Patrick Murphy, WalletHub Analyst
@stpatrick1982
The Costco credit card change happened on June 20, 2016. More specifically, that’s when Costco’s switch to Visa from American Express officially took effect, after being announced in February 2015. As a result, Costco went from only taking Amex to exclusively accepting cards on the Visa network.
Costco’s co-branded credit cards changed, too. Before June 2016, they were the Costco True Earnings and True Earnings Business cards from American Express. Now, they’re the Costco Anywhere Visa® Card by Citi and the Costco Anywhere Visa® Business Card by Citi. In addition to all their new sign-ups, Costco had to switch over 11 million people who had their American Express cards.
Costco switched to Visa mainly for business reasons. Though they enjoyed a 17-year exclusive relationship with American Express, eventually they could not negotiate a renewal of the contract with the terms they wanted. So Costco turned to Visa, and the deal they negotiated ended up benefitting both Costco and its shoppers. For starters, far more people have a Visa card than an American Express card. There were 335 million Visa cards in circulation at the end of 2016, compared to 47.5 million American Express cards, according to the networks’ filings with the U.S. Securities and Exchange Commission.
Despite having some initial trouble making the switch, Costco has now settled into the new system. Customers can now use any Visa credit cards and most PIN-based debit/ATM cards at Costco, and the Costco Credit Card has a far better rewards program than its predecessor.
If you’re already a Costco member or are planning to become one (membership is required for the card), the Costco Credit Card is a perk that’s definitely worth taking advantage of. It offers extensive ongoing rewards: 5% cash back rewards on gas at Costco and 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter, 3% back on restaurant and eligible travel purchases, 2% back on all other Costco and Costco.com purchases, and 1% back on all other purchases. And aside from the Costco membership costs, the Costco Credit Card charges a $0 annual fee.
Popular Credit Cards from Our Partners
People also ask
Does Costco accept Visa credit cards?
Costco accepts all Visa credit cards, Visa debit cards and Visa gift cards. In fact, Costco has a contract with Visa and only takes Visa cards, which means you can't use cards on other networks like Mastercard or American Express at Costco. This has been the case since June 2016, when Costco switched from only accepting American Express cards.
Paying at Costco: Visa and Other Options
- Costco takes all Visa credit cards, debit cards,...
What are my Costco Citi Card approval odds?
Your Costco Credit Card approval odds are good if you have excellent credit. Approval odds for the Costco Credit Card will also be influenced by your annual income and existing debts. Applicants will need to be 18+ years old with a U.S. mailing address and an SSN or ITIN, as well.
What You Need for Good Costco Credit Card Approval Odds
- Excellent credit
- Enough income to pay credit card bills
- Low debt relative to income
- ...
Is the Citi Costco Visa the only Costco credit card?
Yes, Costco Anywhere Visa® Card by Citi is the only type of Costco credit card. But there are two versions: the Costco Credit Card (for consumers) and the Costco Business Credit Card. They offer the same terms, although small business owners may qualify for higher spending limits. This card has a $0 annual fee.
You don’t need a Costco-branded credit card to shop at Costco, though. You can use any Visa credit card to pay at Costco. If you are interested in a card that offers...
read full answer by WalletHub, Financial CompanyDid we answer your question?
Important Disclosures
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers. For full transparency, here is a list of our current advertisers.
Advertisers compensate WalletHub when you click on a link, or your application is approved, or your account is opened. Advertising impacts how and where offers appear on this site (including, for example, the order in which they appear and their prevalence). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.
Advertising enables WalletHub to provide you proprietary tools, services, and content at no charge. Advertising does not impact WalletHub's editorial content including our best picks, reviews, ratings and opinions. Those are completely independent and not provided, commissioned, or endorsed by any company, as our editors follow a strict editorial policy.