Worried your cash back credit card is actually inspiring you to spend more? Citi is out with an alternative that rewards consumers for paying down their balances.
The bank unveiled the new Double Cash credit card Friday, which lets cardholders earn an initial one percent cash back when they buy an item with the payment method and another one percent as they pay the bank back for it.
Citi added the smart spending component to Double Cash's rewards structure after research revealed consumers value the simplicity of cash and were anxious about paying down their debts.
"People are in search of control," Chris Fred, head of Rewards Product Management at Citi Cards, said.
Double Cash features a zero percent introductory annual percentage rate on purchases and balance transfers for 15 months. After that, the APR will be between 12.99 percent and 22.99 percent, depending on your creditworthiness.
"We want a long-term relationship with the consumer," Fred said. "If you make it complicated, you don't grab their attention."
As with all Citi-branded consumer cards, the new product also features Price Rewind, a service that refunds cardholders the price difference if the same item is found for cheaper within 60 days of purchase. It also features an Europay, MasterCard and Visa, or EMV, chip, which, if used at the point of sale, makes the card less susceptible to fraud.
Citi's new offering is on trend with Americans evolving credit card use. Recent data from the American Bankers Association indicates consumers are increasingly thinking of credit cards as vehicle for purchases, not a debt instrument.
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