Costco AMEX Replacement Card

[rodi]

I read somewhere that you won't get dinged for the Costco/AMEX card going away because it's the company canceling, not the user. If Citi buys the data and issues cards based on it, you'll have the same credit limit and age on the card, so again no change to your FICO score.

If they don't buy the data, I'm guessing you will get a ding. I had a card closed for non-use and the drop in credit limit did drop my score.


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I thought one of the factors in the FICO score was length of time with individual credit cards... so if you've had a costco amex for a long time - it could ding you... even more if it's your oldest credit card.

I don't think it will have a huge effect - but it will have SOME effect.

 

[Badger]

Supposedly the reason you don't have to cancel the Amex card is because the combo Amex/Costco card only exists because of the exclusive agreement with the two companies. When this agreement ends on 3/31/16 the card/account won't 'exist' either. You try to run it and it will decline. Of course I am going to double check mine and make sure but I am not anticipating a problem.

The other thing to consider is that supposedly Citi is either required or strongly encouraged to purchase the Costco/Amex portfolio from Amex as part of their deal with Costco. This would mean that everything would be seamless for everyone holding a current Costco/Amex card, a month before the deadline you'd receive a new Citi/Costco/Visa that would have the same exact credit limit/balance/etc as your previous card. The only difference is that the rewards *should* be better.

Because of an potential identity theft concern when my wallet was stolen I put a freeze on my credit through the 3 major bureaus.

Will I have to do anything or contact the 3 major bureaus when the Amex/Costco card is no longer valid?

Also will I have to unfreeze my credit at the 3 major bureaus to get the new Citi/Costco/Visa card and then refreeze? That would be such a hassle but I like to have a Costco card that I use exclusively for Costco purchases and gas as well as for easier bookkeeping.

Cheers!

 

[audreyh1]

Because of an potential identity theft concern when my wallet was stolen I put a freeze on my credit through the 3 major bureaus.

Will I have to do anything or contact the 3 major bureaus when the Amex/Costco card is no longer valid?

Also will I have to unfreeze my credit at the 3 major bureaus to get the new Citi/Costco/Visa card and then refreeze? That would be such a hassle but I like to have a Costco card that I use exclusively for Costco purchases and gas as well as for easier bookkeeping.

Cheers!

No to paragraph 2. They'll eventually be notified that the card account no longer exists.

Yes to paragraph 3, but you can try to find out which bureau will be used so that you only have to unfreeze one of them.

 

[akck]

I thought one of the factors in the FICO score was length of time with individual credit cards... so if you've had a costco amex for a long time - it could ding you... even more if it's your oldest credit card.



I don't think it will have a huge effect - but it will have SOME effect.

Based on what I read, if Citi buys AMEX data, your new Citi Costco card will keep the original length of time and credit limit as your soon to expire AMEX Costco card. This should have a net zero effect on your FICO score.


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[audreyh1]

I've run across some updates on the Costco transition to accepting VISA and the new Citi VISA. Very recent scuttlebutt says it is delayed to June 2016, or "mid summer".

BTW Citi is taking over the Costco AMEX accounts, not creating a new account for you.

Here is a fairly recent article about the delay, and a Jan discussion that goes into a lot of detail about the new Citi replacement:

Costco delays credit-card switch | The Seattle Times

Starting in [-]April[/-] maybe June 2016, Costco will start a new partnership with Visa and Citi; only Visa credit cards will be allowed at the warehouse and Citi will issue a Costco co-branded credit card under the Visa network.

Personal credit card details
No annual fee
• 3% on the first $4,000 of gas, 1% thereafter
• 2% on travel and at US restaurants
• 1% on all other purchases including Costco

Details on new Citi Costco VISA! - FlyerTalk Forums

____________________________________________________________

What about the Fidelity AMEX to VISA transition?

The new Fidelity 2% VISA (another transition from AMEX - but not really, it was FIA Card Service on the AMEX network) is also a mid-2016 for existing customers, although they are already offering the 2% Fidelity VISA to new customers as of now.

Existing Credit Card Customer FAQs: https://www.fidelity.com/cash-management/cardmember-faqs

Fidelity® Rewards Visa Signature® Credit Card: https://www.fidelity.com/cash-management/fidelity-visa-signature-card?s_tnt=73764:7:0

Oh - and this new one supports Apple/Android/Samsung Pay - yay! The old FIA card services one did not. https://www.fidelity.com/cash-management/faqs-rewards-credit-cards

 

[Ronnieboy]

I hope the rewards are better than what is posted. That is pretty much what they are now. Supposedly Costco was asking for not only less fees for them but better rewards for their members co-branded cards.

If those are the rewards, I might be better off getting a different Visa for Costco shopping....

 

[audreyh1]

I hope the rewards are better than what is posted. That is pretty much what they are now. Supposedly Costco was asking for not only less fees for them but better rewards for their members co-branded cards.

If those are the rewards, I might be better off getting a different Visa for Costco shopping....

That's right - no change. Just a VISA instead of an AMEX.

I don't expect any change now. It's too close to transition.

I expect to use my new 2% Fidelity VISA for shopping at Costco, just like I use my old 2% Fidelity AMEX right now.

 

[Ronnieboy]

Reading the Flyertalk posts, I see that the reward info came from the sec.gov filing that Citi did. I am inclined to believe that the filing (which was done soon after the announcement of the deal) was/is just a 'placeholder' so the info from the current card was used. At least that is my hope

The big delay came about because Amex said the portfolio was worth $XXX and Citi said $XX. I was told that an arbitrator had to come in to finalize the deal, which was just announced last week.

I wonder how much Costco is going to be paying in Amex processing fees during the contract extension They will probably be pushing Citi to be doing the conversion ASAP.

 

[Drake3287]

A couple of simple questions though that no one seems to know:

1. My current Costco American Express Card is good through 5/17, will it still be an active American Express Card through then, just not usable at Costco?

2. Is Citi Bank automatically sending us new Visa card even though I don't need another Visa card? I plan to just use my BofA Travel Rewards Visa Card.

This whole change over process is becoming a joke. Every person including Costco and AMEX people tell me something different each week.

 

[audreyh1]

A couple of simple questions though that no one seems to know:

1. My current Costco American Express Card is good through 5/17, will it still be an active American Express Card through then, just not usable at Costco?

2. Is Citi Bank automatically sending us new Visa card even though I don't need another Visa card? I plan to just use my BofA Travel Rewards Visa Card.

This whole change over process is becoming a joke. Every person including Costco and AMEX people tell me something different each week.

I believe you will automatically get the Citibank VISA. That's what all the articles/discussions say.

I'm not sure how the old Costco AMEX will work, since they are turning the existing accounts over to VISA. I haven't seen a clear answer on this.

 

[misanman]

My Costco Amex card is my membership ID, complete with picture. Will it still serve that function or will the new Visa be our ID?

 

[Drake3287]

Although Costco can easily just issue me a new membership card instead of the old AMEX card one, I don't see how Citi Bank can just open a Visa account in my name send me another card without my permission.

 

[travelover]

Although Costco can easily just issue me a new membership card instead of the old AMEX card one, I don't see how Citi Bank can just open a Visa account in my name send me another card without my permission.

Maybe you already gave permission. It was on Line 4,683, Section B17, in Paragraph 8,122.

 

[Drake3287]

Exactly!!

 

[OrcasIslandBound]

In this process, Amex offered me a new "blue" credit card, then followed up with an offer of $200 if I just used the card for the first couple of months for $1000. This offer seemed too good to be true, but I tried it anyway, since I had a business trip coming up. Low and behold, they promptly gave me the $200.

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[Ronnieboy]

A couple of simple questions though that no one seems to know:

1. My current Costco American Express Card is good through 5/17, will it still be an active American Express Card through then, just not usable at Costco?

2. Is Citi Bank automatically sending us new Visa card even though I don't need another Visa card? I plan to just use my BofA Travel Rewards Visa Card.

This whole change over process is becoming a joke. Every person including Costco and AMEX people tell me something different each week.

The Costco Amex card will no longer work as a Amex card once the conversion completes. That is why Amex is sending out a lot of offers to current Costco/Amex holders.

As long as your account is in good standing, you will be getting a new Citi/Costco co-branded Visa. It will be the same account, with a new number, supposedly same credit limit, same balance (not that anyone here carries one) same interest rate (doesn't matter since you don't carry a balance). Etc. Etc.

 

[Ronnieboy]

Although Costco can easily just issue me a new membership card instead of the old AMEX card one, I don't see how Citi Bank can just open a Visa account in my name send me another card without my permission.

I still have my membership card and don't even use my Costco/Amex card to get in or the cashier to scan for my membership, just my membership card, so yeah, you can stop by membership at anytime and just get a member card (AFAIK).

It is like your mortgage, you applied for it at one bank, but it was later sold to another. Same with the Amex, Citi just bought your account from Amex and will be issuing you their card.

 

[Ronnieboy]

My Costco Amex card is my membership ID, complete with picture. Will it still serve that function or will the new Visa be our ID?

Supposedly, it will be the same.

 

[audreyh1]

Although Costco can easily just issue me a new membership card instead of the old AMEX card one, I don't see how Citi Bank can just open a Visa account in my name send me another card without my permission.

They're not opening a new account, they're taking over your AMEX account and sending you a new card.

 

[mn54]

The Costco Amex card will no longer work as a Amex card once the conversion completes. That is why Amex is sending out a lot of offers to current Costco/Amex holders.

As long as your account is in good standing, you will be getting a new Citi/Costco co-branded Visa. It will be the same account, with a new number, supposedly same credit limit, same balance (not that anyone here carries one) same interest rate (doesn't matter since you don't carry a balance). Etc. Etc.

That's unfortunate. I used that card to get 3% back at restaurants. Will have to find a substitute.

 

[Fedup]

I wonder what's going to happen to reward points once they close the account.


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[audreyh1]

That's unfortunate. I used that card to get 3% back at restaurants. Will have to find a substitute.

How did you get 3% back at restaurants? The existing card only offers 2% back for dining, and the new card will offer the same.

 

[Drake3287]

Your latest responses are correct, I had the chance to talk to a Costco manager last night and he had just come from a meeting about this whole situation. He said:

1. ANYONE with a current AMEX Costco card will automatically be getting a new Citi Bank Visa card. Like it or not.

2. Once this new Visa card is activated your old AMEX card will no longer be active. Not even as an AMEX card at other places. Old card is completely closed. No longer will you have a AMEX account even if your card has a future expiration date on it.

3. The only way to not get the new Visa card is to cancel your AMEX card prior to the switch over.

4. Anyone canceling the AMEX card and not getting the new Visa one can simply go to Membership Services and have a new membership card made.

5. For anyone like me who already has a couple of Visa cards and doesn't want another, we need to cancel our AMEX account prior to the June switch over date. If we wish to continue with a new AMEX card, they are offering a new card with a $300. credit bonus after making a certain amount of purchases during the first 90 days.

6. For me, I just plan to use my BofA Travel Reward Visa card at Costco after all this happens.

 

[Chris7]

I do have a number of items being auto-paid by the Amex card. So sounds like I'll have re-route those. I'll probably re-route them to my USAA Card. What a pain.

chris -- :O)

 

[Gotadimple]

If you like using an AMEX card, and the only one you have is the Costco Amex, take advantage of Amex's offer on its Blue card. This is a no fee card, with the same benefits for purchases. Cash back on purchases (points) is available in $25 increments, as a statement credit.

Once you meet the initial spend limit in the AMEX offer, your statement will reflect the bonus as a credit.

-Rita