By Jessica Duncan, AVP of Insights
More than a decade has passed since the Durbin Amendment introduced regulatory limits on the interchange or swipe fees that large financial institutions could charge merchants for debit transactions. The reduction in fee revenue led to a shift in the checking and debit landscape as those impacted swiftly ended their debit rewards programs.
But what does the landscape for debit rewards look like today? For some financial institutions, supporting a debit rewards program is not likely up for consideration, but that is not the case for all including a wave of new entrants that are using debit rewards to capture their share of the growing debit market.
In retrospect, the shift away from debit rewards in checking campaigns remained prevalent through 2016. During this time, financial institutions sought to introduce distinctive value propositions to remain competitive. Fee waivers, foreign ATM reimbursement, and Early Pay benefits started to become table stakes and year-over-year the return of debit rewards worked its way back into the marketplace. Currently, consumers have access to a growing lineup of attractive debit rewards programs. Let’s take a look at a few notable programs.
Discover & American Express
Since its launch in 2018, the Discover Cashback debit card has been a standout option for consumers, offering 1% cashback on the first $3,000 spent each month. The Capital One and Discover merger became official in May 2025 and it’s unknown what plans Capital One has regarding Discover’s suite of card products. However, existing Discover debit cardholders have been informed that nothing is changing yet, and new debit accounts can still be opened online. In 2022, American Express introduced its Rewards Checking account, pairing high interest checking with the ability to earn Membership Rewards points on debit transactions. This product has served as a competitive cross-sell opportunity for Amex’s existing card members. While the earn rate of 1 point per every $2 dollars is not highly desirable, for loyal Amex card members, the appeal is in the ability to pool their Membership rewards points across products.
PayPal and Venmo
Two brands to watch are PayPal and Venmo. As part of a major brand initiative called ‘PayPal Everywhere’ launched in 2024, the PayPal Debit Mastercard began offering 5% cash back in one selected category—gas, groceries, dining, clothing, or health & beauty (Earning is capped to $1,000 spent per month, or $50 in rewards). Venmo currently offers two debit products: its namesake debit card and a teen version for consumers aged 13 – 18. Venmo recently announced cardholders of both products could up to 15% cash back with select merchants. The teen version is a smart strategy to build loyalty with the younger generation of consumers. Plus, Venmo has adopted an approach already widely used by large financial institutions – merchant partnerships for shopping deals.
If standing up a debit rewards program doesn’t make financial sense for your organization, merchant partnerships should be a consideration. Shopping discounts have quickly become the alternative way to incentivize debit usage.
Wyndham and OnePay
Wyndham Hotels & Resorts is banking on customer loyalty to drive adoption of its recently launched Wyndham Rewards Debit Card, the first hotel-affiliated rewards debit card in the U.S. market. The card offers 1 point per dollar for Wyndham purchases, gas, groceries, and 1 point per $2 dollars on everything else.
Meanwhile, Competiscan has watched marketing from OnePay increase over the past year. OnePay Cash is a digital banking platform that offers a debit Mastercard with points-based rewards. The fintech has a relationship with Walmart, offering eligible customers in the OnePay Cash+ tier 3% back at Walmart (up to $150 in spend per month). Other standard benefits include earning points through shopping deals and cash back at select gas stations.
Final Thoughts
There are dozens of other notable debit rewards programs offered by regional banks, credit unions, and fintechs. At the surface, one may have assumed debit rewards were a perk of the past, but that’s not the case. While debit rewards earning may not stack up to opportunities gained through a credit card, debit rewards have evolved and remain a competitive way to attract consumers who may prefer to avoid credit.