Signature points now capped at $20K per "Statement", 1½ PP$ International

[JohnJa]

Just noticed that the Citi Signature card points are capped at $20,000 per statement period and international spend is now 1.5 points per dollar.
Has this always been the case? I wasn't aware of a cap and thought that international was 4 points (or something like that) per dollar.

 

[doctau]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

Just noticed that the Citi Signature card points are capped at $20,000 per statement period and international spend is now 1.5 points per dollar.
Has this always been the case? I wasn't aware of a cap and thought that international was 4 points (or something like that) per dollar.

Correct, domestic was 1.5 ppd (so 1 Velocity/KF ppd since they were 1.5:1 transfers) and International 4 ppd.

 

[JohnJa]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

[h=2]From the website today:

Take advantage of:[/h]

• The Citi Rewards Program[SUP]2[/SUP]:
  • Earn 1.5 rewards points per $1 spent on all eligible domestic purchases, up to $20,000 per statement period
  • Earn 1.5 rewards points per $1 spent internationally (uncapped)

 

[Isochronous]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

20,000 points per month - are you serious? (Less if they devalue KF a transfer) - what a joke.

 

[albyd]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

Looks like uncapped earn is gone. Wonder what changes are in store for Prestige. Hopefully will leave it untouched to provide further differentiation with signature as apart from slightly less point earn and transfer partners, they were very similar offerings.

 

[burmans]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

From the website today:

Take advantage of:

• The Citi Rewards Program[SUP]2[/SUP]:
  • Earn 1.5 rewards points per $1 spent on all eligible domestic purchases, up to $20,000 per statement period
  • Earn 1.5 rewards points per $1 spent internationally (uncapped)

Another devaluation without notice.

 

[Cynicor]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

Wow! I wonder if we will get notice of this?

I'd seriously debating if it is worth moving to the prestige considering how slippery Citi are being.

Can move int spend over to the 28 degrees in the meantime.

 

[Cynicor]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

This needs a new thread to rally the troops again, I feel. I'll post in the ToTT for now.

 

[quokka77]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

There's a lot of fee-free for life Sig cards around. I guess with the interchange / merchant fees under fire, there is no way for c1ti to keep making this pay (apart from the obvious cap / devalue route).

 

[daveozsydney]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

Correct, domestic was 1.5 ppd (so 1 Velocity/KF ppd since they were 1.5:1 transfers) and International 4 ppd.

Yes not a good change for signature holders... Would be trying to upgrade to prestige if I was an existing signature cardholder and it affects existing cardholders - they may quarantine the earn rate. Has anyone here who is a signature cardholder been notified about this change?

And we thought the transfer rates changing was a bad move. Capping the earn rates and removing international earn is even worse....

If they did that for Prestige it would be time to cancel for a lot of people on here I imagine.

 

[burmans]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

This needs a new thread to rally the troops again, I feel. I'll post in the ToTT for now.

These guys really are crazy, I really cant understand why they don't just give people notice. I would have thought many if not most have electronic statements these days so all it takes is an additional attachment.

Aside from the legalities this is showing a mindless disregard for their customers and I hope they get blasted on Social Media (hint hint).

 

[doctau]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

I got my statement today, and there was a notice about T&C changes - the credit facility ones starting December 1 they announced a while back, nothing about the reward program changing.

 

[daveozsydney]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

These guys really are crazy, I really cant understand why they don't just give people notice. I would have thought many if not most have electronic statements these days so all it takes is an additional attachment.

Aside from the legalities this is showing a mindless disregard for their customers and I hope they get blasted on Social Media (hint hint).

Need to wait and see if it applies just to new customers. Maybe marketing published straight away while their legal guys were on holiday (as they always seem to be - either that or incompetent!)
Makes Velocity amex a better card for overseas earn with the bonus point per overseas spend now. Also westpac black mastercard I think has an enhanced overseas earn rate.

I spend hundreds of thousands overseas so this is a key determiner for me. Also for signature where people pay an annual fee it doesn't make sense to have a capped earn rate. Those customers will leave, whilst the fee free for life signature cardholders will stay.
Unless it is a bait and switch - new card introduced with the old signature benefits that gets rid of the fee free for life citibank customers who don't generally have the same spend commitment as if you were paying a fee.

 

[Isochronous]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

If it doesn't apply until March then at least they will have given sufficient notice this time - maybe notices will come out with Dec/Jan statements?

 

[infinity]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

Put through $100k yesterday and waiting for the transactions to post.

Will advise if points credit.

No notice to me of any changes

I have the fee free for life, so maybe upgrade to Pretige but no doubt that will be canned at some points, ANZ black now looking better option if you value SG points so will consider using this

 

[Spizz]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

Let us know infinity how you go. Glad I moved all my points out to of Citi to SQ.

Hopefully that will only apply to new members, though Citi has no one else to blame but themselves with all the fee free for life promos they ran for the Signature Card.

If/when they reintroduce the devaluation for SQ/VA transfers to this card it would be pointless (pun intended) to continue to use this card over Amex. I would just keep it on hand for the Citi Dining program for my free bottle of wine, until that to gets enhanced.

 

[DeKa]

Re: Reduction in Transfer Rates to Velocity/Krisflyer

An overseas transaction of mine on 7 December seems to have earned 4pp$.
I haven't had any transactions since but will monitor and report back.

I guess my 28 Degrees card will come out of the drawer again.

 

[daveozsydney]

Let us know infinity how you go. Glad I moved all my points out to of Citi to SQ.

Hopefully that will only apply to new members, though Citi has no one else to blame but themselves with all the fee free for life promos they ran for the Signature Card.

If/when they reintroduce the devaluation for SQ/VA transfers to this card it would be pointless (pun intended) to continue to use this card over Amex. I would just keep it on hand for the Citi Dining program for my free bottle of wine, until that to gets enhanced.

I've just crunched the numbers on this and it shouldn't really affect anyone. If someone is spending over $20k per month consistently - $240k per year then there is a points opportunity cost to the tune of 79,200 KrisFlyer points per year based on the .33 earn differential of 240k points. In that regard, even without spending over the threshold someone would be better off paying the $350 with citigold or $700 without citigold for the enhanced earning potential plus the prestige benefits- the international earn is the bigger loss but as the point earn is higher if there is significant international earn then again it makes sense to shift to prestige anyway and pay the annual fee

 

[Cynicor]

I've just crunched the numbers on this and it shouldn't really affect anyone. If someone is spending over $20k per month consistently - $240k per year then there is a points opportunity cost to the tune of 79,200 KrisFlyer points per year based on the .33 earn differential of 240k points. In that regard, even without spending over the threshold someone would be better off paying the $350 with citigold or $700 without citigold for the enhanced earning potential plus the prestige benefits- the international earn is the bigger loss but as the point earn is higher if there is significant international earn then again it makes sense to shift to prestige anyway and pay the annual fee

What you mean is it shouldn't affect anyone with a domestic spend more then 20k a month. It will be a significant difference for anyone who uses this card as their international spend card because the loss of 2.5 points per dollar. You would need to value the points at around 2c each and spend at least $12.5k a year to start to justify the new card, assuming you place 0 value on the other features (I already have full PP memberships coming out of my ears, etc).

It may be a case of try it for a year and see, tbh.

 

[DeKa]

It looks like these are the updated T&Cs for the rewards program, effective 18 January, 2016:
http://www.citibank.com.au/global_docs/pdf/Citi-Prestige-Signature.pdf
I found the PDF linked here: Useful Information - Forms | Citibank Australia

To make the reduction of the international earn worse, the FX fee is increasing to 3.4% (from 3.3%)!

From 18 March 2016, you won't earn points on payments made from the card with BPay either.

Next, if you earn Qantas points on a Citi Signature card, the earn rate becomes tiered (like the Woolworths Qantas card, except with $3k/mth as the tier).

The rest, I'll post in the devaluation thread...

If anyone wants to download a copy of the old rewards program T&Cs they are here: https://www.citibank.com.au/global_docs/pdf/MCG12231.pdf