The federal government has enacted laws that limit the amount of money banks may charge for debit card transactions. While this obviously benefits consumers, there is one drawback—namely, the majority of banks have had to either terminate or scale back debit card reward programs due to diminished capital. But while rewards programs have declined in number, they haven't disappeared altogether. The following debit cards continue to offer rewards programs:
- Changes in laws have decreased the amount of fees debit card purveyors may collect, which, in turn, has impaired their ability to offer reward programs.
- Some banks continue to offer cash back and other perks.
1. Discover Bank Cashback Checking
Discover Bank, best known for offering the Discover credit card, also offers a checking account with no monthly fees, access to more than 60,000 ATMs worldwide, free official bank checks, and free check reorder. But most importantly, it also offers 1% cash back on debit card purchases of up to $3,000 per month.
2. Bank of America BankAmeriDeals Program
Bank of America's online and mobile banking customers enjoy access to the BankAmeriDeals program, which offers cash-back rewards on Bank of America debit card purchases made at gas stations, restaurants, and other retailers. Cardholders must first activate their cards online, prior to making a purchase.
3. Axos Bank CashBack Checking
While many consumers have never heard of Axos Bank, its cashback checking account comes with a debit card that offers 1% cash back on all purchases. What's more, there is no annual fee, no monthly maintenance fees, and banking online is completely free.
4. American Express Serve Cash Back Card
The Serve Cash Back Card from the American Express Company is one of the few prepaid debit cards featuring a rewards program. The card offers a flat 1% cash-back reward on retail and online purchases. This American Express card boasts features usually associated with debit cards linked to checking accounts, including online bill payment and mobile deposits. The card comes with a $7.95 annual fee but, unlike other cards, there’s no limit on rewards.
5. KeyBank Rewards Program
KeyBank offers its checking account customers access to the bank's Rewards program through which KeyBank debit card users may earn points on purchases and convert them into cash rewards at the rate of $25 for every 12,500 points earned. KeyBank offers its Key2More Rewards Mastercard® where cardholders earn 5 points for every $1 spent, plus bonus points and the KeyBank Business Rewards Mastercard® that offers 10 rewards points for every $1 spent, plus bonus points.
6. Chase Disney Visa Debit Card
The Chase Disney Visa debit card has no annual fee, however, the card is restricted to checking account customers of Chase Bank, the consumer banking division of JPMorgan Chase & Company. This card offers a number of shopping and vacation discounts related to the Disneyland and Walt Disney World resorts including 10% off purchases of $50 or more at the Disney Store and 10% off certain restaurants at the two resort parks.
7. PayPal Business Debit MasterCard
Available only to business owners, the PayPal Business Debit MasterCard offers 1% cash back, with no monthly limits. Cardholders also receive rewards when they withdraw cash from their PayPal accounts at ATMs.
The Bottom Line
Despite changes in the law that made debit card rewards programs less financially feasible to card issuers, the aforementioned cards continue to offer cash back and a range of other attractive features.
If you're instead looking for a rewards credit card, or hoping to add one to your roster alongside one of these debit cards, some of the best options may be available to you as well.