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Citibank find a NEW way to rip off their customers

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one9

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Joined
Sep 14, 2005
Messages
596
Just received an email today regarding my Citibank Online Cash Manager.

The Citibank Online Cash Manager account is an internet savings account (but also has a ATM card). The interest rate is similar to the other online savings accounts (eg. ING Direct) but the good thing with this account is that it also includes an ATM card so if you need funds urgently, you can withdraw some immediately at an ATM.

Well today they said in their email that they are changing the overseas ATM withdrawl charge from a flat $4 to 2.5% of the value. I usually use this card overseas as it has a high daily withdrawl limit ($3000). With this new fee, instead of paying $4 or $8 (if i need to do it in 2 transactions), i would pay $75.

When withdrawing from savings/cheque accounts, the overseas ATM charge is virtually always a flat fee. I have never heard of it being a percentage like with a credit card.

Looks like with the other dramas going on with other people with Citibank, and my feeling of never trusting them, I might look for another alternative.
 

JohnK

AFF Supporter
Joined
Mar 22, 2005
Messages
41,162
I have to agree 2.5% does sound ridiculous. It may be beneficial to look around for alternatives.

Have they ever charged a foreign currency conversion fee in the past? Most cards (I have only ever dealt with credit cards overseas) charge an amount, usually around 1%-2%, for the foreign currency conversion fee but still 2.5% is very high!
 

ric_melb

Active Member
Joined
Dec 16, 2005
Messages
954
ATM Fee

I have also received the email from Citibank, and have emailed them back asking for clarification as to whether this fee is in addition to the exchange rate fee.

If it is in addition the fee is quite ridiculous. Usually I find ATM's overseas have limits of around AUD1000, so the fee on a typical withdrawal appears to go up from $4 to $25.
 

ric_melb

Active Member
Joined
Dec 16, 2005
Messages
954
Citibank Reply

The reply I received from Citibank is as follows:

"Citicards previously do not incur a fee for ATM/EFTPOS transactions made
overseas as the $4.00 flat fee charge was waived. However, please be
advised that effective 09 May 2006, a new fee structure will take effect
for overseas ATM/EFTPOS transactions on Wealth accounts. In line with
the cost of providing the overseas transaction service, we will be
charging 2.5% of the total value of the transaction. Please refer to the
information below on how an overseas transaction will appear on your
monthly statement.

Example:

US $100.00 : Transaction amount
AU $120.00 : Australian Dollar amount before Citibank Foreign
Currency Conversion Fee
AU $ 3.00 : Markup (e.g. 2.5%)
AU $123.00 : Total amount debited from customer"

So it appears the new 2.5% is to incorporate a transaction fee and exchange rate margin. This is more reasonable, but may not be as good as other cards.
 

robertz

Member
Joined
Sep 15, 2005
Messages
134
Re: Citibank Reply

ric_melb said:
The reply I received from Citibank is as follows:

"Citicards previously do not incur a fee for ATM/EFTPOS transactions made
overseas as the $4.00 flat fee charge was waived. However, please be
advised that effective 09 May 2006, a new fee structure will take effect
for overseas ATM/EFTPOS transactions on Wealth accounts. In line with
the cost of providing the overseas transaction service, we will be
charging 2.5% of the total value of the transaction. Please refer to the
information below on how an overseas transaction will appear on your
monthly statement.

Example:

US $100.00 : Transaction amount
AU $120.00 : Australian Dollar amount before Citibank Foreign
Currency Conversion Fee
AU $ 3.00 : Markup (e.g. 2.5%)
AU $123.00 : Total amount debited from customer"

So it appears the new 2.5% is to incorporate a transaction fee and exchange rate margin. This is more reasonable, but may not be as good as other cards.
HAVE THESE PEOPLE GONE MAD???
(The example just shows there contempt they have for their customers. How many people would withdraw AUD$120 from an overseas ATM)

My brother received the same email, but to date I haven't. I'm thinking it has something to do with when the account was opened, I hope.

I currently withdraw about $2000 AUD per month which will increase my fee's to $150, instead of $4. (Because im paying $2 per trans.)

This will be the final nail in my Citibank support. I have sent them an email treatening them if they apply this to my account , I will be closing my OCM and Plat card, we'll see what happens.

Bastards they are......

Rob

PS. Interesting to note, they have not mentioned anything on their website about this , and the "Schedule of Fee's" hasnt been updated as outlined in their email.
 

NM

Moderator
Joined
Aug 27, 2004
Messages
15,797
Flights
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Re: Citibank Reply

robertz said:
HAVE THESE PEOPLE GONE MAD???
(The example just shows there contempt they have for their customers. How many people would withdraw AUD$120 from an overseas ATM)
I am one who withdraws about that amount each time I use an overseas ATM (my usual withdrawal in USA would be US$80 and would last me at least a week).

I have never withdrawn more than A$300 in a single transaction at an overseas ATM. Perhaps I just don't like carrying a lot of cash on me.
 

robertz

Member
Joined
Sep 15, 2005
Messages
134
Re: Citibank Reply

NM said:
robertz said:
HAVE THESE PEOPLE GONE MAD???
(The example just shows there contempt they have for their customers. How many people would withdraw AUD$120 from an overseas ATM)
I am one who withdraws about that amount each time I use an overseas ATM (my usual withdrawal in USA would be US$80 and would last me at least a week).

I have never withdrawn more than A$300 in a single transaction at an overseas ATM. Perhaps I just don't like carrying a lot of cash on me.
In your situation, I understand why it doesn't mean anything. BUT having a bank tell you its now going to cost you 2.5% to access your money, on top of a foreign exchange rate they set it infuriating.

Just ask yourself, if the your bank in Australia started charging you to withdraw your money at 2.5%. Would you be happy.

Citibank is a world wide bank. Heck, I have one down the street here in Atlanta I use. Why the hell should I pay them 2.5% of my money to withdraw it from my AUS account.

That's it. Just transferred my balance of my QFF out of the CC. By the end of the week, I will have pissed these idiots off, once and for all.

Grrrrrrrr.
 

NM

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Aug 27, 2004
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Re: Citibank Reply

robertz said:
In your situation, I understand why it doesn't mean anything. BUT having a bank tell you its now going to cost you 2.5% to access your money, on top of a foreign exchange rate they set it infuriating.

Just ask yourself, if the your bank in Australia started charging you to withdraw your money at 2.5%. Would you be happy.

Citibank is a world wide bank. Heck, I have one down the street here in Atlanta I use. Why the hell should I pay them 2.5% of my money to withdraw it from my AUS account.

That's it. Just transferred my balance of my QFF out of the CC. By the end of the week, I will have pissed these idiots off, once and for all.

Grrrrrrrr.
I am not trying to justify the Citibank position on this. I think it is a money grabbing move. I was providing information to the question that was asked regarding "How many people would withdraw AUD$120 from an overseas ATM)". I don't know how many, but I do know I am one of them. It would not be the first time I have been in the minority :eek: .

For overseas withdrawals I use the Citibank Readicredit ATM card. As far as I know, the Readicredit account continues to have no fees for overseas ATM use. This is the only Citibank facility I have, and based on recent events (including the fee change as the topic of this thread), I do not expect this situation to change.
 

JohnK

AFF Supporter
Joined
Mar 22, 2005
Messages
41,162
Re: Citibank Reply

robertz said:
HAVE THESE PEOPLE GONE MAD???
(The example just shows there contempt they have for their customers. How many people would withdraw AUD$120 from an overseas ATM)
I am one of these mad people.

I only withdraw small amounts at a time from Commonwealth Bank credit card whilst overseas. I take a lot of cash with me and if for some reason I have run out of foreign currency while the exchanges are closed I will use the credit card for a small cash advance of around $100-$200. Only $4 + some % commission on each transaction.
 

Johan

Intern
Joined
Feb 21, 2006
Messages
58
In order to save on bank fees, the amount i withdraw would depend on the fee table - if a flat fee (eg $4), I would withdraw as much as I need for a week or 10 days. If a % charge, I'd make smaller withdrawals (assuming the ATMs are quite easily accesible).

The other factor would be the country visited. My average withdrawals would generally be smaller when I visit Southeast Asia than when I go to the EU/US.

In any case, I don't expect the withdrawal too be too much, as I will be charging shopping, hotel and meals at more expensive places to the card. Cash would mainly be used for smaller purchases like public transport, cabs, drinks, etc. The exception would be if I were to buy a relatively costly item (e.g. digital SLR) that offers a huge cash discount (e.g. 5%).
 

ric_melb

Active Member
Joined
Dec 16, 2005
Messages
954
If you look at the example Citibank gave me it shows only one fee or as they put it markup. That is 2.5%. Presumably this includes foreign exchange conversion and withdrawal fee. It may not, as in my opinion it is not specific. Until clarified though it may be a mistake to change your arrangements if you assume Citibank will charge a foreign exchange fee of some 2% plus 2.5% for withdrawal.
 

locomotion

Junior Member
Joined
Aug 19, 2006
Messages
19
one9 said:
Just received an email today regarding my Citibank Online Cash Manager.

The Citibank Online Cash Manager account is an internet savings account (but also has a ATM card). The interest rate is similar to the other online savings accounts (eg. ING Direct) but the good thing with this account is that it also includes an ATM card so if you need funds urgently, you can withdraw some immediately at an ATM.

Well today they said in their email that they are changing the overseas ATM withdrawl charge from a flat $4 to 2.5% of the value. I usually use this card overseas as it has a high daily withdrawl limit ($3000). With this new fee, instead of paying $4 or $8 (if i need to do it in 2 transactions), i would pay $75.

When withdrawing from savings/cheque accounts, the overseas ATM charge is virtually always a flat fee. I have never heard of it being a percentage like with a credit card.

Looks like with the other dramas going on with other people with Citibank, and my feeling of never trusting them, I might look for another alternative.
Why not try getting 2 debit cards from a decent institution such as the commonwealth or another institution that wont charge you for having 2 cards, and using that overseas?
 

Chicken

Active Member
Joined
May 9, 2006
Messages
930
Why not just get the Westpac Handycard (ATM card) if you go to Western Europe or North America? You can draw money there at specific ATMs fee free
 
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