Originally Posted by
i_fly_AA
What I was wondering is, everyone here is saying that the more you charge to your card every month, the more likely they are to waive the fee. Why would this be the case?
Citi makes about 2% from the merchant on everything you put on your card. That 2 cents per dollar is a lot more than they pay for the AA mile you get. Sure it's not the 17% or so they make in interest from some accounts but people that pay off their balance every month are MUCH less risky so Citi loves that revenue.
By the way, if they expect that they will make more than $85 from you next year if you keep your card then it's a good business decision to waive the fee.