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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 public pre-launch website gives a few hints about what it might offer. Let's start with what's confirmed.
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 and you'll earn Rapid Rewards points on purchases.
Plus, 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.
Earning structure and sign-up bonus leaked
Plenty of details have surfaced about the Southwest debit card, even though nothing has been officially confirmed yet. Most of what we know comes from an application page that’s live online but not functional since the card hasn’t launched. Based on what Frequent Miler found there, the leaked details include:
- Sign-up bonus: Earn 2,500 Rapid Rewards points after setting up two recurring deposits and spending $100 in the first 90 days
- Anniversary bonus: Up to 7,500 points each cardmember anniversary (based on annual spend)
- Earning rates: 1 Rapid Rewards point per $1 spent on Southwest Airlines purchases, dining, and subscriptions, and 1 point per $2 spent on everything else
And of course, these details could change before the official launch.
When the card does debut, we’ll also find out what it costs to carry. Many rewards-earning debit cards now charge a monthly or annual fee to offset the cost of the rewards you're earning, so we’ll need to wait and see what Southwest and Sunrise Banks decide for this one.
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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