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Citibank wants to lure more business owners away from American Express and Chase with a credit card that cribs from its competitors’ playbooks. Like the original Platinum Card, the CitiBusiness ThankYou Card streamlines expense reporting and adds significant purchase protection benefits. While its APR and rewards offers don’t stack up to Ink from Chase, strong service features could make the difference for professionals who don’t intend to carry a balance.

Small spending plateau triggers Citi’s signup bonus

According to Citi’s website, a new CitiBusiness ThankYou cardholder can trade their 15,000 bonus points for $150 in merchant gift cards after spending just $3,000 with the card over 90 days. New Chase Ink Cash members have to spend $5,000 to qualify for a bonus $150 cash rebate, but Chase also offers an extra $100 credit upon first purchase.

CitibankLike Chase, Citi offers its ThankYou members bonus points for purchases in a variety of rotating, seasonal categories. Qualifying purchases earn three ThankYou Points per dollar spent at eligible merchants that include computer stores, advertising companies, airlines, restaurants, and phone companies. You’ll earn one ThankYou Point for every dollar you spend elsewhere on the card. Citi also kicks in bonus rewards for managing your account online and registering for paperless statements.

Earning awards gets easier if you share your personal ThankYou balance

ThankYou points carry the most value when you redeem them for merchandise or for gift cards. For instance, at a penny per point, an Amazon.com gift card reward can let you earn the equivalent of a 3 percent rebate on featured category purchases. Because every employee using CitiBusiness cards earns points, your company’s balance can grow fast.

Chase and American Express both offer stronger redemption rates on their business rewards cards. However, Citi offers a feature that can make the ThankYou program more appealing. Carry both a CitiBusiness card and a personal Citi credit card, and the bank will let you swap points between your accounts at no charge. If you choose to keep all your points for yourself, merging your earnings can help you reach higher rewards levels faster.

Citi makes up for average account terms with extraordinary protection

At the moment, the CitiBusiness ThankYou Card offers a six month, no interest teaser, followed by an APR above 13 percent. There’s no balance transfer teaser in effect, either. With no annual fee and no charge for issuing employees their own cards, CitiBusiness makes a decent card for cash flow management. This card really shines for companies that take advantage of money-saving features, including:

  • Extended warranty. Add one year to the manufacturer’s standard warranty on each purchase.
  • Retail purchase protection. You’re covered for up to $10,000 in loss or damage for 90 days after each transaction.
  • Auto rental insurance. Never pay for a collision damage waiver again.
  • Travel accident insurance and assistance services. Automatic coverage, and a round-the-clock help desk to keep you safe.
  • While frequent flyers may prefer AmEx’s Platinum Card’s airport perks, the CitiBusiness ThankYou Card replicates many of its competitors’ most compelling benefits.

Personal Business Assistant

Concierge services have quickly become the must-have benefit for elite business credit cards. Citi skews the trend with its team of Personal Business Assistants, specialized service professionals who can perform high level tasks on behalf of companies instead of cardholders. Like other cards’ concierge desks, the Citi PBA team can book you a reservation at a hot restaurant or confirm your next travel itinerary.

These assistants add even more value by researching supplier costs, sourcing vendors, and handling more complex requests related to meetings and conferences. Issuing a CitiBusiness ThankYou Card to each employee on your team gives them the power to offload routine tasks and busywork via a secure, online portal. That could be the signature feature keeping this card in the competition for space in your wallet.

If the above features appeal to you, apply for a CitiBusiness ThankYou Card today to receive the 15,000 bonus points opportunity.

Photo: Kien Wai

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We live in an era of cheap, disposable goods. My closet full of clothing, much of it rarely worn, even though I sort through my wardrobe about once a year to eliminate items I no longer need, is a good indicator of this situation. For a good period when I was a kid, I wore hand-me-down clothes — as the eldest child, I received clothing from a family friend — and when an item became damaged, my mother fixed it with her sewing machine.

Prices for clothes have certainly increased over the last few decades, but clothing is not expected to last. When a piece of clothing becomes damaged, it’s easier and cheap enough to replace.

Broken ToasterBroken kitchen appliances, lamps, and other household devices past their warranty periods can’t be fixed with a sewing machine. Many would need specialized care by a professional, and with today’s disposable consumer culture, many people just opt for replacement rather than finding a repair shop and paying nearly as much money as they would to buy a new item.

Additionally, retailers and manufacturers have embraced the concept of planned obsolescence. To keep manufacturing costs low and to maximize profits, there is little concern for making products that last as long as their owners. This is a primary feature of high technology — a house phone sold fifty years ago may still function properly today, but a cell phone purchased five years ago not only doesn’t keep up with the latest technology, but it likely doesn’t work at all. Furniture built in the eighteenth century was made to last in a family for generations; IKEA furniture might last a few years under regular stress of use.

In Amsterdam, there is a small movement in opposition to this disposable consumer culture. The community has come together to repair its members’ broken items. Volunteers bring their tools and sewing machines to an open building several times a month and offer to fix any broken item brought to the gathering. This Repair Café helps reduce waste by encouraging reuse of broken items, and makes fixing an affordable alternative to replacement.

The government in the Netherlands, private groups, and individual donors have helped the Repair Café Foundation raise $525,000 over the past few years, and these funds have helped the organization create these gatherings at various locations across the country. These Repair Cafés provide a chance for consumers to make better use of their goods and for volunteers, particularly those with repair skills that might no longer be in demand, use those skills for a good cause.

Would Repair Cafés; be welcome in the United States? It’s not exactly a profitable business venture, and as such, is unlikely to draw much attention. The model, however, could easily be recreated, perhaps in low socioeconomic neighborhoods, to provide a money-saving alternative for spending money to replace slightly damaged items. Strong marketing encouraging consumers to exist in a cycle of buying and replacing comes at a price to retailers and manufacturers. If these expenses were redirected towards making better, durable products without planned obsolescence, consumers might lose the desire to constantly have new items, and would be able to hold onto the same products for a longer period of time. There would be less waste. Companies and their shareholders would find they have more loyal, life-long customers. Customers would shop with a focus on the differentiation in quality rather than with their tunnel-vision focused solely on price. Companies that build their products to last would succeed while those focused on the short-term would fail.

Could Repair Cafés be an answer to the consumer culture of disposable products? Would the availability of free repairs in the United States change the way consumers buy goods, and thus force companies to build products that are made to last rather than go obsolete? Is the trend towards disposability reversible at all?

Photo: phozographer
New York Times

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Yes, it’s frustrating to need to reach for my wallet and type in my credit card number every time I want to complete a purchase online. According to a recent MasterCard and Harris Interactive survey, 58 percent of consumers agree with me. Consumers even abandon their online shopping carts when the check-out process requires too much effort.

That might be good news for consumers. If a small barrier is all it takes to prevent someone from making a purchase, perhaps that purchase was not a necessity. Leaving more money in the bank rather than spending that money on some product that does not drive enough desire to get through a relatively painless process can only be beneficial to the shopper’s financial condition. Retailers, on the other hand, will obviously see consumers’ lack of purchase consummation as a problem, directly affecting sales and revenue.

The solution is to store the details pertaining to your payment method so it can be automatically retrieved at the point of sale. Amazon.com is certainly a pioneer with this approach. This company’s one-click purchasing process using stored credit card or debit card information makes buying a smooth process, although it created an uprising about patents when this feature was introduced many years ago.

PayPal has a good solution as well. Stores that allow payments through PayPal enable users to associate a credit card and avoid the need to type in a credit or debit card number each time.

Consumers can also use browser add-ons or downloadable programs, like LastPass, to store credit card information retrievable with a click or two.

Purchasing items online is much safer and more secure than being out in the world, carrying a wallet with all your credit cards and cash, and handing your credit cards to a waiter or gas station attendant who disappears for several minutes. Online security, as long as you confirm you are visiting a secure website, is trustworthy. No one is going to intercept my secure internet connection when I’m buying something online, and for the most part, I trust companies not to expose a database of credit card numbers to the public. That exposure is just as likely to happen when shopping in brick-and-mortar stores as when shopping online. The situation is unlikely, and shopping online does not add to that risk.

There is no universal solution, a one-click purchasing experience like that on Amazon.com, available to all retail websites. But there is also no equivalent to the one-click purchasing experience when you shop in store locations, either. Swiping a payment card or transmitting a secure wireless signal from your mobile phone gets close to the experience, but you still need to take out your wallet or your phone.

While retailers want to make it easier for consumers to pay money, consumers should be careful about making this process to automatic. Trading money for an object of some type should involve at least some opportunity to stop and consider the purchase. Technology makes it incredibly easy for consumers to part with their cash or increase their debt burden, and retailers want to make it easier. Consumers should be working against that trend and moving in the opposite direction.

If not, retailers will soon be able to simply reach into consumers’ pockets and take that money. Some companies offer free trial periods for their products and services without making it blatantly obvious that customers will be charged at the end of the trial period. Some create significant barriers to canceling the service in advance of the ending of the trial period. Consumer groups often criticize these policies, and some might be considered scams. If consumers make it increasingly easy to give up money without thought, then we’re just as much to blame.

Photo: Håkan Dahlström
BusinessWire

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Last year, I opened a money market account with Aurora Bank, a division of Lehman Brothers. If it seemed like an odd thing to do, it probably was. Lehman Brothers had filed for bankruptcy in 2008, yet in 2011, they were promoting their online retail bank and looking for new customers. Not wanting to associate the marketing push with their brand, the bank had the name Aurora Bank rather than Lehman Brothers Bank, as it had been known from 1999 until after the bankruptcy.

I knew at the time that Lehman Brothers had been directed to sell Aurora Bank by May 2012, and that target is approaching. If regulators approve the acquisition, New York Community Bank will be assuming all deposits (savings, money market, and checking accounts) from Aurora Bank. New York Community Bank is no stranger to acquiring “online” banks. AmTrust was a recent acquisition. AmTrust “failed” in 2009, alongside many banks that crumbled under the credit crunch and recession, and New York Community Bank became the receivor. In this case, the situation does not reflect any problem with Aurora, but a condition of Lehman Brothers’ bankrupcty.

As I pointed out in my review of Aurora Bank, with the pending sale, Aurora Bank offered higher than average rates and initiated a marketing push to build a larger customer base in advance of the banking division being sold to the highest or best bidder. The risk of acquisition is mostly meaningless to customers, particularly those who are generally blind to brands and are not concerned with being loyal to a bank with whom they’ve had a relationship for many years. The FDIC ensures that changes like these don’t affect customers, even when banks fail without being acquired by another bank.

New York Community Bank consists of several divisions, each serving a different community. Most of these communities are in the New York area, but with acquisitions, the service area has spread. With the divisions operating somewhat separately, maintaining their own branding, and keeping the word “community” in many of the division names, the bank is certainly looking to emphasize the small-town vibe of a community-focused organization despite the growing size of the company.

  • Queens County Community Bank is a division of NYCB that operates in Queens County, New York.
  • Roosevelt Savings Bank operates in Brooklyn, New York.
  • Roslyn Savings Bank operates on Long Island.
  • CFS Bank operates in Westchester County, Manhattan, and the Bronx.
  • Richmond County Savings Bank operates on Staten Island.
  • NYCB also operates several banks in New Jersey including the Garden State Community Bank.

New York Community Bank’s online features are not as strong as one might expect from a bank that competes for business among the best online savings accounts, but Aurora Bank customers should receive services similar to those they’ve had over the past few years, including high-yield money market accounts accessible online.

Even the bigger online banks are not immune to changes; Capital One has acquired the United States deposits of online juggernaut ING Direct. The retail banking industry has been in a state of upheaval since the recession, and while the rate of failing banks has slowed down, banks with power are seizing opportunities for acquisitions. With consolidation, there is always fear that the customer will lose, and there is some validity to that fear. Competition is good in the banking industry, motivating companies to offer products that meet customers’ needs while keeping fees low.

Here is the text of the letter I received as a customer of Aurora Bank:

Dear Bank Customer:

Please be advised that at 12 noon on July 6, 2012, the following Aurora Bank FSB (aurora) branches will close permanently…

Separately, we wish to inform you that New York Community Bank, in a transaction that is subject to regulatory approval, will be acquiring any deposit accounts you currently maintain at Aurora. In the event the required regulatory approvals have not been received prior to the branch closing date, your accounts will be transferred to, and will be serviced by, Aurora’s home office, currently located at 1000 West Street, Suite 200, Wilmington, Delaware 19801, until such time as the necessary approvals are received. New York Community Bank will contact you with additional information regarding the transfer of your account(s). No action by you will be necessary.

We thank you for being an Aurora customer. If you have any questions, please contact our customer service department at 888-522-9295.

The letter comes to me as a reminder that I have too many open bank accounts floating around, mostly as a result of writing reviews for Consumerism Commentary readers.

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The End of the Cent (in Canada)

by Flexo
Cents

In 2011, the United States government lost over $60 million through the minting of pennies. One-cent pieces now cost the government 2.41 cents, each, to produce. When the American cent was introduced in 1793, a typical annual salary for a teacher may have been about $60, so a cent would represent 0.016 percent of this ... Continue reading this article…

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Reader Question: Resolving a Dispute With a Brokerage

by Flexo

From time to time, Consumerism Commentary readers contact me with questions. I am not an investment professional or a financial planner, and I don’t offer advice related to investing other than my general thoughts on the topic. The questions I receive range from basic investing details like government-regulated limits for investment account types to how ... Continue reading this article…

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Consumer Privacy Bill of Rights

by Flexo
Facebook

Last week, the White House released a Consumer Privacy Bill of Rights. This isn’t a law or regulation, but a set of guidelines that could possibly underscore future actions by Congress and enforcement by the Federal Trade Commission. Private, personal information should be private and personal, but when consumers enroll for any type of service, ... Continue reading this article…

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Three Credit Card Benefits You’re Paying For

by Flexo
MasterCard credit card

I wrote about three credit card benefits you’re paying for but not using for GoBankingRates and BusinessInsider. Whether you pay interest on your carried credit card balances or whether you’re just subject to the natural increased cost of products due to retailers’ card processing fees, you’re paying for the cost of benefits that card issuers ... Continue reading this article…

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