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Travel rewards credit cards are a dime a dozen. Southwest Airlines alone offers five, each with its own perks. Rewards debit cards, on the other hand, are much harder to come by. But with the Wyndham Rewards Debit Card launching earlier this year and Spirit hinting at one of its own, these products are making a comeback since more people than you might expect choose debit over credit. And it looks like Southwest wants to get in the game.
We know this because the airline is teasing the launch of the Southwest Rapid Rewards® Debit Card. Here’s what we've gathered about the card so far.
Southwest Teases Launch of Rapid Rewards Debit Card
The Southwest Rapid Rewards Debit Card is on the way, and a pre-launch website gives a few hints about what it might offer.
First, we already have card art. It features blurred Southwest Airlines colors in red, yellow, and blue. We also know the card will run on the Visa debit network.
The teaser page describes it as a “debit card that points you toward a vacay,” and goes on to say, “Your everyday spending will soon be more rewarding. Earn Rapid Rewards points on purchases big and small, helping you get closer to your next trip.”
That means cardholders will be able to earn Rapid Rewards points on their debit card purchases. We also know Sunrise Banks will issue the card, and funds will be FDIC-insured up to $250,000. This is the standard maximum amount covered per account.
The earning structure is still unknown
Southwest’s teaser webpage is incredibly vague, and neither the airline nor the issuing bank have shared what the rewards structure will look like. Still, we can make some educated guesses based on competing products:
- Wyndham Rewards Debit Card — Earns 1 point per $2 spent
- American Express Rewards Checking — Earns 1 Membership Rewards point per $2 spent
- Truist Delta SkyMiles Debit Card — Earns 1 SkyMile per $2 spent
- Bank of Hawaii Hawaiian Airlines Debit Card — Earns 1 HawaiianMile (soon to be Atmos Rewards point) per $2 spent
The trend is pretty apparent. Debit cards generally earn less because interchange fees are lower, which leaves less room for issuers to offer generous rewards. That makes it likely the Southwest Rapid Rewards Debit Card will follow the same model, perhaps paired with a modest sign-up bonus.
Most of these products also impose either a monthly or annual fee. It’s rare to find a debit rewards card without one, so it’s reasonable to expect Southwest’s version to come with a fee as well.
Our Take
News of a new earning option in the debit card world is exciting, especially with such a large brand like Southwest Airlines. We can glean from the marketplace what earnings might be on this new offering, even without much detail from the teaser messaging.
With Southwest undergoing massive changes over the last year, management is likely interested in finding new revenue streams. Debit cards won’t be as big a business as their credit card division, but new revenue is still new revenue. That said, we're just curious about when it'll actually launch!
However, even if this new product sounds exciting, there are still pros and cons to using a debit card over a credit card. Debit cards can make sense in certain situations or when credit cards aren’t accepted, but credit cards usually offer stronger protections. This new product has a place in the market, but it may not be the best choice as a daily driver.
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