Costco announces new partnership with Visa and Citi

Now that Costco's deal with American Express is over, Citigroup Inc. will start issuing the company's credit cards and Visa Inc. will be the credit-card network beginning in 2016.

For the last 15 years, American Express was the only card accepted at Costco, and the partnership, which ended last month, represented 8 percent, or $80 billion, of the credit card company's billed business and 20 percent, or $14 billion, of its interest-bearing credit portfolio, the Los Angeles Times reports.

On April 1, 2016, transactions will be processed by Visa and Citi will be the exclusive issuer of co-branded credit cards, with the company also accepting debit cards, cash, and other Visa cards as forms of payment. The company said in a statement that the deal is still subject to the purchase of Costco's existing co-branded credit card portfolio by Citi, but they expect it to be sold.

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up