Costco’s transition to Citi’s Visa saw another trial last weekend when a glitch caused some members to receive emails notifying them their accounts had been closed.
The mixup, Citi told Business Insider, was caused by a systematic error that occurred when it intended to send the notification to Costco members with accounts that had lapsed to notify them that they could no longer use their Costco Anywhere Visa cards.
The emails were mistakenly sent on Friday evening, and addressed by Costco Saturday evening, according to the news source.
"Your account and the cards for any existing authorized user(s) are open and available to use,” Costco wrote to affected members. “We apologize for any concern or inconvenience this may have caused and please be assured your account has not been compromised."
Unfortunately, because some members reported emails not addressed to them with the last four digits of another account number, concerns arose that accounts had been hacked. Citi reportedly had phone wait times extending 30 minutes or more as members called in to verify their accounts were active.
While it has been a struggle for members, some threatening to cancel do to long waits and difficulties in obtaining information from Citi, Costco continues to perform and looks to be continuing a slow-paced gain in previous months.
As of yesterday morning, the initial first day for the floor to open for the NYSE since the incident, the company’s stock was trading at $168.05 USD, up .02%.
As for the transitional speed bumps, Citi reports that, to date, it has seen more than 337,000 new account acquisitions, far exceeding expectations since Costco made the switch in June.
Deli Market News will continue to follow the retailer’s progress, as well as other fluctuations in the market as they pertain to the industry.