Most cards have it the other way around... they pay you less, or even nothing, until you get to a certain level of spending and then the cash back picks up even more.Very odd your Citi does it that way. Only reason for it is to make more profit off of those who use the card a lot. Customers who charge a lot more are bringing in more business, I would assume.Most of this is speculation on my part... but thinking out loud. Chime in if someone can debunk this:Could it be that Citi created this system in an attempt to push away responsible card members who charge a lot ($30,000+ a year) but pay it off at all times (in my mind it seems reasonable that someone looking at cards thinking $300 reward [$30,000 a year spending] limit will prevent them from cashing in all their spending are probably the upper middle class to rich types who can just pay off their card every month). Those members will look for other cards that offer better rewards for their excessive spending.I can't think of any other reasonable explanation for them to cap the return except... people are just ok with it, or don't think they'll reach it. Otherwise they'd move on to someone else to get a better reward.
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