Citi Prestige - Business Related Transactions

[perthtraveller]

Hi all

I am wondering whether anyone else has received a letter in relation to business related transactions.

A letter from Citi was received that stated the following:

1. We understand that you use your account for business related transactions
2. If you intend to continue with your current line of credit facility, you will need to only use this for personal purposes
3. Do not charge business expenditure to this account
4. If we continue to observe business transactions, we may place a block on your account (i.e. being unable to use facility until we discuss your account and make suitable arrangements)

Questions I have are:

1. Has anyone received the same/similar letter?
2. Does anyone (perhaps a Citi employee) know if this is customer-wide review of accounts or if it is likely that my account is currently being thoroughly reviewed? I did receive a letter a few weeks back asking me to determine my status as a US- or non-US person
3. Is it likely that Citi will block my account

I have very high expenditure on this account and have always paid on time (held this account for several years now). I have a feeling Citi are not liking my points earn!

Yes expenditure on business transactions are strictly against the T&Cs of the card but we all know this is often swept under the carpet.

Thanks in advance for your help with this!

Cheers

 

[BillytheFIsh]

Interesting.

I only have a Signature, but I put plenty of bus expenses through and haven't received anything like this (although my idea of "plenty" sounds like it's considerably less than yours).

I personally would just dial back the more obvious business spend for a bit and see how you go.

Are we talking high or low 5 figures a month? (Or more?)

 

[perthtraveller]

Interesting.

I only have a Signature, but I put plenty of bus expenses through and haven't received anything like this (although my idea of "plenty" sounds like it's considerably less than yours).

I personally would just dial back the more obvious business spend for a bit and see how you go.

Are we talking high or low 5 figures a month? (Or more?)

Mid 5 figures a month and not all business transactions.

I am worried they're specifically looking at my account. I have no idea why though.

 

[yohy?!]

all banks and issuers are concerned with reducing their exposure to business transactions as they see this as increased risk, the only choice really is to find out which transactions they've spotted and avoid those merchants ongoing - of course this probably means the card is useless so probably worth looking at switching to a new provider

 

[perthtraveller]

all banks and issuers are concerned with reducing their exposure to business transactions as they see this as increased risk, the only choice really is to find out which transactions they've spotted and avoid those merchants ongoing - of course this probably means the card is useless so probably worth looking at switching to a new provider

Makes sense. Not sure how I am going to find out which transactions they've spotted though.

 

[Plutonus]

Makes sense. Not sure how I am going to find out which transactions they've spotted though.

What merchants are you regularly transacting large amounts with that would likely be classified as a supplier/wholesaler/similar depending on what business transactions you are doing.

 

[perthtraveller]

What merchants are you regularly transacting large amounts with that would likely be classified as a supplier/wholesaler/similar depending on what business transactions you are doing.

Yep can definitely identify the larger pure business transactions and transfer these to another card. I just don't want to so trying to get as much information on this issue before doing so. Thanks for all the responses thus far - much appreciated!

 

[Plutonus]

They would probably be identifying it by the merchant in the first instance. For example, if you're a builder and buying things at Bunnings, that might not throw up a red flag (huge home renno? Love sausage sizzles?).

But say you're paying a payroll company several thousand a month, fairly obvious.

Yep can definitely identify the larger pure business transactions and transfer these to another card. I just don't want to so trying to get as much information on this issue before doing so. Thanks for all the responses thus far - much appreciated!

 

[trippin_the_rift]

It could also be as simple as: you applied for the card with a $200k income yet you're pushing $5m a year thru the card for example.

 

[perthtraveller]

It could also be as simple as: you applied for the card with a $200k income yet you're pushing $5m a year thru the card for example.

Yes very good point. Big discrepancy between income and expenditure. However, I do have 4 supplementary card holders who each have an income of their own. I suppose they would not consider that technically speaking.

 

[Cruiser Elite]

Don't take it personally pt but I hope it is only you that they question - you are no Robinson Crusoe in this matter.

 

[perthtraveller]

Don't take it personally pt but I hope it is only you that they question - you are no Robinson Crusoe in this matter.

I don't take things personally on this website

 

[cove]

Gee CE is the world caving in? After each night time sleep something else on credit cards has moved. Do we have to stop sleeping? I have many points warehoused in this one and just got the credit limit up to 6 figures. This is a comeback from 21 months ago when ATO stopped and I cleared the warehouse.

 

[DaveB]

Highly doubt it is level of use related. Interesting coming after Citi feted high card users amongst others at their card launch last November. Not sure why you have been (hopefully) singled out as Citi have in my experience never minded any level of expense provided they are earning their sizeable cut on the transaction.
I still use the card for the majority of personal spend though Amex Edge gets the obvious personal spend amounts.
Surprised they sent this to a Prestige holder and if part of a program, not first target Signature card users with no annual fees.

 

[infinity]

Don't take it personally pt but I hope it is only you that they question - you are no Robinson Crusoe in this matter.

Agreed with u CE