Costco Quietly Makes a Key Credit Card Change

In an unexpected move, Costco has changed its exclusive credit card partner from American Express to Citigroup and Visa. The change, announced quietly, will take effect in the first quarter of 2027.

Details

Under the new agreement, Visa cards issued by Citi will be the only credit cards accepted at Costco warehouses in the United States. Costco will also launch a new co-branded credit card in partnership with Citi and Visa, replacing the current Costco Anywhere Visa card issued by Citi.

Context

Costco had an exclusive partnership with American Express for many years before switching to Citi and Visa in 2016. This latest change appears to be a continuation of Costco's strategy to secure the best financial terms for its customers.

What This Means for Investors

For Costco investors, this change could lower the transaction fees the company pays to credit card companies, potentially boosting profits. For American Express investors, it represents the loss of a key partner. Meanwhile, Citi and Visa may benefit from increased transaction volume.