Debit Card Rewards Are Back, but Are They Worth It?

Over the past 2 years, we’ve seen an influx of new points-earning debit cards. This includes co-branded offerings from travel-industry heavyweights such as United Airlines, Southwest Airlines, and Wyndham Hotels.

These cards let you earn rewards on everyday purchases. While the earning rates are lower than most credit cards, they’re still an interesting addition to the points-and-miles world. They open rewards-earning to those who might not be eligible for a credit card or don’t want one, a way to earn rewards on their spending.

Here’s a look at the best points-earning debit cards out there, why you might consider them, why we’re seeing them emerge now, and what the future of debit card rewards might look like.

Best Debit Cards That Earn Travel Rewards

Rewards debit cards are back in the spotlight. They’re offered by relatively small virtual banks (more on that later), but they’re co-branded with some of the largest airlines and hotel loyalty programs. You can use these cards to earn rewards on any purchase.

There were 3 travel co-branded debit cards launched in 2025, and here’s what to know about each of them.

1. Wyndham Rewards^® Debit Card

The first new travel rewards-earning debit card to launch was the Wyndham Rewards Debit card.

It earns:

• 1 point per $1 spent at eligible Wyndham properties, and qualifying gas and grocery purchases
• 1 point per $2 spent on all other qualifying purchases

These rates aren’t great compared to most travel rewards credit cards, but they’re better than those offered by most traditional debit cards. The Wyndham Rewards Debit card also has a small welcome offer and lets you earn up to 7,500 bonus points per year based on your annual spending:

• $5,000 to $9,999.99: 2,500 bonus points
• $10,000 to $14,999.99: 5,000 bonus points
• $15,000 or more: 7,500 bonus points

Other benefits include fee-free ATMs at 2 million locations worldwide (within the Cirrus network) and Wyndham Rewards Gold status, as long as your account is open. While it’s not the most lucrative for everyday spending, it’s decent if you want Wyndham Rewards points and entry-level status without opening a Wyndham co-branded credit card.

The Wyndham Rewards Debit card has a $6 monthly fee, which is waived if your average monthly balance is at least $2,500.

2. Southwest Rapid Rewards^® Debit Card

Southwest launched a debit card in October 2025. The Southwest Debit card has a similar earning structure to the Wyndham debit card above, earning:

• 1 point per $1 on eligible Southwest Airlines purchases and on qualifying dining and subscription purchases, like cable, internet, phone, streaming services, utilities, and insurance premiums
• 1 point per $2 spent on all other qualifying purchases

And, all points earned count towards the Companion Pass.

But the card gets more interesting when it comes to its benefits. In addition to a small welcome offer, it also includes annual discounts on Southwest flights. Here’s what to expect in exchange for a $6.99 monthly fee, which is waiveable with a $2,500 monthly average balance:

• Annual $35 statement credit for Southwest Airlines purchases
• 20% off promo code for a non-Basic fare awarded every January
• 7,500 Companion Pass qualifying points every calendar year

It also has an annual spend bonus of up to 7,500 Rapid Rewards points, which means:

• $5,000 to $9,999.99: 2,500 bonus points
• $10,000 to $14,999.99: 5,000 bonus points
• $15,000+: 7,500 bonus points

Those are generous perks for a debit card. The annual Southwest credit and flight discount is effectively free money if you fly Southwest every year. Plus, earning Companion Pass qualifying points with a debit card is nice, especially if you’re not eligible for a Southwest credit card.

3. MileagePlus^® Debit Rewards Card

The MileagePlus Debit Rewards card launched last November and introduces a slightly different value proposition. Like the Southwest card, it has a couple of interesting features that could make it worthwhile for those ineligible for a traditional United co-branded credit card.

It earns:

• 1 mile per $1 spent on United purchases
• 1 mile per $2 spent on all other qualifying purchases

Plus, you can also earn 2,500 bonus miles when you spend $10,000 per calendar year on your card.

But here’s where things get interesting. You can earn up to 70,000 United MileagePlus miles annually based on your monthly average balance. Here’s how it breaks down:

• $2,500 to $5,499.99: 2,500 bonus miles per year
• $5,500 to $9,999.99: 5,000 bonus miles per year
• $10,000 to $24,999.99: 15,000 bonus miles per year
• $25,000 to $49,999.99: 30,000 bonus miles per year
• $50,000+: 70,000 bonus miles per year

This card rewards you for simply keeping money in your account. Once your average balance hits $2,500, you’ll start earning miles, and the higher your balance, the more you’ll earn. For example, a $10,000 average balance would earn you about 1,250 miles in a single month, based on the 15,000 miles you’d earn over a full year at that tier.

Note that the United debit card has a $4 monthly fee that is waived when you maintain an average monthly balance of $2,000 or more. So while this debit card isn’t as rewarding as a United co-branded credit card, it can be a good alternative for United loyalists who aren’t approved for one.

Hot Tip:

Compare the number of miles you’d earn by keeping money in your United debit card account to the interest you’d earn by using a high-yield savings account. The best option for you will likely depend on how much cash you have and how much you value United miles.

Why Rewards Debit Cards Are Making a Comeback

For years, rewards debit cards were largely nonexistent. But there are a few key reasons we’re seeing them pop up right now.

Gen Z Spending Habits

Data from a 2024 EY study shows that 69% of Gen Z respondents use a debit card daily or weekly, while just 39% regularly use a credit card. By comparison, the study notes that 51% of those surveyed from older generations use credit cards regularly.

Given that Gen Z’s spending power is increasing as this generation ages, co-branded debit cards will become even more important as travel loyalty programs work to stay relevant.

New Technology and Partnerships

Technology also plays a big role. Galileo Financial Technologies — a fintech company owned by SoFi — launched a co-branded debit card program in February 2025. This program enables airlines, hotels, and other travel companies to develop rewards debit cards by providing white-labeled apps, bank partnerships, compliance, and fraud prevention.

According to the company’s blog, travel companies can use its debit card program to spin up co-branded debit cards in under 90 days, making it a low-risk investment. It’s also what the Wyndham, Southwest, and United debit cards run on.

The Durbin Amendment Loophole

Bank partnerships are a key part of this package. We haven’t seen rewards-earning debit cards from big banks like Chase or Citi because of the Durbin Amendment, which went into effect in October 2011. This amendment capped interchange fees on debit card transactions at 21 cents plus 0.05% of the total purchase amount.

But here’s the catch: This restriction only applies to banks with over $10 billion in assets.

Most Galileo-powered debit cards work with South Dakota-based Sunrise Bank, which has assets of well under $10 billion. They can still fund debit card rewards thanks to the higher interchange fees they can charge. And now that it’s easier for loyalty programs to use this loophole in the Durbin Amendment by leveraging Galileo’s technology, we’ll likely see more of them over the coming years.

What’s Next for Rewards Debit Cards

The next likely contender for a rewards debit card is Marriott Bonvoy, which launched 2 U.K. debit cards last November. These two cards offer benefits similar to some U.S. Marriott credit cards, such as complimentary elite status, elite night bonuses, and the ability to earn free night certificates.

Beyond travel, companies like Sephora, Nike, and IKEA could follow suit, especially given their strong loyalty ecosystems. That said, for debit cards to go mainstream, a few things need to improve:

• Higher earning rates
• Simpler reward structures
• Stronger everyday value

Right now, earning 1 point per $2 spent is a tough sell compared to credit cards. The wildcard here is the Durbin Amendment loophole. If rules around interchange fees change, this entire model could be disrupted.

Final Thoughts

Rewards-earning debit cards are back. With new offerings from Wyndham, United, and Southwest to earn points for those who can’t (or don’t want to) use credit cards.

While these cards aren’t as rewarding as travel credit cards, they meet a market need and allow airlines and hotels to open their loyalty programs to an underserved audience. Expect to see more of them hit the market in the coming years.