Costco’s New Credit Card Has Lucrative Rewards, But Experiencing a Rough Rollout
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The Costco credit card switch from American Express to Citi has finally taken place.
The new Costco Anywhere Visa Card by Citi has some very lucrative cash back rewards: 4% cash back on gas purchases (up to $7,000 per year); 3% on travel purchases and restaurants; 2% on Costco and Costco.com purchases and 1% on all other transactions.
But the transition from one issuer to another is facing a bumpy road during this first week.
In February, Costco announced it would be ending its 16-year relationship with American Express to form a partnership with Citigroup. The new cards were supposed to enter customer wallets June 20, but many consumers are reporting delays.
On Monday, Costco members could no longer use their TrueEarnings American Express Costco card or any other non-Visa credit or debit card. But many customers said they have not yet received their new Citi card. Others said they are having issues activating their card.
Citi has reportedly had trouble keeping up with customer questions and complaints, so many Costco members are experiencing long wait times to speak with a representative.
Costco, which has 81 million members worldwide, is receiving a number of complaints on their Facebook page.
Citi said the sheer volume of cards has led to the delays. “To date, more than 11 million cards have been issued to existing Costco cardmembers,” Citi spokesperson Jennifer Bombardier told Business Insider. “Due to the tremendous response, some customers experienced delays reaching customer service, however call volumes are starting to return to normal. We sincerely apologize to those who have been inconvenienced and are absolutely committed to serving our existing and new cardmembers.”
Bombardier told The Chicago Tribune that if a member has not received their new card, they should contact Citi to make sure their contact information is up-to-date.