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Citi will be new partner for Costco


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61 days, not 91 per Mendie, who is the MAN of AmEx. 3x increase, BTW, no hard pull usually. good luck.

Oh, thanks! I think I had 61 on my spreadsheet but was thinking 91 for some reason. Online request I'm assuming or does it need to be a call?

Online request. 3X's your current limit.

 

The cool kids are rolling on a 45 day window not 61 nowadays.

 

No hard pull, correct?

 

Correct. ;)

 

 

Is 45 confirmed to work - and for those who've done it do you have other older Amexes? I'm thinking it might be a little too risky to try 45 on a first card.

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61 days, not 91 per Mendie, who is the MAN of AmEx. 3x increase, BTW, no hard pull usually. good luck.

 

Oh, thanks! I think I had 61 on my spreadsheet but was thinking 91 for some reason. Online request I'm assuming or does it need to be a call?

Online request. 3X's your current limit.

The cool kids are rolling on a 45 day window not 61 nowadays.

No hard pull, correct?

Correct. ;)

Is 45 confirmed to work - and for those who've done it do you have other older Amexes? I'm thinking it might be a little too risky to try 45 on a first card.

Don't think too much.

 

If they won't give it to you in 45, they won't give it to you in 60.

 

Remember, the 60 day CLI isn't a gimme, if you're not qualified, you won't get it.

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Okay, I find this whole thing ironic. I can't use my existing double cash at Costco because it's a MC (even though it's a Citi card), which is probably the card I'd most WANT to use there. My Costco Amex (recently opened) will become some type of random Citi Visa (which I'll keep as long as there's no AF).

Where is the irony? And why didn't you apply for an FIA Amex? And your Coscto Amex will become a Costco Citi.

 

I've had no problems with Citi and they seem to like me so I'm kind of okay with the switch as long as I keep the account history.

 

whether you're ok or not ok, the portfolio purchase is coming :P
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Just speculating if Amex will rollover my CLI to other Amex card that I own or just not do any type of retention action since I have other Amex accounts already.

 

I _think_ Amex will let you move limits to another card after the 13th statement cuts.

 

Research this - or wait for others to correct me.

 

ETA: Yes, they will.

The Master "Which Issuers Will Combine Limits?" Thread

 

American Express - Revolving Cards ("donor" card must have 13 or more closed statements; you must leave $500 - $1,000 on "donor" card)
Edited by tweak691
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Amex's discussion of the impact and possible sale of the card portfolio. It depends on negotiations between Citi, Amex, and Costco in unspecified ways:

 

As announced on February 12, 2015, we sought to renew our co-brand and merchant acceptance agreements with Costco in the United States, a substantial and growing business relationship. We were unable to agree to terms that would have provided attractive returns for our Company and our shareholders compared to alternative investments. U.S. Costco co-brand accounts generated approximately 8 percent of our worldwide billed business for the year ended December 31, 2014. Over 70 percent of the spending on these accounts occurred outside Costco warehouses. As of December 31, 2014, these co-brand accounts were responsible for approximately 20 percent of our worldwide Card Member loans and approximately 10 percent of our total cards-in-force. In addition, 1 percent of our worldwide billed business for the year ended December 31, 2014 came from spending on other American Express cards at Costco warehouses. Our current co-brand and merchant acceptance agreements with Costco are set to expire on March 31, 2016. The term of any sale of the existing Costco U.S. Card Member loan portfolio will depend on a series of decisions and negotiations among Costco, us and the new co-brand card issuers.

We intend to make investments to attract Card Members, including those from the Costco co-brand relationship, by offering them attractive products from our suite of proprietary offerings. We will also be making investments in other growth initiatives across our Company that we believe offer more attractive returns over time and position us for continued long-term growth. We believe having greater certainty regarding our existing co-brand relationships gives us more flexibility to invest in growth opportunities in the co-brand space and across our Company to help us drive innovation in the world of payments and commerce.

At the same time, we are prepared to re-scale our overall cost base so that it is appropriately sized, which could include a restructuring charge in the future and help us to maintain discipline over operating expenses in 2015 and 2016. The timing and size of any restructuring charge will be dependent on a number of factors, including whether there is a portfolio sale as well as the rate the billed business associated with the Costco U.S. co-brand portfolio declines and how quickly we can grow billed business with other products.

The cumulative effect of increased competition and pricing regulation, the strengthening of the U.S. dollar, the expiration of our U.S. Costco co-brand relationship in 2016 and other factors previously discussed leads us to expect earnings per share in 2015 will likely be significantly adversely affected year over year as we manage through these near-term challenges and invest aggressively to prepare for the end of the Costco U.S. relationship. The impact of these challenges in 2016 will depend on factors such as our ability to offer attractive products and services to Card Members, grow other sources of revenue and implement expense control initiatives, although there can be no assurance that these measures will be successful. We are confident in our business model and believe our financial targets remain appropriate over the longer term once our year over year results are not impacted by the loss of Costco or the renewal of our other co-brand partner relationships.

On February 19, 2015, a trial court ruled in favor of the U.S. Department of Justice (DOJ) in a case challenging provisions in our card acceptance agreements with merchants that prohibit merchants from discriminating against our card products at the point of sale. See “Certain Legislative, Regulatory and Other Developments” for information on the potential impacts of an adverse decision on our business.

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Amex's discussion of the impact and possible sale of the card portfolio. It depends on negotiations between Citi, Amex, and Costco in unspecified ways:

 

The term of any sale of the existing Costco U.S. Card Member loan portfolio will depend on a series of decisions and negotiations among Costco, us and the new co-brand card issuers.

 

Good post.

 

Seems to me there's a lot of confusion posted here about this coming transition in April 2016.

 

I might be wrong but I think that Costco probably reached agreement with the VISA network prior to reaching agreement with CITI as the new "Co-Branded" issuer of Costco cards.

 

Furthermore, the agreement with CITI is contingent on their buying AMEX's portfolio of Costco co-branded cards.

 

Obviously, under this scenario, AMEX would be precluded from offering any PC offers. And of course CITI could choose not to issue a new card to any borrower who didn't meet their underwriting standards.

 

I suppose it would be entertaining if AMEX just said "No" to CITI's best offer

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  • 1 month later...

Some info on the agreement that is interesting:

http://www.seattletimes.com/business/retail/costco-said-to-get-sweet-deal-from-credit-card-companies/

 

 

 

Costco Wholesale has attained a goal that retailers have sought for years: near-zero expenses for credit-card payments.

In a deal with Visa and Citigroup, Costco’s acceptance costs will be about zero, according to people familiar with the arrangement. That compares with the roughly 0.6 percent of each transaction the retailer pays its current partner, American Express. While Costco will still incur small fees on Visa cards issued by other banks, incentives from Citigroup and Visa will offset them, the people said.

The arrangement shows the pressure that Costco, the biggest U.S. retailer that accepts just one brand of card, was able to exert on financial firms seeking one of the industry’s most coveted partnerships.

Amex has said Citigroup and Visa won because it wouldn’t agree to the conditions and risks needed to continue its exclusive 16-year relationship with Costco, which is now set to end next March.

“The numbers didn’t add up,” Amex chief executive Kenneth Chenault told investors last month. “We couldn’t accept their financial terms nor their contract terms, some of which would have meant taking on more risk than we were comfortable with.”

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When is this damned thing going to start reporting?! I'm dying to see if Citi keeps AmEx's OpenedOn date for D* accounts. That and the AmEx account reported closed 3 months ago, so it's affecting my overall utilization number (or it would if I carried a balance on anything :) )

Edited by JeffeVerde
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I am shocked that Costco opened a store in Toledo, OH. I am more shocked that they said it was faring well.

Transportation Corridor there.

I have a 3PL facility in Toledo and have been there many times.

 

That town has been hit hard by Jeep plant closures as well as the auto glass and other automotive parts/components companies that moved to Mexico. The factories are closed or demolished. The downtown commercial/office district is essentially a ghost town.

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  • 5 months later...

We are splitting our membership with my parents (our household and theirs each has one membership card), and I don't think I'm getting $27.50 a year in value as it is.

 

On the other hand, I just spent more than that having chicken wings delivered to my house.

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