Costco’s Credit Card Headaches Continue

August 24, 2016, Written By John H. Oldshue
Costco Wholesale Store Exterior

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While the new Costco Anywhere Visa Card by Citi offers excellent rewards, it has had a rough rollout. As recently as Friday, Costco members received emails from Citi saying their accounts had been closed.

Several members said these emails were addressed to other people and contained the last four digits of that customer’s account number, which led some to believe the company had been hacked.

When customers called to complain, many reported waiting more than 30 minutes to speak with a representative. The company finally emailed all affected customers on Saturday, and told them to disregard prior emails about their account.

“Your account and the cards for any existing authorized user(s) are open and available to use,” the email read. “We apologize for any concern or inconvenience this may have caused and please be assured your account has not been compromised.”

Citi assured Business Insider that user accounts had not been compromised, and that the emails were supposed to be sent to Costco customers whose memberships had lapsed. However, due to a system error, some active Costco members received these emails instead. Citi also said the error affected only a small percentage of Costco shoppers.

Previously, Costco’s rewards credit card was offered through American Express, but the retailer finished the transition to Visa in June. The change has been rather bumpy. However, while there have been complaints, Citi says it believes the transition has been successful over all. They have reported 337,000 new accounts, and purchases on the Costco Anywhere Visa Cards totaled $5.7 billion during the first 3 1/2 weeks after the switch.



The information contained within this article was accurate as of August 24, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.