Cash Back Debit Cards: What to Know

Cash back debit cards return a percentage of your spending back to you as cash rewards. When you make an eligible purchase with your debit card, you’ll earn a small portion of your spending back.

Like traditional debit cards, cash back debit cards are typically connected to your checking account. You’ll see the amount deducted from your account when you swipe or tap your card to make a purchase.

Since debit cards with rewards aren’t credit cards, you don’t have to worry about interest charges or carrying a balance. However, you will need enough funds in your account to cover your purchases and avoid overdrafts.

Similar to cash back credit cards, cash back debit cards earn cash rewards when you make a purchase. Some cards offer a flat rate on all your spending, such as 1% or 2% back.

Other cards offer rewards in certain categories, like gas and restaurants, or with specific retailers. If you have a Chime^® Visa^® Debit Card, you can use Chime Deals^® to find cash back offers near you.¹

Simply open up the Chime app, search your offers, and activate a deal. You’ll earn cash back when you swipe or tap your Chime card to buy gas, groceries, or restaurant meals. The cash back will be deposited into your checking account within 10 business days.

Cash back on debit cards helps you make the most of your everyday spending without having to use a credit card. With this type of card, you can:

• Earn cash back on your purchases: You can get a percentage of your spending back on purchases you make at the grocery store, gas station, restaurants, or your favorite retailers.
• Avoid taking on credit card debt: You can enjoy cash back rewards without having to use a credit card. This may appeal if you’re concerned about overspending, carrying a balance, or racking up interest charges.
• Qualify without a credit check: You usually need a good credit score to qualify for a cash back credit card, but cash back debit cards typically don’t involve a credit inquiry – just a bank account.
• Access other helpful banking features: Along with a cash back debit card, your bank might offer useful resources like budgeting tools, early direct deposit, and overdraft protection.

Consider the following features to choose the best cash back debit card for you.

Rewards rate and structure

Compare rewards rates, and look for a card that offers cash back on the purchases you’re already making. If you tend to cook more than dine out, for example, a card that offers cash back on groceries would be more useful to you than one that rewards you for eating at restaurants.

Find out how the rewards work too – whether the card offers a flat rate or asks you to activate deals. With Chime Deals, for example, you can find and activate deals near you at more than tens of thousands of locations nationwide. You could get up to $0.22/gallon back on gas, 11% back on groceries, and 24% back at restaurants.

Account fees and requirements

When comparing good debit cards, find out if the bank has monthly maintenance fees or minimum balance requirements. Some banks require a minimum balance in your account to qualify for cash back rewards.

Chime Deals is open to anyone with a Chime card, but you can access tailored, exclusive cash back offers if you’re a Chime Plus member. You can become a Chime Plus member by setting up a qualifying direct deposit (for free) into your Chime account.‡

Monthly limits

Check to see if there are any limits on how much cash back you can earn each month. Some cards cap your earnings, making them less lucrative than others without this restriction.

As you consider how to get a debit card with the best cash back rewards, think about your spending habits and banking preferences. Ask yourself:

• Where do you typically spend money? Look for cards that reward your most common purchases, such as groceries, gas, or restaurants – or that let you activate offers from your favorite merchants. You’ll get the most from a card that already aligns with your shopping behavior or can be tailored to your spending habits.
• Do you prefer an online or traditional bank? Online banks and fintech companies can often provide higher cash back rates and fewer fees, whereas a traditional bank will have the option of in-person service. Either way, you can often apply for a debit card online by opening a checking account.
• What are the fees and requirements? Find out if you need to maintain a minimum balance or pay monthly fees to keep your account open.
• What other features matter to you? Beyond cash back, you might want a bank account with a great mobile banking app, budgeting tools, early direct deposit, a wide network of fee-free ATMs, and other valuable perks.

Read the fine print of any cash back debit card offer before you apply. By familiarizing yourself with the ins and outs of the card, you can make sure it fits your spending habits and maximize your cash back rewards.

Cash back debit cards offer cash back rewards on your everyday spending without the risk of credit card debt. Depending on the card, you might earn a flat rate on your purchases or get to activate offers at retailers where you shop the most. Make sure to compare cash back rates, fees, and any other eligibility criteria to find a cash back debit card that best fits your spending habits.

If you’re deciding between a debit and credit card, explore our picks for the best cash back credit cards.