Citibank find a NEW way to rip off their customers

Discussion in 'CitiBank Rewards Program' started by one9, Apr 7, 2006.

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  1. one9

    one9 Active Member

    Sep 14, 2005
    594
    8
    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.
     

  2. JohnK

    JohnK Veteran Member

    Mar 22, 2005
    40,478
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    BNE, SYD and CNX
    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!
     
  3. ric_melb

    ric_melb Active Member

    Dec 16, 2005
    923
    235
    Melbourne
    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.
     
  4. ric_melb

    ric_melb Active Member

    Dec 16, 2005
    923
    235
    Melbourne
    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.
     
  5. robertz

    robertz Member

    Sep 15, 2005
    134
    2
    Atlanta, GA, US
    Re: Citibank Reply

    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.
     
  6. NM

    NM
    Moderator

    Aug 27, 2004
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    Re: Citibank Reply

    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.
     
  7. robertz

    robertz Member

    Sep 15, 2005
    134
    2
    Atlanta, GA, US
    Re: Citibank Reply

    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.
     
  8. NM

    NM
    Moderator

    Aug 27, 2004
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    Re: Citibank Reply

    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.
     
  9. JohnK

    JohnK Veteran Member

    Mar 22, 2005
    40,478
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    BNE, SYD and CNX
    Re: Citibank Reply

    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.
     
  10. Johan

    Johan Intern

    Feb 21, 2006
    58
    0
    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%).
     
  11. ric_melb

    ric_melb Active Member

    Dec 16, 2005
    923
    235
    Melbourne
    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.
     
  12. locomotion

    locomotion Junior Member

    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?
     
  13. Chicken

    Chicken Active Member

    May 9, 2006
    865
    589
    Sydney
    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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