Citi Dividend World Master Card...need help!

[MrShush]

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@fused wrote:

For the life of me, I cannot figure out why CITI and others are doing this. How do they benefit from all of this? I still haven't figured it out. 

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Because it allows them to report less in unsecured money for accounting purposes therefore they seem less risky.

[fused]

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@MrShush wrote:

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@fused wrote:

For the life of me, I cannot figure out why CITI and others are doing this. How do they benefit from all of this? I still haven't figured it out. 

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Because it allows them to report less in unsecured money for accounting purposes therefore they seem less risky.

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I still don't see the connection. Just because banks and CCCs don't report CLs to the CRAs, its not as though the CLs on CCs have vanished into thin air.

[athensguy]

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@fused wrote:

How does reporting tie into merchant fees?

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A properly reported World MC or Visa Sig reports this way.  They don't care about the reporting part, but they get higher fees when you swipe your World MC than when you swipe your regular MC.

[fused]

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@athensguy wrote:

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@fused wrote:

How does reporting tie into merchant fees?

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A properly reported World MC or Visa Sig reports this way.  They don't care about the reporting part, but they get higher fees when you swipe your World MC than when you swipe your regular MC.

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I know how signature cards report, but I just found out that World MCs report the same way.

I knew the banks and CCCs were up to something. Do you know the difference in fees between World MC/Sig cards and regular MCs? 

[athensguy]

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@fused wrote:

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@athensguy wrote:

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@fused wrote:

How does reporting tie into merchant fees?

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A properly reported World MC or Visa Sig reports this way.  They don't care about the reporting part, but they get higher fees when you swipe your World MC than when you swipe your regular MC.

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I know how signature cards report, but I just found out that World MCs report the same way.

I knew the banks and CCCs were up to something. Do you know the difference in fees between World MC/Sig cards and regular MCs? 

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The fees depend on your merchant agreement, but the fees for a World/Signature card can be 50% more than for a regular card.

A regular example might be:

$0.25 swipe fee +

1% for plain MC

OR 1.7% for reward MC

OR 2.4% for World MC

[haulingthescoreup]

I knew that they got more for usage on a World MC or Visa Sig, but I still don't see how the banks benefit from not reporting the CL's.

Unless, as suggested above, it makes their books look better, as in less apparent risk. But then what's to stop them from no longer reporting CL's on any other card?

[vanillabean]

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@haulingthescoreup wrote:

I knew that they got more for usage on a World MC or Visa Sig, but I still don't see how the banks benefit from not reporting the CL's.

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I've read somewhere that it gives the CCC a competitive edge. People, because they don't know, might think the customers' CLs are higher than they are.

[Anonymous]

thankfully....after talking to 3 different account managers (not CSR) they were able to de-convert my card back to the normal dividend but the sad thing is the 2% cash at groceries, gas is gone...it's 1% across the board..but I'm still happy since I get to keep my CL. Thanks for the help!

[BamCat]

I got the letter stating that my Citi Dividend Platinum Select was being converted to a World MC, but initially didn't think much of it.  This card (which I've had since 1991) used to be an AT&T Universal card, and it's gone through several name changes since then.  It wasn't until I read this thread and others like it that I realized the implications to my FICO score. 

Citi had already assigned me a new number (I saw this when checking my account online), but I didn't have the new card yet.  I called them, and the woman I spoke to was very helpful.  She reinstated my old account number and told me to shred my World card when it arrived.  I later got a letter confirming that my card is still a Dividend Platinum Select.  So I just wanted to thank those on here who educated me.

[Anonymous]

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@BamCat wrote:

I got the letter stating that my Citi Dividend Platinum Select was being converted to a World MC, but initially didn't think much of it.  This card (which I've had since 1991) used to be an AT&T Universal card, and it's gone through several name changes since then.  It wasn't until I read this thread and others like it that I realized the implications to my FICO score. 

Citi had already assigned me a new number (I saw this when checking my account online), but I didn't have the new card yet.  I called them, and the woman I spoke to was very helpful.  She reinstated my old account number and told me to shred my World card when it arrived.  I later got a letter confirming that my card is still a Dividend Platinum Select.  So I just wanted to thank those on here who educated me.

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How long does it take for everything to go back to normal after you received the letter? I am in the same situation but my online banking is still showing 2 accounts.