topic Re: Citizen Bank MC 5% unlimited through march 2020 in Credit Cards

Citizen Bank MC 5% unlimited through march 2020

CreditCuriosity — Fri, 08 Nov 2019 22:17:11 GMT

Saw it on DOC.. Can you say mass abuse is about to happen and Citizen will to learn their lesson

https://www.doctorofcredit.com/citizens-bank-mastercard-5-cash-back-through-march-31-branch-only-northeast-us/

First persons comment was funny.

"This is a formal challenge to see how quickly I get shutdown"

Re: Citizen Bank MC 5% unlimited through march 2020

kdm31091 — Fri, 08 Nov 2019 22:22:43 GMT

Someone did mention (on DOC) that the points aren't 1cpp:

"Don’t get hung up on the 5% because it only equates to 2.5% when redeeming points for cash back. Redemption rates are less than 1cpp. Example 6K points = $25, 11K points = $50, 21K points = $100, 42K points = $200, 100K points = $500"

https://tinyurl.com/CitizensRewardsCatalog

So if true, makes it pretty unexciting.

Re: Citizen Bank MC 5% unlimited through march 2020

CreditCuriosity — Fri, 08 Nov 2019 22:28:55 GMT

Ya saw that but saw another comment take it with a grain of salt won't quote it all for obvious reasons

"I profited about 15K off that card. They were pretty permissive then, but I can’t imagine it will be the same now?"

Sure it will be funny to watch this was back during the 10% days of the card intro..

They probably have learned their lesson one way or another and will be capped per month as i thought i read or if points arent each worth a cent then issues as well..

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Fri, 08 Nov 2019 23:22:56 GMT

@kdm31091 wrote:
Someone did mention (on DOC) that the points aren't 1cpp:

"Don’t get hung up on the 5% because it only equates to 2.5% when redeeming points for cash back. Redemption rates are less than 1cpp. Example 6K points = $25, 11K points = $50, 21K points = $100, 42K points = $200, 100K points = $500"
https://tinyurl.com/CitizensRewardsCatalog

So if true, makes it pretty unexciting.

Right, and the same issue with gift cards, $200 costing 40K or 40.5K (depending on the type of card)

ETA: that catalog is for an older card. The new one really is cashback

Re: Citizen Bank MC 5% unlimited through march 2020

CreditCuriosity — Fri, 08 Nov 2019 23:34:01 GMT

How did I know ltl would query in on this thread. You in the branch area?

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sat, 09 Nov 2019 00:30:21 GMT

@CreditCuriosity wrote:
How did I know ltl would query in on this thread. You in the branch area?

yes, no longer playing the game, but old habits die hard!

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sat, 09 Nov 2019 02:36:46 GMT

@kdm31091 wrote:
Someone did mention (on DOC) that the points aren't 1cpp:

"Don’t get hung up on the 5% because it only equates to 2.5% when redeeming points for cash back. Redemption rates are less than 1cpp. Example 6K points = $25, 11K points = $50, 21K points = $100, 42K points = $200, 100K points = $500"
https://tinyurl.com/CitizensRewardsCatalog

So if true, makes it pretty unexciting.

Not true. I posted on this a couple weeks ago. The branch brochure said 5% back. Spend 10k get $500. Unlimited spend until March 31st. 1.8% gets credited the day of each transaction. The other 3.2% gets credited in May 2020.

https://ficoforums.myfico.com/t5/Credit-Cards/Citizens-Bank-Cash-Back-Plus-Card/td-p/5791100

Re: Citizen Bank MC 5% unlimited through march 2020

Shadowfactor — Sat, 09 Nov 2019 05:49:29 GMT

I know some very big spenders who are getting this card, citizens is in for a huge surprise. The guy drops 100K+ everyday on his card and it’s all legitimate business spend. No BS on that either.

Citizens will learn its lesson just like CNB did.

That May 2020 posting date for the other 3.2% is likely so they can audit cardholders with large repeated purchase history.

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sat, 09 Nov 2019 06:49:47 GMT

@Shadowfactor wrote:
I know some very big spenders who are getting this card, citizens is in for a huge surprise. The guy drops 100K+ everyday on his card and it’s all legitimate business spend. No BS on that either.

Citizens will learn its lesson just like CNB did.

That May 2020 posting date for the other 3.2% is likely so they can audit cardholders with large repeated purchase history.

This is why we can't have nice things.

I bet they are going to shut down a lot of accounts, give low limits, delay posting payments, shut down customers using it for business, etc., to keep the MS under control.

Re: Citizen Bank MC 5% unlimited through march 2020

CreditCuriosity — Sat, 09 Nov 2019 17:02:24 GMT

@Anonymous wrote:
@Shadowfactor wrote:
I know some very big spenders who are getting this card, citizens is in for a huge surprise. The guy drops 100K+ everyday on his card and it’s all legitimate business spend. No BS on that either.

Citizens will learn its lesson just like CNB did.

That May 2020 posting date for the other 3.2% is likely so they can audit cardholders with large repeated purchase history.
This is why we can't have nice things.

I bet they are going to shut down a lot of accounts, give low limits, delay posting payments, shut down customers using it for business, etc., to keep the MS under control.

Using personal for business spend isnt MS

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sat, 09 Nov 2019 19:08:16 GMT

@CreditCuriosity wrote:
@Anonymous wrote:
@Shadowfactor wrote:
I know some very big spenders who are getting this card, citizens is in for a huge surprise. The guy drops 100K+ everyday on his card and it’s all legitimate business spend. No BS on that either.

Citizens will learn its lesson just like CNB did.

That May 2020 posting date for the other 3.2% is likely so they can audit cardholders with large repeated purchase history.
This is why we can't have nice things.

I bet they are going to shut down a lot of accounts, give low limits, delay posting payments, shut down customers using it for business, etc., to keep the MS under control.
Using personal for business spend isnt MS

There is always someone out there that will take it to the limit. Not that they are breaking any rules spending 10s of thousands of dollars on the card daily, but it might have been better for Citizens to put a 25K cap on 5% rewards, rather than having it unlimited.

You can get yourself into a lawsuit for shutting down an account when the cardholder is playing by the rules and you as a bank didn't think the promotion through.

Citizens isn't a big player in the CC market, and therefore hasn't run into scenarios that can cost them tons of money.

Re: Citizen Bank MC 5% unlimited through march 2020

dragontears — Sat, 09 Nov 2019 19:54:38 GMT

Since every T&C gives a bank the right to close your account at any time the threat of a lawsuit is absurd

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sat, 09 Nov 2019 20:17:29 GMT

@dragontears wrote:
Since every T&C gives a bank the right to close your account at any time the threat of a lawsuit is absurd

No, the lawsuits happen when you have spent money (in these cases a lot) and the issuer closes your card and forces you to forfeit the rewards. Some big issuers have backed down in this sort of situation, where they have failed to provide adequate T&Cs to disallow the rewards on those kinds of purchases.

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sat, 09 Nov 2019 20:20:41 GMT

@Anonymous wrote:

Citizens isn't a big player in the CC market, and therefore hasn't run into scenarios that can cost them tons of money.

As mentioned in the DoC thread, they have done similar things in the past, and managed with a number of slow-pay techniqes (e.g. from that thread: Many years ago I had a Citizens credit card. At the time it was a targeted 10% cash back offer. There was no limit to the cash back you could earn, but there was a limit of about $300 cash back per month that you could receive. So if you go really crazy with the earnings during the promotional period, it may take you several months afterwards to collect all the money.

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sat, 09 Nov 2019 23:55:55 GMT

@CreditCuriosity wrote:
@Anonymous wrote:
@Shadowfactor wrote:
I know some very big spenders who are getting this card, citizens is in for a huge surprise. The guy drops 100K+ everyday on his card and it’s all legitimate business spend. No BS on that either.

Citizens will learn its lesson just like CNB did.

That May 2020 posting date for the other 3.2% is likely so they can audit cardholders with large repeated purchase history.
This is why we can't have nice things.

I bet they are going to shut down a lot of accounts, give low limits, delay posting payments, shut down customers using it for business, etc., to keep the MS under control.
Using personal for business spend isnt MS

No it's not directly MS but throwing tens of thousands on a credit card to suck down rewards is treated like it, especially when you have to cycle the card to do it. Citizens isn't known for high credit limits so cycling will absolutely have to be a thing.

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sun, 10 Nov 2019 00:01:21 GMT

@Anonymous wrote:
@CreditCuriosity wrote:
@Anonymous wrote:
@Shadowfactor wrote:
I know some very big spenders who are getting this card, citizens is in for a huge surprise. The guy drops 100K+ everyday on his card and it’s all legitimate business spend. No BS on that either.

Citizens will learn its lesson just like CNB did.

That May 2020 posting date for the other 3.2% is likely so they can audit cardholders with large repeated purchase history.
This is why we can't have nice things.

I bet they are going to shut down a lot of accounts, give low limits, delay posting payments, shut down customers using it for business, etc., to keep the MS under control.
Using personal for business spend isnt MS
No it's not directly MS but throwing tens of thousands on a credit card to suck down rewards is treated like it, especially when you have to cycle the card to do it. Citizens isn't known for high credit limits so cycling will absolutely have to be a thing.

This.
He spends $36.5MM on a card per year and he's chasing a card from a regional bank that will give him, probably, one of his lowest limits and be entirely unusable to him. Makes sense.

Re: Citizen Bank MC 5% unlimited through march 2020

CreditCuriosity — Sun, 10 Nov 2019 00:40:48 GMT

Highest limit on card is 25k. Back before i had business cards and when traveling i put alot of company expenses on personal card no where to the level mentioned in this thread, but airline tickets, hotels, etc.

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sun, 10 Nov 2019 00:49:05 GMT

@CreditCuriosity wrote:
Highest limit on card is 25k. Back before i had business cards and when traveling i put alot of company expenses on personal card no where to the level mentioned in this thread, but airline tickets, hotels, etc.

Its conceivable, with a 25K line, and without idle days, to squeeze out 1.2M spend in 5 months. Assuming you can make 10 payments a month.

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sun, 10 Nov 2019 00:55:44 GMT

@CreditCuriosity wrote:
Highest limit on card is 25k. Back before i had business cards and when traveling i put alot of company expenses on personal card no where to the level mentioned in this thread, but airline tickets, hotels, etc.

That's totally normal and expected spend. I am talking about people who have to cycle their limits. There is no doubt in my mind that Citizens will be issuing limits fully expecting that they will be maxed out monthly - so if a $25K limit is given, they can expect to pay $25K worth of rewards. It's people who go beyond that which start to become a problem.

I bet we will see lots of $10K and under limits though so they're not having to pay $1,250 a month in rewards on a $25K card.

Re: Citizen Bank MC 5% unlimited through march 2020

Anonymous — Sun, 10 Nov 2019 01:02:05 GMT

@Anonymous wrote:
@CreditCuriosity wrote:
Highest limit on card is 25k. Back before i had business cards and when traveling i put alot of company expenses on personal card no where to the level mentioned in this thread, but airline tickets, hotels, etc.
That's totally normal and expected spend. I am talking about people who have to cycle their limits. There is no doubt in my mind that Citizens will be issuing limits fully expecting that they will be maxed out monthly - so if a $25K limit is given, they can expect to pay $25K worth of rewards. It's people who go beyond that which start to become a problem.

I bet we will see lots of $10K and under limits though so they're not having to pay $1,250 a month in rewards on a $25K card.

I think if they found too many were mega spenders, they would alter the offer for new applicants, say 5% rewards up to $700 bonus earned, etc.