Citibank blocks transactions on certain companies

[kamchatsky]

I got my Citibank Gold Card fee free ever recently, which I am happy with. Unfortunately Citibank blocks me from some transactions today.

I use IG Markets mainly for CFD/foreign exchange/commodity trading. Most of these trading companies (including CMC markets) allows u to fund the account using visa/mastercard (up to $2000 per day without paying 1.75% admin fee) for trading purposes. I tried to do this today and was declined. I rang up IG Markets and they say the don't decline credit cards at all. So I rang up Citibank and they said that they block all transactions that are classified as "betting companies", which "IG Markets" is one of them. I asked them whether they can override it they said they cannot but I can do a cash advance instead for it.

So I told them I will use another credit card instead, which I did without any problems (used to use ANZ, and now I use National Velocity card).

Just wondering whether other people have experienced the same problem (may not be to a "betting company"), and if so is there anyway around it?

 

[Mal]

I'm not sure you will have any luck trying to change Citibank's mind.

However, how I would approach this is to write a letter to "IG Markets" letting them know that Citibank are (possibly) restricting their trade by blocking their members and their transactions.

In addition, perhaps Citibank and slurring their good name by classifying them as "gaming" rather than an investment company.

They may choose to take this up with Citibank themselves. They would have great strength in a situation like this.

 

[Ray Carty]

I too am inconvenienced and disappointed with CitiBank's decision not to honour some transactions. The ATO doesn't consider income from CFDs gaming, but income, so why shouldn't Citibank take the same view.

However, what's particularly annoying is that before applying for a CitiBank Gold card I checked on two separate occasions that they processed transactions with IG markets as purchases rather than cash advances. On both occasions I was assured that they were purchases. Seems that Citibank has no idea what its doing.

Needless to say I won't be sticking with Citibank, but going elsewhere...they can have their useless card back.

Regards Ray

 

[kiti]

Where do the proceeds from IG Markets go? Is it back onto your credit card, or do they wire it to your savings account? Citibank could be trying to stop money laundering, hence why online gambling is probably banned. Also could be to minimise the number of reward points you are getting, as you could just debit the $2000 every per day until you reach your reward points cap?

 

[JohnK]

Also could be to minimise the number of reward points you are getting, as you could just debit the $2000 every per day until you reach your reward points cap?

I could not for the life of me imagine that anyone frequenting this website would contemplate doing anything that could be misinterpreted by Citibank as deceitful!

 

[kiti]

JohnK,

I am not implying that "anyone frequenting this website would contemplate doing anything that could be misinterpreted by Citibank as deceitful", however Citibank might. They probably block these transactions based on merchant category code, not based on the individual merchant or customer. If it was the later then I am sure it would be discrimination.

 

[JohnK]

I am not implying that "anyone frequenting this website would contemplate doing anything that could be misinterpreted by Citibank as deceitful", however Citibank might.

I know tiki, I was not referring to you. I made a tongue in cheek comment based on a Citibank offer last year. Deceitful was probably the wrong word to use. Should have been "exploit".

 

[johnsmith]

I got my Citibank Gold Card fee free ever recently, which I am happy with. Unfortunately Citibank blocks me from some transactions today.

I use IG Markets mainly for CFD/foreign exchange/commodity trading. Most of these trading companies (including CMC markets) allows u to fund the account using visa/mastercard (up to $2000 per day without paying 1.75% admin fee) for trading purposes. I tried to do this today and was declined. I rang up IG Markets and they say the don't decline credit cards at all. So I rang up Citibank and they said that they block all transactions that are classified as "betting companies", which "IG Markets" is one of them. I asked them whether they can override it they said they cannot but I can do a cash advance instead for it.

So I told them I will use another credit card instead, which I did without any problems (used to use ANZ, and now I use National Velocity card).

Just wondering whether other people have experienced the same problem (may not be to a "betting company"), and if so is there anyway around it?

I think I will open one of these accounts, would you like to refer me and get a free bottle of champagne, can I pay using a Westpac CC, are there any other companies like this. Are there any risks involved? How do they send the funds back to you? This seems like a good way to earn some extra points. Could I pay $2000 per day into my account for 30 days = $60K then withdraw the 60k and pay back my CC before the due date?

IG Markets - Refer-a-Friend

 

[aschmid]

I had a similar experience with Citi Gold card though a little different.

My card was not working for two days and I called them to find out what the problem is. Turns out they claim I had used my card at a merchant that is on one of their possible fraud transactions lists and they have BLOCKED my card without telling me about it and will issue a new card that I will receive in a few days.

I have never ever before experience somthing like this with any other credit card company. No need to say that I was steaming but there was nothing I could do. Even worse they claimed they cannot tell me what merchant it was it "just happens automatically" and the call centre person doesn't know the specific merchant.

I don't know what they are up to but the whole thing sounds fishy to me. As all the transactions on my account were in order and I didn't complain why would Citibank care?

 

[oz_mark]

I had a similar experience with Citi Gold card though a little different.

My card was not working for two days and I called them to find out what the problem is. Turns out they claim I had used my card at a merchant that is on one of their possible fraud transactions lists and they have BLOCKED my card without telling me about it and will issue a new card that I will receive in a few days.

I have never ever before experience somthing like this with any other credit card company. No need to say that I was steaming but there was nothing I could do. Even worse they claimed they cannot tell me what merchant it was it "just happens automatically" and the call centre person doesn't know the specific merchant.

I don't know what they are up to but the whole thing sounds fishy to me. As all the transactions on my account were in order and I didn't complain why would Citibank care?

Interesting. In my case Citibank had rung me within minutes of a suspect transaction occuring on my account, so to me they seem quite red hot on dealing with suspicious transactions.

 

[JohnK]

I don't know what they are up to but the whole thing sounds fishy to me. As all the transactions on my account were in order and I didn't complain why would Citibank care?

I would suspect that other people have had problems with suspicious transactions originating from a merchant under investigation for fraudulent transactions. Once your card has been compromised then no real option for credit card company other than to cancel credit card and issue new one.

They are not obliged to tell you which merchant is under investigation.

 

[Chicken]

Maybe because this company works more like a cash transaction i.e. it would be more appropriate to classify it as cash advance (cash out) not a purchase?

And Westpac also block me a few times for things like, $5 eBay listing fee. How embrassing when your card is declined at a shop just because eBay wants $5 for my listing fee!

 

[one9]

I had a similar experience with Citi Gold card though a little different.

My card was not working for two days and I called them to find out what the problem is. Turns out they claim I had used my card at a merchant that is on one of their possible fraud transactions lists and they have BLOCKED my card without telling me about it and will issue a new card that I will receive in a few days.

I have never ever before experience somthing like this with any other credit card company. No need to say that I was steaming but there was nothing I could do. Even worse they claimed they cannot tell me what merchant it was it "just happens automatically" and the call centre person doesn't know the specific merchant.

I don't know what they are up to but the whole thing sounds fishy to me. As all the transactions on my account were in order and I didn't complain why would Citibank care?

I agree with you that Citibank don't think about their customers in this regard. Previously when I went overseas, I used to use a Citibank debit card to withdraw from ATM's because it had a higher daily withdrawl limit (AUD $3000). Often I would need to make multiple withdrawls in a row because many ATMs have their own transaction limit. Three countries in a row, Citibank blocked my card "for my protection" which forced me to have to call them up and have them unblock it.

To compare, twice Commonwealth Bank have called me up when I am overseas after making a credit card purchase at a small establishment to check with me that I made the purchase (both times within 10 minutes).

It seems one bank tries to contact the customer, whilst the other bank just blocks a card without considering the possible inconvenience for the cardholder.

 

[oz_mark]

It seems one bank tries to contact the customer, whilst the other bank just blocks a card without considering the possible inconvenience for the cardholder.

As I have mentioned before, Citibank have contacted me within minutes of a suspected transaction. Did they have the correct contact number for you while overseas?

 

[one9]

As I have mentioned before, Citibank have contacted me within minutes of a suspected transaction. Did they have the correct contact number for you while overseas?

Yes. But it is good to hear they contacted you. Maybe a bit of luck... or maybe things are improving.

 

[serfty]

I had a similar issue last week in HKG; my HKD250 purchase at the MTR was enough to awaken "The Falcon" with the result my ANZ card became usless the entire weekend; it was not my main card but this was still an absolute PITA!

Two attempts to contact me were apparently made; but as they were to my home 'phone this was pretty useless.

I have subsequently been told that I should advise the ANZ any time I travel overseas; I also now have a reverse charges number to call back to Oz should I need assistance; this for a card that averages over 100 O/S transactions per year.

 

[kamchatsky]

In regard to potentially "laundering points" through IG Markets,
I have never tried to put money into IG Markets via credit card and withdraw back to my normal bank account, mainly I use it at the moment to make money (which I can tell u now is worth A LOT MORE than those points alone!). So I cannot tell u but I guess I should try it out.

Previously I had a CMC Markets accounts where if u put money into the account via credit card (ANZ Qantas FF Card) then u must use it somehow (eg place a trade etc) before I am allowed to withdraw it to my normal bank account. If those money deposited is not used at all then they will credit it back to your credit card. Maybe IG has similar policy.

Note that these CFD/FX accounts generally takes Visa or Mastercard.

Please send me a private message if u want me to refer u (well I get a champagne or a book)


Edison

___________________________________________________________________
Here is the policy for depositing money into IG Markets account:
Depositing Funds

We welcome payment by any of the following methods:

• BPay
• Bank transfer
• Credit card (Visa, MasterCard)
• Cheque

For all payment methods there is a minimum amount of £10, or the equivalent in the currency of your account.
We do not charge for any deposit method other than credit cards, where an administration fee is levied for large payments (see below). You may, however, pay fees to the payment provider if you pay by credit card or bank transfer.
BPay

You can transfer money to us with BPay using the Biller Code 120717 and the BPay reference number provided with your account opening email.
Bank transfer

Bank transfers are normally credited to your account on the day we receive them. It can take up to four business days for the money to reach us, depending on the transfer method used.
Please see our bank details page to make a transfer to us.
Credit cards

We accept Visa and MasterCard. For legal reasons we are unable to accept cards where the cardholder is US resident.
Credit card payments can be made electronically using the Deposit Funds page of the My Account area. Select the card you want to use, enter the CVV2 security number from the back of the card and the amount you want to deposit.
Successfully authorised payments will be available immediately. If your payment request is rejected, please call our Helpdesk on (03) 9860 1734.
We do not charge for credit card deposits unless they reach AUD2000 (or equivalent) in one day, in which case an administration fee of 1.75% of the amount deposited that day will be deducted from your account.
Your credit card provider may treat deposits you place with us as a cash advance (and charge you accordingly). Unfortunately, we are unable to tell if this will be the case.
Registering a new card

If the card you want to use does not appear on the dropdown list of the Deposit Funds page, please call us on (03) 9860 1734 to register your card for online payments. Please note that he cardholder's name must be the same as the name that you used to register with the
Cheque

Customers may pay us by cheque. The bank account must be in the same name as your account with us.
Please make cheques payable to IG Markets and send to:
IG Markets
Level 3
499 St Kilda Road
Melbourne
VIC 3004
Please write your IG Markets Username/Account Number on the back of the cheque.
Your account will not normally be credited until your cheque has cleared, which may take up to a week after receipt. In view of the time taken for cheques to clear we do not recommend this method

 

[kamchatsky]

Just rang up IG Markets I can ONLY withdraw money into my normal bank account (takes 24 hours). So I will deposit $1000 via credit card today and then withdraw money tomorrow to my normal bank account to see what happens.

However I suggest u guys don't start doing huge "Frequent Flyer Points" laundering (maybe small amount is OK ?! )as then they will at the end shut off the feature for everyone. Afterall everyone has a business to run and for me I am actually a legit user of the account. At the end if u actually try the product u can make (or lose) more money this way!

Another thing, some banks treat deposit to IG Markets as Cash Advance (ie no points, instant interest) so beware. I heard from my friend that Virgin (which is Westpac) is like that but please do not quote me on that. U never know if everyone start doing "FFP Laundering" then every bank will treat it as cash advance.

Edison

 

[mileagemax]

Anybody know if the ANZ QFF Visa card is treated as cash advance or normal purchase with IG Markets?

Thanks!

 

[kyle]

Tried to make a deposit to my Tattersalls lottery account using Citibank Gold Visa. Declined!

Oh well, back to the other Visa card.