Citi confirms it has successfully completed the acquisition and conversion of Costco’s U.S. co-brand credit card portfolio from American Express. Citi acquired in excess of $10.5 billion of credit card receivables.
The new Costco Anywhere Visa Card by Citi and Costco Anywhere Visa Business Card by Citi are available exclusively to Costco members.
The long-term co-brand Costco VISA credit card program agreement between Citi and Costco was originally announced in March of last year. Citi does not expect the impact of the acquisition and conversion to be material to its earnings in 2016.
This week marks the first time that Costco begins accepting only Visa branded credit cards in its warehouse and gas locations across the U.S. and in Puerto Rico.
With either the new consumer or business card, cardmembers will earn:
• 4% cash back rewards on eligible gas worldwide for the first $7,000 and then 1% thereafter
• 3% cash back rewards on restaurant and eligible travel purchases worldwide
• 2% cash back rewards on all other purchases from Costco and costco.com
• 1% cash back rewards on all other purchases, with no limit on earnings potential
In addition to offering cash back and doubling as a Costco membership card, the cards also provide a broad range of built-in, comprehensive benefits including:
• Damage & Theft Protection
• Extended Warranty
• Worldwide Car Rental Insurance
• Worldwide Travel Accident Insurance
• Trip Cancellation and Interruption Protection
Existing Costco credit cardmembers should have already received the new Costco Anywhere Visa Card by Citi and the card is now available for use. Cash back rewards that were not previously distributed will be transferred automatically to the new card.
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