Cashing in on Debit Card Bonus Rewards
Cash Back and Reward Points Are Not Limited to Credit Cards Only
Jul 30, 2009
Fortunately, that is not the case. Debit card holders may also reap similar benefits from using their debit cards. The only catch is that instead of using the card as an ATM card when making a purchase making it necessary to insert a PIN number; the card holder must use the debit card as a credit card and sign for the purchase instead. Doing so entitles the cardholder to bonus reward points.
Investigate the Bank's Reward Program
When looking to open a new bank account, in addition to the usual criteria for opening a bank account such as interest rates, bank location, charges and fees, don't forget to ask about the bonus rewards program. While the bonus reward program may not hold the same importance as whether or not the checking account is free or interest earning, it can prove to be a nice perk.
For folks who already have a bank account but are not currently participating in a rewards program, it's time to contact the bank to get more information on entering the bonus reward program. Registering for the program is usually as simple as logging onto the bank's rewards website and registering the debit card. Once registered, all the debit card holder has to do is use the debit card as a credit card. Cash withdrawals and ATM purchases are excluded from most, if not all, bonus rewards programs.
How Bonuses are Awarded
Some banks reward their customers on a one to one basis. That means for every dollar a customer spends using the debit card as a credit card; the bank rewards a bonus point. Other banks, especially credit unions, reward customers on a two to one basis. For every two dollars the card holder spends, the bank gives one bonus point.
With all else being equal, one may be tempted to open an account with the bank that offers the highest bonus rewards. After all, it seems to make perfect sense to go to the highest bidder. Before making such a decision, browse the redemption catalog.
Redeeming the Bonus Points
Each financial institution has its own rewards catalog. There is a wide selection of products to choose from. This is where the customer can truly see the value of the bonus points. For example, the bank that rewards on a one to one basis may require more bonus points to 'purchase' an item where as the two to one financial institution 'charges' less.
For example, to redeem points to purchase a blender from Bank A (one to one) may cost the customer 7,000 bonus points, while the same blender from Bank B (two to one) may only require 3,000 bonus points. The only way a customer will know the true value of a bonus point is to review the catalog.
Measuring the Bonus Reward Perks
Therefore, when deciding to open an account with a bank or switching from one bank to another, remember to take a look at the bonus rewards program. While it may not be the determining factor as to whether or not to open an account with a particular bank, it can be the tie breaker if everything else is dead even.
