If you’re committing to using debit instead of credit as a way to reduce your debt, stick with it. And don’t let the fact that the availability of debit card rewards offers fell by 30% over the past year impact your dedication. The good news, according to Bankrate.com’s 2011 Debt Card Rewards Study, is that the programs that do still exist haven’t changed much.
Half a percent is the most common payout ratio for debit rewards programs. “The Federal Reserve’s new cap on debit interchange fees is leading many debit card issuers to discontinue their rewards programs,” said Greg McBride, CFA, senior financial analyst for Bankrate.com in a news release. “On the bright side, disciplined spenders can utilize reward programs as compensation for purchases they’d make anyway.” According to the survey, 71 percent of debit rewards cards have no annual or monthly fee. Seventy-one percent have no cap on rewards. Sixty-one percent of debit rewards programs have no expiration dates on rewards.
The survey also found that the highest payouts on debit rewards programs are 1 percent and the lowest is .25 percent. PIN transactions are half as likely as signature transactions to receive rewards. In addition, flat per-transaction payouts are gaining in popularity, with an additional five percent of rewards programs offering this perk.
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