Costco Credit Cards to Be Taken Over by Citi

In a move that has been in the making for more than a year, Citi Cards has announced it will acquire all Costco-branded credit cards by June 2016. The Costco portfolio is rumored to be worth upwards of $1 billion.

Current cardholders will soon receive information about their new cards in the coming months, including all benefits for which they will be eligible. Although the new cards are likely to look different, they are expected to provide customers with a user experience they are already accustomed to. One change, however, will be that Costco stores will no longer accept American Express cards. Customers wishing to pay by credit card will be required to use a Citi card, or to pay by cash instead.

Last February, Costco cited irreconcilable differences with previous card issue, American Express, as the reason for the proposed changeover. Citi entered the picture and charmed the wholesaler, headquartered in Issaquah, Washington. Although the ink is not yet dry on the deal, it is expected to take effect in June. It will affect all 671 Costco locations throughout the United States.

In a statement, Citi Cards CEO Jud Linville said, “We are immensely pleased to have entered into an agreement to acquire the Costco portfolio and look forward to a long-term partnership with Costco and the opportunity to deliver value, convenience and seamless service to their 51 million loyal members across the country.”

Image via Instagram/Costco