If you’re a regular Costco shopper, you’ve probably heard the news by now: The relationship between Costco and American Express is ending, and the TrueEarnings® Card from Costco and American Express is being eliminated. Soon, Costco will accept only Visa credit cards, and TrueEarnings® Card from Costco and American Express cardholders will be receiving the Costco Anywhere Visa® Card by Citi.
Judging by the number of questions we’ve received about the transition, many of you aren’t sure what to expect. To help you out, we’ve put together some answers.
When will the switch take place?
You’ll be able to use your new Costco Anywhere Visa® Card by Citi beginning June 20. Costco will also accept any other Visa card, cash, checks, debit cards, EBT and Costco Cash Cards.
June 19 is the last day you’ll be able to shop at Costco with the TrueEarnings® Card from Costco and American Express or any other American Express card.
Is the Costco Anywhere Visa® Card by Citi also my Costco membership card?
Yes. Just like the TrueEarnings® Card from Costco and American Express, it will double as a membership card. You can also use it to make purchases at stores other than Costco. The Costco Anywhere Visa® Card by Citi has no annual fee, but to get it you have to be a Costco member, which costs at least $55 a year.
If I have the Costco AmEx, will I get a new card?
Yes. A Costco Anywhere Visa® Card by Citi will be automatically sent to TrueEarnings® Card from Costco and American Express cardholders in late May or early June. Your new card will have a different account number, but it won’t count as a new line of credit on your credit report.
If you want to continue your relationship with American Express, you’ll need to apply for a new credit card.
» MORE: NerdWallet’s best American Express cards
Will my credit score get dinged for opening a new credit card?
Cardholders won’t need to have their credit histories pulled to receive the new Costco Anywhere Visa® Card by Citi. Accounts will be transferred automatically from American Express.
However, if you apply for a new American Express card, it’s possible that American Express will perform a hard credit pull and create a new account for you. Both will likely reduce your score.
But all of this might depend on how long you’ve had your account. Some who have Costco American Express cards that predate the TrueEarnings® Card from Costco and American Express have reported that their accounts were converted to other American Express cards without a hard credit pull. In some cases, they were even able to keep the same account number.
Can I still use my TrueEarnings® Card from Costco and American Express elsewhere?
No, you won’t be able to use the TrueEarnings® Card from Costco and American Express after June 19. You will be able to use your new Citi card at stores besides Costco.
What happens to the cash-back rewards from my TrueEarnings® Card from Costco and American Express?
You’ll continue to earn rewards through June 19, all of which will be automatically transferred to the new Costco Anywhere Visa® Card by Citi. If you’ve earned American Express Membership Rewards points, those won’t transfer.
Whom do I pay if I have a balance on my TrueEarnings® Card from Costco and American Express?
You’ll pay your balance to Citi, which is taking over the debt on all TrueEarnings® Card from Costco and American Express accounts.
What if I’ve set up auto-payments using my TrueEarnings® Card from Costco and American Express?
These payment arrangements won’t travel with the new credit card. You’ll need to update your billers with the information from your new Citi Visa.
What kinds of rewards will I earn with the Costco Anywhere Visa® Card by Citi?
Pretty good ones! Here’s a summary:
- 4% cash back on up to $7,000 in gas purchases each year from Costco and other gas stations, not including those at other warehouse clubs.
- 3% cash back at restaurants and on eligible travel purchases.
- 2% cash back on all purchases from Costco and Costco.com.
- 1% cash back on all other purchases.
Will I get travel and purchase protections with the Costco Anywhere Visa® Card by Citi?
Yes. You’ll get worldwide car-rental insurance and travel accident insurance, as well as damage and purchase protection good for 120 days after buying something with the Costco Anywhere Visa® Card by Citi. You’ll receive a booklet detailing all the benefits around the time the card is issued.
What are my other options if I don’t want the Citi card?
Citi is sending the new cards to all TrueEarnings® Card from Costco and American Express cardholders, so you’ll probably receive it whether you want it or not.
But because Costco will accept any Visa credit card after June 20, you can use a different one at Costco and elsewhere if that’s your preference.
Want some suggestions? We’ve rounded up our favorite Visa cards here.
Still have questions? Email us at advice@nerdwallet.com.
Learn more
- New Visa is a big step up for Costco cardholders
- Costco cardholders likely to get a new card number from Citi linked to same account
- Comparing rewards: Costco Visa vs. Sam’s Club MasterCard
- NerdWallet’s best store credit cards
Ellen Cannon is a staff writer at NerdWallet, a personal finance website. Email: ecannon@nerdwallet.com. Twitter: @ellencannon. Virginia C. McGuire also contributed to this report.
from NerdWallet
https://www.nerdwallet.com/blog/credit-cards/costco-anywhere-visa-frequently-asked-questions/
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