Guide to the Different Types of Rewards a Debit Card Can Offer

Looking for a debit card with rewards? You have several unique options! In the past, debit cards were nothing more than a way to spend what money you had in your checking account. But with so many banks vying for your business, rewards are how providers stand out.

Here's a guide on the types of debit card rewards you can get.

Cashback Rewards

Who doesn't love cashback? You may already know how this works if you have a credit card. The debit card provider gives you a small portion of your spending as a cash reward.

Cashback rewards may only be available for specific types of purchases depending on the bank. For example, you may get a percentage back for groceries or fuel. Whatever the case, the rewards aren't as big as what you get with a credit card. But these perks can add up over time.

Points

Point reward systems are an alternative to cashback. Instead of getting a percentage as a cash reward, you accumulate points with your spending. Like before, banks might have limitations on what spending categories qualify. Point values can also vary. For example, some cards have one point for every dollar you spend, while others offer one point for every five bucks.

Those points accumulate over time, and you can use them on various prizes. They could be gift cards to stores you love or miles when booking your next vacation.

Miles

Here's a common reward you see with credit cards, but some banks offer it for debit cards, too. Earning miles is similar to earning points. You may get a set number of points per dollar you spend. Some banks also apply spending categories on top of that, so there are limits to how you can earn these perks.

These debit cards are usually best for frequent travelers. You can earn discounts on travel bookings, gain entrance into lounges and more.

Discounts

Finally, we have relationship discounts. This debit card with rewards is one of the most common. Banks forge relationships with specific companies and retailers. Because you have a debit card with the bank, you can get great discounts whenever you spend at those selected stores or online shops.

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