Debit Card Rewards: Not Dead Yet

Debit card reward points may be harder to come by than their credit card counterparts, but they’re not dead yet according to MainStreet.com. This is because they are popular with consumers and banks want to retain their customers. “The point of rewards is to drive spending. If you cut the rewards, you cut the incentive to spend and banks won’t want to do that” says Curtis Arnold, founder of CardRatings.com.

However, banks are upping the dollar amount at which points are earned where for example, it may take $6 to earn a point that used to be earned at $4. It is believed though that most banks will at least wait until the Fed issues its final regulations before implementing changes that could affect debit card rewards. As of now, banks such as TD Bank and Beneficial Bank said they have no plans to remove their debit card programs in the near future.