Southwest Airlines introduces new debit card that earns points

Today, debit cards that earn points or airline miles are few and far between.

But Southwest Airlines is trying.

The airline on Tuesday announced a new co-branded 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 travel perks and benefits of a true travel credit card, this debit card could be an interesting option for travelers and younger consumers who can’t get approved 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 “extra spend” categories, you can earn up to a full point per dollar spent on eligible purchases.

The Dallas-based airline also offers some modest travel benefits to its debit cardholders, from an annual discount code to a $35 credit each year.

Southwest Debit Card Benefits

Here is a summary of the benefits of the new card:

• Earn 1 Rapid Rewards point for every $2 spent on daily purchases (so a $20 purchase would earn you 10 points)
• Earn 1 Rapid Rewards point for every $1 spent on Southwest Airlines purchases
• Earn 1 Rapid Rewards point for every $1 spent on dining and subscriptions, including internet, phone, and streaming services and utilities
• Receive a 7,500 point boost to the Companion Pass (135,000 points required to qualify for the pass)
• Earn 7,500 bonus points on your cardholder anniversary if you spent at least $15,000 on qualifying purchases in the previous year
• Annual 20% Off Southwest Promo Code
• $35 annual credit at Southwest

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 has no annual fee. You’ll only need one checking account with Sunrise Banks, which waives monthly fees for members who maintain an average minimum monthly account balance of at least $2,500.

Cardholders will also be waived for withdrawal fees at ATMs within the global Cirrus ATM network.

Read more: Getting started with points, miles, and credit cards for travel

Is the Southwest debit card worth it?

We should say from the start that if you want true travel benefits and lucrative points earning opportunities with Southwest, one of the airlines co-branded credit cards It will be your best bet.

Those cards come with a wide range of benefits like free checked bags, complimentary preferred seating, and, on some cards, upgrades to the airline’s new extra-legroom seats.

Read more: Southwest presents a major renewal and new benefits for its line of credit cards

Many of these benefits can easily offset annual credit card fees. For that reason, Southwest’s line of credit cards may be a higher value option for even semi-frequent Southwest travelers.

Here is our summary of best southwest credit cards.

Who should get the Southwest debit card?

However, there are many travelers for whom a credit card with an annual fee is not a realistic option.

And this new Southwest debit card could unlock a new way to earn airline points on purchases, whether you’re a consumer rebuilding your credit score or a young travel enthusiast just diving into the world of points and miles.

“It’s an opportunity to bring people into your loyalty ecosystem,” Tony Roach, Southwest’s chief customer and brand officer, told TPG.

“There are people who want to earn points for spending who may not be able to get a credit card,” Roach said. “It may be too early to get a card, so it’s a good way to give more people a chance to earn points.”

Also, we should note: Even the biggest credit card enthusiasts among us tend to carry a debit card, whether to make ATM withdrawals or pay for purchases where a full credit card would incur a processing fee.

But, for eligible debit card purchases, it doesn’t hurt to earn points with those swipes, no matter how occasional!

You could also see this card as a secondary option in the wallets of travelers who fly more frequently on other airlines and want to top out their Quick rewards balance.

Plus, that 20% annual discount on flights and the $35 credit are modest perks, even if they don’t add up to the hundreds of dollars (or more) in annual savings you can get with the correct travel credit card.

In a nutshell

Decades ago, debit cards that provided travel rewards were much more common. Federal legislation in the wake of the 2008-2010 financial crisis all but eliminated those debit benefits.

Protect your points: Don’t let Congress take off with your credit card rewards

However, Southwest appears to have found an “entry” into the debit card rewards landscape, 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 specific audience,” Roach acknowledged. “We’ve been able to find a partnership that allows us to do that.”

As specific as it may be, the idea of ​​earning points on debit purchases is appealing and could be a great opportunity for some travelers (especially younger consumers) to earn points.

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