Nowadays, debit playing cards that earn airline factors or miles are few and much between.
However Southwest Airways is giving it a shot.
The airline on Tuesday introduced a brand-new, cobranded Fast Rewards debit card that can enable members to earn factors on on a regular basis spending — with no credit score examine required.
Whereas it lacks most of the priceless perks and journey advantages of a real journey bank card, this debit card may very well be an intriguing possibility for youthful vacationers and customers who aren’t capable of safe approval for a bank card.
The brand new card is named the Southwest Airways Fast Rewards Debit Card, powered by Galileo.
Southwest is partnering with Minnesota-based Dawn Banks and Galileo Monetary Applied sciences for the Visa debit product.
You may earn lower than 1 Fast Rewards level per greenback spent on most purchases, however in sure “bonus spend” classes, you’ll earn as a lot as a full level per greenback spent on eligible purchases.
The Dallas-based provider can also be providing just a few modest journey perks to its debit card holders, from an annual low cost code to a $35 credit score annually.
Southwest debit card advantages
Here is a rundown of the brand new card’s advantages:
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- Earn 1 Fast Rewards level per $2 spent on on a regular basis purchases (so, a $20 buy would earn you 10 factors)
- Earn 1 Fast Rewards level per $1 spent on Southwest Airways purchases
- Earn 1 Fast Rewards level per $1 spent on eating and subscriptions, together with web, cellphone and streaming companies and utilities
- Obtain a 7,500-point Companion Move enhance (it takes 135,000 factors to qualify for the go)
- Earn 7,500 bonus factors on the cardmember anniversary should you spent at the very least $15,000 on qualifying purchases the prior yr
- Annual 20%-off promo code with Southwest
- Annual $35 Southwest credit score
The cardboard additionally comes with a small welcome bonus: New cardholders can earn 2,500 factors after making two recurring deposits and spending $100 within the first 90 days.
The cardboard doesn’t have an annual payment. You may simply want a checking account with Dawn Banks, which is waiving month-to-month charges for members who preserve a median minimal month-to-month account steadiness of at the very least $2,500.
Cardholders may even don’t have any ATM withdrawal charges throughout the international Cirrus ATM community.
Learn extra: Getting began with factors, miles and bank cards to journey
Is it price getting the Southwest debit card?
We should always say proper off the bat that in order for you true journey perks and profitable points-earning alternatives with Southwest, one of many airline’s cobranded bank cards goes to be your greatest guess.
These playing cards include a variety of advantages like free checked baggage, complimentary most well-liked seats and — on some playing cards — upgrades to the airline’s brand-new extra-legroom seats.
Learn extra: Southwest unveils main revamp, new perks for bank card lineup
Many of those advantages can simply offset the bank cards’ annual charges. For that motive, Southwest’s bank card lineup generally is a higher-value possibility for even semifrequent Southwest flyers.
Here is our rundown of the most effective Southwest bank cards.
Who ought to get the Southwest debit card?
Nevertheless, there are many vacationers for whom a bank card with an annual payment is not a practical possibility.
And this new Southwest debit card might unlock a brand new approach to earn airline factors on purchases — whether or not it is a client who’s rebuilding their credit score rating or a younger journey fanatic simply dipping their toe into the world of factors and miles.
“It is a chance to get individuals into your loyalty ecosystem,” Southwest Chief Buyer and Model Officer Tony Roach instructed TPG.
“There are individuals who need to earn factors for spending that will not be capable to get a bank card,” Roach famous. “It might be too early for them to get a card, so it is a good approach to give extra individuals a chance to earn factors.”
Additionally, we’ve to level out: Even the largest bank card fans amongst us have a tendency to hold a debit card, whether or not it is for making ATM withdrawals or paying for purchases the place a full-blown bank card would incur a processing payment.
However, for eligible debit-card purchases, it could actually’t harm to earn factors on these swipes too — nevertheless occasional they is likely to be!
I might additionally see this card being a secondary possibility within the wallets of vacationers who extra incessantly fly different airways and need to prime off their Fast Rewards steadiness.
Plus, that 20% annual flight low cost and $35 credit score are modest advantages, even when they fall wanting the tons of of {dollars} (or extra) in annual financial savings you may reap with the precise journey bank card.
Backside line
A long time in the past, debit playing cards that earned journey rewards have been way more frequent. Federal laws within the wake of the 2008-2010 monetary disaster all however gutted these debit perks.
Defend your factors: Do not let Congress take off along with your bank card rewards
Southwest, although, appears to have discovered an “in” to the debit card rewards panorama, in becoming a member of forces with a smaller banking companion in Dawn Banks — with which Fast Rewards members would want to arrange a checking account to get this new card.
“It is for a distinct segment viewers,” Roach acknowledged. “We have been capable of finding a partnership that permits us to try this.”
Nevertheless area of interest, the considered incomes factors on debit purchases is an attractive one — and may very well be an awesome alternative for some vacationers (particularly youthful customers) to earn factors.
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