Citi Reduces Cash-Back Redemption Rates on Strata Premier Card
In a recent communication that has sent ripples through the cardholder community, Citi announced a significant change to its Strata Premier Card’s cash-back redemption program. Effective August 24, 2025, the cash-back value of ThankYou points will be slashed from 1 cent per point to 0.75 cents per point. This 25% reduction alters the landscape for those who relied on cash-back redemption.
Notification and Background
On May 19, 2025, several holders of the Citi Strata Premier Card reported receiving an email from the bank detailing the impending changes. This announcement came as a surprise to many, particularly as changes to travel reward programs had occurred just weeks prior, specifically concerning the devaluation of Emirates Skywards points transfers.
Interestingly, not all cardholders received the email notification. Various members of The Points Guy team, including Senior Editorial Director Nick Ewen, noted that some did not receive any communication regarding the price drop. This inconsistency raises questions about the communication strategy employed by Citi, particularly for a card that has been termed one of the strongest options for travel rewards.
Impact on Cardholders
This change mainly impacts cardholders who prefer using their ThankYou points for cash back. Despite the decrease in value for cash redemption, travel enthusiasts who transfer their points to airline and hotel partners may not feel the effects as deeply. The ThankYou Rewards program provides opportunities to transfer points to esteemed airline and hotel partners including Air France-KLM Flying Blue, Singapore Airlines KrisFlyer, and Wyndham Rewards, often resulting in better value than cash redemptions.
Currently, the cash-back redemption option has been diminished, and cardholders are encouraged to consider how this impacts their overall strategy for maximizing the value of their points. Users opting for cash back may want to make any planned redemptions before the new rate takes effect on August 24. ### What About Other Citi Cards?
The change seems limited to the Strata Premier Card, as other Citi cards, such as the popular Citi Double Cash Card, have not shown similar changes in cash-back redemption policies. The Double Cash card already earns up to 2% on purchases by offering 1% at the time of purchase and an additional 1% upon payment for those purchases—making it a suitable option for users concerned about cash value.
Future Considerations
As Citi restructures its rewards programs, it begs the question of whether these revisions are a precursor to broader changes within its card portfolio or an attempt to realign incentives for cardholders. For individuals who prefer cash rewards, now might be a prudent time to evaluate different credit card options or strategies that align better with personal spending habits.
Conclusion
The 25% reduction in cash-back redemption on the Citi Strata Premier Card marks a notable change for users who utilize this feature. Cardholders are advised to log into their accounts to review any notifications and to plan their redemptions accordingly. With shifting values in credit card rewards, understanding the nuances of such changes can help consumers make informed financial decisions moving forward.
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