American Express recently announced that it expects to close on a deal with Citigroup to sell its entire Costco US-based credit card portfolio by June 2016. Estimates are that Amex's gain on sale could be in excess of $1 billion.
But what does this all mean for current Costco credit cardholders?
It means that they should expect to receive information within the next few months about how their credit card account will transfer over to Citibank. Yes, your beloved AMEX Costco card will eventually get phased out, and you will receive a new Costco-branded Visa credit card from Citibank.
Costco's new deal with Citibank marks the end of a 16-year relationship with AMEX. While Costco's current contract with AMEX actually ends March, 31 2016, an extension was negotiated in order to allow additional time for the transition to be completed.