Debit cards are offering rewards programs, too, but there are trade-offs

[SecularMotion]

Source: Boston Globe

Credit cards aren’t the only way to earn rewards. Several banks let shoppers earn points or cash rebates with debit cards, as well. The rewards may not be as rich, however. And there are some trade-offs.

Debit card programs often require you to sign for purchases, rather than punch in a PIN, because banks earn more in retailer fees for signature purchases. Cashiers don’t always ask how shoppers prefer to pay, so you’d have to request

Read more: http://www.boston.com/business/personalfinance/articles/2010/04/29/debit_cards_are_offering_rewards_programs_too_but_there_are_trade_offs/

[htuttle]

1. I work in IT at the merchant/retail level, and this kind of pisses me off

Merchants have gone to enormous expense to provide what's becoming bank-level security at the cashier's station. Electronic card swipes, PIN pads, etc... have all been purchased and installed by merchants at the processing banks demand to verify that customers are allowed to use the little plastic cards in their hands.

And then the banks turn around and entice (and pay!) the customers to AVOID using all of that technology the merchants pay for, so that the merchants have to pay higher fees to the banks?

Like I said, it kind of pisses me off.

[PassingFair]

2. It would piss me off, too.

I really don't understand why they're considered "charges",
when they empty from your checking account immediately.

The guy at the bank told me that whenever I "charged" something
on the debit card, I'd get double points.

I remember when my debit card turned into a charge....I was at
the movies, and I used my debit to pay for popcorn, and the
kid behind the counter asked me to sign. I didn't know that the
card was a charge card and refused and had him re-ring it and
take cash.

:blush:

P.S.: I have 20,000 points, after a year of use, and I can probably
redeem them for a cup of coffee at Starbucks....