Question
I got a letter stating that the citi AA gold visa will be replaced in a few weeks with a new platinum select "world" master card. They also stated that all fees, APR, credit limits would be the same.
If I wanted to keep it, I could call the 800 number and deny the new car, which I did. The agent did everything to ask me why I didn't want to switch. They even bribed me with 5000 miles.
I love my Gold Visa, and I smell funny business here.
What gives?
Answer
Citi has an exclusive contract for all future cards to be issued by MasterCard instead of Visa.
Answer
Search the net for "Citibank" "Visa logo" and "back of the card", etc to see its origin.
Answer
So what does this mean?
Will I be able to keep my Gold Visa indefinately?
Which is the overall better card?
Answer
Originally posted by stefanas:
So what does this mean?
Will I be able to keep my Gold Visa indefinately?
Which is the overall better card?
There are a few differences between Visa and MasterCard (No matter what the issuing bank).
I know that for Rental Car Insurance on one of them the limit is $25,000 and the other $50,000. (Just remember that's collision insurance not liability)
They also have differences on which types of cars they don't cover, as well as in which countries ther's no covarage.
[This message has been edited by Kidz (edited 08-25-2003).]
Answer
As described above, Citi changed it's allegence from Visa to MC a few years ago. Virtually all new Citibank credit cards are MC, now they want to switch the existing ones.
For Citibank, it means a little more interchange -- the percentage of every purchase that the bank earns. They probably need all the interchange they can get to afford paying out miles.
For you, going from Gold Visa to Platinum World MC means you'd have no preset spending limit. You could go over your credit line sometimes -- sort of like AMEX -- as long as you paid it down at the end of the month. It also means some Platinum benefits that may be better than Gold benefits.
But it also means 5000 miles. For that, I'd switch in a hartbeat. MHO
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On the road, In the air,
I enjoy travel, From here to there.
Answer
By switching you to a "world" mastercard rather than an ordinatry mastercard, they get to charge merchants an extra 1% interchange fee (for cards with "no preset spending limit" and buisness cards). Lots of consumers don't realize that all mastercard issuers are agressively trying to switch to the "world" master cards in order to force merchants to pay the extra 1% : bribing you with 5000 miles is one way they do that (they will go as high as 10,000 miles if you hold out).