Costco has picked Visa as its new payment card network and Citigroup as the new issuer of its cobranded credit cards.
The membership warehouse retailer announced last month that it would move on from its cobranding deal with American Express, which has been the company's card partner for 16 years. Amex said it could not come to an agreement with Costco, and it would rely on new technology initiatives to offset the loss of the retailer.
Costcos deal with Visa, announced Monday, hinges on Citigroup purchasing the existing co-brand portfolio. The banking giant will become the exclusive card issuer of Costco's cobranded cards while Visa will take over the network role previously enjoyed by American Express on April 1, 2016.
Costco said it will provide more details in coming months.