For a long time, credit cards have overshadowed debit cards but now, consumers are starting to appreciate the value of debit plastic cards. In fact, you can find debit cards that offer different reward programs which certainly add up to their popularity. And as consumers try to steer clear of bad credit, the use of debit cards seems to be favoured today, more than ever.
Let’s take a closer look at the reward programs associated with debit cards:
Debit Cards with Cash Back Rewards
Just as cash back credit cards are a popular choice among consumers, debit cards with cash back rewards are an obvious favorite as well. Usually, debit card issuers give 1% cash back or 1 point for every dollar worth of purchase.
For example, the debit cash by PerkStreet Financial offers1% Cash Back Rewards on Non PIN-Based Transactions. Pay Pal Debit Card also offers 1% cash back for every purchase as long as the cardholder is enrolled in the PayPal Preferred Rewards Program.
Merchant-Affiliated Debit Rewards
Some debit card issuers partner with merchants to offer more exciting rewards. For instance, Chase has its own version of a cash back debit card called the Real Cash Rewards Debit Card which offers up to 3% cash back, depending on your monthly spending. Chase debit cardholders can also earn up to 30% cash back on purchases made from more than 600 retailers that are included in the Chase Real Cash Mall.
MasterCard has also introduced the MasterCard Marketplace for both debit and credit cardholders. The MasterCard Marketplace features different retailers that sell various products and services. Mastercard debit cardholders are entitled to cash back bonuses by purchasing from affiliate merchants online.
Visa Debit card offers 3 cash back points for every dollar spent on partner retailers such as Staples, Expedia, BestBuy, Linens n’ Things and up to 20 cash back points on purchases made at selected stores like 1-800-Flowers, SmartBargains, and more.
Special Program Debit Reward Cards
Then there are debit cards that offer special reward programs that appeal to specific niches. For instance, Citizens Bank has come up with the Green$ense cashback debit card which are sure to attract environmentalists. This debit card offers to give 10 cents for every paperless payment charged to the card. Green$ense cardholders can earn up $120 each year, plus a monthly newsletter that includes tips for green living.
Choosing Your Cash Back Reward Debit Card
We have discussed the three major types of reward programs offered on debit cards. Before applying for a debit card, make sure that the reward program matches with your personal lifestyle. Understand the specific rules of the reward system. More importantly, check the fees involved in using your chosen debit card to avoid unexpected charges.
About the Author
Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!