Citi Offers Triple ThankYou Points On Holiday Travel

by Cory Santos
citi thankyou rewards 3X points travel

Last updated on May 2nd, 2022

Citi has a new ThankYou Rewards promotion – just in time for the holidays. Through the end of 2021, eligible Citi cardmembers earn 3X points on travel purchases made with select Citi cards through the ThankYou Rewards portal. Here is everything you need to know – including which cards are eligible for the new Citi promotion.

Citi Introduces Limited-Time ThankYou Rewards Travel Bonus

Citi is making its ThankYou Rewards credit cards even more rewarding. From now through December 31, 2021, eligible Citi cardmembers earn 3X ThankYou Points for every $1 spent on eligible hotel and car bookings made through the ThankYou Travel Portal.

The new promotion applied to the following Citi credit cards:

citi premier card 224x141

Citi Premier® Card

Citi Rewards+ Card

Citi Rewards+® Card

.

Citi ThankYou Preferred

The addition of 3X ThankYou Rewards on eligible travel purchases is an excellent addition for cardmembers planning fall or holiday travel. The ThankYou Rewards portal offers flight, hotel, cruise, and car rental bookings, with the option to pay with points or an eligible Citi credit card.

The addition of points on travel is good news for both Premier and Rewards+ cardmembers planning on booking a car rental using the new promotion. Both cards also offer enhanced ThankYou points on gas station purchases (3X points on gas with the Citi Premier and 2X points on gas with the Rewards+), meaning cardmembers hitting the road can maximize their rewards this holiday season.

About Citi ThankYou Rewards

Citi ThankYou is the rewards program for Citibank credit cards. Users earn points when using their Citi credit cards to make a payment anywhere Citibank credit cards are accepted worldwide. Cards that earn ThankYou points are the Citi Rewards+® Card, Citi Premier® Card, Citi Prestige® Card (no longer accepting new applicants), Citi Rewards+℠ Student Card (no longer accepting new applicants), and the AT&T Access Card from Citi.

Related Article: Citi Adds Susan G. Komen As ThankYou Points Charitable Partner

Featured image by Citi

American Airlines Purchases Stake in GOL

by Cory Santos
american-airlines-purchases-stake-in-gol AADVANTAGE

American Airlines has long positioned itself as the United States’ leading carrier to South America. However, that position suffered a severe blow two years ago when fellow Oneworld Alliance partner LATAM switched allegiance to Delta Air Lines after a partial buy-out. Now, American is stepping up its South American partnerships with a new investment in Brazil’s largest carrier, GOL.

American Airlines Purchases Stake in GOL, Increasing Presence in South America  

American already had a codeshare agreement with Gol since last year. Now that partnership is evolving, with AA announcing a 5.2% stake in the company – including $200 million in investment. The enhanced investment is designed to offer a more seamless travel experience flyers, with increased access to more than 63 destinations in Brazil already operated by GOL.

The enhanced partnership will also expand Gol and American Airlines’ joint loyalty offerings. These offerings are likely to include earning miles (such as AAdvantage miles) on American and GOL-operated flights, plus greater mile flexibility when booking award fares. Both airlines will also begin the rollout of reciprocal perks for elite-tier members.

“This codeshare agreement between two of the leading airlines in the Americas combines our highly complementary route networks to offer customers a seamless travel experience with the largest number of flights and destinations in North and South America,” said GOL CEO Paulo Kakinoff in a statement. “We believe that this will bolster GOL’s presence in international markets, accelerate our long-term growth, and maximize value for our shareholders. It adds to our confidence in GOL’s growth as the economy reopens and travel demand increases.”

About American Airlines

American Airlines is the world’s largest airline by several metrics – including fleet size, revenue per passenger/mile, and the number of scheduled passengers carried. The Texas-based carrier operates 6,700 flights daily to 350 cities in 50 countries worldwide, including 19 destinations in South America.

American also operates the AAdvantage frequent flyer program – the second-oldest frequent flyer program in the world. The program offers six co-branded airline credit cards with Barclays and Citi, all of which offer miles with every purchase, airline-centric perks, and more:

Related Article: Citi Adds AAdvantage As a Transfer Partner

Featured image by American Airlines

Capital One to Test Buy Now, Pay Later Service

by Cory Santos
capital one bnpl

Capital One’s battle against Buy Now, Pay Later appears to be over. The bank has revealed plans to begin testing its new service later this year in an attempt to gain market share in the fast-growing financial sector.

Capital One Reverses Course, to Test Buy Now, Pay Later Service

Capital One is jumping on the Buy Now, Pay Later (BNPL) bandwagon. The bank will begin beta-testing a new BNPL service later this year despite banning Capital One credit card users from using their cards to clear BNPL debt.

The bank sought to distance itself from BNPL services in December of last year, stating that “(those) kinds of transactions can be risky for customers and the banks that serve them.” The bank then outlawed customers from using Capital One issued cards to make “transactions identified as point-of-sale loans charged on its credit cards, regardless of the point-of-sale lender.”

Testing Of Service to Begin Later This Year

Now, Capital One is shifting focus and embracing BNPL. Capital One will be beta-testing its new service later this year using select merchants. The new BNPL service from Capital One will focus on the bank’s private-label credit card portfolio, including closed-loop retail cards.

BNPL’s Lucrative Appeal to Lenders

Capital One’s shift towards Buy Now, Pay Later appears to be occurring due to the runaway success the service has enjoyed in recent years. BNPL services and platforms have grown exponentially, with millennials and Gen Z consumers embracing platforms like Affirm and Afterpay.

Forbes data shows that consumers spend up to 20% more money on average when offered a point-of-sale BNPL service, making these platforms serious money movers. The new beta program also appears to be more than just a simple test. “We’re watching this product closely and certainly not taking this growth lightly,” Capital One CEO Richard Fairbank said earlier this week at an investor conference chaired by Barclays.

Related Article: Buy Now, Pay Later: Is It Worth It?

Featured image by 200degrees / PixaBay

Credit Card Basics: Zero Fraud Liability

by Cory Santos
credit card $0 fraud liability protection

Last updated on August 24th, 2023

There are several terms that are commonly found in credit card cardmember agreements that you might overlook. One of those terms is Zero Fraud Liability. But what exactly is $0 Fraud Liability, what does it cover, and how does it work? Here is everything you need to know about Zero Fraud Liability:

What is Zero Fraud Liability?

“Zero Fraud Liability” is a term frequently seen on credit card agreements, but what does it actually mean? A Zero Fraud Liability, or $0 Fraud Liability clause is a policy in a credit or debit card agreement that protects the account holder from fraudulent or unauthorized charges.

Federal law ensures that credit card issuers are largely responsible for credit card fraud. The cardholder should promptly report suspected fraudulent activity – with “prompt” defined as up to two days after the fraud occurred. The same federal law mandates that the maximum fraud liability is $50 per loss – if the fraud is reported promptly. However, should the cardholder fail to act promptly, they may be liable for the entire fraudulent charge.

Zero Fraud Liability, however, waives this $50 maximum. This means that cardholders who promptly report fraudulent activity on their card will have no liability for any of the suspect charges. This basic coverage is provided by all four major payment networks: American Express, Discover, Mastercard, and Visa.

Does $0 Fraud Liability Apply to Debit Cards?

While the four major credit card issuers offer $0 Fraud Liability, that doesn’t mean every type of payment card is protected. Some Visa commercial cards, for example, do not offer Zero Fraud Liability coverage.

Similarly, not all debit or prepaid cards that feature the Visa, Mastercard, or American Express logo offer fraud coverage. Before you use your new debit or prepaid card, always consult the cardmember agreement to ensure your card is protected in the event of fraud.

How to Report Credit Card Fraud

As mentioned, immediately reporting credit card fraud is essential. Since Zero Fraud Liability only applies if the cardholder acts within a two-day window, if you suspect fraud or notice unauthorized charges on your account, do the following:

  • Contact your credit card issuer as soon as possible
  • Issue fraud alerts with the three major credit bureaus (Equifax, Experian, and TransUnion)
  • Update passwords and recurring payments
  • Monitor your credit report

Related Article: Freezing Your Credit: What You Should Know

Featured image by mohamed_hassan/PixaBay

Capital One Launches Key Rewards Credit Card Program

by Cory Santos
capital-one-launches-key-rewards-credit-card-program

Last updated on February 9th, 2024

Capital One and Williams Sonoma have finally launched the replacement for the old Williams Sonoma Visa®. The new program is actually eight cards, now known as the Key Rewards Credit Card Program, which offers up to 10% back on purchases with the Williams Sonoma, Inc. family of brands, special financing, and more.

Capital One and Williams Sonoma Launch Key Rewards Credit Card Program

Williams Sonoma and Capital One Bank have officially revealed their new credit card portfolio with the launch of eight credit cards. The new Key Rewards Credit Card Program offers cardholders the chance to earn 5% cash back with any of the seven brands that make up the Williams Sonoma, Inc. brands, including Williams Sonoma, Williams Sonoma Home, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, Mark & Graham, and West Elm – both online and in-store.

Key Rewards Credit Card Program Details

The new program, which includes four co-branded Visa credit cards (The Key Rewards Visa Signature, the Williams Sonoma Visa, the West Elm Visa, and the Pottery Barn Visa) and four store cards, offers unlimited:

  • 10% rewards on purchases at Williams Sonoma, Pottery Barn, West Elm, and Mark & Graham for the first 30 days and 5% after that
  • or 12-month promotional financing on purchases of $750 or more

Besides earning cash back towards purchases at the Williams-Sonoma, Inc. family of brands, cardholders also enjoy additional Williams Sonoma perks, including:

  • Free standard shipping at Williams Sonoma
  • $25 birthday reward
  • $0 annual fee
  • Early access to promotions
  • Sneak peeks of new collections
  • Cross-brand design services with Design Crew, including a free consultation with design experts

In addition, Visa cardholders enjoy 4% cash back on grocery store and dining purchases and 1% back everywhere else the card is accepted.

Reward Existing and New Customers for Shopping Online

“Our partnership with Capital One and the introduction of The Key Rewards Credit Card Program will provide enhanced opportunities to reward existing and new customers for shopping online and in our stores across all of our brands,” said Laura Alber, President and Chief Executive Officer of Williams-Sonoma, Inc. in a press release accompanying the launch.

“Our mutual commitment to providing an enhanced customer experience is engrained throughout the new credit card program,” added Buck Stinson, SVP, Card Partnerships at Capital One. “The cross-brand approach, paired with rewarding cardmembers for exploring their complementary interests in the form of valuable benefits and enhanced rewards, was a top priority.”

 

Featured image by Capital One

Only 6% of iPhone Users Use Apple Pay In-Store

by Cory Santos
only-6-of-iphone-users-use-apple-pay-in-store

Last updated on March 8th, 2023

A new report is showing that Apple Pay is failing to gain a foothold in-store, despite having a significant advantage of other mobile wallets. PYMNTS data shows that despite the near-universal presence Apple has in many Americans’ lives just 6% of consumers use Apple Pay to make purchases in-store.

Report: Apple Pay Use In-Store Lags Behind Online Purchase Usage 

Apple products are seemingly everywhere. The Apple iPhone is the go-to mobile phone for tens of millions of Americans, offering seamless integration with other Apple products, including iPads, Apple Watches, the Apple Card, and Apple Pay. Despite this all-encompassing Apple-centric ecosystem, however, few Americans are actually using Apple Pay in stores.

According to a new report from PYMNTS, “93.9% of consumers with Apple Pay activated on their iPhones do not use it in-store to pay for purchases.” This result indicates that only 6.1% of Apple users use Apple Pay for making purchases in-store. That low figure is up from 2015, with 5.1% of respondents then used Apple Pay.

apple pay struggling in-store

Tap & Go Payments Surging in Popularity

The small number of Apple Pay members using the service to make purchases in-store is surprising, given the rise in preference for contactless payments in the last two years. The coronavirus pandemic has seen a significant increase in consumers using contactless payments, with mobile wallets like Google Pay and PayPal enjoying substantial growth. Instead, customers are turning to their physical credit cards, with Tap & Go payments and EMV chip technology offering an equally simple way of making purchases in-store.

Even Apple’s Apple Card offers contactless payments with the physical metal credit card, though the card prioritizes Apple Pay, with cardholders earning 2% cash back on purchases made through the Apple Pay app.

What the PYMNTS study indicates is that other mobile wallet services feel Apple’s struggles. Mobile wallet use in-store declined 26.2% in 2020 – despite credit card use in-store rising 33.8%. Cash use also declined – with consumers using cash to make purchases 20% less than 2019.

Related Article: Digital Wallets 101: How to Add a Credit Card to a Digital Wallet

Featured image by Apple

New Fintech Cards & Payments Challenge Tackles Climate Change

by Cory Santos
new energy nexus barclays mastercard launch fintech Cards & Payments Challenge (C&P Challenge)

Last updated on April 24th, 2023

Barclays, Mastercard, and other leading fintechs are joining forces for a new challenge. The Cards & Payments Challenge seeks to redefine how consumers spend, to reduce the carbon footprint of everyday financial transactions.

New Cards & Payments Challenge Seeks to Make Everyday Consumption More Sustainable

New Energy Nexus and a variety of financial partners are joining forces for the new Cards & Payments Challenge. The Challenge seeks to catalyze innovation across the financial sector to address climate change and involves major names like Barclays US, Mastercard, Rise, Doconomy, and Patch.

About the Cards & Payments Challenge

According to a press release, the Challenge’s goal is to help inform how we spend, what we buy, and how payments are handled – making everyday consumption more sustainable. Key focus areas of the Cards & Payments Challenge (C&P Challenge) include:

  • Retail & Commercial Carbon Accounting & Footprinting
  • Sustainable eCommerce Connectivity
  • Green Digital Wallets & Mobile Payment
  • Sustainability Gamification & Incentivization
  • Reward Program Points and Benefit Structures for Emissions Offsetting or Renewable Energy
  • API Integration and “Green Open Banking”
  • Building a digestible “Green Score” & Consumer Education
  • Blockchain & DLT applications in sustainability
  • Insurance and related products
  • Additional Integration with Online Banking and Investment Products

The C&P Challenge offers a $100,000 prize to the winning startup. The goal of the Challenge is to introduce and boost climate innovation in the digital payments space with established financial stakeholders.

Additional C&P Challenge Details

The open application period for the C&P Challenge runs from September 7 to October 1, 2021. Interested fintech startups can apply for the C&P Challenge here, hosted participants at the Rise Accelerator space in Manhattan during Climate Week NYC. All participants will have access to world-class facilities and the opportunity to craft their products and build their network.

Ten finalists will be selected in late October, and these companies will receive additional mentorship in matchmaking over three weeks, culminating in a demo day and prizes in November. In addition to cash prizes, participants will be given access to sponsor Application Programming Interfaces (APIs), offering finalists direct access to relevant data.

Prizes in the Challenge will be announced in November, with the top three finalists receiving non-dilutive grants.

“Working Towards a Sustainable Future”

“Our team is thrilled to launch the Cards and Payments Challenge with an incredible roster of strategic partners, together supporting fintech startups and innovations, which aim to catalyze equitable decarbonization. We welcome applications from around the world,” said Danny Kennedy, CEO at New Energy Nexus in the release.

“Rise knows the importance of climate fintech startups to financial services, and we are excited to host the challenge in New York,” added Brian Luciani, Head of Rise New York. “It’s inspiring to work with our partners in support of fintech founders who are working towards a sustainable future and to keep Barclays at the forefront of fintechs working on climate innovations.”

Related Article: UBS Launches Credit Card Made of Corn

Featured image by Climate Fintech/ Cards & Payments Challenge

Walgreens Launches Scarlet Mastercard Debit Card

by Cory Santos
new myWalgreens Scarlet Mastercard debit card

Last updated on March 18th, 2024

Walgreens and Mastercard are continuing their partnership with a new bank account and debit card. The new account, known as Scarlet, is a combination Bank account and debit card issued through MetaBank and exclusively available at Walgreens – at over 9,000 Walgreens stores nationwide, online, and via the Walgreens mobile app.

Walgreens Launches Scarlet Bank and Debit Card Account with MetaBank

The Scarlet account links with a user’s existing myWalgreens Rewards account and earns cash back rewards on eligible purchases. Accountholders earn up to 5% back in Walgreens cash rewards on eligible purchases at Walgreens and Duane Reade stores, Walgreens.com, and the Walgreens mobile app, and 1% back on all other purchases.

The Scarlet Debit Card also offers tools designed to assist account holders in building healthy financial habits, including free two-day direct deposits, free reloads at Walgreens and Diane Reade locations, 55,000+ fee-free ATMs, and custom goal-setting features to help forecast and manage personal spending. Users also enjoy mobile wallet connectivity, have mobile check capture capabilities through Ingo Money, and can send money for free to other Scarlet account holders.

The new Scarlet Card follows on the heels of the successful launch of the myWalgreens™ Mastercard® last month. That card, issued through Synchrony, offers up to 10% Walgreens cash rewards on eligible purchases, with no annual fee.

“Pleased to Expand Our Financial Services Offerings”

“With a focus on our customers’ health and wellbeing, Walgreens is pleased to expand our financial services offerings with Scarlet and further expand the broad spectrum of financial solutions that are accessible to the customers, patients, and communities we serve,” said Maria Smith, Vice President of payments and financial services at Walgreens, in a press release. “Scarlet is just the latest expansion in the Walgreens financial services portfolio, which also includes the Walgreens mobile wallet, remittance services, ATM, third party banking services, and the recently launched myWalgreens Credit Card. We look forward to deepening engagement with our customers as we continue to support their personal and financial wellbeing.”

“The launch of Scarlet speaks to a continued desire and demand from consumers for seamless and accessible financial experiences,” added Kush Saxena, executive VP, U.S. merchants and acceptance at Mastercard. “We are pleased to deliver our technology and healthcare expertise to deepen Walgreens’ commitment to providing more relevant and personalized solutions for cardholders at Walgreens and beyond.”

Related Article: Walgreens Credit Card to Launch in 2021

Featured image by Walgreens

Mercury and First Bank & Trust Extend Partnership

by Cory Santos
mercury-and-first-bank-trust-extend-partnership

Last updated on April 13th, 2023

First Bank & Trust and Mercury Financial are extending their partnership for the foreseeable future. The new agreement, set to run to 2025, will allow Mercury to expand its digital services, further driving its mission toward greater financial inclusion.

Mercury Financial and First Bank & Trust Extend Partnership to 2025

Mercury Financial is continuing its partnership with First Bank & Trust. The partnership, which has provided credit to nearly one million near-prime consumers since 2017, includes the popular Mercury® Mastercard® and the Free Spirit® Points Mastercard®. The partnership extension with South Dakota’s First Bank & Trust (FB&T) will run through 2025.

The partnership between Mercury and FB&T will continue the shared mission to support customer programs and help deliver credit to deserving Americans in the near-prime segment. FB&T is the issuer behind Mercury’s financial technology platforms. Over the next four years, the partnership model will grow behind Mercury’s expanded digital services and capabilities.

“Delivering Fair and Transparent Financial Products”

“Our partnership with Mercury Financial allows us to diversify and engage with a forward-thinking, entrepreneurial organization, committed to delivering fair and transparent financial products, with worthy benefits for our customers,” said Cal DeJong, president of national products at FB&T, in a press release accompanying the news. “We’ve experienced many triumphs over the last four years, and I’m excited to see what this next chapter will bring, building upon the success of the Mercury credit card program.”

Mercury Financial Credit Cards

The Mercury™ Mastercard® is the partnership’s most successful product to date. The card offers generous credit lines, competitive interest rates, and the chance at basic cash back rewards for some applicants. The card is one of the most competitive credit cards for fair credit on the market.

Mercury and FB&T also issue the Free Spirit® Points Mastercard®. That card, only available by responding to a mail offer, earns points in the Free Spirit frequent flyer program from Spirit Airlines. The Points Mastercard is unique in that it offers an unsecured line of credit and airline miles for fair credit scores. Typically, only good to excellent credit scores are required to open a co-branded airline rewards card.

Related Article:  Spirit Airlines and Mercury Financial Launch New Credit Cards

Featured image by Sarah Pflug/Burst

PenFed Adds eSports Credit Card w/ Washington Justice

by Cory Santos
penfed esports credit card

Last updated on September 19th, 2023

PenFed has partnered with esports franchise Washington Justice to issue a new credit card. The new Justice x PenFed Power Cash Rewards Visa Signature® Card is a first-of-its-kind gaming rewards credit card, allowing Washington Justice fans to support their favorite esports team and enjoying Justice discounts – all while earning cash back rewards on every eligible purchase.

PenFed Powers Up with New eSports Credit Card

Pentagon Federal Credit Union, more commonly known as PenFed, is the second-largest credit union in the United States. Now, the Virginia-based credit union is partnering with a local esports team, the Washington Justice, to launch a new co-branded credit card – the Justice x PenFed Power Cash Rewards Visa Signature® Card.

Justice x PenFed Power Cash Rewards Visa Signature® Card Features

The new esports credit card includes a special sign-up bonus for the first 100 approved applicants. The first 100 PenFed members approved for the Justice x PenFed Power Cash Rewards will receive a $100 Washington Justice store gift card.

With regular use, the Justice x PenFed Power Cash Rewards earns 1.5% cash back on all purchases made with the card – a rate that jumps to 2% back for PenFed Honors Advantage members – available to PenFed Access America Checking Account holders or the primary account holder having an active duty, reserve, honorably discharged, or retired military status. The card also features no annual fee.

“A New, Unique Credit Card Experience”

“PenFed is proud to partner with The Washington Justice and make history with the first esports team-branded credit card,” said James Schenck, president and CEO of PenFed, in a statement. “The passion and enthusiasm of Justice players and fans is wonderful to witness, and we are excited to expand our partnership and welcome even more Justice fans as PenFed members. PenFed and The Washington Justice embrace the same innovative and enthusiastic spirit, and we look forward to growing our partnership.”

“The Washington Justice Power Cash Rewards Card establishes a new, unique credit card experience for Overwatch League fans all over the country,” added Washington Justice owner, Mark Ein. “This card represents a partnership that serves communities to get the most out of their purchases and to provide opportunities for Justice fans to show their support and become members of the PenFed family.”

Related Article: The Ultimate Guide to Gambling & Credit Cards

Featured image by PenFed

New Status Credit Card Offers Up to 2% Crypto Rewards

by Cory Santos
status crypto credit card

Last updated on January 2nd, 2024

The Status Credit Card is the latest entry into the ever-growing ranks of crypto credit cards. The new card, from a partnership involving embedded finance platform Railsbank and personal finance company Status Money, will offer up to 2% cash back on purchases – with rewards invested into cryptocurrency. Here is what you need to know about the new Status Card:

Status Money Credit Card to Offer Up to 2% Cash Back

Fintech Railsbank and Status Money are joining forces to launch a new cash back and crypto rewards credit card. The new card will offer 2% cash-back rewards on every purchase, with rewards automatically invested as cryptocurrency.  This unique rewards structure is designed to provide a return on investment (ROI) “without having to deal with the headaches and tax burden of owning crypto,” according to a press release accompanying the news of the new card.

The Status Card is currently in the waitlist stage, with potential applicants encouraged to join the list for early access. Both companies say that new cardholder accounts will receive access to Status Money’s financial management tools, which include the ability to track and compare their net worth and an opportunity to have a monthly video chat with a financial advisor.

“We’re giving everyone who spends money the ability to become an investor automatically,” said Majd Maksad, co-founder and CEO of Status Money, in the release. “If cryptocurrencies continue their skyward adoption, a member who spends $1,000 a month on this card will have rewards worth over $60,000 in five years. This is life-changing money for most of us.”

Railsbank’s Credit-Card-as-a-Service Offers Fast Launch

While the Status Card is still in the waitlist phase, the turnaround time from announcement to launch is surprisingly quick. Many fintech credit cards languish in the research and development phase for months as partnerships are formed and finer details ironed out.

Not so with the Status Card, however. According to the companies, the card was brought to market “in record time” thanks to Railsbank’s Credit-Card-as-a-Service product, which lets partners offer credit cards without becoming a bank themselves.

“By partnering with Railsbank, Status Money is evolving from being a financial advice platform to a true financial services company to meet the investment pain points of its customers, providing its customers with an automatic way of turning their everyday spending habits into cryptocurrency investments,” the companies said in the release.

Related Article: The Best Credit Cards for Investing

Featured image by Status Money

Prepaid Cards Vs. Gift Cards: Which Type of Card Is Better?

by Cory Santos
Why prepaid cards are better than gift cards

Last updated on August 24th, 2023

Many people opt for a gift card when selecting gifts for friends and family, thinking they offer the best value for money and flexibility as a present. If you are thinking about getting a gift card, you should take the time to consider choosing a prepaid debit card instead.

Gift Cards vs. Prepaid Cards

Gift cards and cash are the most popular choices for gifts, according to the Huffington Post. After all, when it comes to giving gifts, conventional wisdom holds that giving a gift card is the best way to go if you can’t think of anything else as a present.

Here’s a quick breakdown of how gift cards and prepaid/debit cards differ:

Gift Cards Prepaid Cards
Usually cannot be relaoded Can be roladed
Usually can only be used at select retailers Make purchases anywhere the payment network is accepted
Typically can only be used for purchases Issued through a bank or dedicated card company
No fees in most instances Might have account fees

Gift cards are a popular option because they are safer than cash and allow the recipient to buy whatever they want at a store. What if there were a better option than gift cards, however? Prepaid cards may be the solution you are looking for.

Prepaid debit cards are like gift cards in that they require an up-front payment to open. Like gift cards, prepaid debit cards work by requiring money be loaded onto the card in advance. And, like gift cards, they can be used to pay for products or services. Prepaid debit cards, however, unlike gift cards, can also be used for several other transactions, including:

  • Money transfers
  • Direct deposits from checking accounts
  • ATM withdrawals

Prepaid debit cards also come with security from fraud and other purchase protections from the issuer – usually a major credit card issuer like American Express, Visa, or Mastercard. Additionally, they come with the purchasing power of that issuer, meaning they are likely to be accepted almost globally (in the case of visa prepaid card), but indeed much more widely than a simple gift card.

When Should You Consider a Gift Card?

Just because gift cards only work at specific retailers doesn’t mean they aren’t a great option. Here are some instances where you might choose to opt for a gift card instead of a prepaid card:

① You don’t know what to get as a present
② Don’t want to pay monthly fees for an account
③ You want a more versatile gift with wider acceptance (Visa, Mastercard, Amex gift cards)
④ You really need a last minute gift

Why Prepaid Cards are Better Than Gift Cards

For personal use, a prepaid card is a much better option than a gift card. This is especially true if you plan to reload the card or use it at a wider range of shops than a store-tied gift card. Here are some reasons why you might opt for a prepaid card instead of a gift card:

  • If a gift card is lost or stolen, the holder of the card is out of luck, unless they report the card stolen before the gift card balance is spent. With a prepaid card, the prepaid gift card balance (what you place on the card) is protected through the issuer in much the same way a credit card protects the holder from fraud or theft.
  • Gift cards are usually valid for five years, whereas a prepaid card may be closed if the account is inactive for six months, a year, or more. Always be sure to read the terms & conditions before you purchase any card – gift card or prepaid card.
  • Gift cards can only be used at the chain that issues them, meaning they have very little flexibility. Prepaid cards (like the ones covered below), however, work like debit cards, meaning they can be used by the holder anywhere the issuer (Visa, Mastercard, or American Express) is accepted. This means prepaid cards offer much greater flexibility than gift cards

When Should You Consider a Prepaid Card?

Based on everything covered above, when should you consider opting for a prepaid card instead of a gift card:

① You can use it at almost any store that accepts the payment network (Visa, Mastercard)
② You want a card that offers the same features of a checking or debit account.
③ You plan on using the reloadable card for getting cash at an ATM
④ You want online account and bill pay management tools

Prepaid/Debit Card Options to Consider Instead of Gift Cards

Fold Visa® Prepaid Card

Sign-Up and Get +5,000 Sats
  • Earn Bitcoin Rewards On Everything!
  • Win Up to 100% Back on Every Purchase
  • Every Purchase Earns a Spin
☆ Access to Fold+ Member Pricing
☆ Boosted Merchant Offers
☆ Limitless Rewards
☆ Instant Bitcoin Rebates
Visit Card Site

Read Review

Terms & Conditions

The Fold crypto debit card is an exciting option to consider for those that don’t want the hard inquiry on their credit report but want to earn rewards with every purchase. And, since the market for Bitcoin has generally been hot over the past few years, the chance is there to make significantly more money in BTC than you’d typically get with a credit card. Fold cardholders earn a spin every time they make an eligible purchase of $3 or more. Make a purchase, get a spin. It’s that simple. Some of the rewards on offer include 25% back in Bitcoin rewards, fixed amounts (around $2.50 worth of Bitcoin crypto), or even a single Bitcoin – currently trading at over $30,000 per coin!

M1 Visa® Debit Card

M1 Visa® Debit Card
Make Your Investments More Rewarding
  • Seamlessly integrates with M1's Invest services
  • Earn 1% back when you spend & 1% APY w/ M1 Plus
☆ Use Everywhere Visa is Accepted
☆ Upgrade to M1 Plus for Even More Rewards
☆ No Annual Fee
Visit Card Site

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Terms & Conditions

The M1 Spend Visa® Debit Card is a great option to consider for investors with significant holdings within the M1 Invest program and want to earn additional rewards through the M1 Spend Plus Account. Earning 1% APY and 1% back on purchases is a great feature for those with $25,000 or more in investments, as the $125 is easily offset by the additional value from that APY. Add to that no foreign transaction fees, extra trading hours, and special financing on M1 Borrow, and you have an impressive checking and investment package in one.

Aspiration Debit Card

Aspiration Debit Card
Up to 10% Cash Back on Card Purchases
  • Sleek debit card made from recycled plastics
  • Earn up to 1% APY on Save Accounts
  • Deposits never fund fuel exploitation or production
☆ No Annual Fee
☆ Option to Plant Trees w/ Every Purchase
☆ No Credit Check Required
☆ Earn More w/ Aspiration Plus
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There are plenty of cash back debit card programs on the market today, but Aspiration is something different. The card – and the program – offers conscientious consumers the chance to save money and help the planet at the same time. The carbon offset with the Aspiration Plus is an excellent feature – especially for those who commute but hate the damage they are doing to the planet while doing so. However, even the basic plan offers the chance to plant trees through the round-up option on purchases.

This means that no matter what you pay for the service, you’ll be helping out Mother Earth. Add to that the impressive array of perks and protections that comes with a World Mastercard debit product, and the Aspiration Card is an exciting debit card that any Earth-conscious consumer should consider getting.

Debit Cards for Teens

More and more parents are investing in checking accounts for their teenagers. Opening a checking and debit account for children is an excellent way to instill financial habits that can save them money throughout their lifetimes. Some new teen accounts even offer rewards, the chance to invest savings, and more – all while giving parents the controls they need to ensure their kids use their money safely – and responsibly. 

Current Debit Visa Card Greenlight Prepaid Mastercard
Best for Banking designed for teens Great for teaching kids financial responsibility
Best features Ability for parents to block specific merchants Create in-app chore lists and attribute them to perks
Set and monitor spending with notifications whenever a purchase is made Personalize your kids’ debit cards with a custom picture
No hidden fees Get real-time notifications any time the card is used

Find Your Best Card Today

If you had your heart set on a store gift card, but now are considering a prepaid Visa gift card, an AMEX prepaid gift card, or any other type of prepaid debit card, the team at BestCards is here to help you find your ideal card today.

BestCards is your one-stop-shop for everything credit card and prepaid debit card related. We have hundreds of impartial reviews of the leading rewards credit cards, prepaid debit cards, and everything in between. We also have rundowns of all the latest offers for new cardholders, and a wealth of information on everything you could ever want to know about credit cards: everything from the basics of credit to common credit card traps to avoid.

No matter what you are looking for, our team of credit card industry experts is here to help you make informed decisions about your next financial steps. Check us out today – browse hundreds of impartial reviews, read our comprehensive blogs, or even sign up for our membership and leave reviews of your own!

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