US-based retailer Costco Wholesale has inked a new co-brand credit card program agreement with Citi and an acceptance and co-brand incentive agreement with Visa.
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Under the terms of the agreements, Citi will become the exclusive issuer of Costco’s co-brand credit cards while Visa will replace American Express as the credit card network for Costco in the US and Puerto Rico from 1 April 2016.
After the implementation of the agreements, which is subject to Citi’s purchase of the existing co-brand credit card portfolio, Costco will accept only Visa credit cards at its stores.
Visa credit card will serve as the Costco membership card and will provide rewards to Costco members.
Citi CFO John Gerspach said at a financial-services conference: "We believe that we’re positioned well to partner with Costco and take advantage of their loyal customer base."
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By GlobalData
