Southwest Airlines just rolled out a new Rapid Rewards Debit Card. This card offers a welcome bonus of 2,500 points after making two recurring deposits and spending $100 within the first 90 days. Cardholders earn one point per two dollars on everyday purchases, plus one point per dollar on Southwest flights, dining, and subscriptions like internet and streaming services. The card can help you earn Companion Pass with a 7,500-point yearly bonus toward it, plus all card points count toward Companion Pass status. There’s no monthly fee if you keep at least $2,500 in your account, and you get fee-free ATM withdrawals within the Cirrus network.

This launch is surprising because most major US airlines haven’t offered debit cards since 2011. That year, the Durbin Amendment to the Dodd-Frank Act capped debit card fees at $0.21 plus 0.05% per transaction. This small fee made it hard for banks to offer good rewards on debit cards. Southwest’s new card works by partnering with Sunrise Banks N.A., a smaller bank that can charge higher fees under current rules. The card also doesn’t require a credit check, making it available to more people.

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Our Take

Our team thinks this card is perfect for people who can’t get credit cards but still want to earn travel rewards. College students, recent graduates, or folks working on their credit score can now earn Southwest points without needing a credit card. While the earning rate isn’t as good as most credit cards (only 1 point per $2 on most purchases), getting some points is better than none if you’re using a debit card anyway.

Plus, anyone who is a few thousand points short of qualifying for the Southwest Companion Pass would benefit from opening this debit card, making it a great opportunity if you’re in that situation.

Our prediction is that more airlines will follow Southwest’s example. Airlines make huge profits from credit card partnerships, and debit cards open the door to customers who might later upgrade to credit products. For points and miles collectors, this creates a new path to earn rewards. Just remember that if you can qualify for credit cards and use them responsibly, those still offer much better rewards and protection than any debit card. But for those who need to stick with debit, Southwest’s new option brings travel rewards back within reach.