Rewards Programs for Debit Cards: Cards, Tips, and the Different Types of Programs

Rewards Programs for Debit Cards: Cards, Tips, and the Different Types of Programs

Debit cards still have the ability to earn cash back rewards

Debit cards that come with benefits are difficult to come by, but they are not extinct. It is feasible to get rewards simply by spending money that you already own if you are willing to be flexible about where you bank (instead of using a credit card). Since 2008, the number of available choices has decreased, but there are still plenty.

Credit and Debit Cards that Offer Cash Rewards

The times of ubiquitous cash back and debit card incentives are, for the most part, in the past. The money just isn’t there anymore as a consequence of the financial crisis that occurred in 2008 and the new legislation that restricts the fees that banks are allowed to charge for debit card transactions.

There are still several debit cards on the market that provide cash back, but the rewards are far lower than in the past. In certain circumstances, you can redeem your rewards for gift cards, which are arguably superior to cash in many situations. As of the month of July 2019, the following terms apply:

Discover Bank

The majority of debit card purchases made with their Cashback Checking account get 1% cash back. There are no monthly fees or minimum balance limitations, and you have the potential to earn up to $360 cash back every year (up to $30 each month).

Checking Accounts With Cash Back

An opportunity to earn a substantial $2,000 per month in an online checking account is provided by this product, which is offered by Axos Bank. However, you must have a balance of at least $1,500 in your account at all times, and certain activities, such as online transfers and purchases made at supermarkets or hypermarkets, may not qualify for cashback benefits. If your balance is less than $1,500, you will receive half of the regular 1% reward. The standard incentive is 1%. Have a conversation with a customer support agent about your typical spending patterns to figure out what you may reasonably anticipate happening.

Cash-Back from American Express Serve is available.

The funds on this American Express card come from a pre-paid account. You can earn 1% cash back on purchases; however, the cash-back feature comes with a monthly fee of $7.95, so you must spend enough to cover the fee.(There is no charge if you are a resident of New York, Texas, or Vermont.) Due to the fact that it is a prepaid debit card, it is not associated with a traditional checking account. Instead, you “load” money onto the card and then spend from the card’s balance after it has been loaded.

The Debit Business MasterCard offered by PayPal

If you don’t use your PIN while making purchases with this debit card, you’ll get a cash back bonus of one percent on all signature-based transactions. On the other hand, the card can only be obtained by PayPal business account holders. Both businesses and individual customers have access to a variety of cards offered by PayPal. However, your debit card will not accumulate rewards.

When it comes to earning cash back, your best bet is to use credit cards. However, it may be challenging to qualify for these cards, and they often carry a higher annual fee.

Advantages and Advantages

The easier times of making money in the past are, for the most part, behind us. Most of the time, reward programs for debit cards can be divided into one of two categories:

Points-based Rewards

When you make purchases with your debit card, you will earn “points.” You may earn one point for every dollar that you spend, or the formula may be less generous (for example, you may only gain one point for every five dollars spent). Because points are not the same as cash, you cannot assume that exchanging one point for one dollar will give you the same value as doing so. On the other hand, you have the ability to exchange points for goods that would normally cost you money, giving you the chance to cut costs and save money.

The Benefits of Relationships

Gain advantages by working with certain companies. For instance, the rewards program that comes with your debit card might provide you with discounts when you make purchases at particular retailers and websites. You will save money, but if you want to receive incentives, you will not have as much leeway in deciding where to spend your money as you would otherwise. Having said that, these reward programs might save you a large amount of money if you are aware of the locations at which you make significant purchases (and, thus, where you will benefit the most from discounts).

Reward Programs for Use of Debit Cards Based on Points

There are many banks that give rewards based on points, including:


You can earn points with KeyBank whether you pay for purchases made with your debit card or use your personal identification number (PIN). You can also rack up points whenever you use the bank’s online bill payment system or engage in any of their other services. Rewards can come in the form of gift cards, cash back, trips, items, or donations to a charity organization.

SunTrust Bank

This particular financial institution offers a debit card called the Delta SkyMiles World Debit Card, which awards you one “mile” for every dollar you spend (or two miles for every dollar if you purchase flights straight from Delta). SunTrust is one of the only credit card companies that will let you earn miles regardless of whether you sign for transactions, use your PIN, or purchase online. You can also rack up miles by handling your financial obligations online. It goes without saying that you can turn your miles into travel with Delta Airlines.

Direct from UFB

This bank allows customers to earn miles with American Airlines. However, you only receive one mile for every $3 that you spend, and certain transactions do not count toward earning miles. Because of this, you need to have a good understanding of your spending habits in order to determine how much you’ll earn from the account.

The Benefits of Relationships

Instead of saving up points to use in the future, you can use the rewards program that comes with your debit card to get discounts and other perks right now.

Financial Institutions Located Close to You

Because rewards programs are so common at financial institutions, it’s possible that you already have access to incentives in your account. If you want to know how to save money when you shop with your debit card, ask a bank representative.

When compared to point-based awards, those based on relationships need a little bit more labor. You won’t get much use out of them until you select a rewards program that works with your lifestyle and the way you spend your money. Verify if the “rewards” that a bank purports to offer are, in fact, beneficial to you before choosing it as your primary financial institution. For instance, find a debit card that offers benefits in the form of gas points if you put a lot of money into gasoline purchases.

Fine Print

There are always going to be requirements and constraints attached to these benefits, which makes them less gratifying overall. Find out if you will get what you anticipate by reading the terms and conditions in great detail. Examine your pattern of card use in great detail and make a critical comparison to the terms and conditions of the rewards program offered by your financial institution.

A few characteristics to look out for:

Accumulating Points

How quickly does the accumulation of rewards occur? It’s possible that you’ll get one point for every dollar you spend, but it could also take you five or six dollars to get one point. When you spend money in some categories, you may find that you get additional rewards (like buying gas or groceries, for example). Consider the ways in which you utilize your card. Will you ever amass sufficient prizes to make using them worthwhile? Will the accumulation of points cause a shift in your habits and spending that will be detrimental to your financial situation?


Find out when the awards you have earned will expire. Put that knowledge to use, along with what you already know about the process of point accumulation, to make an educated guess about whether or not you will be eligible for a reward. It’s possible that points will become invalid in only a few short years, right when you’re getting close to being able to redeem them for something of value.

Put the brakes on points

Is there a cap on the total number of points that can be accumulated in a certain time period? (per month or year, for example). You might have a major purchase coming up or spend a lot of money every month, but you might not be able to make the most of those expenditures in the way that they could benefit you.

Maximal Cash Back

Find out whether there is a cap on the amount of cashback you may earn if you are eligible for it. If you are getting close to reaching this level, you will need to carefully time your purchases because it is possible that the limit is reset every year or every quarter. The presence of these limits on a card has the potential to make other types of incentive programs, which do not involve cash back, appear more appealing.

Costs: It is more likely that rewards cards will have fees attached to them (annual fees, fees to use your rewards, fees to make purchases, and more). The benefits you obtain should, of course, be greater than the costs you incur.

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