The Citi® Double Cash Card is one of the all around most lucrative cash back credit cards. The card has no annual fee and offers 1% cash back when you make a purchase, and 1% cash back when you pay for that purchase.
In my opinion this is a card that a vast majority of consumers would benefit from having, since the average person isn’t earning two cents back for every dollar they spend.
Citi Double Cash rewards will transfer to ThankYou
While we’ll have to wait to learn the full details, there’s an exciting update to this card. As of fall 2019, it will be possible to convert Citi Double Cash rewards into Citi ThankYou points. This means you’ll be able to pool rewards earned on the Citi Double Cash with rewards earned on cards like the Citi Premier℠ Card, Citi Prestige® Card, and Citi Rewards+℠ Card.
Per a note on the current cardmember statement:
Coming in Fall 2019 your Citi Double Cash Card will allow you to convert your cash rewards to ThankYou Points which can be redeemed for gift cards, travel, purchases at select retailers, and more. For more details, please review the terms and conditions of your Citi Double Cash Card and the terms and conditions at www.thankyou.com
Note that those who want to earn cash back as before can continue to do so — this is just intended to be an additional redemption option.
What could this look like?
I imagine we’ll find out more details soon, but as of now we don’t yet have information on what the transfer rate will look like. It’s anyone’s guess if this is just a new option meant for niche redemptions, or if Citi is trying to create a ThankYou card that’s lucrative for everyday spending, since currently they don’t have any cards offering more than one point per dollar on non-bonused spending.
So, what could we see here? Let’s go through a few scenarios:
2x ThankYou points per dollar spent
I think we’re all hoping that this is the case. Could each reward “cent” earned on the Citi® Double Cash Card be transferable into one ThankYou point? That would be amazing, and logically it would make sense in terms of one “unit” of cash converting into one “unit” of points.
2x points on non-bonused spending isn’t completely unheard of, as The Blue Business℠ Plus Credit Card from American Express, offers 2x Membership Rewards points on the first $50,000 spent every calendar year. However, that card has a limit, and it’s also a business card.
1.5x ThankYou points per dollar spent
In terms of being competitive without blowing the competition away, being able to convert two cents into 1.5x ThankYou points seems the most likely:
- This would be a similar return to what’s offered by the Chase Freedom Unlimited®
- This would be a valuable option that would add value to the program
- This wouldn’t be that different than the Capital One® Venture® Rewards Credit Card, which offers 2x “Venture miles” per dollar spent, and they can be converted into airline miles at a ratio of up to 2:1.5
So while the value proposition seems the most likely, there’s not much logic to two cents of cash converting into 1.5 points.
1x ThankYou points per dollar spent
I could see them having a 2:1 transfer ratio, where two cents of cash converts into one ThankYou point. If that’s what they go with then this option would be uninteresting and not even worth considering for most.
One of the challenges that Citi currently has in comparison to American Express and Chase is that they don’t have the same “portfolio” of cards that you can use for their transferrable points currency.
Being able to transfer Citi® Double Cash Card rewards to ThankYou has the potential to be awesome. This could be a game changer (if they transfer 1:1), could be very useful (if they transfer 2:1.5), or could be worth very little (if they transfer 2:1).
What are your expectations of this new option for earning Citi ThankYou points?
(Tip of the hat to Doctor Of Credit)