These days, debit cards that earn airline points or miles are few and far between.
But Southwest Airlines is giving it a shot.
The airline on Tuesday announced a brand-new, cobranded Rapid Rewards debit card that will allow members to earn points on everyday spending — with no credit check required.
While it lacks many of the valuable perks and travel benefits of a true travel credit card, this debit card could be an intriguing option for younger travelers and consumers who aren't able to secure approval for a credit card.
The new card is called the Southwest Airlines Rapid Rewards Debit Card, powered by Galileo.
Southwest is partnering with Minnesota-based Sunrise Banks and Galileo Financial Technologies for the Visa debit product.
You'll earn less than 1 Rapid Rewards point per dollar spent on most purchases, but in certain "bonus spend" categories, you'll be able to earn as much as a full point per dollar spent on eligible purchases.
The Dallas-based carrier is also offering a few modest travel perks to its debit card holders, from an annual discount code to a $35 credit each year.
Southwest debit card benefits
Here's a rundown of the new card's benefits:
- Earn 1 Rapid Rewards point per $2 spent on everyday purchases (so, a $20 purchase would earn you 10 points)
- Earn 1 Rapid Rewards point per $1 spent on Southwest Airlines purchases
- Earn 1 Rapid Rewards point per $1 spent on dining and subscriptions, including internet, phone and streaming services and utilities
- Receive a 7,500-point Companion Pass boost (it takes 135,000 points to qualify for the pass)
- Earn 7,500 bonus points on the cardmember anniversary if you spent at least $15,000 on qualifying purchases the prior year
- Annual 20%-off promo code with Southwest
- Annual $35 Southwest credit
The card also comes with a small welcome bonus: New cardholders can earn 2,500 points after making two recurring deposits and spending $100 in the first 90 days.
The card does not have an annual fee. You'll just need a checking account with Sunrise Banks, which is waiving monthly fees for members who maintain an average minimum monthly account balance of at least $2,500.
Cardholders will also have ATM withdrawal fees within the global Cirrus ATM network.
Is it worth getting the Southwest debit card?
We should say right off the bat that if you want true travel perks and lucrative points-earning opportunities, one of Southwest's cobranded credit cards is going to be your best bet.
Those cards come with a wide range of benefits like free checked bags, complimentary preferred seats and — on some cards — upgrades to the airline's brand-new extra-legroom seats.
Read more: Southwest unveils major revamp, new perks for credit card lineup
Many of these benefits can easily offset the credit cards' annual fees. For that reason, Southwest's credit card lineup can be a higher-value option for even semifrequent Southwest flyers.
Here's our rundown of the best Southwest credit cards.
Who should get the Southwest debit card?
However, there are plenty of travelers for whom a credit card with an annual fee isn't a realistic option.
And this new Southwest debit card could unlock a new way to earn airline points on purchases — whether it's a consumer who's rebuilding their credit score or a young travel enthusiast just dipping their toe into the world of points and miles.
"What it is is an opportunity to get people into your loyalty ecosystem," Southwest Chief Customer and Brand Officer Tony Roach told TPG.
"There are people who want to earn points for spending that may not be able to get a credit card," Roach noted. "It may be too early for them to get a card, so it's a nice way to give more people an opportunity to earn points."
Also, we have to point out: Even the biggest credit card enthusiasts among us tend to carry a debit card, whether it's for making ATM withdrawals or paying for purchases where a full-blown credit card would incur a processing fee.
But, for eligible debit-card purchases, it can't hurt to earn points on those swipes too — however occasional they might be!
I could also see this card being a secondary option in the wallets of travelers who more frequently fly other airlines and want to top off their Rapid Rewards balance.
Plus, that 20% annual flight discount and $35 credit are modest benefits, even if they fall short of the hundreds of dollars (or more) in annual savings you can reap with the right travel credit card.
Bottom line
Decades ago, debit cards that earned travel rewards were far more common. Federal legislation in the wake of the 2008-2010 financial crisis all but gutted those debit perks.
Protect your points: Don't let Congress take off with your credit card rewards
Southwest, though, seems to have found an "in" to the debit card rewards landscape, in joining forces with a smaller banking partner in Sunrise Banks — with which Rapid Rewards members would need to set up a checking account to get this new card.
"It's for a niche audience," Roach acknowledged. "We've been able to find a partnership that allows us to do that."
However niche, the thought of earning points on debit purchases is an enticing one — and could be a great opportunity for some travelers (especially younger consumers) to earn points.
Related reading:
- Your complete guide to maximizing Southwest Rapid Rewards
- The best Southwest Airlines credit cards
- How to quickly earn the Southwest Companion Pass
- Southwest A-List status: What it is and how to earn it
- Maximize your airfare: The best credit cards for booking flights
- The best credit cards to reach elite status
- How to change or cancel a Southwest Airlines flight
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
