Late last week, I received a mailing  that explained the Citi Dividend Card would be, like a caterpiller after curling into a chrysalis, metamorphosizing into the Citi Dividend World MasterCard. On July 1st, 2010, the benefits of the card as well as the reward program, would be changing.
The big change is the introduction of quarterly bonus cashback promotions. This is an idea first popularized by Discover More with their Get More Program , now more and more reward cards are offering this. For the 3rd quarter of 2010 (July 1 – Sept 30), the bonus cashback is offered on purchases made at restaurants, car rentals, and hotels and the bonus percentage is 5%.
Here are some of the details of the reward structure:
- You continue to earn 1% cash back on all eligible purchases.
- You continue to request a check once you’ve earned 50 Dividend dollars, though checks are only paid in increments of $50.
- Dividend Dollars don’t expire as long as you use your card at least once ever 12 months, dollars earned prior to July 1, 2010 will not expire.
- The cash back bonus rate will always be at least 2% and you must opt in each quarter at citicards.com or by calling 1-800-231-0891.
Also, since the card is being “upgraded” to Citi Dividend World MasterCard, it includes all the benefits of a World MasterCard such as concierge service , price protection, travel insurance, etc.
It was a little unexpected because I haven’t used my Citi Dividend Card in what seems like a year in a half. I half expected the letter to say they were closing my inactive account! I have two Citi cards, the Citi Dividend and the Citi mtvU card, the mtvU being my primary card. However, the ThankYou Network  recently increased the price of Student Loan Payment Certificates in the catalog, making my mtvU card less valuable. I might start using the Citi Dividend World instead.
If you have a Citi Dividend card, did you receive the mailing too?