We know this day will come. The Latest Citibank Credit Cards "Enhancements"

burningrage on 17/12/2015 - 12:12
Last edited 17/12/2015 - 12:59

I've got this notification just now…

http://citibank.com.au/productchanges/index.htm

and this, if you're on Signature/Select https://citibank.com.au/global_docs/pdf/Citi-Prestige-Signat…

In short,

  1. Buy from an international merchant even though denominated in AUD will attract International Fee. I wonder if this includes Ebay Stores that ships from Taiwan,etc.
  2. The international fee will now be 3.4%. Add 0.1%
  3. Reduction in points earn rate EXCEPT Prestige/Select.
  4. Payment via BPAY will no longer attract points. But, direct debit still do.
  5. Changed the notif period on when they want to change earning rates etc.

I'd like to hear some theories as to the background of these changes. :-)

EDIT: And the background… http://www.smh.com.au/business/banking-and-finance/citi-firs…

Cheers

Zz

Financial

Related Stores

Citibank Australia
Citibank Australia

Comments

  • CyberMurning on 17/12/2015 - 12:16
    +1

    my comments is, i dont really care. didnt use my signature for more than a year now due to having balance transfer.
    for overseas online purchases i will use 28 degrees, and that citi everyday account to withdraw from overseas atms

    • taker on 17/12/2015 - 13:33
      +1

      In point. Exactly.

      Would like to know about payment via Bpay attracting points in the first place??

    • kevmev12 on 30/12/2015 - 10:40

      Yup that's exactly what I've been doing and will be doing.

      I got my Signature card fee free for life so anything points or otherwise they offer me is just a bonus. I haven't used it for the past 6 months because I have a 0% balance transfer; another 12 months to go.

  • tunzafun001 on 17/12/2015 - 15:00
    +1

    Time to cash out my Signature card points then. Will just keep the Plus card for international ATM's.

  • burningrage on 17/12/2015 - 15:29
    +5

    The biggest issue I think (if you use this card as your everyday purchases) is that how do you distinguish between overseas merchants?

    They're gonna charge 3.4% on overseas merchants who charge in AUDs. That raises the question if you pay Telstra using Ebay (which is not domiciled in Aus), whether that will be attract 3.4% or not.

    Steam charges in USD so no dramas but the likes of MobiCity etc probably would… not sure anymore.

  • Holysmoke on 17/12/2015 - 19:17

    So which card to move to for everyday non-AMEX use?

  • Peck on 17/12/2015 - 21:20

    Thanks for the 'heads-up'. As soon as I get hit with this international fee, even once, on either my Signature card or my Emirates Citibank world card, I will cease using them completely, and just abuse the free features. By capping the spend points they will just accelerate their losses as people switch to more rewarding cards.

    • burningrage on 17/12/2015 - 21:42

      Yes. I will be watching this closely too.

  • bluedufflecoat on 18/12/2015 - 09:46
    Merged from Change in Citibank Rewards CC - Signature Rewards. Not good.

    Just received an email from Citibank about changes to their rewards program… not impressed. Major changes, aside from the "FF points conversion rate" that was coming…

    • Cap on maximum number of rewards points that can be earned on domestic spend and changing the rate on international spend (effective 18/3/2016)
      — Was 1.5 points per $1, now it's 1 point up to the first $3,000, then 0.5 points between $3,000 - $10,000
      — Was 3 points per $1 (international), changed to 1 point per $1.

    • BPAY transactions no longer eligible to earn points

    • 2 Citibank points per FF point conversion rate (was 1.5 points)

    • Increased fee for international transactions - 3.4% (from 18/1/2016)

    Boo!!

    • Porco Rosso on 18/12/2015 - 10:39

      Does it mean we should ideally change the citi reward points to Kris or Velocity FF points before 18/03/2016 and we'll still get a transfer rate of 1.5 points to 1 mile?

      • bluedufflecoat on 18/12/2015 - 10:49
        +1

        it's currently 1.5/1 but it will change to 2:1. So, yes.

      • burningrage on 18/12/2015 - 12:20
        +1

        Yes is the short answer.

    • thord on 09/02/2016 - 16:17
      +2

      That's not right, they're changing the regular points earned to 1.5 points per $1, the 1 point per $1 for the first $3000 is for the quantas rewards card.

  • spychiatrist on 18/12/2015 - 11:45
    Merged from Changes to your Citibank Rewards Credit Card - Signature

    Got this in an email and knowing there are many OzBers that hold this card, thought I'd share (if in case you tend to ignore reading credit card notices). Time to look for another card???

    We are writing to inform you of some changes to your Rewards Program, Rewards Terms and Conditions, and Account Terms and Conditions.

    These changes are outlined in full in the leaflet titled "Important Information about your credit card (Account)". Please read the leaflet and retain a copy for your records.

    CLICK HERE TO DOWNLOAD THE LEAFLET

    The changes will take effect from 18 March 2016 unless otherwise indicated and will affect you in the following ways:

    1.     We are introducing a cap on the maximum number of reward Points you can earn on domestic spend and changing the rate at which you earn reward Points for international spend.

    2.     BPAY transactions will no longer be eligible to earn reward Points.

    3.     The rate at which you can transfer Citi reward Points for Velocity Points or Singapore Airlines KrisFlyer Miles will change, as will the minimum transfer amount.

    4.     From 18 January 2016, you will be charged an International Transaction Fee on transactions made with an overseas merchant in AUD. We currently charge this fee only on transactions made with overseas merchants in their local currency.

    5.     We will also be increasing this International Transaction Fee from 3.3% to 3.4% for Visa cardholders.

    6.     We have changed the way we can vary your Rewards Terms and Conditions moving forward.

    Please remember these changes do not affect other great benefits you enjoy on your Citibank Rewards Credit Card - Signature such as complimentary Priority Pass™ membership1, complimentary insurances2 and access to free wine on the Citibank Dining Program. We hope you continue to enjoy making the most of these benefits, and thank you for being a Citi credit card customer.

    For more information on these changes, please visit citibank.com.au/productchanges

    Yours sincerely

    Alan Machet

    Alan Machet
    Head of Cards

    • clem0ximus on 18/12/2015 - 12:00

      Yup I received this email too. For me this kills the value of this credit card. I'll be looking for an alternative now.

    • thord on 18/12/2015 - 12:20

      Very disappointed in this email. I want to have clarified the part about foreign exchange conversion.

      What does it mean, "overseas purchase in AUD"? Why is the 3.4% fee being charged on this? For what purpose? And how do I know who's an overseas merchant in the days of internet shopping?

      For example, is shopping on CTshirts going to get me stung by this fee? What about ebay and paypal?

      • violin on 18/12/2015 - 14:39

        eBay and PayPal are the two things I really need to find out, too…

  • burningrage on 18/12/2015 - 12:25

    By the way I just heard Virgin Money is also being "enhanced"

    http://www.australianfrequentflyer.com.au/community/other-cr…

  • burningrage on 18/12/2015 - 22:09
    +1

    Guys,

    Examples where I think the 3.4% will apply on AUD purchases would be the likes of:
    1. Book Depository
    2. Ebay
    3. Itunes (Because don't they base in Ireland?)
    4. Google Play
    5. Uber (Because once again, I don't think they have a dot.com.au domain)

    Can you think of more?

    Is there a way to ask for a definitive answer to the question on the 3.4% applicability on AUD purchases with questionable domiciled merchants?

  • violin on 23/12/2015 - 10:12
    +2

    Just logged in to Citibank to view my transaction so far and noticed the country code at the end of each transaction. I wonder if this is a reliable indication of what I need to move to an international transaction fee-free credit card, and what I can keep on the current card?

    http://imgur.com/Z7dUMjm

  • superbird on 30/12/2015 - 10:54

    Simply makes paypal even more attractive!

  • Odin on 30/12/2015 - 17:25

    So what alternative cards are there? I'm going to dump citibank if they implement this.

  • Odin on 30/12/2015 - 17:30

    Guess we can contact them and complain here: http://citibank.com.au/aus/footer/contact.htm

    • burningrage on 30/12/2015 - 18:21

      The reply from Vickie-Ozbargain seems the best way to know where your merchants truly are…

      I am waiting for Citibank to confirm this. Since I know someone who is working there, I think they are under siege with the latest "enhancements" they announced. Probably time for an "annual fee" waiver?

      Based on what Vickie-Ozbargain noted above, at present:

      StrawberryNet - HongKong. 3.4% "Enhancements" will apply.
      Book Depository - Great Britain. 3.4% "Enhancements" will apply.
      Think Social - United States. 3.4% "Enhancements" will apply.
      Deal Extreme - Hong Kong. 3.4% "Enhancements" will apply.

      I don't know about Uber, GooglePlay (most likely apply based on their T&C), Itunes, or even ASOS but obviously SteamPowered, Amazon, and the likes will continue to apply.

      If I know more I will update this thread.

      • Odin on 30/12/2015 - 18:25

        I thought most of us had the annual fee waived for life? I do.

        Yes, the country code thing will likely work, however, it's still a problem because you need to purchase from a store first and wait the 3 days or so for the transaction record to update. Only then will you know. That's totally unworkable.

        I've just contacted them and complained. If it isn't changed, this card will be put in the drawer and never used again.

        • burningrage on 30/12/2015 - 21:41
          +1

          Please continue to apply pressure on them. I know for my case it has been escalated to the Head of Cards who conveyed the "script" back to customer service who then called me. See below for the official reply.

        • Odin on 30/12/2015 - 21:43

          @burningrage: I will, I'm not letting it go. If they don't reverse the change I'll cancel the card.

  • burningrage on 30/12/2015 - 21:38
    +1

    I got a callback from Citibank.

    Basically it goes something like this

    Citibank does not officially know whether a merchant decides to process payment using non-local merchant arrangement BUT the merchant has an obligation to advise you if they will apply what they call "Dynamic Currency Conversion" process and you would have to agree with it (Opt-in). I remember this "Dynamic Currency Conversion" is the term used in hospitality when the hotel wishes to charge the customer in their own currency (tourist) and doing this actually advantages the hotel.

    Clearly what this means in GooglePlay / Apple there will be a clause that says if you buy from them, then accept the "cross-border" fees which may be charged to customers.

    TL:DR, Check with the Merchant if it will process payment using local banks or will it apply "Dynamic Currency Conversion".

    I am yet to reply to them but the first thing in my mind is this answer is better but not satisfactory. It is in the position to tell customers of who will levy the international transaction "enhancement" fee but simply refuses to take responsibility. It levies the charge but doesn't want to help its customer avoid it. I will take the matter further.

  • Odin on 31/12/2015 - 13:03

    Got what looks like a template response:

    We acknowledge your dissatisfaction regarding this matter.

    In light of recent market changes we have undertaken a review of our
    Credit Card products. While we appreciate these changes will impact
    customers, we have sought to limit these changes as much as possible and
    ensure we can continue to provide a range of competitive products.
    Your card continues to provide you with great value and a range of
    benefits, which include:

    · Complimentary Priority Pass™ Membership and two airport lounge visits
    per year
    · Your earn rate has been maintained at 1.5 point per $ which is very
    competitive for a standalone Visa card.
    · Free wine every time you dine with the Citibank Dining Program
    · A range of complimentary insurances including Overseas Travel
    Insurance
    · Access to Global Rewards offering a larger selection of travel, gift
    cards and merchandise to choose from
    · Free wine every time you dine with the Citibank Dining Program.

    Additionally, knowing if a merchant is an overseas merchant will depend
    on whether the merchant completes the transaction settlement within
    Australia or overseas. If you're unsure you should check with the
    merchant prior to completing the transaction.

    If you would like to discuss this further please send us a secure email
    by following these steps:

    • go to www.citibank.com.au and follow the steps to sign on
    • click on 'Messages' from the 'My Citi' Homepage
    • click 'Compose Mail' to compose a secure email
    • click on 'Submit' to send the email.

    Alternatively, you may call us on 13 24 84, or if overseas on +61 2 8225
    0615. We are available 24 hours, seven days a week.

    If there's anything else we can do to assist you, please let us know and
    we'll be happy to help.

  • burningrage on 31/12/2015 - 13:14
    +1

    From an insider. Lodge a complaint and they will be forced to call you. However they won't budge as apparently there is a project on these "enhancements".

    I am afraid Financial Ombudsman, ACCC (For failure to advise in advance re Dynamic Currency Conversion Opt In consent not obtained, mainstream media or even go to CHOICE (Apparently they have been on this subject for some time) are the only avenues.

    The key argument is application of DCC must require opt in consent lest it open for dispute

  • burningrage on 01/01/2016 - 08:37

    THe following is the post in the AFF website:

    I have received an official reply from Citibank.

    Firstly, if you are a Citigold customer, the Relationship Manager would have to contact you about these changes and somehow, they have more information about this than if you were not a Citigold Customer (in which case, a customer service officer may contact you or reply to your email).

    Secondly, this all appears to stem from what they call "Dynamic Currency Conversion" (DCC), which is a term I first heard in hospitality. Simply put, if say you are an American tourist travelling in Melbourne. At a hotel, when this tourist pays, he/she may be offered to be charged in local (AUD) currency or in their native currency (USD). If he/she then chooses USD (native), then the DCC will trigger resulting in a known charge in USD dollar that is MORE expensive than he/she would have been charged had he/she declined to be charged in USD (native) currency. The key word is he/she MUST opt to be billed in USD (that is, he/she chose to be billed in USD, thus triggering DCC). In short, DCC actually costs customer more but this fact is not disclosed at the time of transaction.

    More example is shown here… Dynamic currency conversion - robbery by choice

    In this context, when you purchase from say, Strawberry Net (which is HK domiciled), they always bill in AUD. So an AUD$50 purchase will be billed AUD$50 in your bank statement. Unknown to you however, Strawberry Net has exercised DCC on your behalf and so while you are being billed AUD$50, the amount of say, HK dollars needed to satisfy that equivalent AUD$50 worth of purchases could end up actually being AUD$55.50. The AUD$5.50 I believe currently being paid by the banks so you won't be charged AUD$55.50 for a AUD$50 purchases.

    That will change on 18th of January 2016. A flat 3.4% will be applied. The logic is since you cannot OPT-IN, then buying from Strawberry Net (even though in AUD) is actually buying in HK dollar so triggering the 3.4% International Transaction Fee (for an AUD Transaction). The key word here is DCC.

    The problem is nobody will know in advance if you are going to be charged 3.4% until its too late. CHOICE gave example of Weight Watcher and Sydney Aquarium and Uber as examples of Australian purchases but attracted 3.4%. No one in their wildest dream would expect Sydney Aquarium would charge 3.4% International Transaction Fee.

    In other words, the banks (Citibank in this case) are asking customers to do an impossible task.

    Citibank official position is customers should find out themselves if the merchant will utilize local payment processing facility or overseas. I said to them try do that with GooglePlay or Apple Itunes.

    In addition, the following vendors are now at risk of charging 3.4% (previously free of DCC):

    Paypal/Ebay (this is probably the most dangerous situation - even to pay phone bill may attract 3.4%)
    Google (GooglePlay Credits)
    Apple (Itunes Credits)
    NetFlix (NetFlix Credits)
    Strawberry Net
    Think Social
    Uber
    Sydney Aquarium
    Sony Entertainment Network
    Xbox Credits
    ASOS
    Book Depository
    and many more.

    We should fight this. There is no way to know for sure other than not to use them (not to use Paypal.. really???)

    *** End of Postings ***

    Someone else then said the banks are complicit in this and trying to make money from DCC in fact.

    But yes, we need to fight it.

    • Odin on 01/01/2016 - 16:12

      This is really troubling.

      What's the alternative? Switch to a 28 degrees card and forget about earning reward points?

  • bluedufflecoat on 01/01/2016 - 12:28

    Time to shelve the signature card?

    Maybe it's now worth considering their balance transfer plan (mortgage interest relief) if using the card on purchases risks getting charged an extra 3.4% on international transaction fees.

  • violin on 28/01/2016 - 14:52

    I noticed this DCC TXN charge on a PayPal payment I made to a US merchant in AUD.

    20/01/2016  *DCC TXN DEBIT AUD 5.99 AUD 0.20
17/01/2016  *PAYPAL *[...] US   AUD 5.99

    I thought this was all meant to change on the 18th? Quoting from the email they sent me:

    From 18 January 2016, you will be charged an International Transaction Fee on transactions made with an overseas merchant in AUD. We currently charge this fee only on transactions made with overseas merchants in their local currency.

    Did this happen to anyone else?

    • burningrage on 28/01/2016 - 15:54
      +1

      The DCC was applied on 20th so it's after 18th of January 2016.

      I hear you that the transaction happened on 17/01/2016 but the actual conversion was done on 20th because 17th was on Sunday.

      I noticed that if you make a transaction (like for example withdraw money from ATM) on weekends, Westpac/Citibank will somehow future dated it forward.

      So it is the DCC.

      I am actually very surprised this topic received bugger all attention when the issue is actually quite significant.

      Edit: Also will this transaction now earns 5x points?

  • burningrage on 28/01/2016 - 16:04

    Someone in another forum is hit with DCC 3.4% for a transaction with GooglePlay.

    So far the list:

    GooglePlay
    Paypal

  • burningrage on 28/01/2016 - 16:12

    For advice on how to deal with DCC…

    http://www.flyertalk.com/forum/credit-card-programs/1542983-…

    Updated as at 22 January 2016.

    In short, consent must be needed before DCC is applied. For a Paypal transaction, I am not sure how consent was given.

  • tunzafun001 on 01/02/2016 - 19:34

    What other card has a similar complimentary Travel Insurance offer? ie, the Signature benefits/ pay outs are better than Amex with a $200 excess vs Amex $250 excess?

    • burningrage on 11/02/2016 - 22:47

      I'm not so sure as my credit cards have always been Citibank and I thought they're very good.

      Forum australianfrequentflyer.com.au may help.

  • hamerix on 11/02/2016 - 19:47

    Been advertising on Facebook and notice the DCC TXN on my statement. Facebook never advised us of the charges and thus not sure how to contest the issue.
    You can add FACEBOOK to the category as well.

    • burningrage on 11/02/2016 - 22:55

      Yes. This is the current confirmed cases

      Paypal (see above) but Paypal Telstra is NOT attracting DCC
      Google (GooglePlay Credits and Subscriptions)
      Apple (Itunes Credits)
      Facebook

      The following is a confirmed NOT attracting DCC

      Book Depository

      I am bit discouraged because there seems to be no national uproar about this in the media whatsoever but who knows….

  • PLANT on 12/02/2016 - 10:49

    When is the start date for this to occur exactly?

    • burningrage on 12/02/2016 - 12:39

      18th of January 2016. It has already happened.

      I have done some more investigation. Apparently this is a global Citibank initiative. It's just Aus had it last (or one of the last).

    • bluedufflecoat on 12/02/2016 - 13:09

      change in redemption rate for frequent flyer miles is from 18/3/2016. Everything else is 18/1/2016.

      • PLANT on 12/02/2016 - 14:09

        So Paypal for Telstra is NOT hit with Fee?
        The CITIplus Debit card does not get hit by Fee?
        BPAY do not get any points now?
        Which CC do still pay BPAY payments even if points reduced?

      • bluesky on 12/02/2016 - 17:11

        BPAY no longer earn points is also 18/03/2016, I think. I was earning points on some BPAY transactions after 18/01/16.

  • bluesky on 12/02/2016 - 17:03

    Is this a correct generalisation?

    If using PAYPAL, and paying a merchant that is overseas, then it attracts the DCC.
    But if the merchant is local, e.g. Telstra, using PAYPAL will not attract the DCC.

    Thanks.

    • bluedufflecoat on 12/02/2016 - 18:00

      Quoted from above:

      CHOICE gave example of Weight Watcher and Sydney Aquarium and Uber as examples of Australian purchases but attracted 3.4%. No one in their wildest dream would expect Sydney Aquarium would charge 3.4% International Transaction Fee.

      • bluesky on 12/02/2016 - 18:11

        Yes, this is ridiculous. So, it's too hard to figure out.
        Better just to use 28 degrees card then.

    • burningrage on 12/02/2016 - 23:17

      Presumably yes although as shown below, exceptions do arise.

      The point is, there is no way you would have known in advance with absolute certainty (you can guess but that won't guarantee it).

      The other issue is the about consent. DCC requires consent to be legally enforceable. That is why I am kinda hoping someone would rise to the occasion in the media and expose it because there's no way you would have given consent to be slugged DCC.

      I mean, if you are in a foreign hotel and someone offered to bill you in local currency, at least, there is a consent.

      Internet purchases have no opportunity to provide consent. It is what it is. The price is in AUD (eg: Strawberry Net).

      Eg: Itunes / GooglePlay / Facebook will attract DCC so the only way around it is buy a giftcard. Now with all these three companies, consent is never given but assumed in their T&C where it may state that cross-border fee may apply. But that is not consent per se.

  • Tyrx on 14/02/2016 - 22:29

    Crazy. I wonder if I should start looking into getting a 28 degrees credit card for international transactions. I don't use any credit cards from citibank (or anywhere) but I do use their transaction account because it's the only bank that has fee-free international transactions on debit cards. Should I be worried that they will axe that considering this move?

    • burningrage on 14/02/2016 - 22:41

      Not yet atm….

      In the meantime, I've tried to compiled some workarounds such as Google Play / Itunes / Netflix expenses can be avoided by buying a giftcard at say, Coles/Woolies/BigWs/etc.

  • DaTa on 16/03/2016 - 19:26

    Dam I cant believe I never looked into the rewards card, I only had the debit card for the international travel.

    • Peck on 16/03/2016 - 20:13
      +1

      I am pretty sure that their credit cards charge for foreign currency transactions, whereas their Citibank Plus account does not

      • DaTa on 16/03/2016 - 21:48

        I've got an amex and a nab amex visa which is pretty decent sad to see this happen however

  • kev98 on 17/03/2016 - 17:30

    Is there a list of stores that you will be charged this fee with? E.g. netflix, spotify…?

    • burningrage on 21/03/2016 - 16:05
      +1

      So far, the list confirmed:

      Strawberry Net
      Itunes Online (Workaround by purchasing GiftCard)
      GooglePlay (Workaround by purchasing Giftcard)
      Facebook (Workaround by purchasing Giftcard)
      Paypal depending on vendor. Overseas vendor will attract DCC.

      I am sure Netflix, Spotify would be the same. Uber hasn't been tested.

      Steam does not attract DCC but obviously attract Foreign Currency Conversion so a bit pointless. Even using Giftcard it will be converted back to USD.

      Others probably can add to this list?

      • kev98 on 21/03/2016 - 17:20

        Itunes is only one that effects me off that list, will change to amex card instead. Usually use 28D for paypal transactions that aren't in AUD as paypal are a rip off already. Thanks for list

      • scotty on 21/03/2016 - 19:50

        I paid Spotify with my Citibank Signature, and it's charged by "Spotify Australia Pl" in Australian dollar, and no foreign currency charges.

        • burningrage on 22/03/2016 - 11:59

          Thanks Scotty. Thats good news.

          Spotify is clear then.

      • dragonsworn7 on 27/04/2016 - 07:19

        Uber appears on my Statement as AU with Citibank Signature - no conversion fee.

        • burningrage on 27/04/2016 - 08:46

          Awesome! Thanks for the update.

  • burningrage on 21/05/2016 - 20:03

    Hi guys,

    As per this https://www.ozbargain.com.au/node/249064, vistaprint should be on the list.

  • burningrage on 30/05/2016 - 10:59

    Hi guys,

    As per this https://www.ozbargain.com.au/node/250222, Agoda and AirBNB should be added.

    A few bit more and I might start a new list rather than bits and pieces there.

  • Ausbargain007 on 30/05/2016 - 13:16

    Got charged when I bought something from banggood.com

  • burningrage on 31/05/2016 - 21:42

    With my recent experience with paying using Paypal for US Merchant, I am now adding Paypal to the list.

    https://www.ozbargain.com.au/node/250536

    Banggood.com and Paypal are added to the list. One more and I will create a new list.

    EDIT: In the link above, I have included steps to remove DCC from Paypal… forever!

  • burningrage on 08/06/2016 - 06:24

    I found that in my bank statement that for purchases on www.flyscoot.com (Scoot Airlines) has the SG notation marked.

    I am bracing for DCC being charged on this. It would be very expensive on top of the $20 per passenger credit card processing fee they put on.

    • bluedufflecoat on 22/06/2016 - 14:21

      can't get around the login page. :P

      • burningrage on 22/06/2016 - 16:19
        +3

        Red-faced Westpac to refund foreign transaction fees to credit card holders (Herald Sun, 22 Jun 2016)

        WESTPAC is refunding foreign transaction fees paid by hundreds of thousands of credit card customers after deciding it has disclosed too little information about the charges.

        The bank is refunding fees and interest charged to customers who used credit cards for foreign transactions over a time frame stretching more than 18 months.

        Westpac is one of the biggest credit card providers in Australia, with millions of customers.

        Affected transactions include those carried out through online shopping behemoth Amazon, along with travel bookings, meaning hundreds of thousands of customers are almost certain to swept up in the reimbursement program.

        In another sign the major lenders are trying to head off the threat of a royal commission into the industry, Westpac’s decision was not prompted by regulators, Business Daily understands.

        Staff at the lending heavyweight uncovered the error and the bank is contacting affected customers to tell them they will receive refunds.

        The bank last night declined to put a sum on the amount of money it was returning to customers.

        In emails to affected customers, Westpac said from March 2014, it started charging foreign transaction fees on purchases made in Australian dollars with “merchants or financial institutions” overseas.

        “We previously notified you of this change,” the email said.

        “However, following a recent review, we’ve identified that the disclosure provided to customers may not have been clear enough about how the foreign transaction fees were charged on certain Australian dollar transactions”.

        These included transactions made online or over the phone with overseas merchants, it said. “Having identified the problem, we decided to refund all of these fees, plus interest.”

        A Westpac spokesman last night said the refund applied to transactions made on Westpac-branded consumer credit cards and Altitude Business Cards between March 20, 2014, and November 26, 2015.

        “We’ve now amended our credit card conditions of use to clarify the circumstances in which the fee is charged,” the bank said.

        “We apologise to affected customers for any concern or inconvenience this issue may have caused.”

        The move by Westpac comes as banks increasingly attract the ire regulators and politicians, with the federal Labor Opposition vowing to launch a royal commission into the banking industry if it wins the July 2 election.

        Among scandals that have buffeted the industry, ANZ, National Australia Bank and Westpac stand accused of rigging the bank bill swap rate — a key inter-bank lending rate that affects the interest consumers and businesses pay for credit.

        The Australian Securities and Investments Commission is suing all three banks.

        Separately, the Commonwealth Bank has been engulfed in scandals over the conduct of staff working in its insurance and financial planning divisions.

        National Australia Bank and Macquarie are among other heavyweights who have compensated customers in recent years after they received poor financial planning advice.

  • burningrage on 28/06/2016 - 21:20
    +1

    Add VistaPrint into the joint (which I should have above)

    Vistaprint charges from NL which I am guessing Netherlands.

    Current List

    Strawberry Net
    Itunes Online (Workaround by purchasing GiftCard)
    GooglePlay (Workaround by purchasing Giftcard)
    Facebook (Workaround by purchasing Giftcard)
    Paypal depending on vendor. Overseas vendor will attract DCC. But you can change the settings in shown here https://www.ozbargain.com.au/node/250536
    VistaPrint (Billed in NL so circumvent via Paypal but will attract FX Charge only instead of implicit FX Charge and DCC)
    Scoot Airlines
    BangGood.Com
    Steam Card (Workaround by purchasing Giftcard but that will then be converted to USD upon redemption)
    AliExpress (https://www.ozbargain.com.au/node/249064)

    If anything can be paid via Paypal, try to do that but first, disable the DCC. https://www.ozbargain.com.au/node/250536

  • zerocritical on 12/07/2016 - 16:35
    -1

    Did someone notice the changes to the reward redemption too?

    I used to take gift cards with the accumulated points which was like AUD 200 worth of gift cards for 35,800 points. This has now changed to 80,000 points for same value of gift cards!

    • burningrage on 13/07/2016 - 09:32

      Last time I checked which was 2 mths ago, AUD500 = 90,000 points.

      AUD200 for 80,000 points doesn't seem right.

    • Dacs on 13/07/2016 - 09:59
      +1

      Nope, just checked:

      "AUD200 Woolworths Supermarket Gift Card 35,800 points"

      • zerocritical on 13/07/2016 - 10:31

        Am I looking at a wrong link?
        https://rewards.citirewards.com/ProductDetail.htm?productId=…

        • Dacs on 13/07/2016 - 11:01

          That's really odd. There might be a temporary problem with their site though. I keep getting an error ("We're Sorry. The Rewards website has encountered an unexpected problem. Please try again now, or check back later to redeem your points for amazing rewards. Thank you for your patience. Try logging in to Citibank then clicking on Rewards") but trying again it works.

          Try logging in to your Citibank account then clicking Rewards -> Redeem Now and see if you get a different result.

        • zerocritical on 13/07/2016 - 11:07

          @Dacs:
          Here's a screenshot reference:
          https://s32.postimg.org/xqgjnem5h/IMG_20160713_110420.png

          Will try logging on to account and check that again.

        • zerocritical on 21/07/2016 - 10:43
          +1

          @Dacs:
          Was ok after logging into account. Ordered gift cards with all my available points just in case they decide to change the rewards. :)

        • Dacs on 21/07/2016 - 11:01
          +1

          @zerocritical: By coincidence I was just busy sending Citibank a secure message asking about this. I'll post their response here when I hear back.

        • Dacs on 22/07/2016 - 16:45
          +1

          Okay I got this reply from Citibank:

          We advise that points cost vary from product to product. Browsing our Rewards catalogu pre-login will display the highest points cost. By browsing Citibank Online post-login you will be provided the actual points cost for your card class.

        • zerocritical on 22/07/2016 - 16:58

          @Dacs:

          Lol. so basically they are just playing the number game. Any card which gives you higher reward points might actually be fooling you with higher points for redeeming it.

        • Dacs on 22/07/2016 - 17:14
          +2

          @zerocritical
          I can just imagine their next ad:

          EARN 100 POINTS PER DOLLAR SPENT ON OUR NEW ULTIMATE CARD !! 1

          1. Just one billion points could get you a $20 Woolworths gift card ↩

      • burningrage on 21/07/2016 - 12:13

        The website is f*****.

        I just login to Citibank.Com.Au Website and try to redeem from my account.

        it says for AUD$500 you need 90,000 points.

        • Dacs on 21/07/2016 - 14:27

          That's right. What were you expecting?

        • burningrage on 21/07/2016 - 16:10

          @Dacs:

          If you're not logged in, the same AUD$500 will cost you over 200,000 points.

          That's when alarm bells ring. This is probably what ZeroCritical was trying to say.

        • Dacs on 22/07/2016 - 16:49

          @burningrage:
          See Citibank's explanation above. You won't be charged 200,000 points for a $500 gift card if you're not logged in (of course you can't redeem without logging in anyway), but the correct points cost for your card will be shown once you have logged in.

  • Jase83 on 21/07/2016 - 10:24

    Just got hit with the international fee when purchasing in AUD from the Microsoft Australia store via paypal.

    • burningrage on 21/07/2016 - 12:07

      You must disable DCC first…

      https://www.ozbargain.com.au/node/250536

      Paypal defaults to turn on DCC.

      • Jase83 on 22/07/2016 - 09:05

        The purchase was in AUD, no paypal conversion. I've had DCC turned off for ages on all three of my linked cards.

        It's must be because Microsoft Australia is considered an international merchant.

        http://imgur.com/S2U0lg8

        • burningrage on 22/07/2016 - 14:20

          In your statement, on the Microsoft Australia line, does it end with AU or US or anything else?

          I might try to do a mock test with Vistaprint today to see what it does with Paypal.

          This is getting ridiculous.

        • burningrage on 22/07/2016 - 14:30
          +1

          I've tested it with Vistaprint, they definitely bill in AUD (if I change the language to NL, it becomes Netherlands).

          Even that, it will attract DCC.

          Ah… dead end.

          But maybe try using AMEX because AMEX doesn't appear to be doing DCC.

        • bluesky on 22/07/2016 - 15:27

          Thanks for sharing your experience.
          I have moved away from Citi card to an Amex card due to all Citi's new charges.

          I wonder how many other banks' credit cards also have this charge, or is this an exception. Since I hope to be able to use Amex in the future for these kinds of transactions, I have just asked this question in a new post.

        • Jase83 on 25/07/2016 - 08:54

          @burningrage: I've the 28degrees and bankwest platinum for foreign currency purchases. Citibank signature is my main card as it earns the points. However now i'm always wondering if i will get stung with the foreign transaction fee even when purchasing in AUD from what you would think is an Aus registered business.

        • burningrage on 25/07/2016 - 11:30

          @bretto:

          That's exactly the issue. You cannot possibly know if that Australian company (eg: Microsoft Australia or even Vistaprint), which charges in AUD will process payments overseas.

          There is an article about Westpac's having to reverse DCC charges and I think that's the tip of the iceberg. Wouldn't be surprised if ACCC will get involved one day.

        • bluesky on 25/07/2016 - 17:00

          @bretto: Yes, the uncertainty of it became too much, so I switched to the fee-free Amex Essential. From what I hear, Citibank has again increased points for gift cards, so reward rates might have lowered further.

          With Amex Essential, I get a reward rate of 0.741%. Answers to my post have confirmed Amex does not have this charge.

          If you are interested to check it out, have a look at my comment here. Or one of the other Amex fee-free cards. My analysis of their cash-equivalent reward % are here. I prefer cash rewards. Essential has the advantage that you won't need to get vouchers, just use as cash to offset card. But for redeeming flights, the other fee-free cards supposedly yield better value.

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