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Visa/Citi replace Amex at Costco

scott
in Off-Topic
http://fortune.com/2015/03/02/costco-visa-american-express/

"The retailer, 19th on the Fortune 500, said Citigroup C 0.90% would be the exclusive issuer of Costco’s co-branded credit cards while Visa V 1.69% will be replacing American Express AXP 0.56% as the credit card network for Costco in the U.S. and Puerto Rico beginning April 1, 2016.

The Costco business is a big coup for Visa, as Costco is one of the nation’s largest retailers. As WSJ reported previously, the agreement had driven a big chunk of business for American Express. But when the arrangement ends, millions of customers will be forced to use a different credit card when shopping at Costco."

Comments

  • msf
    Costco has been accepting MC and Visa debit cards. I don't expect that to change.

    There does not seem to be a free 2% rebate card for Visa, as there is for Amex (Fidelity/FIA) and MC (Citi). It looks like the best one can do if one shops a lot at Costco is use the 1.5% QuickSilver card (CapOne) or pay a fee for a higher rebate Visa card.

    It remains to be seen what rebates will come with the Citi/Costco Visa.
  • [Deleted User]
    edited March 2015
    The user and all related content has been deleted.
  • msf
    edited April 2016
    The "Costco Anywhere Visa® Card by Citi" (that's the official name) starts June 20th. Looks better than the Costco Amex card it is replacing (aside from the Amex to Visa switch):
    - gas:                       4% (to $7K) vs. 3% (to $4K)
    - restaurants/travel: 3% vs. 2%
    - Costco:                  2% vs. 1%

    Citibank's Welcome/FAQ page
    Costco Cash Rewards Program Terms

    I suspect Fidelity delayed its conversion to a Visa card to match Costco's delay to accepting Visa.
    http://www.mutualfundobserver.com/discuss/discussion/26990/fidelity-s-rewards-visa-card
  • TedTed
    @MFO Members: This thread is over a year old, time to put it to sleep ! Remember, there's always cash !
    Regards,
    Ted
  • MikeMMikeM
    This may be a year old, but that's what makes this information about Costco's decision involving V and AXP interesting to look. I remember @scott pointing out Visa stock at the time. In 1 year, Visa stock is up over +20% while American Express is down over -20%. Good call.
  • JohnK
    I'm still using AMEX at Cosco?
  • msf
    Until July 1. Costco card and Costo change from Amex to Visa at the same time.
    http://www.marketwatch.com/story/5-things-to-know-about-the-costco-and-amex-breakup-2016-02-11
  • Mona
    msf said:

    Until July 1. Costco card and Costo change from Amex to Visa at the same time.
    http://www.marketwatch.com/story/5-things-to-know-about-the-costco-and-amex-breakup-2016-02-11

    Until June 20.
  • msf
    I stand corrected. I got the right citation, but mixed up the Fidelity Amex (July 1) and Costco Amex (June 20th) transition dates.
  • TSP_TransferTSP_Transfer
    As @Mona pointed out ,current cardholders will receive the new "Costco Anywhere Visa Card by Citi " before June 20th, 2016 for use beginning on June 20th,2016.A nicely presented brochure with enclosed details concerning the transition should have recently arrived in your snail mail.
    Excellent press and reviews abound on the change.

    Probably not so much here:

    Enjoy unique Cards from American Express,
    designed exclusively for Schwab investors.
    Cards are only available to clients that maintain an eligible Schwab brokerage account.
    BENEFITS FOR INVESTORS

    Get an unlimited 1.5% cash back on all eligible purchases
    Get an unlimited 1.5% cash back automatically deposited into your eligible Schwab brokerage account for purchases made with your Card

    Some WELCOME OFFERS

    http://www.schwab.com/public/schwab/investing/accounts_products/credit_cards
  • msf
    Not anywhere close to the old Schwab Visa card (2%, no foreign fee).

    The features described above are for one of the two Amex cards Schwab is offering. The other is a Platinum Amex ($450/year) charge card that gives Membership Rewards points (1.25%), not direct cash back.

    The free Schwab Amex is likely the best you're going to do on a free Amex cash back card (Blue Cash Everyday pays 3% on groceries, but 1% on everything else). And it is a "real" Amex card (issued by American Express), unlike the "faux" Fidelity Amex card issued by FIA Card Services.

    However, unless one has a particular need to carry Amex, I don't see a strong reason to get the Schwab Amex. I'll pass.
  • Mona
    msf said:

    However, unless one has a particular need to carry Amex, I don't see a strong reason to get the Schwab Amex. I'll pass.

    The only American Express cards that I have are a Costco Business card and a personal Costco Cash Back card. The Costco Business card is tied to my Membership Rewards Program (points) which I have had and used since 2000. I have no idea why I have the Costco Cash Back card and never have used it.

    I have decided that the Costco Anywhere Visa Card by Citi with cash back is better for me than the American Express Membership Rewards Program, so I will redeem my points shortly.

    What I find ironic, is that to get new American Express card I need to fill out an application which includes information on income, and for Costco Anywhere Visa Card by Citi, all I need to do is open my mail. I understand Patriot Act requirements, but do not think income is one of them. I would think that 16 years of pristine payment history with American Express would suffice, but American Express thinks differently.

    I too will pass on a new American Express card.

    Mona

  • davidrmorandavidrmoran
    It used to be that Amex phone c/s and other support, as well as backing policies (for car rentals, warranty extensions, subpar merchandise, merchant conflicts), were much much better than anyone else's. Maybe no longer the case so much, but a distinct and demonstrable advantage as of just a few years ago. Interesting about income info request.
  • msf
    The Patriot Act requires credit card banks to obtain identifying information. It does not require you to provide your SSN, let alone income information.

    (You are required to provide SSN to open a bank account, but not a credit card account - this is because the credit card banks felt asking potential customers for their SSN would alienate them. Sounds mercenary, but this is what the final regs say on p. 25098, pdf p. 12.)

    I believe the ease at which you can get the Costco Visa card is because it is being treated as a transfer of an existing Costo Amex account, rather than the opening of a new account (hence no credit pull).

    So it turns out that your Costco Amex Cash Back card finally did serve a useful purpose.
  • Mona
    I agree and hope that with the Costco/Visa partnership, comes the American Express support and backing that we became accustomed to.

    Ever since the announcement of the divorce with Costco, American Express has handled Costco American Express cardholders in a "slick/sly/business like" (call it what you would like) manner.

    The first offer was a gold card free for the first year and then $175 per year. I guess when they found few takers, they went to another promotion. Now they are offering free cash back and points cards. It seems it depends on the percentage retention of the 10% they were expected to lose, the closer they get to the divorce. I would not be surprised that before June 20 American Express drops their income request. 10% is a lot to make up.

    Mona



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