Citi cards closed, TYP confiscated, reasons not disclosed.
May 8, 2013, 9:22 am
#166
Join Date: Apr 2012
Posts: 1,184
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.
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.
May 8, 2013, 9:25 am
#167
Join Date: Jan 2010
Location: Stockholm, Sweden + Austin, Tx
Programs: "But, I'm a GLOBALIST guest...."
Posts: 2,848
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.
May 8, 2013, 9:38 am
#168
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Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,959
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.
May 8, 2013, 9:44 am
#169
Suspended
Join Date: May 2010
Posts: 2,998
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.
May 8, 2013, 9:48 am
#170
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Join Date: Jun 2003
Location: Miami, Mpls & London
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May 8, 2013, 9:50 am
#171
Suspended
Join Date: May 2010
Posts: 2,998
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.
May 8, 2013, 9:53 am
#172
Join Date: Jul 2005
Location: East Coast
Programs: UA Lifetime Gold, AA Lifetime Platinum, Delta PM, Marriott Gold, Hilton Diamond
Posts: 1,522
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'.
Prepare... You've been warned...
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'.
Prepare... You've been warned...
May 8, 2013, 9:57 am
#174
Join Date: Jul 2003
Location: Wine Country, Finger Lakes
Programs: LFFRS BOD
Posts: 1,355
May 8, 2013, 10:00 am
#175
Join Date: Apr 2013
Posts: 417
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.
May 8, 2013, 10:01 am
#176
Suspended
Join Date: May 2010
Posts: 2,998
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.
If you want to limit perks then just specify and force spending limit in 5x categories.
May 8, 2013, 10:09 am
#178
Join Date: Nov 2011
Posts: 1,944
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
May 8, 2013, 10:11 am
#179
Join Date: Jan 2010
Location: Stockholm, Sweden + Austin, Tx
Programs: "But, I'm a GLOBALIST guest...."
Posts: 2,848
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.
If you want to limit perks then just specify and force spending limit in 5x categories.
May 8, 2013, 10:17 am
#180
Join Date: Jul 2005
Location: East Coast
Programs: UA Lifetime Gold, AA Lifetime Platinum, Delta PM, Marriott Gold, Hilton Diamond
Posts: 1,522
Thanks!! I gave them an ear-full last year when I tried redeeming 80K TYP and I was told the system showed zero points. I had to fax my CC statements to get those .......s to honor my points.