All You Need To Know For Responsible Spending

Key Takeaways

• Cashback debit cards offer a game-changing way to earn rewards, combining the benefits of traditional debit cards with the high-earning potential typically associated with credit cards.
• Instead of receiving cashback directly at the time of purchase, cardholders can redeem their points for cashback or other rewards. When shopping with eligible merchants, cashback rewards are typically credited to your checking account. Some programs also allow you to redeem rewards for gift cards, travel credits, or charitable donations, depending on the card's offerings.
• There are two main types of cashback cards: those with a flat rate and others with category-specific cashback. However, some financial institutions, like Future, provide both programs simultaneously.
• The main benefits of using cashback debit cards include obtaining a steady and straightforward income and avoiding debt or interest rates.
• Some myths about cashback debit cards are that cashback incentives promote overspending, offer minimal rewards, and are inherently unsafe.
• FutureCard Visa® Debit Card provides 6% cashback for purchases with FuturePartners, 5% with more than 50.000 sustainable brands, and 1% on all other purchases, whether green or not. Managing your funds is effortless with FutureApp, where you can instantly check your cash and points balance or transfer money.

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What is cashback?

Cashback has traditionally been linked to credit cards, but it is now becoming a unique feature of debit cards as well. Financial institutions that offer cashback debit cards reward consumers with a percentage of their spending—usually between 1% and 6%—on eligible purchases. 

Unlike many other cards, cashback debit cards often have fewer restrictions—no interest rates, credit checks, or debt accumulation—while still providing opportunities to earn on everyday spending.

For many, cashback on debit cards can be a game-changer, as it combines the simplicity of spending from available funds with the ability to redeem cashback from points—something previously exclusive to credit cards. It’s a new, accessible way to encourage mindful spending while benefiting from tangible rewards.

With options like FutureCard, you can enjoy unlimited cashback, including up to 6% with select sustainable partners, 5% at eco-friendly stores and on public transit, and 1% cashback on everyday shopping.

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How cashback works on debit cards?

Step-by-step process

1. Fund your account: To start using a cashback debit card, connect an existing debit account to transfer funds into your new account. This can often be done instantly using another debit card, Cash App, Apple Cash, or Venmo. For example, Future allows you to link your account easily and even lets you add the card to your digital wallet for quick checkout with Apple Pay or Google Pay.
2. Make purchases in eligible categories: Use your cashback debit card to make purchases in eligible categories, such as groceries, fuel, or online services. Some cards, like FutureCard Visa® Debit Card, offer 5% cashback on purchases at thrift stores, bike shops, public transit, EV charging stations, and plant-based food retailers. Partner brands may offer even higher rates, such as 6%, while non-green purchases typically earn 1% cashback.
3. Receive cashback rewards: Every time you make an eligible purchase, cashback is credited to your account. Many financial institutions, including Future, accumulate rewards as points that can later be redeemed for cashback or other benefits via an app.
4. Access and manage your rewards: Use the card’s app to monitor your cashback earnings, track spending, and manage your account balance.

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When do you receive cashback?

Given the immense number of possibilities, cashback cards provide rewards in different circumstances, resulting in two distinct categories: flat-rate cashback and category-specific cashback.

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Types of cashback programs

• Flat-rate cashback: This straightforward cashback program allows users to earn a consistent cashback percentage on all purchases, usually about 1-2%, regardless of the category.
• Category-specific cashback: Unlike the previous one, category-specific cashback programs reward users with a higher percentage, between 3% and 5%, for buying from specific partners, which typically include groceries, dining, and travel.
• Combined cashback programs: Even though it is rather uncommon, some cashback debit cards offer combined programs that blend the two mentioned above. Future is the perfect example of this, as it provides a flat rate of 1% cashback on all purchases and 5-6% on environmentally friendly categories in the form of points, which can later be redeemed in cash or other rewards.

The financial benefits of cashback on debit cards

Cashback debit cards are an effective tool for saving while spending, offering a straightforward way to earn rewards on everyday purchases. For instance, a 1% fixed cashback rate means earning $1 back on every $100 spent, which provides an immediate, tangible value. 

Still, by using cashback debit cards like FutureCard Visa® Debit Card, users earn points with each purchase, and they may choose to redeem them for cashback or other rewards available in the app. What makes cashback debit cards particularly appealing is their unlimited earning potential on rewards with no caps—an uncommon feature among debit cards.

In comparison, tracking the rewards of other benefit programs, such as discounts, points, or miles, tends to be more complex and usually requires higher amounts to get a valuable reward. For instance, when using a travel rewards card, spending $10,000 annually might earn 20,000 miles, which is valued at about $200 for economy flights.

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Downsides of cashback debit cards: Debunking myths

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Associated fees and costs

One of the most common myths about cashback debit cards is that they come with hidden fees or related costs that surpass their benefits. This is definitely untrue since most modern cashback debit cards, like FutureCard, have eliminated annual fees and maintenance costs, making them extremely cost-effective.

Overspending promoted by cashback incentives

Another common myth about cashback debit cards is that they encourage overspending, driven by the allure of earning more and more rewards. Despite being motivating, cashback rewards do not encourage this behavior, given that studies have shown that consumers who seek these programs have clear and mindful spending habits.

Poor cashback debit card choices

Considering that there are different types of cashback debit cards, such as flat-rate and category-specific ones, it is critical to be mindful when selecting a card and to choose the one that matches your spending habits and lifestyle to see real benefits.

Minimal rewards

Another misconception suggests that cashback debit cards offer minimal rewards compared to credit cards. Even though it is true that credit cards offer high cashback rates, some debit cards, like FutureCard, offer almost the same percentage of cashback—5-6% with FuturePartners— as credit cards without charging annual fees or maintenance costs.

Inherently unsafe

It's a common misconception that cashback debit cards are unsafe, but this claim isn't accurate, as described in this article from Live Well. In fact, most modern debit cards include robust security features that make them as secure as credit cards. One key measure is using EMV chip technology, which helps prevent counterfeit fraud by generating a unique code for each transaction. This dynamic authentication method significantly reduces the risk of unauthorized purchases compared to older magnetic stripe cards​.

Beyond these standard protections, cardholders can enhance their security by enabling features like fraud alerts, and transaction limits, and even integrating their debit cards into secure mobile wallets like Apple Pay or Google Pay. 

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What benefits does the Future cashback debit card offer?

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Future Points (to redeem for rewards)

In terms of percentages, Future provides 6% cashback for purchases with FuturePartners (select sustainable brands), 5% with other sustainable brands (more than 50.000 stores), and 1% on all other purchases, whether they are green or not.

1.75% APY

Future offers 1.75% APY (Annual Percentage Yield), a competitive rate offered in balances linked to Future’s cashback debit card. Unlike traditional accounts that require minimum balances or lock-in periods, Future’s APY gives flexibility to account balances without constraints. This approach reflects the growing trend of integrating ethical values into financial services.

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Experiences

FutureMissions is designed to encourage users to take eco-conscious actions, like switching to electric vehicles or buying refurbished tech. It then rewards them with FutureCoins that they can redeem for cashback or other benefits. Moreover, you can redeem FutureCoins at an initial starting value of $90 per coin. Other redeemable rewards could be experiences such as staying in sustainable cabins or having discounts with brands promoting renewable energy and recycled materials.

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Future: A big game-changer in cashback debit cards

When choosing a cashback debit card, consider factors like cashback rates, limitations, fees, ATM access, and the financial institution reputation. Future stands out by offering more than triple the average cash-back rewards rate, according to American Banker. It’s FDIC insured up to $250,000, with no credit checks, interest, or fees. 

Plus, it’s easy to sign up! No credit checks required—and you can access your digital card instantly. Whether you're committed to eco-friendly spending or just want a reliable way to earn rewards on your everyday purchases, Future makes it simple to get started. Sign up today and start earning more with a debit card that works harder for you!

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FAQ

Is cashback free money?

No, it isn’t. Cashback is a redeemable reward percentage based on the eligible purchase amount, which can reach up to 6%. 

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How do cashback cards work?

Users make purchases with their cashback cards at eligible stores and then earn a percentage of their spending (generally 1% to 6%), which is given back in the form of cash or points. 

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Can I get cashback if I use my debit card?

Yes, you can get cashback using debit cards like FutureCard, which gives 6% cashback on partner purchases, 5% on sustainable purchases, and 1% on all other purchases.

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Debit card rewards programs and debit cards cashback are the same?

No, they aren’t. Debit cashback cards directly return a percentage of the spending (between 1% and 6%) as cash, while debit rewards programs allow users to earn points that can be redeemed for cash, discounts, or other rewards.

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