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Citi Changing Its Double Cash Back Card From Cash To Thankyou Points - Which Cuts Your Cash Back In Half

me1004
  |     |   1,381 posts since 2010

I just got a message from Citi Cards notfying me that it is changing its Double Cash Back card from 1% cash back at time of purchase and another when you pay it back in your bill (2% total) to ThankYou points instead of cash. March 24 is the last day you will be able to cash in your Double Cash credit at full cash value, that system will be down as of March 25 for the conversion over to ThankYou points starting on March 28.

This effectively cuts it from 2% cash back to 1%, because under the ThankYou points program, if you want it in cash, you only get half as much, only 50¢ back for every $1 for 12 point spent, an important point of information Citi is not mentioning. You can get only the 1-to-1 amount if you buy something from their list of stores, from that system in your account -- but even if you happen to want something there, you can get it at a lower price outside their system, so you are not getting your value.

They actually have told a lie in thieir announcement:

"SAME great redemption VALUE

for cash back

When you redeem your ThankYou Points for cash back, you’ll receive the same value you did before.

1,000 ThankYou Points equals $10 in cash back."

In reality, in the Double Cash Bank program, for $1,000 of spending, you would get back $20. $10 back is merely 1%, not 2%.

It might be time to finally get a credit card via Abound CU, get 5% back.

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me1004
  |     |   1,381 posts since 2010
Ken, I have given input before about the issue of not being able to use the buttons, such as the quote button, because they do not appear in the original posting, I have to go back in to edit in order for them to appear, but when I edit, the Save button does not work, so the edit cannot be completed.
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Rickny
  |     |   1,298 posts since 2017
Haven't gotten from Citi about this (yet). I do see under rewards a "new" category that says "Convert to Points" ThankYou points.

If they change things we'll use our Fidelity Charge card that gives 2% if I apply the rewards to a Fidelity account.
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Kaight
  |     |   1,192 posts since 2011
I am also a "show me the money" person. I have no interest whatsoever in non-cash rewards. So a 1% reduction in my rewards on this Citi card would be a big deal, and a problem.

However, after searching elsewhere I am unable to confirm a rewards reduction from 2% to 1% for people like us, starting in March. Nobody else is mentioning this. In fact they are writing that this new Citi program is better for us "cash money" aficionados because we no longer will need to accrue $25 of rewards before applying for them to be sent to us.

So I dunno. Am hoping for the best. If they really are cutting the reward for people like us I already have several other cards available which pay a 2% reward minimum, and even more than that. So if Citi goes to a 1% cash reward I will simply sock drawer their card without ceremony.
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FHB
  |     |   8 posts since 2013
I received a flyer by snail mail. Yes, 1,000 ThankYou Points equals $10 in cash at purchase. However, you would get another 1,000 ThankYou Points at payment which equals $10 in cash. The flyer states "If you have $10.13 in cash rewards, your rewards will be converted to 1,013 ThankYou Points - redeemable for a $10.13 statement credit, direct deposit or check."
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me1004
  |     |   1,381 posts since 2010
You are misunderstanding. We no get 1% for dollar spent at purchase and 1% at payment. That will be changed to 1 point at purchase and 1 point at payment. For 1,000 points, which represents $1,000, you will get $10. But now, for $1,000, you get $20.00.

This is how the ThankYou points has worked since it was created years ago, and why I have not taken them up on their constant offers to go to the points system. Now they will change it against our will:

https://online.citi.com/US/JRS/portal/template.do?ID=double-cash

That link does not explain what I just did about how much money you actually get. But the e-mail I got did, and I already knew how the points system worked from looking into it years ago (I have another Citi card that uses the points system, I do no use it for that very reason.)

And yes, in their effort to decieve you, they tell you you are getting more options, and no loss. But you are getting only half as much in actual cash if you redeem for cash instead of buying through their online system of buying at their high prices.
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Sherlock
  |     |   48 posts since 2020
Now the card is getting a refresh that makes it even more flexible. Starting March 28, 2022, the Citi® Double Cash Card will no longer earn cash back directly. Instead, cardholders will earn Citi ThankYou points at a familiar rate: 1 point per dollar when you make a purchase, and 1 point per dollar when you pay it off (ESSENTIALLY 2X POINTS PER DOLLAR)

With the Citi® Double Cash Card, your points will be worth 1 cent each when you redeem for cash back, SO THERE'S NO CHANGE IN YOUR EFFECTIVE EARNING RATE. However, you can also use Citi ThankYou points for other redemptions, including travel booked through the Citi portal, gift cards, merchandise, and more.

https://www.businessinsider.com/personal-finance/citi-double-cash-will-earn-citi-thankyou-points-instead-of-cash-back-2022-1?amp

Example: You spend $1000 you get 2x points per dollar so you get 2000 points. 1 point per dollar when you make a purchase, and 1 point per dollar when you pay it off
If you convert the points to cash back you get $20 for the 2,000 points because your points will be worth 1 cent each when you redeem for cash back.

No matter how the point system used to work the above explanation is how it will work starting March 28, 2022

https://thepointsguy.com/guide/citi-double-cash-card-review/amp/
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Anon456
  |     |   249 posts since 2011
? Isn't the Abound 5% only on GAS ??
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Rickny
  |     |   1,298 posts since 2017
Got email today. Nothing really changing if you want cash back:

You will continue to earn 1% cash back on purchases and 1% cash back as you pay for those purchases. Beginning 03/28/2022, cash back will be earned in the form of ThankYou® Points instead of cash rewards — this means each billing cycle you will earn 1 point per $1 spent on purchases and an additional point for every $1 paid on those purchases.
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Kaight
  |     |   1,192 posts since 2011
Respectfully, something IS changing if you want cash back. And it is changing for the better!

It will no longer be necessary to accrue twenty-five bucks before Citi allows you to request your rewards. That is a change I think we all will like. The twenty-five dollar increments were, at best, annoying.
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Rickny
  |     |   1,298 posts since 2017
Kaight I was referring that the match was not changing.

The $25 requirement is not a big deal to me.
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alan1
  |     |   880 posts since 2015
Kaight -- there are no "twenty-five dollar increments" under the current reward structure. As you noted, there is a $25 minimum; currently, one cannot redeem a reward of less than $25. But once you've reached at least $25, you can redeem the entire amount (e.g., if your reward total is $47.85, you can redeem all of it).
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Kaight
  |     |   1,192 posts since 2011
Thank you, alan1. Yes, upon reflection I realize you are correct; no increments, only just a $25 minimum which will be going away.

To be 100% open and honest it has been quite a while since I have used my Citi Double Cash CC, which has currently (for me) achieved nearly sock drawer status. I have several other cards paying a reward of 2% or more. I prefer them, and use them, because I get my reward with those other cards earlier in the process than with Citi. Also those other cards are less apt than Citi to harass me with security denials owing to my somewhat quirky charge patterns.

I even have one card, from Citizens Bank, which actually has a poorer reward than Citi Double Cash but which I use nevertheless in preference. This because my Citizens Bank World Mastercard pays its 1.8% reward right up front, only shortly following my purchases and LONG before I pay off the charges. As a "show me the money" sort of person, I like my reward cash as far up front as I can obtain it.
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Rickny
  |     |   1,298 posts since 2017
The Citibank charge card is my base card for 2% cash back. I have a Wells Fargo 2% and a Fidelity Card that pays 2% if the reward is made to a Fidelity account. I have other cards that are category or store specific that have higher cash back percentages.

No problems using my Citibank charge card which I use heavily. Never had an denils of charges or problems. I've had problems receiving bonuses on Citibank savings and checking accounts but after contacting customer service and waiting a few days got the bonuses. These accounts are now closed.

The only bank I've had numerous denials of charges that required verification was Bank of America. They seem to have stopped or BOA tweaked their security algorithms.
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Kaight
  |     |   1,192 posts since 2011
Very interesting information, Rickny. Thanks. I received my very first denial at B of A yesterday, but it was resolved quickly. Still an real annoyance, though. However, for a 3% reward I am willing to tolerate such annoyances.

I hope Citi has, indeed, lightened up with their security algorithms. They certainly needed to do so. Worst of all for me was PayPal (Synchrony Bank) which was security crazy. I finally gave up on them, stopped responding to their asinine constant confirmation requests, and they did me a favor and graciously cancelled my card. So now I'm down to only thirteen active cards, but managing somehow to tough it out nevertheless.
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Rickny
  |     |   1,298 posts since 2017
BOA one time denied a $13 charge pending verification for church photos. The day before I had no problems with a $1300 charge for a party at a restaurant.

I'd have to count but I have numerous credit cards. Only PSECU and Wells sit in the drawer after getting their bonuses. The PSECU was a nice bonus for $300.
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Rickny
  |     |   1,298 posts since 2017
Problem with credit card more small businesses charging a processing fee or giving a 5% discount for cash.
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jack12
  |     |   307 posts since 2021
I do not have the citi 2% card- I have the custom cash where I get 5% back up to $500 in any one category and I can confirm there was no devaluation of the rewards or points or whatever

I opened the account primarily for the one time bonus which I got -and I have had it for a few months- I don't recall my exact deal but maybe $250 for a $750 spend in the first 90 days

My only real complaint is when you choose to apply ty points to your account it is not immediate - it takes a few days while they tell you to pay in the meantime-
Kind of stupid and makes the deposit to a bank account a better option and there is no minimum as I did one for 3 dollars and change to prove that

And today I got a snail mail piece offering a $300 bonus for a $30k deposit for 60 days

Since their CC paid my bonus as agreed I might just do the bank account too

Although it seems you have to open both a checking and savings and keep $500 in the checking to avoid fees

Again- stupid- but I guess they are trying to get people to bank with them long term

I am certainly not going to do that after I get the bonus

I recently did a similar $700 offer with wells except it only required $10k but it did require an in branch visit

They gave me the $700 on time and I quickly closed the account- and of course with a bank account bonus you get a 1099- as opposed to credit card bonus deals where the bonus is deemed a cashback like reward and not interest
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Kaight
  |     |   1,192 posts since 2011
While this change by Citi offers no challenge at present to the amount of money we will receive when using our cards, it does open the door for Citi in future easily to mess with our rewards. This is because offering rewards in points is not the same as offering them in dollars. All Citi would have to do in future is to change the points to dollars exchange rate, to our detriment. I would not put something of this sort past them.
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