American Express Deal Ends With Costco as Visa and Citigroup Move In
In a stunning move that could affect consumers across Northern Colorado, Costco in February ended a partnership with American Express that lasted close to 15 years and has entered into a partnership with Visa and Citigroup, which was announced today.
The loss of Costco was a huge loss to American Express as the wholesale chain comprised around eight percent of the billed business for American Express. This equated close to $80 billion in revenue.
With the new agreement in place, Visa will process all Costco transactions and Citigroup will lead the charge of all co-branded credit cards. The agreement with Citigroup will start on April 1st. Before the start date is to take place, the existing co-branded portfolio must be purchased by Citigroup. When that happens, existing Costco members will have their new cards sent to them.
Costco members who have the new co-branded cards will still be able to take part in rewards plans offered by Costco through the use of the credit card, along with the card being able to be used at merchants that accept Visa cards.
Costco's local location is in Timnath right off Interstate 25.