Costco inks agreements with Citi, Visa

Following its fallout with American Express, Costco announced on Monday that it has entered into a new co-brand credit card program agreement with Citi and an acceptance and co-brand incentive agreement with Visa.

Under the agreements, Citi will become the exclusive issuer of Costco's co-brand credit cards, and Visa will replace American Express as the credit card network for Costco in the United States and Puerto Rico, beginning April 1, 2016.

Once issued, Costco's co-brand Visa credit card would provide rewards to Costco members, serve as the Costco membership card, and would be accepted at Costco locations in the United States and Puerto Rico, as well as all merchants worldwide that accept Visa credit cards.

Costco stated that it will provide its members with additional information in the coming months regarding the transition from its existing co-brand credit card program.

On Feb. 12, American Express announced that its U.S. co-brand and merchant acceptance agreements with Costco will end on March 31, 2016. According to American Express, the companies failed to reach an agreement on renewal terms. Until that time, all American Express credit cards will be accepted at Costco warehouse stores in the United States and on Costco.com. All co-branded cards from American Express and Costco can be used any place American Express cards are accepted through March 31, 2016.