|Costco Wholesale members are receiving details in the mail on the transition to Visa credit cards from American Express.|
By VICTOR E. SASSON
The end of Costco Wholesale's long relationship with American Express will translate into more cash rebates for members who use the new Visa credit cards.
And for the first time, both the business credit card and consumer card will give identical rebates for purchases inside and outside a warehouse.
The change to Visa as membership and credit card is scheduled for June 20, 2016.
That's when the rebate on gasoline purchases worldwide, including gas at Costco, goes up to 4% from 3% with a Costco-American Express True Earnings Card.
The American Express True Earnings Business Card already gives 4% back on gasoline.
3% back at restaurants
Cash back on restaurants and eligible travel purchases goes up to 3% from 2%; on purchases from Costco and Costco.com, the rebate will go to 2% from 1%; and all other purchases will earn 1%, the same as now.
Any cash rebates you earn on American Express credit cards will be transferred automatically to the new Visa cards.
The new cards will be mailed to you, so there is no need to reapply and no credit report will be pulled, Costco says.
And, like the American Express cards, there is no annual fee with the new Costco Anywhere Visa Card by Citi and Anywhere Visa Business Card by Citi.
How rebates pay
Costco members pay an annual fee of $55 to $110, but rebates earned inside and outside of the warehouse more than cover that expense.
That means you enjoy great Costco prices on food, clothing, electronics and more, and get to laugh all the way to the bank with hundreds of dollars in cash rebates from American Express and soon Citi.
The Executive Gold Star Membership ($110) also entitles you to an additional 2% annual cash rebate from Costco itself, up to $750.