Guest blog post by Sara Collins, NerdWallet
If you’ve ever wished you could get paid to spend money, a debit rewards program might be the answer to your dreams. While it may seem hard to believe, the terms of most programs are very straightforward: the more you spend, the more handsome your reward.
What is a debit rewards program?
In a debit rewards program customers earn points every time they use their debit card to make a purchase. So when you opt to use your debit card instead of cash at the grocery store, department stores, restaurants, gas stations and anywhere else you spend money, you’re actually getting some of your funds back.
The rewards process varies according to each card, but customers typically earn a minimum of one point for every $2 spent, often receiving bonuses for shopping at designated retailers, which accumulate into very lucrative rewards.
Rewards earned with debit cards vary as greatly as the people who use them, but many allow customers to save points up for one specific purpose ─ travel, for example ─ while others let cardholders choose how to spend their points from a variety of available options.
By cashing in their points for rewards, customers enrolled in a debit rewards program can save money in a seemingly endless number of ways, including:
- Travel: airplane tickets, hotel stays, rental cars and vacation packages.
- Gift cards: earn rewards you can use at restaurants, coffee shops, entertainment, clothing stores, electronic retailers and many more.
- Big-ticket items: electronics, fitness equipment and appliances ─ just to name a few.
- Cash back: some cards even allow customers to trade in their points for cash.
What’s not to like about being rewarded for making everyday purchases? Choosing a debit card with a rewards program allows you to meet your financial goals in a much quicker and easier manner, without any extra effort on your part at all.
Benefits of a debit card
It’s not always convenient to get to the ATM, and carrying a lot of cash around isn’t always the safest move. However, a debit card offers instant access to the money in your account, without having to check your wallet to make sure you have enough cash on hand.
Many people also prefer using a debit card to a credit card, as this method of payment doesn’t come with the temptation to spend money not actually in your account. There’s little risk of buying things you know you can’t afford ─ which would be made even more expensive by high interest rates ─ when you’re only working with the money actually in your account.
Most of us spend money every day, but those enrolled in a debit rewards program are compensated for making even the most mundane purchases. You’ll save money using rewards points or cash back, and you’ll keep money in your account by avoiding credit card interest rates and spending temptations. If you’re spending money anyway, but aren’t yet enrolled in your bank’s debit rewards program, you’re missing out on excellent perks and money-saving opportunities.
All content contained in this blog post is for informational purposes only and should not be relied upon to make any financial, accounting, tax, legal or other related decisions. Each person must consider his or her objectives, risk tolerance and level of comfort when making financial decisions and should consult a competent professional advisor prior to making any such decisions. Any opinions expressed through the content in this blog post are opinions of the particular author only.