Originally posted by wigstheone:
1. US financial institutions are under regulatory obligation to knowe their customers; a credit report supports a paper trail providing evidence thereof.
This makes no sense. Where the transfer is coming from and going to is known, and those places have to have all the details of whose accounts they are. C2it is doing nothing except passing debit/credit instructions from one place to another, which should be available directly between accounts in the first place, if the US banking system weren't such a mess.
3. Read the agreement that comes with any credit card in the US. The issuer always reserves the right to amend or modify that agreement at their discretion; of course, you can stop using that service if you don't like the change.
I didn't deny this. I just said it shouldn't be allowed and isn't allowed here. If the US had decent customer protection laws, it wouldn't be allowed. Most reputable organisations will give notice of fee changes even if not legally forced to.
4. Granted. Caveat Emptor. Citibank has no control over how other banks will treat said transfers, and advises the user of this.
How purchases are processed and how cash advances are processed are known aspects of inter-bank transfers. At least, every organisation I've used in the last 20 years to withdraw money from a credit card knew whether it would be treated as a purchase or a cash advance. I don't see why it's suddenly become an unknown.