Link: Apply now for the Citi® / AAdvantage Business™ World Elite Mastercard®
The Citi® / AAdvantage Business™ World Elite Mastercard® (review) is the co-branded Citi and American Airlines business card. The card offers several valuable perks, and also has an excellent welcome bonus at the moment, making it an ideal time to apply.
However, when it comes to actually spending money on the card, there’s one thing that works very differently than on many other business credit cards. I wanted to discuss that in a bit more detail in this post, as it’s something that a couple of OMAAT readers have brought up (thanks to Jonathan for most recently mentioning this).
In this post:
How this card largely rewards authorized users
On a vast majority of personal and small business credit cards, the primary cardmember is fully rewarded for the spending of authorized users. So just as the primary cardmember is on the hook for paying the bill, they also benefit by earning the rewards.
That’s not always the case, as some corporate cards do incentivize the individual employees, but it’s rare on small business cards. Now, I imagine that many people who are authorized users on business cards wish they were earning the rewards for their own spending.
That’s why there’s an interesting detail of the Citi AAdvantage Business Card that’s worth being aware of, as it’s a fairly recent update, which coincides with the introduction of the AAdvantage Business program. On the Citi AAdvantage Business Card:
- Redeemable AAdvantage miles earned from an authorized user’s card will be allocated to the AAdvantage Business account, which the primary cardmember has control over (and can then allocate however they’d like)
- Loyalty Points earned by authorized users are posted to the AAdvantage account of the authorized user, and not to the AAdvantage account of the primary cardmember
One of the main reasons that people spend on American credit cards is to be able to earn Loyalty Points, as this is the metric by which you earn elite status. It’s possible to earn elite status exclusively through credit card spending.
So if you’re a primary cardmember on this card, be aware that the spending of authorized users won’t help you qualify for elite status. What’s noteworthy is that this policy only applies on Citi’s co-branded AAdvantage business card. Meanwhile on Barclays’ co-branded AAdvantage business card, the primary cardmember is rewarded for authorized user spending.
People will have conflicting takes on this
It goes without saying that if you’re a small business owner and like to be rewarded for the spending of your employees, this rewards structure isn’t good, and provides a strong incentive to use another card.
After all, one of the main reasons to spend on American’s co-branded cards is for the Loyalty Points, and that’s not something you’re benefiting from here. You’re on the hook for the expenses, but aren’t receiving the rewards.
However, there are also some small business owners who like their employees to be rewarded for their spending, and it’s something that isn’t uncommon on corporate accounts. In that sense, the card offers a lot of flexibility — your authorized users not only earn Loyalty Points, but you can then allocate the redeemable AAdvantage miles to whichever account you’d like, directly from the central AAdvantage Business account. You could even use this as part of some sort of an incentive program for your business.
Personally I think most people won’t be a fan of this policy, so it’s worth being aware of this, as this is the only co-branded airline credit card in the United States I know of that allocates rewards in this way.
Bottom line
The Citi AAdvantage Business Card takes an unusual approach to rewarding authorized users. Authorized user spending earns Loyalty Points for the authorized user, rather than the primary cardmember. Meanwhile the AAdvantage miles earned from spending go to the central AAdvantage Business account, and can then be allocated to the AAdvantage account of any employee (or the business owner), as desired.
What do you make of the authorized user rewards structure on this card?
I missed this and missed status tier
I think it's a great idea and am horrified that all business cards don't do this. Employees are the reason for the success (or failure) of a small business. Most such employees wear multiple hats and pitch in where needed. Why wouldn't the business owner want to reward that? If a business owner truly believes that they're the only one who should reap the benefits of the business, they shouldn't be shocked when that business...
I think it's a great idea and am horrified that all business cards don't do this. Employees are the reason for the success (or failure) of a small business. Most such employees wear multiple hats and pitch in where needed. Why wouldn't the business owner want to reward that? If a business owner truly believes that they're the only one who should reap the benefits of the business, they shouldn't be shocked when that business fails because no one will work for them. Even kindergartners know that life works better when we share. Sharing these perks with your staff is just decent ethical behavior (that doesn't cost you a dime, so where's the problem?). My consulting business would never take such business owners as clients - if they're stiffing their staff, they'll stiff me too.
I’m betting you are either a Citi or American employee, or a 20-something. Either way your advise on how to run a business is noted and immediately disregarded. I’m betting your “clients” feel the same way.
Appreciate your need to explain that employees are valuable and should be retained. Truly a concept I and other business owners did not know. But “even a kindergartner knows” that employees are entitled to some but not all the...
I’m betting you are either a Citi or American employee, or a 20-something. Either way your advise on how to run a business is noted and immediately disregarded. I’m betting your “clients” feel the same way.
Appreciate your need to explain that employees are valuable and should be retained. Truly a concept I and other business owners did not know. But “even a kindergartner knows” that employees are entitled to some but not all the benefits of the owner. You see, owners take more financial risk and are therefore entitled to more reward.
Regardless of your “hot take” it is still an exceptionally stupid decision by Citi/American, and one that will cost them material amounts of business as primary cardholders discover what is going on.
I reward my employees with things that they find genuinely valuable: high wages and benefits that directly impact their lives. For employees who don't travel extensively or aren't particularly loyal to American Airlines due to their location, loyalty points hold little to no value. If you were to ask most small business employees what they desire, loyalty points with American Airlines wouldn't be at the top of their list. Additionally, it feels like a bait...
I reward my employees with things that they find genuinely valuable: high wages and benefits that directly impact their lives. For employees who don't travel extensively or aren't particularly loyal to American Airlines due to their location, loyalty points hold little to no value. If you were to ask most small business employees what they desire, loyalty points with American Airlines wouldn't be at the top of their list. Additionally, it feels like a bait and switch tactic; many signed up for the card under a different premise.
This has to be one of the most stupid changes i have seen on a card! I used to put $750k a year on this card i will now be putting zero! The benefits were the status and the loyalty points and loyalty rewards. How many SMALL business owners want this setup? Especially when they are not very useful to the employees. My employees are not traveling that much maybe a vacation here and there....
This has to be one of the most stupid changes i have seen on a card! I used to put $750k a year on this card i will now be putting zero! The benefits were the status and the loyalty points and loyalty rewards. How many SMALL business owners want this setup? Especially when they are not very useful to the employees. My employees are not traveling that much maybe a vacation here and there. How many business will this benefit? They are shooting owners in the foot! Also the portal is glitchy and confusing. They truly messed up a good thing! This approach could work for corporate/enterprise cards but not for small business! What a waste!
As one person posted...asinine. I will be cancelling my card. Silly move on AA's part. But their miles are almost impossible to spend so...why even try. Will move to different co-branded or another with transfer options.
I switched from the Delta Reserve Business to the American AAdvantage business card late last year. I'm the primary and my business charges close to $500,000/year to the card. This change is asinine and I will be taking my business elsewhere. Absolutely zero reason for Citi to do this outside of not wanting my business.
Not sure what Citi is thinking. I still believe they are not stupid.
But if they are not going to reward the person who carries the risk then they should issue cards with EIN only.
Doing this is only driving small business owners away.
I bet its AA they will add this change to all Their business cards! Its why the got rid of business extra!
This just started last month. My guess is many card holders haven’t figured it out. I don’t think many will be happy about the change. I’m looking at options in the meantime. Just a pain to switch cards but the person paying the bill should get the reward
Giving employees a kickback for spending their employer's money is a really, really bizarre system.