Citibank blocks transactions on certain companies

edison · #1 (**permalink**) 16th October 2006, 06:33 PM

I got my Citibank Gold Card fee free ever recently, which I am happy with. Unfortunately Citibank blocks me from some transactions today.

I use IG Markets mainly for CFD/foreign exchange/commodity trading. Most of these trading companies (including CMC markets) allows u to fund the account using visa/mastercard (up to $2000 per day without paying 1.75% admin fee) for trading purposes. I tried to do this today and was declined. I rang up IG Markets and they say the don't decline credit cards at all. So I rang up Citibank and they said that they block all transactions that are classified as "betting companies", which "IG Markets" is one of them. I asked them whether they can override it they said they cannot but I can do a cash advance instead for it.

So I told them I will use another credit card instead, which I did without any problems (used to use ANZ, and now I use National Velocity card).

Just wondering whether other people have experienced the same problem (may not be to a "betting company"), and if so is there anyway around it?

Mal · #2 (**permalink**) 16th October 2006, 06:58 PM

I'm not sure you will have any luck trying to change Citibank's mind.

However, how I would approach this is to write a letter to "IG Markets" letting them know that Citibank are (possibly) restricting their trade by blocking their members and their transactions.

In addition, perhaps Citibank and slurring their good name by classifying them as "gaming" rather than an investment company.

They may choose to take this up with Citibank themselves. They would have great strength in a situation like this.

#3 (**permalink**) 16th October 2006, 07:27 PM

I too am inconvenienced and disappointed with CitiBank's decision not to honour some transactions. The ATO doesn't consider income from CFDs gaming, but income, so why shouldn't Citibank take the same view.

However, what's particularly annoying is that before applying for a CitiBank Gold card I checked on two separate occasions that they processed transactions with IG markets as purchases rather than cash advances. On both occasions I was assured that they were purchases. Seems that Citibank has no idea what its doing.

Needless to say I won't be sticking with Citibank, but going elsewhere...they can have their useless card back.

Regards Ray

kiti · #4 (**permalink**) 18th October 2006, 10:50 PM

Where do the proceeds from IG Markets go? Is it back onto your credit card, or do they wire it to your savings account? Citibank could be trying to stop money laundering, hence why online gambling is probably banned. Also could be to minimise the number of reward points you are getting, as you could just debit the $2000 every per day until you reach your reward points cap?

JohnK · #5 (**permalink**) 19th October 2006, 01:42 AM

Quote:

Originally Posted by kiti

Also could be to minimise the number of reward points you are getting, as you could just debit the $2000 every per day until you reach your reward points cap?

I could not for the life of me imagine that anyone frequenting this website would contemplate doing anything that could be misinterpreted by Citibank as deceitful!

kiti · #6 (**permalink**) 19th October 2006, 08:02 AM

JohnK,

I am not implying that "anyone frequenting this website would contemplate doing anything that could be misinterpreted by Citibank as deceitful", however Citibank might. They probably block these transactions based on merchant category code, not based on the individual merchant or customer. If it was the later then I am sure it would be discrimination.

JohnK · #7 (**permalink**) 19th October 2006, 01:30 PM

Quote:

Originally Posted by kiti

I am not implying that "anyone frequenting this website would contemplate doing anything that could be misinterpreted by Citibank as deceitful", however Citibank might.

I know tiki, I was not referring to you. I made a tongue in cheek comment based on a Citibank offer last year. Deceitful was probably the wrong word to use. Should have been "exploit".

johnsmith · #8 (**permalink**) 19th October 2006, 07:11 PM

Quote:

Originally Posted by edison

I got my Citibank Gold Card fee free ever recently, which I am happy with. Unfortunately Citibank blocks me from some transactions today.

I use IG Markets mainly for CFD/foreign exchange/commodity trading. Most of these trading companies (including CMC markets) allows u to fund the account using visa/mastercard (up to $2000 per day without paying 1.75% admin fee) for trading purposes. I tried to do this today and was declined. I rang up IG Markets and they say the don't decline credit cards at all. So I rang up Citibank and they said that they block all transactions that are classified as "betting companies", which "IG Markets" is one of them. I asked them whether they can override it they said they cannot but I can do a cash advance instead for it.

So I told them I will use another credit card instead, which I did without any problems (used to use ANZ, and now I use National Velocity card).

Just wondering whether other people have experienced the same problem (may not be to a "betting company"), and if so is there anyway around it?

I think I will open one of these accounts, would you like to refer me and get a free bottle of champagne, can I pay using a Westpac CC, are there any other companies like this. Are there any risks involved? How do they send the funds back to you? This seems like a good way to earn some extra points. Could I pay $2000 per day into my account for 30 days = $60K then withdraw the 60k and pay back my CC before the due date?

IG Markets - Refer-a-Friend

aschmid · #9 (**permalink**) 23rd October 2006, 11:59 AM

I had a similar experience with Citi Gold card though a little different.

My card was not working for two days and I called them to find out what the problem is. Turns out they claim I had used my card at a merchant that is on one of their possible fraud transactions lists and they have BLOCKED my card without telling me about it and will issue a new card that I will receive in a few days.

I have never ever before experience somthing like this with any other credit card company. No need to say that I was steaming but there was nothing I could do. Even worse they claimed they cannot tell me what merchant it was it "just happens automatically" and the call centre person doesn't know the specific merchant.

I don't know what they are up to but the whole thing sounds fishy to me. As all the transactions on my account were in order and I didn't complain why would Citibank care?

oz_mark · #10 (**permalink**) 23rd October 2006, 12:08 PM

Quote:

Originally Posted by aschmid

I had a similar experience with Citi Gold card though a little different.

My card was not working for two days and I called them to find out what the problem is. Turns out they claim I had used my card at a merchant that is on one of their possible fraud transactions lists and they have BLOCKED my card without telling me about it and will issue a new card that I will receive in a few days.

I have never ever before experience somthing like this with any other credit card company. No need to say that I was steaming but there was nothing I could do. Even worse they claimed they cannot tell me what merchant it was it "just happens automatically" and the call centre person doesn't know the specific merchant.

I don't know what they are up to but the whole thing sounds fishy to me. As all the transactions on my account were in order and I didn't complain why would Citibank care?

Interesting. In my case Citibank had rung me within minutes of a suspect transaction occuring on my account, so to me they seem quite red hot on dealing with suspicious transactions.