Beginning April 1, 2016, Citigroup and Visa will take over the exclusive Costco credit card deal previously held by American Express for nearly two decades, reports the Los Angeles Times.
Under the new agreement, transactions will be processed by Visa, and the exclusive, co-branded Costco credit cards will be issued by Citi.
Costco customers will be able to use the cards as membership cards and at merchants who accept Visa. Other forms of Visa credit cards will also be accepted. The retailer otherwise only accepts debit cards and cash.
Costco’s 16-year partnership with American Express will lapse on March 31 over the companies’ inability to “reach terms that would have made economic sense,” American Express CEO Kenneth Chenault announced in a statement.
Meanwhile, a spokesman for Costco said that its contract with American Express will be “business as usual” for the months remaining.