Reduction in Transfer Rates to Velocity/Krisflyer

[daveozsydney]

Looks like I am going to convert to Pretige in March?

Or might need to play safe and apply for one now??

I would apply now as there's the opportunity cost of earning less points anyway (1.3 versus 1 and 5 versus 4 overseas). Plus you can grab the free hotel stay and two limos in the next few weeks as these are per calendar year apparently.

 

[MEL_Traveller]

Sorry again to be asking a noob question. The citi signature is currently already capped at $20k per cycle? This stays the same, but prestige is better because the 2 point per dollar earn will help off-set the reduction in conversion rates to Kris Flyer and Velocity post 18 March?

 

[Spizz]

Sig not currently capped to 20000 points per month but will be on March 18th for *current* customers of the Sig card. New customers have the limit.

 

[MEL_Traveller]

Sig not currently capped to 20000 points per month but will be on March 18th for *current* customers of the Sig card. New customers have the limit.

Ah ok. Thanks. I went to the citi site to confirm current benefits (just in the general info section) and it already has the $20K limit, although i thought it was supposed to be uncapped.

 

[asg29e]

I note that points for BPay payments will also cease on 18 March. Slowly, slowly the benefits of the Citi cards get eroded.

 

[kamchatsky]

With the reduction of interchange fees for Signature cards, I am not surprised that the benefits are getting eroded. Citibank has to make money somewhere and fee free for life Signature card does't help when the interchange fee goes down.

Now when will Citibank release an Infinity Card?

 

[dpeter]

Now when will Citibank release an Infinity Card?

It's called the Prestige

 

[CJEMNMAC]

The international earn was great for me.... might look at the Prestige i think

 

[CJEMNMAC]

Sig not currently capped to 20000 points per month but will be on March 18th

Slight correction.. Its $20000 cap not 20000 points

 

[Deleted member 6404]

Now that Bpay payments are heading for the chop . I will definitely be looking at the other players out there.

 

[Spizz]

Now that Bpay payments are heading for the chop . I will definitely be looking at the other players out there.

I believe the only ones left go Direct to Qantas.

 

[Supersonic Swinger]

It means you have to transfer 20K to get 10K VA points or SQ points as from 18th March when the conversion rate changes to 2:1.

For prestige it's still good value - uncapped point earn, good international point earn 2.5 KF per $ equivalent, domestic 1 KF per $

For Signature Qantas cardholders it makes it a poor product, but if you're choosing a Qantas card anyway then (arguably) you're not abreast of what's available in the marketplace and probably won't notice.

For Signature Rewards cardholders it's still a good flexible point earning card albeit at a lower rate now. If customers are pumping 240K plus through the card it makes more sense to have been/ be on prestige anyway due to the opportunity cost (the $350 or $700 fee is more than worth the point differential of .33 per points x 240k spend - now .25 per $) of not earning those points.

Would someone pay $350 or $700 for 60,000 KF or VA points? That works out at 0.01167 per point or 0.005833 which is like buying a one way business class ticket for $396 or $793 which is worth doing for me.
Plus you get the 2 airport limo transfers per year plus a night's hotel accommodation plus the pay 3 get 4th night hotel free.
I can't see many cards on the market competing with that.

If spending less, the changes don't affect them other than the conversion rate and intl spend. But what other options are there for 0.75 KF per $ or enhanced international spend? Probably Velocity Amex, but the extra point doesn't pay for the forex fees so probably better with 28 degrees or doing a bank transfer if that's available.

Good sober analysis, thanks

 

[Kimster]

Isn't prestige 1.33KF/VA points per $ spent. I thought only signature will get devalued from Mar. Is prestige earn ration being reduced too?

 

[Cynicor]

Both points earn and transfer rate will change for Sig.

Only transfer rate will change for prestiges, down to 2:1 and minimum 20k block, ending up as a 1:$1 for domestic spend, and 2.5:$1 international.

 

[Moindardt]

I am still not sure whether it is better to use Amex platinum or Visa prestige for overseas spend. The conversion rate seems to be better with Amex and points can go to SPG. Works out at 1 SPG per AUD. how does this compare in value to 3.33 KM? What about at 2.5? I currently use Amex for any travel or restaurants and citi prestige for anything else.

 

[Cynicor]

I would suggest that the new rates are about the same, or possibly worse with amex and worse citi at times.

So then you have the points.
Prestige 5:$1. Converts to 2.5KF.

Plat charge 2:$1. Converts to 2KF or some SPG.

Now the important bit that I keep forgetting to mention is that citi are now going to charge on overseas merchants too, even in AUD. So BEWARE. If you get charged in AUD you may still be paying a fee.

My rule will be any AUD spend on travel goes to AMEX, any AUD spend in general to AMEX, any FX overseas to prestige.

 

[daveozsydney]

I actually go out if my way currently to spend in usd versus aud because of the bonus points. 3.3 kf per $ for 3.3% charge. It's like buying points. Will need to recrunch the numbers now as it becomes 2.5 kf for 3.4% charge.

 

[doctau]

I think my fee-free Signature will be shelved, after a cheque-to-self BT. The only question is whether I wait until March to keep getting the points or do it now in case they enhance away the BT offers.

 

[aerotravel]

Few free visa signature will be taking the back seat come March 2016 after the transfer to VA is complete. Keep just for Priority Pass.

Back to Bankwest QF World MasterCard until something better comes along.

 

[PLANT]

Do you gain points for KF---->VFF?
Lose points VFF---->KF?????????????