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

[Cynicor]

There is a pdf of the citi changes in one of the threads. As people in this one are asking, I assume it's in the other thread. It was posted yesterday and is only 4 large-print pages so is easy to read.

 

[daveozsydney]

What's a better alternative to Citi yohy?! ?

 

[legroom]

If you're spending more than 20k/month on the signature card... You have the wrong card.

Agree 100%

Select ---> Fee Free Signature ---> Prestige: my Citi path

Sometime ago before these changes were mooted.

But if the free hotel, limo transfer are not available from Jan, I will be reconsidering the options.

 

[daveozsydney]

No change announced to limo or hotel benefit

 

[daveozsydney]

Here's the pdf link for the changes
https://www.citibank.com.au/global_docs/pdf/Citi-Prestige-Signature.pdf

 

[trippin_the_rift]

I'd love to run a card loyalty program. I would gamify the **** out of it.

EG:
Let me automatically apply 1% to any transaction and receive double points
Spend $xx_ in 5 countries each year and receive xx_
Receive trailing commission on member get member referrals
Auto approve customers for new credit products if they opt in
Gamify spending on debit products

And a billion other things that are now coming to mind...

I seriously don't understand why the small minded people at banks think that cutting rewards is the answer to sustaining/increasing profitability. It's a cheap way out of a problem that has more profitable solutions when a little work is put into dreaming up how to fix it.

For example - Banks make a ****load of cash off card customers through data. Do know banks sell your (sometimes anonymzied) data for profit, and you pay for the privilege? There was a banking start-up some years ago that tried to give this a whirl.. Raised ~$15M, got hacked and lost consumer trust. There's a heap of innovative people out there I only wish corporates would tap into this resource. They clearly need it.

Rewarding consumers through points is a wave that has come and is now plateauing. Time for the next big thing.

 

[AnonymousCoward]

For example - Banks make a ****load of cash off card customers through data. Do know banks sell your (sometimes anonymzied) data for profit, and you pay for the privilege? There was a banking start-up some years ago that tried to give this a whirl.. Raised ~$15M, got hacked and lost consumer trust. There's a heap of innovative people out there I only wish corporates would tap into this resource. They clearly need it.

I can assure you that banks are looking into this, and lots of other things as well. Just look at the companies/startups that our banks are buying or partnering with.

I seriously don't understand why the small minded people at banks think that cutting rewards is the answer to sustaining/increasing profitability. It's a cheap way out of a problem that has more profitable solutions when a little work is put into dreaming up how to fix it.

Because banks are huge behemoths where someone's got yearly targets to meet, and developing a whole alternate business model needs to go through many, many departments, let alone regulators, updating legal T&Cs etc. I'm sure this isn't news to you.

 

[burmans]

I seriously don't understand why the small minded people at banks think that cutting rewards is the answer to sustaining/increasing profitability.

Much as I don't like it, this is totally rational business behaviour. Customers are remarkably sticky, i.e. they will stay with a bank once they are with them even if the bank starts cutting the benefits. So from a business point of view you are far better off spending your money attracting new customers than keeping existing.

I may not like this but it is how customers behave so the banks are acting rationally to this behaviour. As always, if people actually left rather than actually just complaining, the banks would change. But we don't, so they don't.

 

[daveozsydney]

Much as I don't like it, this is totally rational business behaviour. Customers are remarkably sticky, i.e. they will stay with a bank once they are with them even if the bank starts cutting the benefits. So from a business point of view you are far better off spending your money attracting new customers than keeping existing.

I may not like this but it is how customers behave so the banks are acting rationally to this behaviour. As always, if people actually left rather than actually just complaining, the banks would change. But we don't, so they don't.

very true Burmans - I read a report somewhere that statistically people are more likely to change life partners than their bank accounts...

Of course if banks had the equivalent of number portability that Telcos had imposed on them, then that would help in that regard so to change mortgage or deposit accounts from bank a to b would be as simple as changing telco. But I doubt there is the imperative to make that happen politically here.
We also should be thankful as the rewards whilst not as good as in the US are a lot better than those available in Europe where card fees have been slashed. No 100K signups there.

Maybe with credit cards there is a subset of clients (us) who do shift our loyalties based on the awards available and do influence others' views whilst the toaster redeemers are too busy to care..

 

[Flying Fox]

OK so I have been linked to Citibank for a number of years and have been setup with a Citibusiness Card & Fee Free Signature Card (linked to QF) for personal.

As I understand these new changes -

QF Signature Card - 1 Point for first $3,000 spent each Statement Period and 0.5 Points for spend from $3,001 to $10,000. Then nothing after $20,000.

Citibusiness Card - Clause 12.3 (Additional Conditions for Qantas Frequent Flyer Redemptions) is deleted and replaced with the following: When Points are redeemed for Qantas Frequent Flyer Points they will be redeemed at a rate of 2 Citi reward Points for 1 Qantas Frequent Flyer Point.

Both now having 0 earn on Bpay.

So what cards are QF people looking at moving to?

 

[AnonymousCoward]

Of course if banks had the equivalent of number portability that Telcos had imposed on them, then that would help in that regard so to change mortgage or deposit accounts from bank a to b would be as simple as changing telco. But I doubt there is the imperative to make that happen politically here.

NPP will bring that for regular account. Stuff like mortgages is a bit trickier I guess, due to the intersection with the actual legals (discharging and stamping/registering mortgages themselves)

We also should be thankful as the rewards whilst not as good as in the US are a lot better than those available in Europe where card fees have been slashed. No 100K signups there.

Someone posted the old and new interchange rates on another forum:

Previous rates:
https://web.archive.org/web/2015060...om.au/aboutvisa/interchange/interchange.shtmlCurrent rates:
Visa Australia | About Visa | Interchange | Interchange
1.98% to 1.375%.

So, 1/3 of revenue gone already. If it then falls to 0.8%, that's a 60% fall in interchange revenue. Expect significant additional cutbacks - not just on this card, but all high-end cards.

 

[deepblerg]

Just got my "notice" in the mail from Citibank about all the changes.

I'm a Signature annual fee paying customer who very much valued the 4 points on international transactions. The $20K limit doesn't impact me but I don't like the reduced 1:0.5 Velocity transfer rate.

Which card are Velocity people moving to?

 

[cj0325]

Just got my "notice" in the mail from Citibank about all the changes.

I'm a Signature annual fee paying customer who very much valued the 4 points on international transactions. The $20K limit doesn't impact me but I don't like the reduced 1:0.5 Velocity transfer rate.

Which card are Velocity people moving to?

Have a look at the Virgin Money High Flyer Card. Slightly higher annual fee, although 1.25 points per $ and does have the 4 1/2 price flights a year perk. Is ultimately issued by Citibank so they may try and introduce a cap at a later stage I suppose, although I'm optimistic they won't as the Citi Prestige card is still uncapped so they have form for leaving their ultra premium card uncapped and the other Virgin Money cards are already capped.

Otherwise, ANZ Black is currently 1:1: on Visa.

 

[Colin 2905]

Have a look at the Virgin Money High Flyer Card. Slightly higher annual fee, although 1.25 points per $ and does have the 4 1/2 price flights a year perk. Is ultimately issued by Citibank so they may try and introduce a cap at a later stage I suppose, although I'm optimistic they won't as the Citi Prestige card is still uncapped so they have form for leaving their ultra premium card uncapped and the other Virgin Money cards are already capped.

Misplaced optimism, I'm afraid..... http://www.australianfrequentflyer....credit-cards-linked-24528-21.html#post1363712

 

[daveozsydney]

Misplaced optimism, I'm afraid..... http://www.australianfrequentflyer....credit-cards-linked-24528-21.html#post1363712

yes they all eventually will have to change -

 

[Chicken]

I would suggest that people start planning but sit still and wait. RBA is forcing interchange rate to no more than 0.8% max, meaning every bank is losing a lot of money, so every bank is going to reduce rewards. Make a rush decision now and you may end up worse.

 

[DerekG]

So what cards are QF people looking at moving to?

http://www.australianfrequentflyer....hanges-to-citi-cards-72773-3.html#post1365274

 

[Buzzard]

Just got my "notice" in the mail from Citibank about all the changes.

I'm a Signature annual fee paying customer who very much valued the 4 points on international transactions. The $20K limit doesn't impact me but I don't like the reduced 1:0.5 Velocity transfer rate.

Which card are Velocity people moving to?

I am yet to receive my notice but thought it was 20k points per month not $20k :what:

 

[infinity]

Got my notice Friday

 

[kelvedon]

I am yet to receive my notice but thought it was 20k points per month not $20k :what:

I have a signature rewards with direct Qantas sweep (annual fee) and have received no notification either. Live in the forlorn hope that this combination isn't affected.