Citi has a number of changes to their rewards cards in the Citi Rewards program coming into effect from 15 June 2017.
The majority of their points-earning credit card offerings are affected in one way or another, and Citi are directly adjusting the way points are earned on each card, as well as reducing the transfer rate to most of their partner frequent flyer programs from Citi Rewards.
We think it’s likely that the changes are in response to the regulatory changes the RBA imposed on the banking market last year, which come into force in September.
Note that Citi don’t have a single page which consolidates all these changes in one for us to link to on their website but you will find them detailed in this PDF on the Citi website.
We were also originally under the impression that existing Citi Rewards points balances would not be affected, but that is not the case.
We have updated this article now to include the full details of the rewards program changes, along with the changes to each card.
Spend eligible to earn points from is redefined – government transactions that don’t earn points have been widened
Citi are going to be more specifically defining ‘eligible transactions’ for earning points.
All of the following transaction types will not be points-earning (some of which were already included):
- Cash advances
- Balance transfers
- BPAY payments
- Purchases for foreign currency / travellers cheques
- Business transactions
- Payments to other Citi accounts
- Bank fees and charges including interest
Those were already included. The Government related transaction category is now more specifically defined / broadened to include transactions with government or semi-government entities, with the following examples given:
- Australian Tax Office (this was already a non-points earning merchant)
- Australia Post
- Council rates
- Motor registries, tolls, parking stations and meters
- Public transport fares
- Fines and court related costs
In addition, it’s worth noting the definition of ‘Domestic Spend’ and ‘International Spend’ – it’s not too complex, but eligible Domestic Spend is spend with all other merchants that aren’t in the new categories where you earn more points or are excluded thanks to the government transactions above, while eligible International Spend are transactions that are processed in foreign currency.
Not much is changing with International Spend though outside of the earn rates on some of the cards.
Changes to earn rates and points caps – Citi are moving to category-specific bonuses for Signature and Prestige cardholders
Both the Qantas and Citi Rewards variants of the Citi Premier and Citi Prestige cards are having their current model of a single points earn rate changed to instead offer more points on some specific merchant and spend types, and fewer points on all other spend.
Citi Premier
For Citi Premier Qantas cardholders
The changes to the Citi Premier Qantas include:
- Introduction of new bonus points earn categories – these earn at most the same as the current general Domestic Spend earn rate before points caps kick in
- Replacing a general earn rate on eligible Domestic Spend with bonus categories, with spend outside the bonus categories reduced to 0.5 Qantas Points per $1
- Increase the points cap from $10,000 to $20,000 per statement period on eligible spend outside the bonus categories
| Card type | Eligible Domestic Spend earn rate |
|---|---|
| Citi Qantas Signature Rewards Card |
|
For Citi Premier Mastercard cardholders
The changes to the Citi Premier Mastercard include:
- Introduction of new bonus points earn categories – the earn rate for these is at least the current points earn rate
- Replacing a general earn rate on eligible Domestic Spend with bonus categories, with Domestic Spend outside the bonus categories reduced from 1.5 to 1 Citi Rewards points per $1
- Removal of the $20,000 per statement period points cap and replaced with a tiered earn rate based on spend categories
- Increase in points earned from eligible international spend from 1 Citi Rewards point per $1 to 2 Citi Rewards points per $1
| Card Type | Eligible Domestic Spend earn rate | Eligible International Spend earn rate* |
|---|---|---|
| Citi Premier Mastercard |
| 2 Points per $1 spent on eligible International Spend |
Citi Prestige
Citi Prestige Qantas
Changes to the Qantas-linked variant of the Citi Prestige include:
- Addition of new bonus points categories, with increase in earn rate for restaurants, hotels and airlines compared to the existing earn rates
- Replacing a general earn rate on eligible Domestic Spend with bonus categories, with spend outside the bonus categories reduced to 0.5 Qantas Points per $ from 1 Qantas Point per $
- Eligible international spend earn rate increased to 1.5 Qantas Points per $
| Card type | Eligible Domestic Spend earn rate | Eligible International Spend earn rate |
|---|---|---|
| Citi Qantas Prestige Rewards card |
| 1.5 Points per $1spent on eligible International Spend |
Citi Prestige Rewards
Changes to the Citi Rewards Prestige include:
- Addition of new bonus points categories, with increase in earn rate for restaurants, hotels and airlines compared to existing earn rates
- Replacing a general earn rate on eligible Domestic Spend with bonus categories, with spend outside the bonus categories reduced from 2 Citi Rewards to 1 Citi Rewards point per $1
- Eligible international spend cut from 5 points per $1 to 3 points per $1
| Card Type | Eligible Domestic Spend earn rate | Eligible International Spend earn rate |
|---|---|---|
| Citi Prestige Rewards Card |
| 3 Points per $1 spent on eligible International Spend |
Citi Rewards Platinum Visa
For the lower fee Citi Platinum card, the points earn rate will be cut from 1.25 Citi Rewards points per $1, down to 1 Citi Rewards point per $1 – no bonus categories are being applied.
| Current | From 15 June 2017 onwards | |||
|---|---|---|---|---|
| Citi Rewards earn rates | Points cap | Citi Rewards earn rates | Points cap | |
| Eligible Domestic Spend | 1.25 point per $1 | $10,000 per statement period | 1 points per $1 | $10,000 per statement period |
| Eligible International Spend | 1.25 point per $1 | uncapped | 1 points per $1 | uncapped |
Citi Emirates World Mastercard
Surprisingly, there will be no changes to the earn rates of the Citi Emirates World Mastercard.
- Earn rate will remain at 1 Skyward Mile per $1 on eligible Domestic Spend up to $3,000, then 0.5 per miles per $1 up to $10,000 per statement period
- Eligible international spend remains at 1.25 Skyward miles per $1 spend, uncapped
Changes to Citi Rewards transfer rates
As mentioned earlier, there are also a number of transfer rates changes coming to Citi Rewards. What’s particularly annoying is that these points would have been earned under the old interchange rules, so the devaluation of existing points balances is unlikely, in our opinion, due to the new legislation, and is a business decision by Citi.
Focusing on Citi Premier and Citi Prestige:
- KrisFlyer moves to 2.5 Citi Rewards to 1 KrisFlyer Miles from 2:1
- Velocity transfer rates are unchanged
Then for Citi Prestige only partners:
- Asia Miles to 2.5 Citi Rewards to 1 Asia Miles from 2:1
- Etihad Guest, Malaysia Airlines Enrich, Thai Royal Orchid, Air France Flying Blue, GarudaMiles and Qatar Airways Privilege Club all change from 2 Citi Rewards to 1 point/mile to 3:1
- Radisson Rewards and Hilton Honors will change from 1 Citi Rewards point = one partner point to 2:1 (Honors partnership ends 12 December 2017)
- IHG Rewards moves from 1.5 Citi Rewards to 1 IHG Rewards point to 2.5:1
And, finally, for Citi Rewards Platinum cardholders, the KrisFlyer transfer rate will change from 2.5 Citi Rewards points to 1 mile to 3:1.
In addition, other redemptions available via Citi Rewards may also be changing in price, not just transfers to loyalty program partners. Quoting from Citi’s terms variation document:
We will be making changes which will increase the number of Points required to redeem a range of gift cards, merchandise, prepaid cards and travel available in Citibank Rewards. The new number of Points required will be published on the rewards website at that time.
Thanks to AusBT’s original reporting for highlighting this.
This is a major blow for the value of the program and holders of existing points balances with Citi, and you should seriously consider whether you are tempted to move your points from the program before June 15th.
Citi Prestige: Transfers to KrisFlyer also switch from a 2:1 to a 2.5:1 conversion rate, as do transfers to Cathay Pacific Asia Miles. Conversions to Air France Flying Blue, Etihad Guest, GarudaMiles, Malaysia Airlines Enrich, Qatar Airways Privilege Club and Thai Airways Royal Orchid instead move from a 2:1 to a 3:1 conversion rate.
More about the categories added that now offer more points spend
Whether you earn the higher points earn rate category at a particular retailer will be defined by the merchant you are spending with and how they are categorised in the credit card / banking system, which is up to the merchant or the system they use to accept credit cards, not Citi.
If a retailer is included in one of the categories, then you should receive the higher earn rate automatically, and vice versa.
In addition, for the points especially on travel and restaurant spend, it’s worth noting that purchases made that are made through a travel agent (physical and online) or a delivery company (in the case of food) may not be categorised for bonus spend either.
Finally, there’s one ‘major retailers’ merchant category that hasn’t yet been made clear as which major retailers are included. Hopefully that will become clearner in or before June.
Summing up
This is a massive overhaul of Citi’s card range. It’s hard to generalise how this will impact people given the addition of the bonus categories and raising of the points caps – both positive measures which help mitigate the points earn rate being cut on the general spend or ‘eligible Domestic Spend’.
In summary, how much this impacts you will depend on how much you spend in (or out) of the bonus categories.
Personally, I use the Citi Prestige Mastercard fairly extensively for spend everywhere at merchants that doesn’t take American Express, and few of those transactions make it into those bonus categories – most will have points earn rates cut.
My gut feel is that all but the biggest spenders in those categories would be worse off overall. However, if you think these changes work better for you, we’d love to hear so in the comments.
If you’re an existing cardholder, you should look closely at your own spending habits and see how serious the impact on the number of points earned will be to figure out how much of a hit (or not) you will take from these changes.
thinking of signing up for the 60k KF bonus, and 4th night free benefit.
anyone know if there’s a time lag between holding it initially, and re-application?
Cheers
Andrew
So the 15th June is now upon us. As a Citibank Prestige Cardholder who spends round 100-150k month on this card – the party is over. I convert all my points to QF
What to expect from the scripted response when you ring up to cancel;
a) Reduce annual fee to $350 from $700
or
b) We will give you 12,000 qantas points to stay (no fee reduction)
or
c) We will give you One bonus point per $ spent till October which will show on your October statement (again on fee reduction)
They almost sold me on option c – however as my $700 card fee is due in July – decided just not worth it.
The only reason I used Citibank was for their rewards program, which at the time I first went with them was 50,000 points gave us $500 gift card (albiet, points earned were always 1 for $1 – and capped spending – at that time too). I’ve seen them slowly go backwards over the years, but these changes are significant enough to now look to switch to a better rewards program. Can anyone comment on what is better out there, especially with someone who has a high spend with government-related organisations?
Hi Jenny,
We can’t give personal financial advice here on Point Hacks, our round up of cards that earn points at the ATO might be a good starting point for your search.
My $700 fees is due in July. Got to rethink if it’s worth keeping it or giving it a flick
Furthermore, I’m forming the view that the entire rewards piece is becoming a waste of time…
Its getting harder and harder to actually use carefully collected points….
I have close to 10Million points in AMEX/Citi/VA/QFF but i might as well have none, because im finding that the time, effort and cost its taken to aquire them, is now probably closely approaching what i can turn them into… Difficult to get better than 3c a point in value anywhich way now, when u can just buy bus class Aus to Europe for like $6K, and actually get a flight, let alone when u actually want to take it, and not spend 10 or more hours in the middle waiting etc etc
Screw them all i think….
I think its better and easier now to just focus on making money, and just buying tickets…
Ok, rant over….
This!
I guess it’s somewhat dependent on how much time you’re willing to invest in finding points flights, what your desired route(s) and classes are, and how much flexibility you have, but I suspect you just need to get “smarter” about how you use your points. I mean “smarter” in a positive sense, not a derogatory one!
To use myself as an example: I am/was in a similar boat to you in terms of being “points rich” – I had circa 10m points a few years ago, which I’ve now burnt down to about circa 5m, spread across a variety of airline and flexible points programs. In that time I’ve flown over 700,000km on points, mostly internationally and almost exclusively in business or first. A good chunk of those flights have been with a companion (also on points), and in the same timeframe I’ve also sent family members on overseas flights in business / first, paid for with points, perhaps six times. For my own flights, almost all of them were booked less than three months in advance (many less than a month in advance), and I typically would only have a few days of flexibility re departure / return dates.
That possibly all sounds like a giant brag, but the the reason I explain it all in such detail is simply to show that it is possible! And continues to be so. I wouldn’t be so confident if you only had QF or VA points, but with Citi and Amex thrown into the mix as well you have incredible flexibility at your disposal.
There’s innumerable tips out there regarding how to find the points flights you want, but by far my top tip would be to buy an AwardNexus subscription – it’s absolutely invaluable – and take the time to learn how to use it properly. A close second would be to explore KrisFlyer, if you haven’t already – KrisFlyer is good generally, but it’s fantastic for the points-rich, as it’s incredibly easy to find “Standard” level award flights. You “waste” some points vs “Saver” level awards, but if you have 10m points and it means you can actually use some of them, IMHO it’s well worth the extra “cost”.
And if all that is to much for you, try one of the many services out there that you can pay to find award flights for you. If you do your research and find a reputable one then they’re reliable, and they’re cheap as chips too.
I spend up to 100k a month on my Prestige card…. Sigh…. Back to the drawing board….. They just lost me as a customer…. And everyone i know!
Assuming billpay is “Aust Post” – does paying with PayPal still earn you points?
It should do, yes. But need to test under the new earn rate regime to be sure.
We like to travel Emirates to Athens. It is easy for us Brisbane/Dubai/Athens. Have always had the Citi World Card. However since they capped it last year, have been toying with the idea of upgrading to Prestige. From the above article, it doesn’t seem worth it for the hefty $700 per year. Am thinking of investigating American Express. Any advice ? I need a card that gives me maximum Skywards.
Well – the primarily differentiator is Amex vs MasterCard spend, and where you spend most and their acceptance will determine how useful an Amex is to you. Have a look at our Cards Table for full earn rates for each card on the market.
If you both QF and VA for collecting points and SCs, does anyone have a view as to which program would be best? I’m currently QF Prestige but as I have a couple of international trips each year, I thought of changing to PrestigeCiti Rewards as I originally signed up last year to get the QF bonus points.
Hey Kieth
What is a “business transaction” that will no longer earn points?
Thanks
Citi don’t define them AFAIK – and if so, they it would be at their discretion! I am guessing they would be looking out for large and frequent payments to the same supplier, for example.
Well, there goes my Virgin card.
Also, you remark that it’s surprising the Emirates World hasn’t been reduced. I think it’s fair to say that it has already gone through so many substantial reductions, in conjunction with Skywards devaluations, as to render it useless.
I also note that the Virgin Money High Flyer card (administered by Citi) is also being ‘hit’ with a raft of detrimental changes, the most surprising of which is the reduction in the earn rate for booking VA flights from 3pts/$ to 1pt/$.
Doesn’t look like we will be needing our Citi (so called) Prestige card anymore as you can get a lot more from Amex Platinum Edge for supermarkets/petrol and a better overseas rate with the St George Amplify Signature and added together both will cost $226 less than Citi if you are not a Citi gold member. Citibank has really gone further backwards in the last 12 months. I like many are pretty dirty with the new deals.
The changes to transfer rates are detailed in the ‘Important notice’
https://www.citibank.com.au/global_docs/pdf/Citibank_Rewards_and_Qantas_Rewards_Program.pdf
Thanks Mark – noted/added.
Stating the obvious, for Prestige card holders this is very significant and I believe will result in many cancelling the card or requesting credits in lieu of the annual fee paid thus far or in the future. The card has essentially become no better than most other cards available and was once a favourite for International spend when applicable to things like Google AdWords.
This is madness. With the Prestige, they charge $700/year for a Visa, and this totally kills their value prop. High-end Amexes get 2.00 pts/$ for overseas (with a better forex rate), and Citi’s proposed “bonus categories” are market segments where Amex acceptance is much higher than standard and, again, Amex bonuses overlap. (For instance, the $195/year Edge is still three times better in airline terms than this, for fuel stations and supermarkets.)
It’s unfortunately not surprising. The RBA is to blame for this madness with their baseless changes to interchange rate limits.
Why on earth the banks don’t mobilise their customers to respond to the RBA’s conduct I have no idea.
Because most customers don’t care.