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Costco's credit card nightmare just got even worse

Costco’s marriage to Visa has been rocky pretty much from the start — and this weekend shoppers faced a new problem, despite assurances that issues in the relationship were being ironed out.

On Friday evening, a number of Costco members received emails from Citi, the issuer of the new Visa-Costco credit card, alerting them that their credit card accounts had been closed.

In at least some cases, members reported that they received emails addressed to other people that contained the last four digits of other users’ account numbers, raising concerns that their accounts had been hacked.

Citi told Business Insider that Friday’s emails were intended to be sent to Costco shoppers whose memberships had lapsed to alert them they could no longer use their Costco Anywhere Visa cards. But because of a systematic error, some active Costco members received emails intended for other cardholders.

Citi said that the users’ accounts were not compromised and that the mistake affected only a small percentage of Costco members.

The emails represent another speed bump in Costco’s transition from American Express to Visa as its credit card of choice. The move, finalized in June, affected 11 million Costco members who were required to transition from the TrueEarnings American Express Costco cards to the Costco...