Credit cards may be a better option than debit cards when it comes to earning cash back. Using a debit card is easy, especially if you’re concerned about ending up in debt, but if you regularly swipe your debit card instead of using credit, you’re missing out on attractive credit card benefits.
Where Can I Get Cashback With A Debit Card? To get the best of both worlds, you may receive cash back on a debit card transaction without having to worry about interest. Due to the lack of widespread use of debit card reward schemes, the incentives are typically not very large.
If you’ve ever used a debit card rewards program, you’ll know that they used to be considerably more common and offered a greater value when there were fewer rules and banks could charge retailers bigger fees for debit card transactions. As a result, several top-tier banks opted to discontinue or scale up their reward programs once Dodd-Wall Frank’s Street Reform and Consumer Protection Act went into force in 2010.
Rewards debit cards that give you points or cash back are still available, but if you can keep a tight rein on your spending and make your monthly payments on time, a rewards credit card may be a better option.
There are four ways to get cash back from your debit card.
1. Discover Cashback Debit Card
It is possible to use Discover’s cashback debit card anyplace Discover cards are accepted, and it gives 1% cash back on up to $3,000 in purchases made each month.
There is a limit of $30 in monthly rewards, which are automatically put into a Discover savings account every month.
Using your debit card to take cash from an ATM is free, and there are over 60,000 of them around the country. However, you won’t receive any cash back for using an ATM.
To begin earning cash back on your Discover debit card, you’ll first need to open an online banking account with Discover. At Discover.com, you can achieve this in a matter of minutes.
With no monthly fees, no costs for normal checks or online bill pay, and no fees for stop payments, insufficient funds, or deleting your account; the account actually attempts to deliver fee-free banking. Discover even offers free expedited delivery of a new debit card in the event of a lost or stolen card.
Discover’s debit card cash back program is one of the finest out there because of its fee-free checking account and generous spending limit.
2. Bank of America Debit Card
Debit card incentives from Bank of America operate in a different way than those from any other bank on this list. When using the BoA card to make a transaction, you must use a Bank of America debit or credit card to get the cash back.
Your online bank account or mobile app must be linked to BankAmeriDeals for you to be eligible for cash back. Pay for qualified things with your debit card, then check out the available deals (remember that the amount of cash back you can get may likely vary) and activate those you’re interested in. Cash back will be promptly transferred back to your account when you sign in.
Simply log in to your Bank of America checking account and choose “View all Cash Back Deals” to begin saving money with AmeriDeals. Depending on the BOA account you pick, you will be subject to different terms and restrictions, including monthly fees and ATM access.
While other cards on our list allow you to receive cash back on any transaction, existing BOA customers may find it appealing to take advantage of these offerings that provide cash back.
3. Axos Cashback Checking
All debit card signature transactions at Axos earn you 1% cash back. To get 1% back, you’ll need to keep a daily balance of at least $1,500. To get the full 0.50% cash back for the month, you must maintain this average balance. You may earn up to $2,000 every month in cash back with the Axos debit card. With an FDIC-insured bank account connected to your debit card, this cashback will be available to you.
Axos Cashback Checking is one of the finest checking accounts since it has no monthly maintenance costs and reimburses you for any domestic ATM fees indefinitely. To start an account, you’ll need at least $50, but after that, there’s no necessity to keep money in the account each month.
This account is best suited for consumers who often carry substantial amounts of cash in their checking account, as the maximum 1% cash back on debit card transactions requires a big balance.
4. American Express Serve Cash Back Prepaid Debit Card
There are no spending limitations with the American Express Serve Cash Back card, which is a prepaid debit card that offers 1 percent cash back on all purchases.
The Amex card differs in that you may only spend as much as you have loaded onto your Serve card with this card. However, there are a number of free methods to move money to your account, including direct deposit and bank account transfers.
However, there are few flaws with this card. Depending on the establishment, you may have to pay up to $3.95 each time you top off your card with cash. A $6.95 monthly charge is also required in most areas for the Serve Cash Back card.
This is a wonderful choice for those who can’t create a standard bank account or who don’t want to. Adding money to your account is free, but there are monthly fees and charges linked with it, so some people may choose one of the other options on our list.
4 of the best cash-back credit cards
Despite the fact that debit cards might earn you cash back, you’re generally limited to a modest proportion of your transactions each month.
You’re likely better off using a cashback credit card to get the most out of your spending rewards. Many of these cards give you more than 1% back on specific purchases and don’t limit your rewards to a few thousand dollars a month in spending. With so many more options for cashback credit cards, you should be able to discover one that fits your specific spending habits well.
Other advantages of credit cards over debit cards include improved fraud safeguards, travel or shopping rewards, sign-up bonuses for new cardholders, and the opportunity to increase your credit score via timely repayments. Credit cards provide all of these advantages.
