Debit card rewards are offered by a number of debit card providers. The use of debit cards is growing everyday and so the card market is also expanding. To get a good share of this favorable market, the banks and card companies are providing these facilities to the customers.
The credit card companies offer reward points for transaction through the credit cards but these reward point benefits were not available for the debit card users. Nowadays, the consumers are more interested in the debit cards and so the debit card market is growing rapidly and a huge number of banks and other card companies are offering these products.
Naturally the market has become very competitive. In such situations, the debit card rewards are used as a tool to attract customers and to expand the business of the card provider.
Debit Card Rewards and Other Features
Most of the banks that are offering debit card do not charge any kind of transaction fees or annual fees. At the same time, the cards are also not subjected to interest payment for the transactions that is a common feature of the credit cards.
Additionally the fraud protection services are also provided free of cost or at very nominal rates. Along with these, almost all the debit card companies are providing debit card rewards for each of the transactions done through the card. All these reward points are used to buy different commodities, travel tickets and so on.
Increasing Trend of Using Debit Cards
According to some survey reports, the use of debit cards is rising. In 2001, nearly 26% of the retail purchases were done through the debit cards and in 2005, the trend developed further and almost one third of the total retail transaction in the US was done through the debit cards. Almost 25% of the banks and other financial institutions offered debit card reward points in the year 2003. In 2005, nearly 33% of the debit card providers offered these programs. The data shows the growing trend of debit card use and the card provider’s attempt to expand their business.
Difference between Credit and Debit Card Rewards
The reward programs offered by credit cards look more beneficial than the debit card reward programs. The reason behind this is that the credit cards have additional methods of generating income. These are the penalty charges, annual fees and so on. At the same time, the interest rates are also high. So, it may seem big but the reality is different. At the same time, the debit card reward programs are more beneficial than the credit card reward programs and with the growth in the card market, the cardholders can expect more reward programs and other opportunities from the debit card companies.