What is a Debit Card With Cash Back and How Does it Work?

The facts are in: debit cards are having a major “glow up.” 

It’s been a long time coming.

For decades, credit cards have been the “cool kid” in the world of personal finance.

Plastic signaled power, nonchalance, and sex appeal. 

Meanwhile, debit cards ate alone at the lunch table – equally plastic yet entirely powerless. 

Not anymore. As of today, debit cards are better than ever. 

In fact, some debit cards – like the all-new Flyp Visa® Debit Card – are hidden fee-free, digitally driven, and loaded with cash back rewards.

Here’s everything you need to know about a debit card with cash back (plus how it works).

Debit Card With Cash Back: Defined

For years, “cash back” and “credit cards” have been virtually inseparable terms. 

The cash back process is simple: just use your credit card to make a payment, and a small percentage of the total cost will be returned to you. Many of the credit card companies charge a fee to have the card and attached program. That you, the consumer, pay. 

A debit card with cash back works in the same way – with one major catch: you can get cash back without needing a line of credit.

Generally speaking, every time you spend cash on your debit card, you have the opportunity to earn a percentage of your purchase back. Note that exactly how this happens (including how much and how often) depends on the rewards program of the card provider.

Debit Cards vs. Credit Cards

Confused about what separates debit and credit? Here’s an easy way to delineate the two:

  • With debit, you’re spending your own money from your available funds. 
  • With credit, you’re borrowing money from your bank or card issuer. 

Because a debit card draws on available cash reserves (and not a line of credit), it can be a great tool to avoid racking up high-interest debt and managing your budget.. 

After all, it’s no secret that credit cards make it all-too-easy to overspend. As of mid-June, in fact, American borrowers held over $841 billion in credit card debt

This begs an important question: why do consumers rely so heavily on credit? 

There are two answers to this question. 

The first may be obvious to you: credit cards are popular because they provide rewards like points systems and cash back.

But here’s something nobody talks about: most credit card cash back programs leave a lot to be desired. 

In fact, most major credit cards average just 2% cash back

It’s helpful, but far from heroic. 

Plus, these credit card perks are often canceled out by late fees (which average roughly $36) and annual membership fees (which average $110 per year).  

This leads us to the second reason consumers rely on credit: because there hasn’t been an awe-inspiring alternative.

Why use debit when you get nothing in return, right? You swipe, the money moves accounts, and that’s it. Boring.
While that story was certainly true in the recent past, the present tells a far more hopeful story.

Top Benefits of a Debit Card With Cash Back

In addition to saving money on purchases, a debit card with cash back from a financially inclusive card provider can also help you save money on fees, particularly hidden fees and overdraft fees. 

Times have been tough enough, and consumers shouldn’t pay any extra than they already are. Unfortunately, in the third quarter of 2021, Americans paid over $69 billion on overdraft charges alone. 

So, how does a debit card with cash back help protect you from these costs?

For example, the Flyp Visa® Debit Card has 100% fee-free cash withdrawals from any MoneyPass® ATM location (of which there are over 37,000 ATMs nationwide).

Plus, the Flyp Visa® Debit Card is also designed to help protect you from overdraft fees.
In fact, Flyp’s Finest – our premier account holders – receive automatic overdraft coverage whenever they need it. 

So instead of getting fined, you get financial support. That’s just one of the many ways we are radically rethinking banking in 2022. 

Better yet, the Flyp Visa® Debit Card has no minimum balance requirements (and zero monthly service fees). In other words, you don’t need a certain amount of money to open an account. And you don’t need a certain amount of money to maintain one, either. 

All you need to do is download the Flyp app, take a minute to create an account, and you’ll be ready to roll. 

One More (Awesome) Benefit

Video games are fun but – as much as we love ‘em – they don’t help you save money.

So we had an idea: what happens if we blend banking with gaming? 

If we make it fun and financially empowering?

That’s exactly what the Flyp Visa® Debit Card delivers – a gamified rewards system that you can play every time you make a purchase

Here’s all you have to do: 

  • Open the Flyp app. 
  • Check the homepage to see how many spins you’ve earned. 
  • Tap the “Let’s Go!” button.
  • Spin the wheel.
  • Earn cash back or flypCoins every single time.

P.S. When you share spins on social media, you’ll be eligible to win an additional 10% bonus. 

So while you can earn anywhere from 1% to 100% cash back on purchases, social shares can push the total to a whopping 110%!

Banking With Flyp

The Flyp Visa® Debit Card combines many of the best features of credit cards without the accompanying risk. 

While helping you control spending, avoid debt, and establish your financial independence, the Flyp Visa® Debit Card provides next-level benefits like:

  • Up to 110% cash back.
  • No hidden fees.
  • No minimum balance requirements.
  • No monthly service fees.
  • No overdraft fees. 
  • A huge ATM network. 
  • A digital infrastructure.
  • And much more!

With the Flyp digital wallet, you can monitor transactions, analyze spending habits, and manage your paychecks. And again, this is in addition to up to 110% cash back on purchases! 

Click below to download the app.

   Let’s Go!

Bibliography

Dickler, Jessica. “Credit card balances spike to $841 billion after stimulus checks helped reduce debt.” CNBC. CNBC, June 9, 2022. https://www.cnbc.com/2022/06/09/credit-card-balances-spike-after-stimulus-checks-helped-reduce-debt.html 

Cothern, Lance. “How To Choose A Cash-Back Credit Card.” Forbes. Forbes, June 9, 2022. https://www.forbes.com/advisor/credit-cards/how-to-choose-a-cash-back-credit-card/ 

U.S. News Staff. “2019 Credit Card Fee Study: What’s Normal and What’s Not?” U.S. News. U.S. News, December 1, 2021. https://money.usnews.com/credit-cards/articles/fee-survey 

Marshall, Elizabeth. “Bank of America, Wells Fargo scrap some overdraft fees as regulatory scrutiny grows.” Reuters. Reuters, January 11, 2022. https://www.reuters.com/business/finance/bank-america-reduce-overdraft-fees-this-spring-2022-01-11/ 

Flyp is not a bank. Banking services are provided by Sutton Bank, member FDIC. The Flyp Classic Debit Card is issued by Sutton Bank, pursuant to a license from Visa U.S.A. Inc. Visa is a registered trademark of Visa, U.S.A. Inc. All other trademarks and service marks belong to their respective owners. Read the Flyp Rewards Official Terms before participating. No account opening or payment is necessary to enter or win. See Terms for ways to enter.

All information provided by Flyp is believed to be accurate at the time of publishing.