Costco credit card switch a headache for some shoppers

Costco has been planning its big credit card changeover for months, but it hasn't gone smoothly for all customers.

On Monday, Costco officially dropped its longtime exclusive partnership with American Express and began accepting only Visa cards, including a new, co-branded Costco Anywhere card issued by Citigroup.

Customers who previously had Costco's co-branded American Express card were supposed to receive their new Visa cards in the mail automatically. But since Monday, dozens have posted complaints to the wholesale club's Facebook page complaining about problems with the switch-over.

Several said the new credit cards never arrived while their Costco American Express cards were canceled on schedule, and they had trouble getting help from Citi customer service.

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Some customers complained about long hold times. Other complaints concerned improper balances and new cards not working.

A New York Costco shopper got a letter from Citi dated Friday before the official changeover saying he'd be receiving the new card soon. After Monday came and went with no credit card, he's reconsidering his membership, he said in an email.

Although Visa is now the only credit card accepted at Costco, members can use other forms of payment or Visa cards other than the Costco Anywhere card, but only the co-branded card gives shoppers cash-back perks that are slightly higher than those offered with Costco's American Express cards.

On Monday, Costco spokeswoman Bev Akada said that while a small percentage of customers hadn't received cards, the vast majority arrived on schedule.

More than 11 million cards already have been issued to existing Costco members, said Citi spokeswoman Jennifer Bombardier in an email. Those Costco members flooded Citi's phone lines with more than 1.5 million calls in the days after the switch, she said.

"Due to the tremendous response, some customers experienced delays reaching customer service; however, call volumes are starting to return to normal, and we are working diligently to meet the needs of our customers," she said.

Citi also lets customers activate cards online and is in the process of resending credit cards to people whose addresses had changed, she said. Existing members who should have received a Costco Anywhere Visa but still haven't, can contact Citi to make sure their address is correct and request a new card.

"We sincerely apologize to those who have been inconvenienced and we are absolutely committed to serving our existing and new cardmembers," she said.