Costco will FINALLY accept Visa cards

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NEW YORK (CNNMoney) — 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. 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.

2 comments

  • Cash Back Credit Cards Fan

    So, until 4/1/2016, probably the best card to use at Costco is the Fidelity AmEx for 2%. (I never understood why people were so hot on their TrueEarnings Card from Costco and American Express which only earned 1% at Costco.)

    Starting April 1st of 2016, some of the best cards to use at Costco will be:

    1. BankAmericard Travel Rewards Visa which can earn 2.625% toward travel if you qualify for Bank of America’s Preferred Rewards Platinum Honors status. (Or 2.25% with Platinum status or 1.875% with Gold status or 1.5% with no Preferred Rewards status.)

    2. Capital One Venture Visa which earns 2% toward travel.

    3. U.S. Bank FlexPerks Travel Rewards Visa Signature card which earns about 1.66% toward travel on spending at Costco and about 3.32% on cell phone as well as either gas, grocery stores, or airfare, whichever you spend the most on each month.

    4. Capital One Quicksilver Visa which earns 1.5% cash back on all spending including Costco.

    You might also want to try the reward calculator at CreditCardTuneUp. com to see which Visa cards will earn you good rewards for your Costco spending and other expenses. The calculator factors in bonuses and annual fees as well.

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