Redeeming card points can be confusing, frustrating and a downright “pain-in-the-tuchus.” Not anymore — thanks to a partnership with payment technology leader Mastercard and the nation’s fourth largest credit card issuer, Citibank. The Pay With Points feature is being activated for Citi ThankYou cardholders.
With the Pay With Points feature, Citi Prestige, Citi Premier, Citi Rewards+ and Citi ThankYou Preferred cardholders, will be able to opt to redeem their ThankYou Points on the spot. This is the first major issuer to enable U.S. cardholders to apply their points in real time for dining, entertainment, clothing/department store shopping, and other eligible purchases.
Starting next month, ThankYou members can choose to receive push notifications after an eligible purchase, or on a real time or daily or weekly basis, and also have the ability to set a minimum dollar amount of a purchase to prompt an alert. Members can also opt to receive alerts via email.
Chris Reid, EVP of Services for North America, Mastercard. says nearly 70% of respondents in a recent Mastercard survey said they would redeem rewards at the point of sale if given the chance.
Setting Up the New Feature
Through Citi.com or the Citi Mobile App, set up push or email notifications to find out when purchases are eligible for coverage with ThankYou Points.
When you receive a notification asking if you want to cover your purchase with ThankYou Points, simply click on the notification, log in and confirm the purchase(s) you’d like to redeem your ThankYou Points for.
Redeem and look for your statement credit in 2-3 business days.
Citi ThankYou cardmembers will also be able to redeem their ThankYou Points for eligible purchases online, including pending transactions in addition to posted transactions in the current billing period.
Earlier this year Citibank launched a rewards credit card offering new twists. The Citi Rewards+ Mastercard will round up to the nearest 10 ThankYou Points on every purchase and provides cardholders with 10% points back for the first 100,000 points redeemed per year.
The new Citi Rewards+ Mastercard also offers 2 ThankYou Points for every $1 spent at supermarkets and gas stations for the first $6,000 per year and then 1 point per $1 spent thereafter as well as 1 ThankYou Point for every $1 spent on all other purchases.
Additionally, new cardholders will receive a bonus offer of 15,000 ThankYou Points after spending $1,000 in purchases within the first 3 months of account opening – redeemable for $150 in gift cards – as well as a low intro rate on purchases and balance transfers for 12 months.
In an era where cash back credit cards remain the most popular, Citibank has uniquely shown its competitors a rewards program offering points can be more valuable to cardholders and produce lower incentive costs to issuers, especially with the expert assistance of Mastercard technology, says Robert McKinley, Senior Analyst of CardTrak, CardFlash and CardData.