Citibank gets Costco Credit Card Deal

[Anonymous]

My advice to everybody... just let it ride.

There's too much to lose for all parties if Costco AND customers get pissed off.

AMEX will offer you a retention card.

Citi will grandfather in TE cardholders with similar CL

The only real question is whether or not the new Citi card will have your old account creation date.  But with AMEX's retention offer, you'll get an old card anyways so that should negate any AAoA effect from a new Citi card.  

2 (maybe 3) tradelines for the price of 1 with no new inquiries and a non-issue on AAoA.  

[Anonymous]

Has there been any more updates about this? I wish we weren't kept in the dark. Costco is like my second home, lol.

[Anonymous]

Only thing I've been hearing is that Amex has been sending invitational letters not sure if it's just for TE member for a BCE

[Anonymous]

I just wanna know how the citi cards reward structure. I really have no use for my Amex anymore but it would suck to loose the credit line.

[akabigo]

---

@Anonymous wrote:
Only thing I've been hearing is that Amex has been sending invitational letters not sure if it's just for TE member for a BCE

---

I can say that I had never received anything from AMEX as far as targeted offers until the Citi deal was announced. Now I have gotten two offers for the BCE and $100. It doesn't seem like they'll just give us something to replace the TE later although it's way too early to think that.

[uswala]

I got an offer for the BCE with $100 bonus. Though, I never thought they were sending it out to TE members.

[Anonymous]

so, I glanced through some pics of people getting it through the mail, question is, is it considered a HP? or will they PC TE card to BCE or even better BCP. I tried calling a PC for a BCP and they said thats not available to do and they hit me with a HP

[dwz55]

Looks like Costco is getting a super sweetheart deal out of this.

http://www.bloomberg.com/news/articles/2015-04-17/costco-seen-paying-almost-zero-to-accept-cards-in-...

[14Fiesta]

---

@dwz55 wrote:

Looks like Costco is getting a super sweetheart deal out of this.

http://www.bloomberg.com/news/articles/2015-04-17/costco-seen-paying-almost-zero-to-accept-cards-in-...

---

There you go - Now we know AMEX wasn't kidding when they said it wasn't worth it. It's all the risk of lending with none of the reward. Wow I cannot believe it's this low

[Gunnar419]

---

@dwz55 wrote:

Looks like Costco is getting a super sweetheart deal out of this.

http://www.bloomberg.com/news/articles/2015-04-17/costco-seen-paying-almost-zero-to-accept-cards-in-...

---

Thanks, dwz. That was interesting and it also answered another general cc question I've been wondering about. "While banks typically generate about 80 percent of their credit-card revenue from interest on balances and other fees, they rely on interchange for the rest, according to Lisa Ellis, an analyst at Sanford C. Bernstein & Co."

I knew the interchange fees were the small slice of the pie, but that confirms it. Sounds as if Costco cc purchases are going to have to be something of a loss leader for banks that issue Visas.