrowing and paydown trends are difficult to predict in this type of transition, the final gain could differ from the estimate.
Citi is currently working with Costco to provide a new value proposition to its members. Additional information regarding the product offering will be available in the coming months.
For a complete archive of more than 60,000 articles published since 1995 search the CardFlash.com library.