CostCo USA dropping Amex for Citigroup VISA

[ponyo]

I let my regular Costco membership lapse awhile ago. I've been meaning to re-up and this time figured it's time to go for the Executive membership to take advantage of the rewards.

Now, if I were to go in tomorrow and get that membership level, what would I get? An Amex card, or a Citi card? And... if I were to get an Amex card, would that card be closed when Citi then sends me the new card, or would I end up having both?

Gold star and Executive are Costco member levels. It has nothing to do with credit card. If you let your Gold star membership lapse, you're not heavy Costco shopper so Executive would be waste of money.

Amex is no longer accepting Costco Amex application. So you can't get Costco Amex. You will have to wait and apply for Costco Citi Visa once it becomes available.

 

[destrekor]

Gold star and Executive are Costco member levels. It has nothing to do with credit card. If you let your Gold star membership lapse, you're not heavy Costco shopper so Executive would be waste of money.

Amex is no longer accepting Costco Amex application. So you can't get Costco Amex. You will have to wait and apply for Costco Citi Visa once it becomes available.

I let it lapse because circumstances changed and I was unable to take advantage of it. I love Costco and will definitely be able to take advantage of it.


I thought the Executive membership level included the credit card? It makes sense to wait a few months anyway, so I can wait until they accept applications for the new card.

 

[ponyo]

I let it lapse because circumstances changed and I was unable to take advantage of it. I love Costco and will definitely be able to take advantage of it.


I thought the Executive membership level included the credit card? It makes sense to wait a few months anyway, so I can wait until they accept applications for the new card.

Why would executive membership level include the credit card? If all it took was $110 to get guaranteed credit card approval, every bankrupt, homeless, and people without income would pay $110 to get the credit card so they could charge and not pay.

 

[destrekor]

Why would executive membership level include the credit card? If all it took was $110 to get guaranteed credit card approval, every bankrupt, homeless, and people without income would pay $110 to get the credit card so they could charge and not pay.

Not a guaranteed application, no... but I thought the card was tied to that account level, as in, you couldn't get the card without springing for that level?

I thought I remember when I had signed up the first time that they had tried to sell me on that membership level because it would [possibly] include the Amex, and the extra fee would be recouped if you did not save an extra $55 during that year of membership with the extra reward points.

Or was that just a specific account perk? The higher membership level included an automatic 2% cashback/reward, almost like a store card?

So could any Costco member, of any level, sign up for the Costco-branded Amex (and in the near future, Citi Visa card)?

 

[destrekor]

Oh and probably covered elsewhere, but it seems this new Costco credit card from Citi can actually be even better than the Amex card.
4% on all gas (including Costco)
3% on restaurant and travel purchases
2% on all Costco purchases
1% everything else

If my Google-fu is up to snuff, I think the Amex card only really offered 1% for Costco purchases, 3% for gas.

I'll have to apply for that once it comes around. Sounds like an overall great card for one without rotating categories. I've been itching for a good card to replace my debit card now that I'm getting my credit in order, trying to work a few cashback cards into rotation to maximize what I get for what I'm already spending.

I had a nasty habit of racking up revolving debt, mostly thanks to terrible planning and 0% interest store card promotions that bit me in the ass... hard. So hard I think tore half my ass off. D:
But I'm getting ahead on things now, and want to use these cards how they should be used: pay off each month, use for all my purchases instead of using my debit mastercard.

Oh, and there's also that security thing. For whatever reason, USAA did not see fit to give me a chip-card for my debit mastercard (the type that can be rang up as credit), as my old one just expired and I have a new one, mag-stripe only. When my USAA credit card expired the replacement had a chip card. I think all, or at least most of my other cards have all been replaced with chip cards, but not my debit card. I don't get why they'd not upgrade that considering it can be used on the Mastercard network. Oh well...

 

[RossMAN]

Oh and probably covered elsewhere, but it seems this new Costco credit card from Citi can actually be even better than the Amex card.

Correct and Citi has a useful feature Virtual Account Numbers which is awesome for online shopping.

http://onemileatatime.boardingarea.com/2016/03/24/citi-costco-card-details/

The Costco American Express Card (being discontinued on June 19, 2016) offers the following return on spend:

3% cash back at US stand-alone gas stations and on gasoline at Costco (up to $4,000 per year), then 1%
2% cash back at US restaurants and on eligible travel purchases, including at Costco
1% cash back on other purchases, including at Costco

However, the new Citi Costco Visa Card (being introduced on June 20, 2016) will have different bonus categories:

4% cash back on eligible gas worldwide, including at Costco (up to $7,000 per year), then 1%
3% cash back on restaurant and eligible travel purchases worldwide
2% cash back on all other purchases from Costco and Costco.com
1% cash back on all other purchases

 

[boomerang]

Not a guaranteed application, no... but I thought the card was tied to that account level, as in, you couldn't get the card without springing for that level?

No, we didn't get the executive membership until we bought some high priced items and we knew that it would pay for itself that year. We went for years and years with the regular run of the mill membership the name of which escapes me at the moment.

 

[BarkingGhostar]

When the wife and I decided we wanted to partake of the cobranded Amex-Costco card, we had to upgrade out membership to the Executive level. The trade off of having to pay $110 instead of $55 was that the Amex card had no annual fee. The one and only shortcoming of the Amex-Costco cobranded card was the lack of foreign transaction fee benefit.

At the end of 2014 we spent most of December in the UK. While we could have used the cobranded card over there for everything, including the UK Costco stores, the lack of fee-less foreign transactions was a bust. We went with the Barclay (arrival+?) card.

We did have the Delta Skymiles Amex, too as a backup card with no foreign transaction fees and I always commented to Costco for failing in this department. Why? Well, if you are encouraging people to travel, and to use a cobranded credit card, why not go the one extra step and remove the foreign traction fees, too?

On that one trip Costco-Amex lost out on ~$30K of transactions. We made >$1500 off of Barclay. It was crazy.

 

[SamQuint]

Just got a letter about the new card. WTF I had an interest rate of 13.24 on the old Amex card. The new Visa card is 15.49 or something like that.

Did everyone else get a higher interest rate? My credit hasn't changed at all. Plus they weren't going to pull a credit report anyways to issue the new card.:thumbsdown:

EDIT

I take that back. I got a new Amex card to replace the Costco one and it has the lower 13.24 APR. The old Costco Amex was 15.49 and it is the same on the new one.

 

[sontakke]

What? Costco customer paying interest on the credit card? I thought Costco only allowed deadbeat people (sponges) who pay their credit card bill full every month and deny the credit card company their much deserved interest fees.

 

[kt]

Oh and probably covered elsewhere, but it seems this new Costco credit card from Citi can actually be even better than the Amex card.
4% on all gas (including Costco)
3% on restaurant and travel purchases
2% on all Costco purchases
1% everything else

That's without Executive membership? So we get an additional 2% with Executive membership?

 

[AznAnarchy99]

That's without Executive membership? So we get an additional 2% with Executive membership?

Yup. So essentially 4% back with Executive.

 

[destrekor]

Yup. So essentially 4% back with Executive.

How does the Executive membership work in terms of cash back?

You earn 2% through the Citi card. I understand how that cash back system works.

For Executive, does Costco just have an internal rewards program that builds up for every single purchase, and you what, get a check cut at a certain point, perhaps annually? Or, I imagine a gift card?

Or can see your balance and use it at the register?

 

[boomerang]

How does the Executive membership work in terms of cash back?

You earn 2% through the Citi card. I understand how that cash back system works.

For Executive, does Costco just have an internal rewards program that builds up for every single purchase, and you what, get a check cut at a certain point, perhaps annually? Or, I imagine a gift card?

Or can see your balance and use it at the register?

You get a check annually.

 

[JEDI]

so what happens to our amex Costco credit card after june 20th?
is it automatically closed?

 

[kt]

How does the Executive membership work in terms of cash back?

You earn 2% through the Citi card. I understand how that cash back system works.

For Executive, does Costco just have an internal rewards program that builds up for every single purchase, and you what, get a check cut at a certain point, perhaps annually? Or, I imagine a gift card?

Or can see your balance and use it at the register?

Costco sends your 2% reward once annually in the form of a coupon certificate you can use at the register. If you're an Executive member, you will see the amount you've earned for your current purchase on your receipt. I've had Executive membership for over 5 years now and my coupon amount is always above $55 (additional fee for Executive membership) so it's well worth it.

 

[kt]

Quote:
Originally Posted by destrekor
How does the Executive membership work in terms of cash back?

You earn 2% through the Citi card. I understand how that cash back system works.

For Executive, does Costco just have an internal rewards program that builds up for every single purchase, and you what, get a check cut at a certain point, perhaps annually? Or, I imagine a gift card?

Or can see your balance and use it at the register?
You get a check annually.

Not a check, a coupon certificate that is valid at Costco only.

 

[ponyo]

How does the Executive membership work in terms of cash back?

You earn 2% through the Citi card. I understand how that cash back system works.

For Executive, does Costco just have an internal rewards program that builds up for every single purchase, and you what, get a check cut at a certain point, perhaps annually? Or, I imagine a gift card?

Or can see your balance and use it at the register?

Costco sends you annual check around your anniversary join date. Annual Executive membership reward is capped at $750. So even if you spend over $37,500 a year at Costco, the max check you can get is $750.

Amex/Citi rewards are separate and that has no limit.

 

[thesmokingman]

Not a check, a coupon certificate that is valid at Costco only.

Valid only at Costco, but it's good as cash in hand.

 

[ponyo]

Valid only at Costco, but it's good as cash in hand.

Yes. I always cash both checks at Costco. For small amounts, any checkout cashier will cash it for you. Larger amount, you usually have to cash it at the membership desk.

 

[Chiropteran]

Damn, the new citi costco card looks pretty good. I never bothered with the Amex Costco card because I preferred my blue cash card.

Is there any way to apply to get the new citi costco card? The website seems to make it look like the only way to get the card is to have one sent automatically if you are a former Amex Costco Card user.

 

[destrekor]

Damn, the new citi costco card looks pretty good. I never bothered with the Amex Costco card because I preferred my blue cash card.

Is there any way to apply to get the new citi costco card? The website seems to make it look like the only way to get the card is to have one sent automatically if you are a former Amex Costco Card user.

They probably won't open it up for applications until the card is launched, or at least around that date.

 

[boomerang]

Valid only at Costco, but it's good as cash in hand.

Exactly. The next trip we make I apply it to that purchase and take the rest in cash.

 

[BarkingGhostar]

so what happens to our amex Costco credit card after june 20th?
is it automatically closed?

The Amex card and account cease to be after June 19th, 2016. The account information will transfer to Citibank and replace the Amex with a Visa. If you cancel before then the account information will not transfer.

I confirmed this with Amex and Costco.

I cancelled mine as I have other Amex and Visa cards.

 

[kt]

Valid only at Costco, but it's good as cash in hand.

Still not a check, it's a cash coupon valid only at Costco. A check would indicate you could deposit into your bank account.

Just want to make it clear because other cash back programs send you an actual check.