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Originally Posted by austin_modern
(Post 20717396)
I think you're trying to nuance their wording... it seems pretty obvious to me that a "reloadable prepaid card" is a variant of a gift card.
Citi is trying to cover their bases (like many banks do) when things appear a bit suspicious. Buying 20k/month of cash equivalents at your local drug store is going to be something that just about every bank wants to back away from. Also on this note, it really isnt too hard for Citi or any other company to query their databases for people who are excessively charging at a certain merchant type - any modern database would handle that in seconds. My guess is there arent too many folks rolling more than 3-4k/month at these types of places. |
Originally Posted by gloreglabert
(Post 20717408)
Yeah, but there's an opportunity cost to firing customers too. Citi has to balance the negative press and long-term lost revenue of firing customers with the desire to minimize short-term losses.
Again, banks can quickly calculate if you're a profitable customer or not... and making that decision to close isnt as hard as one would like it to be when you're on the business end of a severed banking relationship. |
Originally Posted by MileageUpdate
(Post 20717362)
This link has to do with reporting employer to employee benefits.
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Originally Posted by mia
(Post 20717508)
The link establishes that a US government agency classifies gift cards as "cash equivalents". I think the reasoning used by IRS in making this judgement would be sufficient for a credit card issuer to define giftcards as cash equivalents. Card issuers are concerned about purchases of cash equivalents because they represent a credit risk. Rewards are a secondary issue.
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Originally Posted by Stoughton
(Post 20717546)
Still waiting to see something in the TYP card T&C that prohibits this.
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Originally Posted by mia
(Post 20717567)
Ask Marathon Man. He proposed to ask Citi to define the term. I merely point out that the term is straightforward to define in a way which could include giftcard purchases, and that issuers do have a legitimate interest in limiting purchases of cash equivalents.
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Originally Posted by thehawk75
(Post 20508447)
Happened to me. Definitely bought a lot of VR with this card. Now all Citi credit cards 'closed'.
No reason given. CSRs confused. Say the department that did so will call back before Wednesday next week. Can still cash out the points, so, I'm doing so now. Others have shared similar reports with me... so there is some sort of Citi purge going on. Very common use pattern was enjoying the uncapped 5X points for drug store purchases. Citi themselves of course not admitting anything and calling it 'risky account'. :rolleyes: Prepare... You've been warned... |
Originally Posted by NYC1K
(Post 20717583)
what is VR?
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Originally Posted by NYC1K
(Post 20717583)
what is VR?
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Originally Posted by austin_modern
(Post 20717427)
true - my guess is they dont want the type of customer who's going to churn a card for points excessively like they're doing. in terms of press, I doubt your average person applying for a Citi/Chase/Barclay/etc card isnt going to sweat someone trying to pull a scheme, so "bad press" is pretty minimal. FT and churners represent a very small segment of the population and their credit card holders.
If you want to limit perks then just specify and force spending limit in 5x categories. |
Originally Posted by LoveMountains
(Post 20717618)
If CITI is thinking that way then they are in trouble. As a bank, you can't pick & choose your customers and hope for the best. Word of mouth & internet reviews will kill your reputation.
If you want to limit perks then just specify and force spending limit in 5x categories. |
Originally Posted by NYC1K
(Post 20717583)
what is VR?
You think that you have CITI Thank You points, while CITI assures you that you don't. |
Originally Posted by Stoughton
(Post 20717546)
Still waiting to see something in the TYP card T&C that prohibits this.
Balance transfers, cash advances, convenience checks, returned purchases, disputed or unauthorized purchases/fraudulent transactions, finance charges, Card Account fees, and fees for services and programs you elect to receive through us do not earn ThankYou Points unless otherwise specified. No mention of cash equivalents Edit: and of course even that doesn't say they can shut down the account for buying VR. Just give no points for it if they view it as Cash Advance say |
Originally Posted by LoveMountains
(Post 20717618)
If CITI is thinking that way then they are in trouble. As a bank, you can't pick & choose your customers and hope for the best. Word of mouth & internet reviews will kill your reputation.
If you want to limit perks then just specify and force spending limit in 5x categories. |
Originally Posted by LoveMountains
(Post 20717636)
Virtual Reality.
You think that you have CITI Thank You points, while CITI assures you that you don't. |
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