New Changes to Citi Cards

[kw28]

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

Yes the same. Also received letter re update today so you are correct that changes apply from March. Thankfully.

 

[mmchow]

Have 3 cards - Signature, Emirates World and High Flyer with Citi and had a good run in the last 5 years. The extra 0.1% on international surcharges wouldn't deter me from using it till March 2016 to reap in the extra 2.5ppd (Signature). Still tossing which card to forego after March;

Signature: $299annual - $1:0.75KF, 2xPriority Pass, Free wine (rarely use), travel insurance (rarely use), bonus points from selected merchant (only use Europcar)
High Flyer: $289annual - $1:0.75KF, $1:3VA on VA flights, 2xVA pass, $129 VA voucher, travel insurance (rarely use), signature benefits

High Flyer came out ahead for me on this one, especially with the $129 VA voucher

 

[DerekG]

High Flyer came out ahead for me on this one, especially with the $129 VA voucher

I suspect it might be wise to take a wait & see approach. According to the press report below, Citibank are just the first to move. I think over the coming months, many of the other card issuers will also reduce their frequent flyer offerings.

It would be a waste of time applying for a new card, only to find that it also became another poor offering in 3 or 4 months time.

Citi first to cut loyalty program benefits

I'm currently looking at the Jetstar Platinum Mastercard:

Earn rate 1 Qantas FF point per $1 spent
First year $69 then $149pa
Spend $3000 in the first 60 days & receive 40,000 bonus QFF points
100,000 annual points capping

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

Another alternative is the Qantas Credit Union Visa Platinum Credit Card:

30,000 bonus QFF points (5000 on signup & then 5000 on each use for the next 5 months)
Earn rate 1QFF point per $1 spent
Annual cost $195
No annual points capping

Qantas Credit Union Platinum Visa Guide - Point Hacks

For my Amex card I'm looking at the American Express Platinum Edge:

3 points per dollar spent at supermarkets
2 points per dollar spent at service stations
1 point per dollar with most other merchants including 0.5 point spent with the ATO
1 free flight per year on Virgin domestic between selected airports
Ability to send points to Virgin, Kris Flyer or Asia miles
$195pa

Exclusive! Point Hacks & American Express Platinum Edge offer with 15,000 bonus Membership Rewards points - Point Hacks

If you order it through the Priceline link below, you get the first year free provided you spend $200 with Priceline. You also qualify for 13,500 bonus points.

https://www.priceline.com.au/amex

I'm sure there are lots of other offers out there, so please keep the suggestions coming.

 

[legroom]

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.

You may not get the bonus if upgrading from Signature.

I didn't.

Few weeks ago I was advised the free hotels offer is '... not available....' after Dec 30th.

Not canned but agent told me 'it isn't there'

If that's confirmed, would need to rethink the Prestige option.

 

[Jack_OC]

You may not get the bonus if upgrading from Signature.

I didn't.

Few weeks ago I was advised the free hotels offer is '... not available....' after Dec 30th.

Not canned but agent told me 'it isn't there'

If that's confirmed, would need to rethink the Prestige option.

Really? And did you have to pay the full $700 fee?

I just applied for the Prestige as if it's a new application, I didn't ask to upgrade my Signature. There was nothing in the T&Cs about bonus points not being available to existing customers, so if they don't give me the bonus points I'll be arguing with them! TBH I'm not sure I'd pay the $700 fee if they don't give me bonus points - the value would be pretty borderline without them.

They are still actively advertising the hotel offer, so if it really is ending in 10 days, that is unbelievably cheeky - in fact I'd say it's at least bordering on illegal. Having said that, I remember when I had the old Citi Select card it was not at all easy to actually book the free hotel night - unless you were very flexible with both dates and destination.

 

[Jack_OC]

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

Same Citi Rewards earn rate, but the transfer rate to Velocity or KF is going to be 2 to 1 with all cards as of March, so in effect the Prestige card now earns just 2.5 FF points per $ instead of 3.33 on OS transactions. Mind you, it's not as bad as dropping from 2.67/$ to 0.75/$, which is what is happening with Signature.

 

[Kolo]

I got a call from Citibank during the week seeking feedback on the rewards program! I think the caller was taken aback by how forthcoming l was. In summary I told her that it used to be my favourite card but with the changes its just become the same as the rest, so I could no longer see a point to using it.

 

[legroom]

Jack3193 The Numerate One

I asked for an upgrade (having downgraded from Select more or less at the same time as you did) so no, I did not get the bonus points but there was no fee in the first year.

I asked for hotel booking for June 2016 about 3-4 weeks ago and that was the reply I got.

I still keep the welcoming pack where it is in B & W terms that the free hotel nights are on offer so yes, I am not letting this go past Dec 30th without raising some Qs.

Date flexibility is one thing - it is another matter altogether when the reply is "nothing shows up after Dec 30th".

Really? And did you have to pay the full $700 fee?

I just applied for the Prestige as if it's a new application, I didn't ask to upgrade my Signature. There was nothing in the T&Cs about bonus points not being available to existing customers, so if they don't give me the bonus points I'll be arguing with them! TBH I'm not sure I'd pay the $700 fee if they don't give me bonus points - the value would be pretty borderline without them.

They are still actively advertising the hotel offer, so if it really is ending in 10 days, that is unbelievably cheeky - in fact I'd say it's at least bordering on illegal. Having said that, I remember when I had the old Citi Select card it was not at all easy to actually book the free hotel night - unless you were very flexible with both dates and destination.

 

[trippin_the_rift]

I got a call from Citibank during the week seeking feedback on the rewards program! I think the caller was taken aback by how forthcoming l was. In summary I told her that it used to be my favourite card but with the changes its just become the same as the rest, so I could no longer see a point to using it.

Does Citibank really think the call will go like this?

Citi Rep: Hi I'm calling to get your thoughts on the rewards program changes...
Customer: Oh, yes! Thank you for enhancing the program. I think the new benefits are a truly wonderful reflection of the commitment Citibank is making towards it's most loyal customers who hold a premium card product. I have this card because I enjoy paying a hefty yearly fee which is equal to other banks, and my husband simply loves that we have the chance to save up enough points to take us on our dream holiday to Gladstone after 8 years of solid spending. In fact, the latest changes are entirely understandable. Banks need to make money too and even though I'll earn fewer points, I want to ensure the bank continues to generate record profits so that it can continue to send me monthly spam in the mail with wine and golf offers I have no interest in. Thank you Citibank - yes, the changes are great. Thank you for the call.

.....The following day at Citibank HQ.....

Management: Citi Rep had a call yesterday with great customer feedback. The program changes are a success.

 

[ozflier]

I have fed back to them my thoughts re loss of unlimited QFF points earning on my Citibank Rewards Credit Card - Signature
Suggested that I and others would look elsewhere for better deals.
I encouraged them to waive the next annual fee to encourage me to stick with the card long enough to see if other providers follow suit with dropped points earnings.
I'll let you know what they say.

 

[Kolo]

I got another call last night, this time from Citibank staff I think, saying they would be forwarding my comments to senior management and was there anything else I wanted to add? I reiterated my unhappiness about the changes, saying there was no longer any use in using it, compared to bank issues cards. The rep suggested I look at the Prestige card, as that was not being changed. I expressed my skepticism about this but said I'd have a look. No offer was forthcoming.

 

[Jack_OC]

I got another call last night, this time from Citibank staff I think, saying they would be forwarding my comments to senior management and was there anything else I wanted to add? I reiterated my unhappiness about the changes, saying there was no longer any use in using it, compared to bank issues cards. The rep suggested I look at the Prestige card, as that was not being changed. I expressed my skepticism about this but said I'd have a look. No offer was forthcoming.

It's certainly not true that the Prestige card will remain unchanged. The transfer rate to Velocity and KF is being changed from 1.5:1 to 2:1, which reduces the effective points earn rate from 1.33/$ to 1/$, at least for those 2 FF programs.

Having said that, I think the Prestige card is now the best non Amex option out there, for anyone who spends enough to justify the fee, and/or for people who will make use of the other benefits.

 

[Deleted member 6404]

It's certainly not true that the Prestige card will remain unchanged. The transfer rate to Velocity and KF is being changed from 1.5:1 to 2:1, which reduces the effective points earn rate from 1.33/$ to 1/$, at least for those 2 FF programs.

Having said that, I think the Prestige card is now the best non Amex option out there, for anyone who spends enough to justify the fee, and/or for people who will make use of the other benefits.

Lets hope that Citi introduce a Fee free Prestige card in the future, as Im sure with theses latest changes there will be a loss of clientele.

 

[PLANT]

I'm in if the above happens.... Somebody needs to start a partition on .... Maybe a new thread inside Citi rewards?

 

[Jeffrey O'Neill]

Does anyone know if there is any cost to CB where an overseas merchant offers to bill you in AUD?

If not, then I think the ACCC / RBA could be involved as they are pushing for surchages to only be about recovering actual costs, not as a money earner

From 18 January 2016, you will be charged an International Transaction Fee on transactions made with an overseas merchant in AUD. We currently charge this fee only on transactions made with overseas merchants in their local currency.

I believe NAB already charge in this way as when I paid for a Kaligo booking earlier in the year NAB added a forex fee even though I was billed in AUD.

To me it's like charging for a service they haven't provided, making things worse as the merchant would have already inflated the price to cover the conversion into AUD.

 

[Chicken]

Does anyone know if there is any cost to CB where an overseas merchant offers to bill you in AUD?

If not, then I think the ACCC / RBA could be involved as they are pushing for surchages to only be about recovering actual costs, not as a money earner

That ruling only applies to merchants, not the banks.

 

[Jeffrey O'Neill]

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.

If you're on a fee free card then you can't get a better deal. 0.75 points per $ beats even a lot of paid cards. Not even the highest black visa with st george / westpac earns that much on a $275 annual fee.

While I don't like the drop in points earn, I do understand the rational behind it, as we are slashing the merchant fees. The USA has so far not done this which is the main reason they are able to offer such generous reward schemes, but then those not using CCs are subsidising those who do, and in general terms it's a wealth transfer from relatively poorer people to the relatively richer.

TBH I think I'd have preferred an option of paying an annual fee with maintaining the higher points earn, but maybe they decided after having so many fee free customers that would have caused just as big a stink.

 

[Jack_OC]

If you're on a fee free card then you can't get a better deal. 0.75 points per $ beats even a lot of paid cards. Not even the highest black visa with st george / westpac earns that much on a $275 annual fee.

I agree that 0.75 pts per $ is a pretty good deal compared to a lot of cards. However, I don't agree that you can't get a better deal.

IMHO, if anyone is paying an annual fee and earning less than 0.75 FF pts/$ overall, they really need to get a new card (or two). BTW, I have the Westpac Altitude Black cards as well as the Signature card, for the simple reason that Altitude Black comes with an Amex that earns 1.5 FF pts/$ (3 Altitude points/$). I use the Altitude Black Amex a lot, but I never use the MasterCard, so my overall earn rate with Altitude Black is 1.5 FF pts/$ - double the new Signature earn rate. So for me, Altitude Black represents a better deal than Signature, even though I have to pay a fee for Altitude Black but not Signature.

 

[Chicken]

I use the Altitude Black Amex a lot, but I never use the MasterCard, so my overall earn rate with Altitude Black is 1.5 FF pts/$ - double the new Signature earn rate.

Bad luck, because your AmEx is issued by a bank, so the new RBA regulation will also bring it together in line to the new Visa and MasterCard interchange rate, meaning banks will no longer earn more interchange fee by giving you the AmEx.

Why would a bank let you use the AmEx, if they would only earn the same as a scheme card, but have to pay a cut back to AmEx? They earn less than a Visa or MasterCard! I suspect they will even take your AmEx back from you.

Which is why people should not rush to anything, because this is not just Citi being tight, this is an industry reform forced down by the RBA.

 

[Jack_OC]

Bad luck, because your AmEx is issued by a bank, so the new RBA regulation will also bring it together in line to the new Visa and MasterCard interchange rate, meaning banks will no longer earn more interchange fee by giving you the AmEx.

Why would a bank let you use the AmEx, if they would only earn the same as a scheme card, but have to pay a cut back to AmEx? They earn less than a Visa or MasterCard! I suspect they will even take your AmEx back from you.

Which is why people should not rush to anything, because this is not just Citi being tight, this is an industry reform forced down by the RBA.

I was simply responding to a comment comparing the Altitude Black earn rate with Signature. You might be right that Westpac will change the earn rates too, but if so, they will not be able to justify the existing Altitude Black fee. My point is that people aren't paying the Altitude Black fee to earn 0.625 FF pts per $, they're paying it to earn 1.5 FF points per $.

Anyway, as I mentioned above, the only action I've taken as a result of this is to apply for a Citi Prestige card. I'll review other existing cards if/when changes are announced.