Citibank and AMEX's Launch Controversial Credit Card
NEW YORK -- Citibank and American Express' new Citi Dividend American Express card is, offering cardholders a 5 percent cash-back incentive on purchases made at gas stations -- an offer sure to cause distress among retailers who are already facing exorbitant credit-card fees.
With this new offer, Citibank and American Express would essentially be using money generated from retailers' credit card fees to provide their cardholders with the incentive. "I think that it's an incredibly arrogant move on their part, which should be no surprise to us because they are the most arrogant industry this side of state and local governments," Fran Duskiewicz, executive vice president and CFO for Canastota, N.Y.-based Nice 'N Easy Grocery Shoppes, told CS News Online . "I believe it might require the c-store industry to charge their customers a 10 percent premium to accept the card."
The new credit card also allows consumers to earn 5 percent cash back on purchases at supermarkets and drug stores, 1 percent cash back on other purchases and eligible cash advances, and cash back on eligible balance transfers.
The Citi American Express Card offerings will be available to consumers Jan. 15, 2006.
With this new offer, Citibank and American Express would essentially be using money generated from retailers' credit card fees to provide their cardholders with the incentive. "I think that it's an incredibly arrogant move on their part, which should be no surprise to us because they are the most arrogant industry this side of state and local governments," Fran Duskiewicz, executive vice president and CFO for Canastota, N.Y.-based Nice 'N Easy Grocery Shoppes, told CS News Online . "I believe it might require the c-store industry to charge their customers a 10 percent premium to accept the card."
The new credit card also allows consumers to earn 5 percent cash back on purchases at supermarkets and drug stores, 1 percent cash back on other purchases and eligible cash advances, and cash back on eligible balance transfers.
The Citi American Express Card offerings will be available to consumers Jan. 15, 2006.