New Changes to Citi Cards

[tharaka]

Changes in detail are posted here.. I just received an email.

Citibank Australia

 

[trippin_the_rift]

the 3.4% on AUD transactions overseas is a killer.

Effectively means dynamic currency conversion will be ~8.4%

 

[ReLoad]

looks like time to get a new card, moved from woolies about 12 months ago when they introduced caps, looks like the same again.

 

[tharaka]

Believe the Overseas transaction fee of 3.3% was always there. They've increased this to 3.4%..

The change is that now they'd charge this 3.4% fee for "Overseas Merchants who charge in AUD" - reckon this would have to be earned 5points to $1 if their interpretation of "Overseas" is location, not the currency.

 

[Chicken]

Also, no more extra points for the forex commission, point awarded would be same as domestic transactions.

Easiest to read with summary of changes is available from Important information about your credit card account (Account)

 

[MelbourneGirl]

Also, no more extra points for the forex commission, point awarded would be same as domestic transactions.

Yeah, this is the killer for forex - I was happy to pay for the extra points, now it makes more sense to go to back to 28 degrees.

The Krisflyer conversion rate is the one that makes me look around though.

 

[knasty]

I will still use Citi for foreign purchases, but Plus debit card rather than Signature credit card. Gotta get another free balance transfer offer out of them to make me feel like I'm getting value from my $0 annual fee.

 

[k3nnis]

Hmm. Time for a new VISA card for me as well. he prestige looks good but will set me back $700. I don't spend enough to warrant it.

What is the next best VISA card?

I already have Westpac Black Altitude (AMEX and MC) and a AMEX plat edge.

Is this the best combo for now? For SQ/VA and possibly CX.

Thanks,
K.

 

[Kilo]

We knew it was coming but it still bites.
Krisflyer and Velocity transfers now 2 points instead of 1.5.
Plus earn now capped at 20k per month.

It's been a good ride Citibank - this has been my favourite card for a long time. But I'll be moving elsewhere now.

 

[DerekG]

looks like time to get a new card

I'm in the same boat. I'm thinking of moving to the Jetstar Platinum Mastercard. Reduced first year fee plus 40,000 Qantas bonus points:

Jetstar’s Platinum Mastercard offering 40,000 bonus Qantas Points and reduced annual fee of $69, along with new Jetstar benefits - Point Hacks

It is limited to 100,000 points/year though.

Any other better deals out there than the "new" offer on our Citibank Card?

 

[Jack_OC]

Biggest issue for me is change in transfer rate to Velocity/KrisFlyer. This reduces the effective points earn rate with Signature from 1 FF point per dollar on domestic spend to 0.75 FF points per dollar.

To add insult to injury, they have completely removed the additional earn rate for overseas transactions - so instead of effectively earning 2.667 FF points per dollar, we will now earn just 0.75 FF points per dollar on overseas spend too.

Definitely the end of me using this card, but since I have it fee free for life I suppose I will keep it as a backup.

Anyone know of any other MasterCard or Visa options that earn 1 Velocity/KrisFlyer point per dollar domestically? If not, I'll probably have to go with Prestige. At least it comes with 70,000 bonus points, which pretty much cancels out the first year's annual fee.

 

[levelnine]

This is the thin edge of wedge.

Major devaluations across the board may be coming: Citi first to cut loyalty program benefits

 

[gwaipor]

Time to cash out the points before March? Got about 200k points

 

[ejd711]

Maybe not so much for others but I just this card for BPay of every bill I could possibly BPay.

For me, I think that is the biggest loss.

I was recently advised to cancel this card as it puts a big dent in my borrowing capacity and I'm like no way - fee free for life with a 1:1 on QF points paired with my Amex Plat Edge.... but now...

I think someone else is getting my business (not that it's as big as some people on here).

 

[bgough]

I currently have the signature card with $0 annual fee for life. I put through a good $100k per year on the card :/ The $35k per year of international spending really really hurts!

What do you think my chances are calling them up, telling them of my intention to cancel unless I get an upgrade to the prestige card? Maybe even offer them to pay 1/2 of the annual fee considering my current offer.

I was thinking of going to a High Flyer card with Virgin Money (who have also devalued due to Citi involvement 1.25 -> 1) to get a $1:1 earn rate but $349 per year....

It seems the Citi Signature is still better for Kris points, at 2:1.5 it works out to be ~1.33 dollars per Kris point which is still better than the Velocity conversion of 1.35:1, even better now with the additional devaluation of Citii -> VA -> SQ.

 

[burmans]

Time to cash out the points before March? Got about 200k points

Yes, yes and yes.

 

[kw28]

Yes, yes and yes.

From what I understand the transfer rate to FF programs has already been devalued

 

[Kilo]

From what I understand the transfer rate to FF programs has already been devalued

No the change kicks in in March

 

[Jack_OC]

What do you think my chances are calling them up, telling them of my intention to cancel unless I get an upgrade to the prestige card? Maybe even offer them to pay 1/2 of the annual fee considering my current offer.

I very much doubt that they would give you a reduced (or waived) fee AND the 70,000 bonus points, and TBH I'd rather pay the full fee than miss out on the bonus points.

I'd say in your case the $700 fee is probably worth it anyway (especially if you make use of the free hotel night etc). On your spend, you'd earn 305k Citi points/year with Prestige (excluding bonus points), versus 150k with Signature. The difference would equal 82.5k Velocity or KF points at the new conversion rate - which is easily worth way more than the annual fee on its own, based on the fact that you can get a one way J award to Europe wth SQ for 80,750 KF miles.

 

[Kilo]

Is the Prestige OS earn unchanged? That has always been 5 ppd right?