Citi cards - major changes

[Jack_OC]

Re: Time for a credit card backlash

It's obviously time for a consumer backlash following the recent devaluations across all non-Amex credit cards.

My suggested solution is for everyone to switch to the offerings of a single bank. This should have the desired effect of getting some reaction from the other banks.

Of course the problem is to get everyone to agree on the particular bank for the switch. My vote would be Bank of Melbourne Amplify Card as by my research this card will give the best earn/burn rates. I don't have this card as yet - but I am about to apply.

If you managed to get 0.1% of credit card holders in Australia to join your campaign, it would be a miracle. And even then the banks would barely notice.

BTW, Bank of Melbourne Amplify (owned by Westpac) has also announced that it's cutting earn rates from 1 July. I'm assuming you're talking about the Amplify Signature card, which will earn 0.75 KF or Velocity points/$ across the board? If so, that isn't bad, but it has a $275 fee, and it's not necessarily dramatically better than Citi Signature (depending on spending patterns - bearing in mind the tiered earn rate), and it's almost certainly not as good as Citi Prestige (of course Prestige has a much higher fee - but not everyone has to pay it). For me, the Visa/MC option is now only a back up for when I can't use Amex (I used to use Prestige overseas, but won't be doing that now), so I'm not inclined to pay a fee for any non-Amex option anymore.

Anyway, the only (useful) thing anyone can do is adjust to the new reality and find the best cards that suit their circumstances - as always. Anyone trying to think of ways of teaching the banks a lesson is wasting their time.

 

[ric_melb]

Re: Time for a credit card backlash

So why do you propose penalising the banks for a decision made by the Reserve Bank? This makes no sense to me. In any case the various banks know their credit card books, and will have set points earn based on their own competitive calculations. I don't think a few hundred/thousand AFF members moving accounts will make them change anything. A brief look at the Amplify Card doesn't inspire me as outstanding, but trust you will enjoy having it.

 

[oz_mark]

Re: Time for a credit card backlash

It's obviously time for a consumer backlash following the recent devaluations across all non-Amex credit cards.

There's not a lot the banks can do about it. If the funds are no longer there for generous rewards programs, then what can they do?

 

[theblank]

Re: Time for a credit card backlash

It's obviously time for a consumer backlash following the recent devaluations across all non-Amex credit cards.

it already happening, people are signing up to AMEX directly in droves, and who wouldnt, their signup offers and points earn are very appealing.

Of course the problem is to get everyone to agree on the particular bank for the switch. My vote would be Bank of Melbourne Amplify Card as by my research this card will give the best earn/burn rates.

But whats good for you is not going to be good for everyone else. No way am I going to pay annual fees for a Visa/MC rewards card when most of my spendiing is on the AMEX. I will be sticking to the rewards cards I get for free, regardless.

 

[PLANT]

Yeah but is Amex..... Holding.... Holding..... Sign up fees... Sign up fees..... Bam enhanced rewards program post 1July........

 

[albyd]

That's always a possibility. Diners was also not affected by the changes and Citi cut earn rate on Diners card (not just companion MC) and transfer rates.
Guess it's a risk. Amex's been making changes at the margin already e.g. Moving from bonus points on dining for some cards e.g. Velocity Platinum to 1.5 on all transactions and removing utilities exclusion so hopefully gives them form for not making negative changes. Wonder if Platinum Charge will move to a higher overall earn as well.

 

[burmans]

Yeah but is Amex..... Holding.... Holding..... Sign up fees... Sign up fees..... Bam enhanced rewards program post 1July........

Frankly not sure why that's a problem. If I looked at the number of points I earn via credit card signups vs. credit card earn the latter is a minor player, so happy for Amex to keep offer me signup bonuses. Sure I'm not a big fan of the changes but the game is still in play.

 

[scwappy]

I am a little surprised that no one seems to have mentioned the Citibank Dining Program. This provides you with a free bottle of wine at a considerable number of restaurants provided you spend say $50, or order one or two main courses. It would be easy to use this offer a number of times during a year, and save some $40 each time you use it.
With the Signature Card you also get 2 free Priority Pass visits.
If you have a Signature Card free for life keeping it for these benefits alone is a no brainer.
In addition the Qantas Signature Card can earn you between 0.5 and 1.0 Qantas points on spend, with no spending cap on higher point earn and $20,000 per month on the 0.5 category.
That earning rate is not bad considering other bank offers.

Yeah, the dining program provides great value at some cracking places to eat.

 

[hummel]

Yeah, the dining program provides great value at some cracking places to eat.

I don't drink... i'm probably on the wrong forum

 

[Jack_OC]

Amex's been making changes at the margin already e.g. Moving from bonus points on dining for some cards e.g. Velocity Platinum to 1.5 on all transactions and removing utilities exclusion .

When did that happen? I have the Velocity Platinum Amex but don't recall getting any notification about this.

Just to clarify, I'm not questioning whether this is correct - I know it is, as I just checked the website when I saw your post.

EDIT: it looks like these changes only apply to people who took the card out from 16 May 2017 onwards - in other words those of us who already have the card are unaffected. That's v good news IMHO - I find this card very useful for the high earn on flights (3 pts/$ with VA, 2 pts/$ with all other airlines), restaurants (3 pts/$) and hotels (2 pts/$). 1.5 pts/$ across the board would have been a negative change for me.

 

[LadyC]

Frankly not sure why that's a problem. If I looked at the number of points I earn via credit card signups vs. credit card earn the latter is a minor player, so happy for Amex to keep offer me signup bonuses. Sure I'm not a big fan of the changes but the game is still in play.

Absolutely agree with this. The rules have changed and now we all need to work out how to each maximise value for ourselves under the new arrangements.

 

[Cruiser Elite]

Re: Time for a credit card backlash

Does anybody remember exact date when Prestige transfer rate to SQ reduced from 3:2 to 2:1? Early 2015 was it? Or before then?

 

[carls888]

Re: Time for a credit card backlash

Does anyone know what the 3pt pd stores will be? I cannot find any lists as yet...

I will keep it as the no points cap still works for me and we also use the hotel pay 3, stay 4 deal. So I pay for my annual fee easily. But I am going to morph into other cards now and am applying to various ones today so I can streamline my spend again.

 

[ChrisFlyer]

Re: Time for a credit card backlash

Does anybody remember exact date when Prestige transfer rate to SQ reduced from 3:2 to 2:1? Early 2015 was it? Or before then?

If you mean when they 'actually' did it and not when they did it without notice and then backstepped after everybody complained, it was 18 March 2016.

 

[Cruiser Elite]

Re: Time for a credit card backlash

If you mean when they 'actually' did it and not when they did it without notice and then backstepped after everybody complained, it was 18 March 2016.

YES actually did it? March 18, 2016 huh?

 

[ChrisFlyer]

Re: Time for a credit card backlash

YES actually did it? March 18, 2016 huh?

Yep, formally announced mid-December 2015, came into effect mid-March 2016. They hiked the international transaction fee at the same time.

 

[Cruiser Elite]

Bummer - from 0.004875 to 0.016250 in 15mths - heartbreaking huh?

As Guru Bob would say - 'I will leave you to ponder that'!

 

[cove]

CE it changes on June 15th doesn't it?
l will have a few days to fix any points warehouse accumulation and work knows not to put ineligible Government charges on this card. We live in changing times and the RBA is not helping.

 

[theblank]

Just having a look what to do with my Citibank points. I have a meagre 34000, which can be converted to 17000 VFF points. ( yes I can get 15% bonus right now )
However that 34000 converts to $231 (converts at approx 0.68c a point) for use purchasing an airline ticket through Citi Rewards. Thats better value than converting to VFF!

Right now a reward seat I want is 22000 VFF + $89, or keep the points at Citibank and use my 34000 citi points + $69. That means I saved $20, 5000 VFF points and get status credit. No brainer.

I wont be throwing away my Citibank Signature (free) card in a hurry. IMO still one of the best Visa points earners around.

 

[Cruiser Elite]

CE it changes on June 15th doesn't it?

Indeed it does - cleanout day for me will be Wednesday June 14. What a ride the Citi manufacturing plant has given me and many others.