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What you need to know when Costco ditches Amex

By Karla Bowsher/MoneyTalksNews

Costco's divorce from American Express is about to become official.

One year after Costco Wholesale Corp. announced it had entered into new agreements with Citi and Visa, Citi has publicly released an official date: June 20.

10 secret ways to save money at Costco
10 secret ways to save money at Costco

That's the date on which cardholders of Costco's co-branded credit card must start using the new Costco Anywhere Visa Card, a rewards card issued by Citi. Until June 20, cardholders can continue using their Costco Card from American Express.

Costco's agreements mean Citi will become the exclusive issuer of Costco's co-branded credit card. In addition, Visa will replace American Express as the credit card network for Costco in the U.S. and Puerto Rico.

What Costco's co-branded credit cardholders need to know

If you are a current Costco co-branded credit cardholder, Citi says that you do not need to re-apply to receive the new Visa version of the card. The new card will be mailed to you automatically. If your address has changed, however, call the number on the back of your card.

Once June 20 arrives, destroy the old American Express version of the card, as it will no longer be valid. Then, start using the new Visa version of the card at Costco and anywhere else Visa is accepted.

What Costco members need to know

If you are a Costco member or are considering becoming one, know that you are not required to apply for the company's co-branded credit card. Being a cardholder has not been a requirement and will not become a requirement after June 20.

Beginning on June 20, you can use any Visa card to shop at Costco, the Chicago Tribune reports.

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