Wyndham Launches Rewards-Earning Debit Card

Debit cards that earn rewards are a rarity. With the limitation of interchange fees on these cards, it doesn’t usually doesn’t make financial sense for banks to let folks earn rewards.

But now it seems that Wyndham has found a way around that with the debut of its new Wyndham Rewards Debit Card.

Let’s take a look at the details of the card and investigate whether it’s worth having.

Wyndham Launches a Debit Card

The Wyndham Rewards Debit card, issued by Sunrise Bank, lets cardholders earn Wyndham Rewards points on every purchase. And while that isn’t unheard of — American Express also features a bank account that earns rewards — some of the card’s other features are pretty unique.

In fact, its features are akin to a credit card, with the ability to earn bonus points after meeting annual spending thresholds and providing cardholders complimentary elite status.

Features of the card include:

• Earn 2,500 Wyndham Rewards points after making 2 direct deposits and spending $100 in the first 90 days from account opening.
• Earn 1x point per $1 spent on Wyndham hotels, gas, and groceries.
• Earn 1x point per $2 spent elsewhere.
• Complimentary Wyndham Gold status as long as you hold the card.
• Waived ATM fees for the Cirrus network.
• Special discount at Wyndham hotels.
• $6 monthly fee waived with a minimum average account balance of $2,500
• Earn up to 7,500 bonus points each year after spending:
  • $5,000 to $9,999.99 for 2,500 bonus points
  • $10,000 to $14,999.99 for 5,000 bonus points
  • $15,000+ for 7,500 bonus points

Is It Worth It?

On the face of it, the Wyndham Rewards Debit card is a pretty good offering, especially for those who don’t want to open a credit card. After all, what other debit cards give you complimentary elite status at a hotel chain?

It looks like Wyndham has gotten around the low interchange fees by charging a $6 monthly fee on this card. And while many cardholders will be able to get that waived, the interest the bank can earn from holding those balances should more than compensate for the cost of earning points and granting status.

But is the card worth keeping for those of us who like to earn rewards? The answer is a resounding no. Even if you’ve maxed out every credit card application possible and can never open another new card, you’re still better off using nearly any other card for your purchases.

With a dismal 0.5 points per $1 spent earn rate on most spending, you’re throwing money away by using your Wyndham Rewards Debit card.

Say, for example, that you want to earn the 7,500 bonus points as an anniversary gift on your debit card. And you’re a huge fan of Wyndham, groceries, and gas, so every purchase you make is earning 1x point per $1 spent.

At the end of the year, you’ll have earned 22,500 Wyndham points. We value Wyndham Rewards points at 0.9 cents each, which means you’re netting $202.5 worth of rewards. That sounds like a respectable amount until you compare it to any other credit card.

The Wyndham Rewards^® Earner℠ Card, for example, charges a $0 annual fee and offers Wyndham Gold status to cardmembers, much like the Wyndham Rewards Debit card. It also features a 7,500-point bonus for spending $15,000 in a cardmember year.

But it also earns much better rewards on your purchases:

• Wyndham hotels and gas: 5x points per $1 spent
• Grocery stores and dining: 2x points per $1 spent

Let’s say that you spend $15,000 exclusively on grocery stores and dining, not gas or hotel stays. At the end of the year, you’ll have 37,500 Wyndham points to show for the same amount of spending, worth $337.5. And the Wyndham Rewards Earner card isn’t even a great card within the U.S. credit card landscape, just a very similar option to show something better is possible.

Final Thoughts

Wyndham is launching the Wyndham Rewards Debit card. At first blush, the card is remarkably designed. It offers complimentary elite status, allows you to earn rewards on purchases, and even provides an anniversary bonus based on spending. However, its earning rates are dismal compared to currently available credit cards, and if you don’t maintain a $2,500 average monthly balance, you’re on the hook for a $6 monthly charge.

While it won’t suit most folks, those who are averse to credit cards but still want to earn some points on purchases may want to consider the Wyndham Rewards Debit card.