MilesBuzz! - Mileage Earning Debit Cards

Aside from the debit card issued by Chase Manhattan Bank, where one earns 1 mile per $2 spent on its card on Continental Airlines, is anyone aware of another bank, which offers mileage for use of a debit card. I have already performed a search, using the search feature of FT, however, only a few previous topics came up, none which answered my question. Any suggestions or recommendations from other banks?

I believe the only other one was the CompuBank card (which gave ClickReward Miles), but thay stopped that a while ago.

Try charterone.com and click on MegaRewards.
One point per $ and 25,000 points equals one RT ticket in the lower forty eight.

Why specifically a mile-earning debit card instead of credit card? Couldn't you just pay the amount due on the credit card? Are you trying to avoid paying the annual fee?

One BIG drawback to any debit card is that the money leaves your checking account directly. If someone gets your card (or just your account number) or if you have a dispute with a merchant, you have none of the protection a credit card would offer.

It's a big difference IMHO.

US Bank gives you miles for Northwest WorldPerks. PLus they give you 4,000 miles for joining. look them up on the net.

John NYC,

That's true. But some debit cards also have that type of protection. Albeit, not very many but it is offered. Also, for some reason I like the convenience of my purchases automatically being deducted right away. Don't have to worry about a bill or anything. One less bill. LOL

Not sure if this would help in your situation - Security First Network Bank (an online bank) has a Visa card that earns "Secure Miles" (i.e. points that must be used in their travel agency program, 25K for a RT domestic ticket). The reason I thought I would mention it is because using the Visa card you would have the protection of using a credit card vs. a debit card and the way their online banking system is set up, when you log on you see all your accounts on one page and you can transfer the money out of your checking account weekly to the Visa account to avoid carrying a balance or managing your money that way if you choose. FWIW on a seperate issue- when I opened my account with them in 1996 they only allowed a $500 opening deposit to be charged to a credit card, so didn't want anyone to get excited about earning miles for opening an account with them, they seem to have that nailed shut http://www.flyertalk.com/forum/frown.gif
Personally, I prefer to use a mile earning credit card vs. a debit card for the reasons stated above plus if you return something it takes longer for the credit to come through and the purchase does not have the credit card "protections" attached to it either.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by bp888:
Why specifically a mile-earning debit card instead of credit card? Couldn't you just pay the amount due on the credit card? </font>

I've wondered about this myself, as well, bp888. I can think of very few reasons & merchant categories for which I can posit a plausible explanation that falls along the line of "strategy".

I await & look forward to being "enlightened"... http://www.flyertalk.com/forum/smile.gif

[This message has been edited by ILTE_Miles (edited 07-11-2001).]

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ILTE_Miles:
I've wondered about this myself, as well, bp888. I can think of very few reasons & merchant categories for which I can posit a plausible explanation that falls along the line of "strategy".

I await & look forward to being "enlightened"... http://www.flyertalk.com/forum/smile.gif</font>

I can't speak for the first poster, but I do know that for me personally, I prefer to use a debit card for purchases I would have made with cash and not a credit card. I fully understand that should I pay off the credit card in full each month it's the same thing, I have never had the discipline to do so, the balance keeps creeping up. With a debit card there isn't any chance of that. With a debit card if the money isn't there I don't make the purchase, if I was using a credit card I probably would. I carry multiple cards of each type, but really prefer using the debit card (fully understanding I don't have the same protection of a credit card, etc.)

Another reason could be for people who don't want any additional credit cards, or can't easily qualify for a mileage earning one.

The one thing that seems to be greatly misunderstood here is that when you use a debit card with a Visa logo, like the US Bank WorldPerks Check Card, you ARE protected by the rules of VISA for all of your purchases, just like a Credit Card. The ONLY difference is that it is automatically deducted from your checking account instead of billed to you monthly.

Thank you for everyone’s comments and suggestions. I’m aware of the differences between a regular credit card and a debit card and the pros and potential cons of each. While I do have an American Airlines affiliated credit card in which I pay an annual fee, I have no issue paying the fee for the service of using the card. In looking over the websites mentioned, the drawback to the Net Bank Visa debit card is that if used as a debit card, one does not earn any miles, only as a credit card transaction will it earn miles. While it is the best value at $20.00 per year, I could use a regular Visa card, which I already have, to earn miles.

The debit card offered by CharterOne.com is free for the first year, however, they only issue miles if the transaction is handled like a charge, rather than a debit.

*Edited for additional content*

[This message has been edited by raffy (edited 07-12-2001).]

Fidelity Investments offers an American Express Gold or Platinum card, although you have to sign up for Membership Rewards program separately and pay the fee.

It's a mix between a debit card and an AMEX card (looks like a regular AMEX gold/platinum card, except with a Fidelity logo just under 'American Express'). You make charges, and it will deduct them from your bank account automatically at the end of the month--no bills to worry about.

Only stipulation is that your balance cannot fall below $5,000 in the account that is tied to your AMEX card.

Just another option...

Cheers,
Lawrence

There is a program with Wells Fargo but it is only good through December 31, 2001. I just recieved the brochure explaining that it was a promotion and that you received 1 mile for every $2 spent on their debit card. Check out their website for details. Thanks.

I prefer credit cards myself, but am going to be evaluating mile-earning debit cards for my son who will be going off to college in a year. I would rather him have a debit card than a credit card. Any experiences??

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by sunny1218:
The one thing that seems to be greatly misunderstood here is that when you use a debit card with a Visa logo, like the US Bank WorldPerks Check Card, you ARE protected by the rules of VISA for all of your purchases, just like a Credit Card. The ONLY difference is that it is automatically deducted from your checking account instead of billed to you monthly.</font>

I suggest that you read this article which says that you are not protected when using a debit card:
http://cnnfn.cnn.com/2001/07/11/living/q_bankrate/index.htm

I just thought I'd mention an experience I had with Compubank (when they used to give ClickMiles which I would then use to transfer to AA). First, you had to use the card at the merchant as if it was a credit transaction (generally meaning you sign your name, and no PIN required). I assume that this is because then the merchant pays a credit card merchant fee which ultimately is a source of funds for the mileage program at the card issuing bank. However, the charge then hit my Compubank checking account as a "debit". Generally, as soon as I made a purchase on the card, I would see a hold on my checking account for the amount of the "charge". The actual charge would of course come through shortly thereafter or days later and, in some cases, the hold on the account was removed at the same time as the real charge hit my account. Other times, however, I was not so lucky. Sometimes, the hold would stay on for a day or two after the charge had been posted to my account, thereby tying up otherwise available funds for those one or two days. Had this been my primary checking account, checks would have bouced, etc. during these days when my account had these "dangling holds". At the time, Compubank told me that this phenomenom was common with debit cards and that there was nothing that could be done -- the hold time was established at the time of the charge and did not necessarily fall off when the charge came through.

Hopefuly, this was just a Compubank issue and maybe not all banks have this problem. I just thought I'd warn those who get one of these cards for the first time. Leave some cushion in the account at least until you know the bank's policy on this --- and have seen it in action.

Thanks, deepdishus, for the Northwest/US Bank debit card info. The link for it is http://www.usbank.com/cgi/cfm/checking/wpccc/features_wpccc.cfm. I added this info to my web site.

Jasonheard: I can't find a reference to the Wells Fargo deal on their site. Do you remember which airline was involved, or do you have a phone number or website for the program?

Thanks.

Can you please provide more information about the miles earned from Wells Fargo debit card?

I bank with WF and would be very interested in this program, particularly if miles can be earned for AAdvantage.

Is the information you received perhaps for a credit card and not a debit card? When looking through the WF website, I was only able to find info about miles for their credit card.

Citibank has just introduced an AAdvantage debit card. It's very similar to the Chase Continental debit card, in that it has two levels:

Basic: $25/yr., 1 AAdvantage mile/$2 spent, maximum of 60,000 miles/yr.

Premium: $65/yr, 1 AAdvantage mile/$1 spent, maximum of 100,000 miles/yr.

(For those keeping score, that's $5 less than Chase for the basic card and the same price as Chase's premium card. Citi doesn't offer some of the bennies that Chase does, such as President's Club passes.)

I haven't seen an official announcement, but product information is available on Citibank's online banking site:

https://web.da-us.citibank.com/cgi-bin/citifi/scripts/prod_and_service/prod_serv_detail.jsp?BV_UseBVCookie=yes&BS_Id=AAdvantageDebit&M=S

That's great news. I've been banking with citi for years and use my debit card all the time. I just signed up! http://www.flyertalk.com/forum/smile.gif

Flip

Alaska Airlines has one through Bank of America too.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by missydarlin:
Alaska Airlines has one through Bank of America too.</font>

As does US Air.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by owenthomas:
Citibank has just introduced an AAdvantage debit card.
</font>

If you are doing European currency, be aware that Citi charges 3% for charges, and about 7% for cash withdraw on the Visa/master card.

The ATM fee on my $450 in italian lira was $25, and my $350 was $11. The lira were further discounted about 3%.

Recapping the costs of getting a cash advance on a Citi Visa/MC:

Since Cirrus and Star charge 1% foreign exchange fees for ATM transactions, you need to add the extra 2% you lose to find out your total charges (i.e. you need to add the hidden charges to the disclosed ones): $25 + $9 + $11 + 7 = $72

If you divide the 800 miles by 72, then you get a cost per mile of 11.1 cents, or about 7.5 times as much what a mile is worth (about 1.5 cent).

Yuck!

For those who prefer the debit card to credit card, simply because it is one less bill, or concern they will forget to pay - the First USA folks, which have the United Mileage Plus cards allow you to link the card to your checking, and have it paid every month on the final date due.

This won't hold down your spending, but it allows you to possibly earn interest rather than pay right away, and earn miles - without the possibility of screwing up.

Citibank's credit cards also have the automatic payment feature. I'm with bp888 and ILTE_Miles - I'm not trying to be judgmental, but I'm having a hard time understanding how someone can sign up for a $2:1 mile card, effectively losing 1/2 their miles when so many 1:1 cards are available.

If you carry a PDA, just keep a running total of your charges on it. You can do the same thing with a small piece of paper in your purse/wallet.

Bank of America offers a US Airways debit/check card. I believe the annual fee is $30.

Questions regarding the miles earning debit cards that earn at a ratio of 1 mile per 2 dollars spent:

When you make a purchase using a mileage earning debit card do you hit "ATM" or "credit" for the purchase????

It's not really "ATM", correct, because the card has a Visa or MC logo on it, right?

If you need to hit "credit", please continue reading my questions below:

If you go to the post office and buy a $600 money order using your mileage earning debit card (the P.O. allows you to buy money orders only using debit cards, no credit cards allowed for known reasons!), how many miles do you get for the transaction?

If you go to the supermarket and buy a $0.25 candy bar and they allow you to get $50 cash back for a debit transaction meaning a total purchase of $50.25, how many miles do you get for the transaction with your miles earning debit card?

From my experience with CompuBank and USAA's checkcards, I had to choose credit card option over debit card option in order to receive the award.

The payment scheme is different for credit card from the debit card; the banks get the usual fee on credit card purchase vs none (?) for debit card. I'm sure that there is someone who is more knowlegible on this matter than I. I heard that are banks who gives award on both debit and credit card options but can't recall...

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ValueConsumer.com (http://www.valueconsumer.com) Home of Tripple Dipping Online Shopping

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Watchful:
I prefer credit cards myself, but am going to be evaluating mile-earning debit cards for my son who will be going off to college in a year. I would rather him have a debit card than a credit card. Any experiences??</font>

If you don't mind me asking, where is your son going to go to school? Many schools offer stored-value cards that work like a debit card.

For example, at University of Texas, there's a Dining Dollars and BevoBucks program that allow students and parents to load money on the ID and the students can only use that money where DD/BB are accepted.

I work in this industry and just graduated from college in May, so I'd be happy to advise you on how do "divy" up the allowance.

I signed up for Citibank AAdvantage as a college freshman and have accumulated over 100K since signing up. Now look at me, the FF junkie... http://www.flyertalk.com/forum/wink.gif

It's been said that &gt;50% of college students carry a balance. Play the odds game and realize that credit cards are not a good idea.

Citi Offers Air Miles for Some Debit Transactions

Sixteen months after replacing its automated teller machine cards with MasterCard debit cards, Citibank has introduced another debit card program with a new perk: airline miles for purchases.

The Citigroup Inc. unit said last week that it had expanded its 15-year-old partnership with American Airlines to include the new Citibank AAdvantage debit cards, sister products to the successful AAdvantage credit card.

The Citibank frequent-flier debit program is the fifth such program on the market. J.P. Morgan Chase & Co. introduced the first such card program, cobranded with Continental Airlines, in February 1999. In September, Bank of America Corp. introduced three Visa Check cards cobranded with Alaska Airlines, America West, and USAirways.

Citibank’s debit card program differs from the others in one respect, which will no doubt displease merchants: The bank will award miles only for signature-based transactions, not for PIN-based ones, for which merchants are charged lower fees. Morgan Chase and Bank of America award miles for both types of transactions.

“The reason essentially is the cost of the miles,” said Wayne Malone, vice president of distribution management with Citibank’s North American retail banking division. “With a credit card, there are other things besides the interchange fee that generate revenue, but that’s the only thing that generates the revenue for a debit card.”

Randy Petersen, the editor of Inside Flyer magazine and the Web Flyer site, which track frequent-flier programs, said that issuers pay airlines in advance for the miles that cardholders will redeem. He estimated that Citibank paid American around $500 million for miles to be redeemed this year — a relatively high figure that reflects the spending power of the 45 million members of the airline’s AAdvantage program...

Mr. Petersen said that more than half of all frequent-flier miles are earned through purchases other than air travel.

American Banker, 1/29/02

I think the article was in error when it said that the BofA and Chase cards award miles for PIN transactions as well as non-PIN. Does anyone have one of these cards who can verify? If you got miles for a PIN transaction you could simply sit at an ATM all day and withdraw then redeposit your funds!

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by wigstheone:
Citi Offers Air Miles for Some Debit Transactions


Citibank’s debit card program differs from the others in one respect, which will no doubt displease merchants: The bank will award miles only for signature-based transactions, not for PIN-based ones, for which merchants are charged lower fees. Morgan Chase and Bank of America award miles for both types of transactions.
</font>

the funny part is:
1.most merchants don't accept PIN-based transactions. if i go to the mall with my versadebit card, chances are that i'm gonna be paying with credit at all my opportunities.
2.many banks have started charging for the PIN-based debits, and some consider them the same as not-at-that-bank ("foreign") withdrawals. the customer is conditioned not to do what is going to cost her money, so credit it is.

i have a citibank account down here at school, and i will be converting to the basic card, at least, ASAP, and possibly the premium one. chase makes a good case, but i'm weaning myself off CO due to the whole First To Worst problem, and CO's fees are outrageous compared to Citibank's...and they ain't cheap in turn. http://www.flyertalk.com/forum/smile.gif

I saw an ad for a Citibank card that gives you 5,000-7500 Aadvantage miles for signing up. Any idea if there's a fee and what determines whether you can get all 7500?

"If you got miles for a PIN transaction you could simply sit at an ATM all day and withdraw then redeposit your funds!"

NO banks that offer debit cards allow you to obtain miles from "cash-back" transactions, ATM withdrawals or the purchase of negotiable instruments. A statement to that effect is included in the samll print of EVERY debit card cardholder agreement.

Originally posted by chix:

"If you go to the post office and buy a $600 money order using your mileage earning debit card (the P.O. allows you to buy money orders only using debit cards, no credit cards allowed for known reasons!), how many miles do you get for the transaction?
If you go to the supermarket and buy a $0.25 candy bar and they allow you to get $50 cash back for a debit transaction meaning a total purchase of $50.25, how many miles do you get for the transaction with your miles earning debit card?"

See above reply.

So if you did BOTH of these transactions you would end up with .125 of ONE mile! - (1/2 of your 25¢ candy bar)

The post office only allows a pin-based transaction to purchase a money order. They do not allow Visa transactions for money orders, whether the card is a CheckCard or not. From the looks of the BofA site, they only award mileage for Visa (non-pin) transactions. They don't ever mention using the card for pin-based transactions.

I have one, so I'll try it and post my findings in about a month (after my statement cycle).

From the Bank of America website:

http://www.bankofamerica.com/checkcard/index.cfm?template=chkcard_usair.cfm

Works like a check. Your Dividend Miles Visa Check Card works like a "plastic check" and can be used at any merchant that accepts Visa. The amount is automatically deducted from your Bank of America checking account.


Provides ATM access.2 You can access your account at more than 14,000 Bank of America ATM machines and over 500,000 PLUS and Visa ATMs around the world. You can withdraw cash, transfer funds or make deposits.

2 Does not earn Dividend Miles for ATM transactions, over the counter cash transactions or on "cash back" amounts at point of sale.

Point Junkie, please E-mail me directly. WJP1134@aol.com