The days of the American Express Costco credit cards are indeed coming to an end, The Seattle Times reported. On 20 Jun, the warehouse club will officially switch over from American Express to Visa cards. In May and early June, customers will get their new cards called Costco Anywhere cards - since the Costco is finally teaming up with Citigroup. American Express has also announced the end of their partnership with Costco last year. The time has come. Here are six things customers should know about the upcoming change:
1. They don't need that much to make the switch. Existing members don't even need to apply for the new Costco Anywhere Visa card, they will just automatically receive it in the mail. Citigroup said that members can still use their American Express cards through 19 Jun and destroy them right after. Once the new Visa cards start working, which is on 20 Jun, their American Express Costco cards will not work at any stores any longer and will be cancelled.
2. The rewards will stack up by Costco members will be earning 4 percent cash back on top of $7,000 gas money, 3 percent on restaurants and eligible travel, 2 percent on Costco purchases and 1 percent on everything else. Since the new card doesn't have an annual fee, the shoppers will need to pay for a $55 annual membership fee.
3. Sean McQuay, a credit card expert for NerdWallet, says that Visa wants to win this deal a lot based on the increased perks. Costco cardholders, who frequently use their cards for large purchases, can be potential customers for credit card companies.
4. Although the Costco members don't have to get the Costco Anywhere Visa card, only those who have that certain card will be able to avail of the perks listed above.
5. Getting a new card will definitely not affect customer's credit scores according to Citigroup. The company says that they will not pull reports upon transfer of accounts.
6. Citigroup stated that customers won't lose cash-back rewards which they've earned on Costco American Express cards up to 20 Jun. Those will move to the new Visa cards together with any outstanding balances. American Express said that other AmEx membership benefits won't transfer to the new cards.
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