Citi has finally wrapped up the previously announced acquisition of Costco’s US co-brand credit card portfolio from American Express (Amex).
The bank has also completed the conversion of acquired credit card portfolio from Amex into Visa-branded cards. Citi purchased more than $10.5bn of credit card receivables.
The bank has released Costco Anywhere Visa Card and Costco Anywhere Visa Business Card, and made available to all Costco members with immediate effect. The new cards allow cardholders to earn cash back as well as other benefits on all shoppings.
Citi and Costco had signed a long-term co-brand credit card program agreement earlier in March, 2015. At the same time, Costco had inked a co-brand incentive agreement with Visa.
As per the agreements, Citi agreed to become the exclusive issuer of Costco’s co-brand credit cards while Visa gave its consent to replace American Express as the credit card network provider for Costco in the US and Puerto Rico.