Personal Finance News
Southwest Airlines Officially Launches Rapid Rewards Debit Card
After teasing a new debit product, Southwest Airlines has now revealed the details about its Rapid Rewards-earning credit card alternative.
About the Southwest Airlines Rapid Rewards Debit Card:
Southwest is partnering with Galileo and Sunrise Banks to debut a new debit card. With the Southwest Airlines Rapid Rewards Debit Card, customers can earn points on purchases and even work their way toward earning a Companion Pass.
First, with the card, customers can earn 1 Rapid Rewards point for every dollar spent on Southwest purchases and 1x points on dining. Additionally, cardholders earn 1x points on Internet, phone, streaming service, and utilities purchases. All other purchases earn 1 point per $2 spent.
On top of that, the Rapid Rewards debit card offers bonus opportunities. At launch, customers can earn a welcome bonus of 2,500 points when they make at least two recurring deposits and spend a minimum of $100 on the card during their first 90 days. Cardholders can also earn 7,500 Companion Pass bonus points each year. In fact, all points earned with the card (including bonuses) count toward Companion Pass eligibility.
As for other perks, debit customers will receive a 20% off promotional card for Southwest at the start of each calendar year. Cardholders also enjoy an annual statement credit for up to $35 on Southwest Airlines purchases. Lastly, the card can be used without fees at Cirrus network ATMs.
The Southwest Airlines Rapid Rewards Debit Card does carry a monthly fee of $6.99. However, this fee is waived for those who maintain an average monthly balance of at least $2,500.
What They’re Saying:
Announcing the new card, Southwest Airlines EVP Chief Customer and Brand Officer Tony Roach said, “At Southwest Airlines, we are continually exploring new ways for our Customers to experience the benefits of our Rapid Rewards program. With more than 90% of Americans using debit cards, expanding our award-winning Rapid Rewards loyalty program to include a debit card was a natural next step.”
Roach added, “Whether it’s a college student looking to book a flight to watch their favorite team, a parent setting up an account for a recent graduate, or a cash-savvy Customer looking for another way to earn rewards, the Rapid Rewards Debit Card offers unlimited options to turn everyday spending into that next Southwest flight.”
My Thoughts:
You may recall that Wyndham Rewards launched a debit card of its own back in March — which also happens to be powered by Galileo. Refreshing my memory on the details of that product, there are some notable similarities, such as the 1 point per $2 spent structure and waivable monthly fee (although the Wyndham Rewards Debit Card fee is slightly lower at $6 versus $6.99). I mention this only because it’s interesting to me that Galileo seems to be moving this concept forward by setting up a template for other brands to follow.
So should you get this card? For one, if you won’t plan on keeping around $2,500 in the account, then I think the monthly fee makes it a non-starter. Meanwhile, if you are able to get any of the Southwest credit cards and feel comfortable with credit (meaning you’re able to pay off the full balance monthly without issue), any of those products would be better overall. However, if you’re a strictly debit person and a regular Southwest flyer, then maybe this is a card built for you.
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