Member of this sub aren't the average person when it comes to credit cards. We're all about optimization. That being said, none of us generally speaking are putting > $500 spend on a single Custom Cash card. For the product to be sustainable, certainly Citi is making money on it from those unlike us.
How is the card appealing to people exactly that aren't optimizing? There's got to be people out there that are spending 4-figures+ on the card in many different categories (maybe it's even their daily driver?) and are just content with the extra CB on their top spend category? It seems like ~$2k spend is more or less the break even point with the Citi DC, so with a > $2k/mo spend going the DC route would make more sense. Do non CC enthusiasts even think through the numbers though?
I'm just trying to work out in my mind how the Custom Cash makes Citi money / why people that aren't rewards optimizers would choose it over the countless other products out there.
How is the average person using the Custom Cash?
byu/BrutalBodyShots inCreditCards
Posted by BrutalBodyShots
9 Comments
Not sure but I can guarantee it won’t last in its current form very long. Enjoy it while you can!
I imagine they don’t know that there’s a cap and think they are just earning on their top spend category. And don’t second guess or check their rewards to verify it. But who knows.
The economics of most credit card rewards systems rely on the average person using it in a suboptimal way. For most of us, it’s difficult to fathom why someone would get a card and not use it optimally or at least close to it. The Custom Cash is a very pure example, but most people just don’t even really think about it. God bless them, since they allow us to be unprofitable nuisances issuers are willing to accept
I have one drug that cost $461 a month. “Drugstore” is a category.
at Home Depot and Lowe’s.
I just used mine for gas
I’ve never seen one in person.
But I assume the answer is “poorly”.
They carry a balance and never redeem their rewards. The bar for thr average consumer really is that low.
I have a friend that also has it (besides myself), he just uses it everywhere.