Costco deals with credit card problems

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What to know for Costco credit card switch

On June 20, Costco officially switched its retailer credit card from American Express (AmEx) to Visa, but while the company has been planning this for over a year, the transition has not gone smoothly. The company has almost 11 million credit card accounts that had to be transferred, a move that left many shoppers frustrated.

Instead of having an overlap period where customers could use either their AmEx TrueEarnings card or their Costco Anywhere Visa card, the company planned to do the switch within a day. June 19 was the final day that the AmEx cards were valid, but the Visa cards were not yet activated. On June 20, the Visa cards became valid while the AmEx cards expired.

However, a number of customers did not receive their Visa card by this date, while others were unable to activate the new card. Still others reported being unaware of the switch and did not realize they would need a new credit card. Richard Galanti, CFO of Costco, reported that as of June 23, only about two-thirds of the cardholders had activated their new cards. He estimated that some 180,000 did not receive their Visa card due to mailing errors.

Also see 11 items you should always buy at the wholesale giant:

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11 items to always buy at Costco
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11 items to always buy at Costco

1. Fresh produce

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2. Gas 

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3. Wine

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4. Dairy products 

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5. Eyeglasses

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6. Giftcards

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7. Dog food

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8. Baking items 

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9. Bakery goods 

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10. Oils (coconut oil, olive oil, vegetable oil)

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11. Costco's snackbar (hotdogs, pizza, soda) 

Photo via Shutterstock

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According to Costco, the issue led to longer wait times in store and required help from Citigroup, the bank that issued the Visa cards. A representative from Citigroup reported upwards of 1.5 million customer service calls regarding the issue.

If you want more credit, check out MoneyTips' list of credit card offers.

Originally Posted at: http://www.moneytips.com/costco-deals-with-credit-card-problems/178

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RELATED: See photos inside Costco stores around America:

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Costco stores
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Costco stores
Customers walk toward a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Linda Wentzel shops for clothing at a Costco Wholesale Corp. store in East Peoria, Illinois, U.S., on Tuesday, May 26, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release third-quarter earnings figures on May 27. Photographer: Daniel Acker/Bloomberg via Getty Images
Customers wait in line to check out after shopping inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Girls sit in a shopping cart as a customer pushes them past Halloween decorations displayed for sale inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
A customer browses a rack of clothes inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Signage is displayed outside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
A butcher works in the meat department inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Cuts of meat are displayed for sale inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
A customer views an item in the frozen foods aisle at a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Customers stand at check out counters after shopping inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
A Costco Wholesale warehouse location in Woodbridge, Virginia, January 5, 2016. AFP PHOTO / SAUL LOEB / AFP / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
Customers walk down an aisle inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Kellogg Co. brand cereal bars are displayed for sale inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Pineapples and other produce are displayed for sale inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
An employee pulls a cart full of tires past the cafe at a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Employee Jordan Meinders sorts a display of books at a Costco Wholesale Corp. store in East Peoria, Illinois, U.S., on Tuesday, May 26, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release third-quarter earnings figures on May 27. Photographer: Daniel Acker/Bloomberg via Getty Images
Contract employees push sample carts through a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
An employee pushes a row of shopping carts into a Costco Wholesale Corp. store in East Peoria, Illinois, U.S., on Tuesday, May 26, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release third-quarter earnings figures on May 27. Photographer: Daniel Acker/Bloomberg via Getty Images
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