Citi to Buy Costco Credit Card Portfolio from AmEx by June
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After several delays, Citigroup and Costco have set a date for their new credit card partnership. Citigroup will purchase the co-branded credit card portfolio from American Express by the end of June.
Last February, Costco announced it would be ending its 16-year relationship with American Express in favor of a more affordable deal from Visa and Citigroup. That contract was scheduled to end March 31, 2016, but it was extended until the Visa/Citi deal went into effect. Earlier this month, Costco said it would be making the switch some time in mid-summer, but the exact time was not set until today.
Current Costco cardholders should be receiving their new Visa cards sometime in June, shortly after the switch. There are no reports at this time about any special benefits that the new cards will have, but that information should be released before the cards are issued.
As of August 2015, Costco had a total of 81.3 million cardholders, making this a huge blow to American Express. In addition, American Express has suffered lost partnerships with Fidelity and JetBlue in the past 12 months.