NEW YORK -- Costco has reached an agreement with Citi for a new co-branded credit card program, shortly after dropping its similar deal with American Express.
Costco says it will start accepting Visa rather than American Express at its U.S. stores on April 1, 2016. Until now, the wholesale club retailer has accepted only debit cards and Amex.
Details about the new card's benefits and terms will be made available to members soon. The Costco Amex card offered card holders 3% cash back for gas, 2% for restaurants and travel and 1% back for everything else, and there was no annual fee as long as the user was a Costco member.
The deal anticipates the purchase of the existing co-branded Costco Amex card portfolio by Citi.
Citi is the world's largest issuer of consumer credit cards and has co-branded cards with other retailers, including Sears, for which it has issued a Sears MasterCard.