Credit Cards Blog

Finance Blogs » Credit Cards » Citi launches cash-back card

Citi launches cash-back card

By Jeanine Skowronski · Bankrate.com
Friday, August 29, 2014
Posted: 11 am ET

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.

credit-card-blog-citi-double-cash-card

Citi's new card will offer rewards when you make a purchase and when you pay it off.

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.

Follow me on Twitter: @JeanineSko.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
4 Comments
Patricia-Clare Murphy
September 01, 2014 at 1:42 am

I make $14528,year. Rent is $290.00/mo. You advertised a card to help pay off one's debts. I'd like to get that. I am a good payee. If you give this to me I can payoff QVC....I was very sick and had spoken to their credit person, but he sent me to collections. I intend paying them $75./mo. until paid in full. I will pay Pub. clearing house at the same amount of the original purchase prices. Both of these entities are allowing me to make purchases from them.

Add a comment

(Comments may take 5-10 minutes to appear)