Comparing debit cards with rewards

When you think of a rewards card, you might automatically think of a rewards credit card. But there are actually a handful of rewards debit cards out there. These cards allow you to earn cashback or points on your spending.

What are rewards debit cards?

Rewards debit cards offer rewards when you make eligible purchases or payments. You can usually earn cashback or frequent flyer points on eligible transactions made using the card. Some cards also reward you with points based on your account balance.

A reward debit card works in a similar way to a rewards credit card. But unlike using a credit card, you are not taking on debt. Debit cards are linked to your everyday transaction account and you are spending your own money.

What rewards debit cards are there?

There are a handful of rewards debit cards available in Australia offering either cashback or points on transactions. The lists below are based on rewards debit cards on Canstar’s database at the time of writing. We’ve also included some rewards savings accounts. All of the accounts currently charge no monthly fee or will waive the monthly fee if you meet certain conditions.

Accounts with cashback offers

• Australian Military Bank Military Rewards Account – 1% cashback on Visa payWave purchases under $100 when you deposit at least $2,000 each month (capped at $25 per month).
• Commonwealth Bank Everyday Account Smart Access – cashback when customers shop at select brands with their debit Mastercard (needs to be activated prior through CommBank Rewards in the CommBank app).
• HSBC Everyday Global Account – 2% cashback on eligible tap and pay transactions under $100 (capped at $50 per month).
• ING Orange Everyday – 1% cashback on eligible gas, electricity and water bill payments using BPAY or direct debit (capped at $100 per financial year).

Accounts with frequent flyer or reward points

• Bankwest Qantas Transaction Account – 3 Qantas Points per eligible purchase with debit Mastercard transactions, 0.3 Qantas Points for every $100 in your account each day on balances up to $50,000, and 5 Qantas Points for each overseas ATM cash withdrawal.
• Qudos Bank Qantas Points Saver – earn 400 Qantas Points per annum for every $1,000 of your balance, credited monthly (up to balances of $1,000,000).
• Virgin Money Everyday Go Account – earn 8 Virgin Money Points on every purchase, direct debit and BPAY payment when you meet monthly criteria each month (varies by age and includes minimum deposit and transaction requirements).

Accounts with other rewards

• Macquarie Bank Savings and Transaction Account – access to Macquarie Marketplace where you can use your transaction and savings accounts to buy eGift cards at a discounted rate.
• Regional Australia Bank Community Partnership and eFree Account – Regional Australia Bank will donate the equivalent of 0.75% of your average annual balance to your chosen community group at the end of each financial year.

Other terms and conditions may apply. Please check with the provider for more details.

What are the pros and cons of rewards debit cards?

Pros

• No monthly fee. Most rewards debit cards do not charge a monthly account keeping fee. If they do charge a fee, you can generally get it waived if you deposit a certain amount into your account each month. This is different to rewards credit cards which usually charge an annual fee.
• You are spending your own money. With a rewards debit card, you are spending your own money. This is compared to a rewards credit card where you are borrowing money and can get into debt.

Cons

• Reward caps. There are usually caps on the amount of cashback you can earn per month or per year. The caps are generally lower than what applies to rewards credit cards. So a rewards credit card may suit people who have a lot of expenses that they can use their credit card for and who are disciplined about paying their credit card in full each month.
• Potential to overspend. With any rewards product, there is also the risk that you could overspend to maximise your reward points.

How can I compare reward debit cards?

Some of the key factors to compare with reward debit cards include reward conditions, fees, accessibility and features.

• Reward conditions. Check what reward is on offer, what the caps are and any other conditions that apply.
• Fees. Check whether there is a monthly account keeping fee and if it will be waived if you meet certain conditions. Also check for other fees like ATM fees and currency conversion fees.
• Accessibility. Check if there are ATMs available where you can withdraw cash. If speaking to someone in person is important to you, also check if there are any nearby branches. Many providers also support digital wallets like Apple Pay, Google Pay and Samsung pay, so check what is available and if it suits you.
• Features. It’s also worth checking if there are any useful features on offer. For example, are any budgeting and savings tools available?

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