Debit Card Rewards Aren't Dead

Most banks have been slashing or downsizing their debit card reward programs. JPMorgan Chase, for instance, is slated to cease its programs for nearly all debit card customers in August, with interchange swipe fee changes cited as a primary reason for the demise of debit rewards. While the traditional brick-and-mortar bank's perks are dwindling, one online bank is introducing a brand-new debit card rewards program -- and it is far from the only debit rewards option available. Ally Bank has launched Ally Perks, a program that rewards cash back directly into a customer's account when transactions are made at certain stores. The program operates differently than most reward programs; there are no points or miles accumulated with every purchase, and there is no redemption process. Rather, customers receive cash in their Ally account for making purchases through partner retailers. At the moment, there are 20, including $5 back for a $50 purchase at Target, and $5 back for a $35 purchase at PetSmart.

Time (07/15/11) Tuttle, Brad