Owning a debit card offers more than just convenience, it also gives certain privileges to owners.
Owning a debit card is a convenient option to bring money securely. As long as Automated Teller Machines (ATMs) are nearby, owners can get cash with just a few clicks.
Banks saw a rise in debit card applications over the years, mainly because of the perks that they give to owners. From cashback, reward points, and discounts, debit cards have become a popular inclusion in our wallets.
Given their long list of benefits, some beg to question, “Are debit card rewards worth it?” Let’s find out.
Perhaps credit card owners already know – and use – the rewards that come with their cards. Some debit card owners, on the other hand, don’t know that they have the same perks.
Understanding Debit Card Rewards
Debit card rewards are incentives banks offer users for every drawing they make from their respective savings accounts. Here’s what they can get:
Discounts – As a debit cardholder, you can enjoy these perks when ordering from your favorite restaurants or by using them when shopping. Although these discounts vary in rates, merchant participation, or entitlement, the fact that you get better chances of saving from your purchases remains. Check for your bank’s partners that offer these promotions and see what good you can get.
Cashback – Banks provide cashback or returns to cardholders after meeting specific purchase requirements based on their promotion schemes. Like discounts, cashback rates also vary; be aware of these cashback posters and ads because you might receive an extra 2% return on your next bulk purchase.
Loyalty Points – If not savings on purchases, loyalty points can accumulate and be used to redeem a reward. These rewards are often in the form of merchandise, freebies, or the ever-popular travel perks. Owners, however, should meet specific purchase requirements for entitlement to these points and rewards.
Are there Drawbacks?
While debit card rewards can be no less than enticing, there are some red flags to consider:
Unnecessary Spending – Rewards can be so exciting that users add anything unnecessary to their carts to reach a minimum purchase requirement. Although this practice may not be an issue to those who can afford it, it doesn’t promote efficient spending.
Limited Merchant Participation – Not all businesses and merchants tie up with your favorite bank. Hence, we should check which establishments offer or promote these perks before transacting.
Are Debit Card Rewards Worth It?
Conceptually, rewards are a bank’s way of thanking you for your patronage. However, they only become worth it if you obtain them not from a bank’s marketing strategy, but because of your usual spending. Never fall into the trap of spending beyond your capacity only to receive a freebie that you can just buy at a cheaper cost.
Final Thoughts
Owning a debit card offers more than just convenience, it also gives certain privileges to owners. One day, you earn discounts from your purchase, and on the next, you get a freebie. Regardless, with all these perks, remember that not everyone can have these. Be keen on the terms to enjoy these rewards more.
