Banks all over the United States have competed for the attention of new credit card users. To best their rivals, several lenders have dangled different bonus packages, gifts, and features.
Citigroup is taking that contest a step further as it launches a credit card option that allows users 5% cashback when they spend up to $500 monthly in one category. This may be any category, including restaurants, groceries, and travel.
Users also get 1% cashback on all other purchases.
Unlike the options provided by rivals such as JPMorgan, Citigroup’s Custom Cash card does not mandate customers to register their cards for one or more preselected categories. Instead, the 5% is simply applied to the category in which the user spends most.
Commenting on how Citi’s card beats the other options, a senior employee at the bank said: “The problem with those cards is they’re complicated; you have to keep track of rotating categories that change each quarter, or you have to remember what the issuer specifies as the category you might get cashback on. So the customer has to adapt to what the card is offering as opposed to the way it should be, which is the card simply adapts to the customer’s lifestyle.”
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