Citibank find a NEW way to rip off their customers
Citibank find a NEW way to rip off their customers.
Discuss Citibank find a NEW way to rip off their customers, on the CitiBank Rewards Program forum of FrequentFlyer.com.au, the home of frequent flyers.
Welcome to Australia's leading independent Frequent Flyers resource! We hope you find the information useful and decide to join our online community. Its free to join, simply click on the register link. To start viewing messages, select the forum that you want to visit from the selection below.
Citibank find a NEW way to rip off their customers
Just received an email today regarding my Citibank Online Cash Manager.
The Citibank Online Cash Manager account is an internet savings account (but also has a ATM card). The interest rate is similar to the other online savings accounts (eg. ING Direct) but the good thing with this account is that it also includes an ATM card so if you need funds urgently, you can withdraw some immediately at an ATM.
Well today they said in their email that they are changing the overseas ATM withdrawl charge from a flat $4 to 2.5% of the value. I usually use this card overseas as it has a high daily withdrawl limit ($3000). With this new fee, instead of paying $4 or $8 (if i need to do it in 2 transactions), i would pay $75.
When withdrawing from savings/cheque accounts, the overseas ATM charge is virtually always a flat fee. I have never heard of it being a percentage like with a credit card.
Looks like with the other dramas going on with other people with Citibank, and my feeling of never trusting them, I might look for another alternative.
Sponsored Links
Registered Users have the option of
removing this and all other advertisements.
More
I have to agree 2.5% does sound ridiculous. It may be beneficial to look around for alternatives.
Have they ever charged a foreign currency conversion fee in the past? Most cards (I have only ever dealt with credit cards overseas) charge an amount, usually around 1%-2%, for the foreign currency conversion fee but still 2.5% is very high!
I have also received the email from Citibank, and have emailed them back asking for clarification as to whether this fee is in addition to the exchange rate fee.
If it is in addition the fee is quite ridiculous. Usually I find ATM's overseas have limits of around AUD1000, so the fee on a typical withdrawal appears to go up from $4 to $25.
"Citicards previously do not incur a fee for ATM/EFTPOS transactions*made
overseas as the $4.00 flat fee charge was waived. However, please be
advised that effective 09 May 2006, a new fee structure will take effect
for overseas ATM/EFTPOS transactions on Wealth accounts. In line with
the cost of providing the overseas transaction service, we will be
charging 2.5% of the total value of the transaction. Please refer to the
information below on how an overseas transaction will appear on your
monthly statement.
Example:
US $100.00 : Transaction amount
AU $120.00 : Australian Dollar amount before Citibank Foreign
Currency Conversion Fee
AU $ 3.00 : Markup (e.g. 2.5%)
AU $123.00 : Total amount debited from customer"
So it appears the new 2.5% is to incorporate a transaction fee and exchange rate margin. This is more reasonable, but may not be as good as other cards.
"Citicards previously do not incur a fee for ATM/EFTPOS transactions*made
overseas as the $4.00 flat fee charge was waived. However, please be
advised that effective 09 May 2006, a new fee structure will take effect
for overseas ATM/EFTPOS transactions on Wealth accounts. In line with
the cost of providing the overseas transaction service, we will be
charging 2.5% of the total value of the transaction. Please refer to the
information below on how an overseas transaction will appear on your
monthly statement.
Example:
US $100.00 : Transaction amount
AU $120.00 : Australian Dollar amount before Citibank Foreign
Currency Conversion Fee
AU $ 3.00 : Markup (e.g. 2.5%)
AU $123.00 : Total amount debited from customer"
So it appears the new 2.5% is to incorporate a transaction fee and exchange rate margin. This is more reasonable, but may not be as good as other cards.
HAVE THESE PEOPLE GONE MAD???
(The example just shows there contempt they have for their customers. How many people would withdraw AUD$120 from an overseas ATM)
My brother received the same email, but to date I haven't. I'm thinking it has something to do with when the account was opened, I hope.
I currently withdraw about $2000 AUD per month which will increase my fee's to $150, instead of $4. (Because im paying $2 per trans.)
This will be the final nail in my Citibank support. I have sent them an email treatening them if they apply this to my account , I will be closing my OCM and Plat card, we'll see what happens.
Bastards they are......
Rob
PS. Interesting to note, they have not mentioned anything on their website about this , and the "Schedule of Fee's" hasnt been updated as outlined in their email.
Member of: AA Exec Plat; QF LTG; PC Plat; HHonors Gold
Posts: 9,978
Re: Citibank Reply
Quote:
Originally Posted by robertz
HAVE THESE PEOPLE GONE MAD???
(The example just shows there contempt they have for their customers. How many people would withdraw AUD$120 from an overseas ATM)
I am one who withdraws about that amount each time I use an overseas ATM (my usual withdrawal in USA would be US$80 and would last me at least a week).
I have never withdrawn more than A$300 in a single transaction at an overseas ATM. Perhaps I just don't like carrying a lot of cash on me.
HAVE THESE PEOPLE GONE MAD???
(The example just shows there contempt they have for their customers. How many people would withdraw AUD$120 from an overseas ATM)
I am one who withdraws about that amount each time I use an overseas ATM (my usual withdrawal in USA would be US$80 and would last me at least a week).
I have never withdrawn more than A$300 in a single transaction at an overseas ATM. Perhaps I just don't like carrying a lot of cash on me.
In your situation, I understand why it doesn't mean anything. BUT having a bank tell you its now going to cost you 2.5% to access your money, on top of a foreign exchange rate they set it infuriating.
Just ask yourself, if the your bank in Australia started charging you to withdraw your money at 2.5%. Would you be happy.
Citibank is a world wide bank. Heck, I have one down the street here in Atlanta I use. Why the hell should I pay them 2.5% of my money to withdraw it from my AUS account.
That's it. Just transferred my balance of my QFF out of the CC. By the end of the week, I will have pissed these idiots off, once and for all.
Member of: AA Exec Plat; QF LTG; PC Plat; HHonors Gold
Posts: 9,978
Re: Citibank Reply
Quote:
Originally Posted by robertz
In your situation, I understand why it doesn't mean anything. BUT having a bank tell you its now going to cost you 2.5% to access your money, on top of a foreign exchange rate they set it infuriating.
Just ask yourself, if the your bank in Australia started charging you to withdraw your money at 2.5%. Would you be happy.
Citibank is a world wide bank. Heck, I have one down the street here in Atlanta I use. Why the hell should I pay them 2.5% of my money to withdraw it from my AUS account.
That's it. Just transferred my balance of my QFF out of the CC. By the end of the week, I will have pissed these idiots off, once and for all.
Grrrrrrrr.
I am not trying to justify the Citibank position on this. I think it is a money grabbing move. I was providing information to the question that was asked regarding "How many people would withdraw AUD$120 from an overseas ATM)". I don't know how many, but I do know I am one of them. It would not be the first time I have been in the minority .
For overseas withdrawals I use the Citibank Readicredit ATM card. As far as I know, the Readicredit account continues to have no fees for overseas ATM use. This is the only Citibank facility I have, and based on recent events (including the fee change as the topic of this thread), I do not expect this situation to change.
HAVE THESE PEOPLE GONE MAD???
(The example just shows there contempt they have for their customers. How many people would withdraw AUD$120 from an overseas ATM)
I am one of these mad people.
I only withdraw small amounts at a time from Commonwealth Bank credit card whilst overseas. I take a lot of cash with me and if for some reason I have run out of foreign currency while the exchanges are closed I will use the credit card for a small cash advance of around $100-$200. Only $4 + some % commission on each transaction.
In order to save on bank fees, the amount i withdraw would depend on the fee table - if a flat fee (eg $4), I would withdraw as much as I need for a week or 10 days. If a % charge, I'd make smaller withdrawals (assuming the ATMs are quite easily accesible).
The other factor would be the country visited. My average withdrawals would generally be smaller when I visit Southeast Asia than when I go to the EU/US.
In any case, I don't expect the withdrawal too be too much, as I will be charging shopping, hotel and meals at more expensive places to the card. Cash would mainly be used for smaller purchases like public transport, cabs, drinks, etc. The exception would be if I were to buy a relatively costly item (e.g. digital SLR) that offers a huge cash discount (e.g. 5%).
.
Linear Mode
