Citibank answers issue on staggard payments
After I posted the entry about Citibank charging its credit card holders P40 transaction fee for staggard payments (see related story), I emailed the Citibank Philippines website. Here is the reply:
“We wish to inform you that we added the new fee because we would like to encourage our cardholders to use our electronic channels such as:
– Citibank Online (CBOL)
– Citibank N.A. ATMs
– Citibank N.A. Cash Payment Express Machines
– Citibank Savings Inc. ATMs
– CitiPhone Self Service Telephone Banking (AVR)
Due to the high cost of processing payments through other payment centers, these electronic channels allow you to pay as often as you want at no added cost to you. However, we recognize that you may want to pay in certain payment centers so we allow for two (2) payments a month at no cost.
Basically, the P40 transaction fee is for the cost incurred by paying in other payment centers. This, I find, is very irresponsible and unfair. Being the big company that it is, Citibank can accredit payment centers that are not expensive. If the cost is expensive, why not just drop payment centers that charge them such exorbitant fees? Two, why pass the burden to the public, to Citibank credit card holders? With the 3.5% interest rate that it charges every month, can’t Citibank shoulder the transaction fee instead?
P40 may not be a lot to most people but P40 is already a one-way bus fare from Fairview, Quezon City to Boni MRT station. P40 is equivalent to almost two kilos of rice. P40 monthly can conservatively grow to almost P2,000 in 20 years.
Entry filed under: credit card.