Costco switch to Visa spurs competition

Posted at 7:06 PM, Jun 30, 2016
and last updated 2016-06-30 22:20:12-04

The transition of Costco from its partnership at American Express to Citi Visa hasn't been without its problems, but experts say the benefits to consumers just might be worth it.

Customers have been all over social media voicing their displeasure with how the transition is being handled. Some said they never got their new credit cards, others said their rewards did not transfer and some complain the cards just don't work.

But Mandi Woodruff with said to give it some time.

"Costco transferring 11 million users on to a new credit card, there's bound to be issues," Woodruff said.

She said once the issues are cleared up, then customers can see what they're really getting.  

"They upped the cash back rewards in nearly every category," Woodruff said.

So, where customers used to get three percent for gas through Amex, now Costco Anywhere Visa holders get four percent. Restaurant and travel cash back goes up to three percent. Costco purchase rewards doubled to two percent.

Another change?

"They're taking any Visa card now," Woodruff said.

And other Visa issuers are taking advantage, offering deals specifically for warehouse purchases.

"So, you have a Chase Freedom card you could be earning as much as five percent cash back through the end of the year," Woodruff said.

Someone else taking advantage: Sam's Club. The warehouse competitor is letting Costco customers in for free through July 4. You can use any credit card there, but that wasn't the case until a few months ago, Woodruff said.

Regardless of what you end up doing, read the find print, make sure you know the regular interest rate and don't spend more than you can pay in full each month because reward benefits can quickly disappear when you carry a balance.

If you're having problems with your new Costco Anywhere Visa card, the retailer recommends contacting them directly via

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