In simple terms, a reward card is a type of debit or credit card that offers benefits when users make purchases. Such incentives, or rewards, could be cash back, points, or travel miles. The cardholder can typically redeem them for statement credits, goods, or services, making them more appealing to those who use their cards wisely.
One of the most beneficial perks offered by reward cards is cashback. In the case of points and travel miles, cardholders typically must redeem these in specific categories based on the brands that the card issuer has partnered with. With cashback, you simply earn money that can be used in whatever you wish, without limitations!
Before applying for a specific reward card, it is essential to evaluate the terms since mismanagement can lead to high debt and negatively affect users’ credit scores. It is the most important aspect to consider are interest rates, annual fees, the user’s spending habits, and the card’s terms and conditions, such as reward expiration dates, redemption restrictions, or spending caps.
A credit or debit card carrying a benefit or “reward” for use, typically involving cashback, merchandise discounts, or frequent flier points. Different cards have focused on different purchasing categories, such as grocery or dining purchases or transportation.
Cashback cards
Cashback cards are reward cards that return a percentage of the money spent on eligible purchases as cash rewards. Such rewards can be redeemed as direct deposits, statement credits, or checks.
The most common types of cashback cards are flat-rate and category-specific. The ones with a flat rate provide a consistent cashback percentage on all purchases, usually around 1%. Cards focused on specific categories most often offer higher cashback rates, as high as 5-6%, for buying in specific categories like dining or groceries.
Points-based cards
In basic terms, points-based cards allow users to earn points for their spending. Then, they can redeem those points for a variety of rewards, such as travel, goods, or statement credits.
Generally, the value of these points depends on how and where they are redeemed, as well as the flexibility of the card’s program.
It is common to award points based on spending, often at a rate of 1 point per dollar spent. Some cards offer higher rates for spending in specific categories. For instance, a card offering 3x points on travel and dining means that spending $100 in these categories would earn 300 points.
Travel reward cards
Travel rewards cards allow cardholders to earn rewards points or miles, which can be redeemed for travel-related expenses like flights, hotel stays, car rentals, etc. These cards often provide travel-specific perks, such as access to airport lounges and tip protection.
This type of reward card is a good match for frequent travelers looking to offset travel-related costs and those who value additional perks, like access to airport lounges.
Membership cards
Membership cards offer specialized rewards for every purchase and a wide range of exclusive benefits at specific stores. In addition to points and cashback, they offer exclusive benefits such as access to VIP events or special reservations. These cards are especially popular for their emphasis on premium perks and lifestyle-oriented rewards.
Co-branded cards with specific brands
Co-branded cards can be offered through partnerships between financial institutions and specific brands with the goal of providing unique rewards linked to the brand to foster loyalty. They often offer higher reward rates on purchases made with the co-branded partners, as well as other redeemable options, including products or services.
At Future, we seek to support sustainable brands that promote ethical spending and contribute to environmentally responsible initiatives. By offering benefits for green-focused expenses, we encourage climate smart living and help the planet.
Multicategory reward cards
Fortunately, some cards on the market offer all-in-one rewards, meaning that they provide all the benefits mentioned above in a single card. Future’s green debit card is one of them. It combines points, cashback rewards, discounts, and other perks by rewarding users for making purchases including with sustainable brands.
In summary, Future provides 6% cashback for purchases made with FuturePartners (select sustainable brands), 5% with other sustainable brands (any other that is not included in FuturePartners), and 1% on all other purchases, whether they are green or not with no monthly cap, unlike other cards!
A Visa reward card is issued on the well-established Visa network allowing users to earn rewards based on their spending, including points, discounts, cashback, etc. Due to Visa’s extensive payment network, the cards are widely accepted around the globe and usually come with additional benefits, such as fraud protection or access to special offers.
Earning rewards depends on the type of card and if they have prioritized spending categories.
To start earning rewards, users must sign up for a card that aligns with their spending habits. Next, they must begin using their card to make purchases in high-earning categories to maximize rewards. Finally, they must choose between the redemption options available, which could include points or cashback, and complete the operation through a mobile app or the card’s website. In the case of Future, cardholders receive 5-6% cashback for making purchases from FuturePartners, but they also get a flat 1% cashback rate for all other purchases, encouraging sustainable expenditure while not excluding anyone from our benefits.
To access the benefits of reward cards, users must meet specific eligibility requirements that can vary according to the card issuer. This requirement ensures that the applicant is capable of managing credit responsibly.
Some of these requirements include having a good credit score (typically 670+ on a FICO scale), a stable income to support credit payment, a consistent credit history, and residency or citizenship of the country where the card is issued.
However, with FutureCard, as with most debit cards, the only requirement is to have a USA social security number. That means we don’t mind about your credit score, income or other details. Everyone can have it!
It is common for rewards cards to have fees and other interest rates. For instance, many reward cards charge an annual fee to access their perks, which can reach up to $500 for premium cards. Other related fees include foreign transaction fees (typically 1–3% of the purchase amount for foreign currencies), balance transfer fees (3–5% of the amount), late payment fees (up to $40 and a penalty APR), and cash advance fees (3–5% of the amount, plus a higher interest rate).
Nevertheless, it is important to mention that some cards, like FutureCard, do not charge initiation or annual fees, interest rates, or APR. This advantage makes it much more accessible to a wider audience.
As previously mentioned, there are different types of reward cards. Some offer a flat rate of 1% cashback on all purchases, while others offer higher cashback percentages (5-6%) on specific purchases. With this in mind, users should always analyze their spending habits and consider the overall benefit to decide which type of card suits them best.
A good approach is choosing a card that provides both services, offering 5-6% cashback on specific purchases and 1% on all other purchases. FutureCard not only has a flat rate of 1% cashback on all purchases and 5-6% by purchasing from environmentally and socially responsible brands, with no cap, which is one of the highest cashback rates on the market.
Using a rewards card for daily expenses such as groceries and transportation can help users maximize rewards quickly. For example, FutureCard offers 5% cashback on electric vehicle charging, the highest available for EV-related expenses on the market. This benefit helps users accumulate a steady income based on the high frequency of use.
Another excellent benefit of rewards cards is that they provide robust security features to protect users from fraud or unauthorized activity. These security features make rewards cards safer for everyday transactions. Some include zero liability protection, fraud monitoring and alerts, tokenization, and purchase protection.
Although they might sound similar, rewards cards and regular credit cards differ significantly in various aspects, such as fees, interest rates, benefits, and eligibility requirements. While both serve as efficient financial tools for making payments, rewards cards offer added value by providing incentives for spending.
A critical difference between them is linked to rewards. Rewards cards offer financial incentives, such as cashback, points, or miles, whereas regular credit cards frequently offer none.
The truth is that reward cards and debit cards are virtually the same, as they can both be used for everyday transactions by paying directly with the money in your account. However, the main difference is the number of benefits that reward cards offer their customers. Future, for example, offers a ton of benefits as with cashback, points, travel benefits, VIP experiences and more, by simply using it as a regular debit card.
Future’s reward card has environmentally conscious consumers receive cashback rewards for eco-friendly spending, helping them develop more sustainable spending habits, maximizing rewards, and maintaining a stable savings cash back.
In terms of percentages, Future provides 6% cashback for purchases with FuturePartners (select sustainable brands), 5% on public transit, sustainable brands, and more, and 1% on all other purchases. These high cashback rates make it stand out from others because, in various categories, like EV charging, Future offers one of the highest reward rates on the market.
By using your card on any purchase, you'll already get the benefit of points, that you can redeem as cashback or other benefits. You can get 1% cashback on every purchase, and if you make sustainable purchases, you can get up to 6%! In addition, by completing FutureMissions, users earn FutureCoins, which can later be redeemed through Future’s app in the form of cashback or other available benefits.
Moreover, given that rewards are automatically calculated based on the user’s spending categories, there is no need to activate bonuses or track special offers, as it might occur with other reward cards.
Future’s main focus is to simplify access to sustainable purchases by providing a seamless service without annual fees or other related rates. For this reason, earning and redeeming points is a simple process that can be easily performed through Future’s app without constraints or complications.
One key step before choosing the right reward card is to thoroughly analyze your spending habits. The first step is to track your monthly expenses, for example how you get to work,, what groceries you regularly buy, and where you like to shop. This way, you’ll identify your frequent spending categories and match your expenses to specific reward structures.
In New York City, almost half of New Yorkers use the subway to commute to work, which means ideal for using Future’s reward card, which gives 5% cashback to cardholders who use public transit.
It is essential to analyze and compare what each card offers to make sure it aligns with your spending habits and financial goals. Some of the most relevant aspects to compare include the types of rewards (cashback, points, miles, etc.), bonus categories (e.g., cashback for making eco-friendly purchases), fees (some offer no annual fee while others charge up to $500), and interest rates (debit cards don’t usually have them).
Other characteristics to consider might be the available redemption options and the unique features a card might offer, like FutureCard, which mainly focuses on eco-friendly spending and gives up to 6% cashback for purchasing from sustainable brands.
After identifying your spending habits, the next step is to look for benefits that align with those habits. The categories where you spend the most—traveling, mass transit, groceries, eco-friendly brands, etc.—are the ones where you must find the greatest benefits.
For instance, if you spend heavily on plant-based meals, you’ll get the most rewards with FutureCard, since it offers 6% cashback for buying from brands like Territory Foods, a sustainable business that offers a meal delivery service.
Transparency is a key to choosing the right card. Reviewing and understanding a card’s terms, reward structure, disclosed fees, and possible limitations will allow you to make the best decision for your financial needs.
Some cards, like FutureCard, stand out because of their transparency, simplicity, and consumer-friendly presentation of their sustainably-focused cashback program.
Considering the partnering brands a rewards card has is extremely important since the rewards you’ll eventually get will be directly linked to these brands. Choosing a card that aligns with your spending habits will allow you to maximize rewards on everyday spending.
For example, if you prefer cleaning using zero-waste products and plastic-free products, you can earn 6% cashback on purchases from Blueland, a brand focused on sustainable cleaning products that partners with Future.
A reward card is a financial tool designed to provide benefits, such as cashback, points, discounts, or miles, for everyday spending. By choosing the right one, users can earn financial rewards tailored to their lifestyle.
However, FutureCard redefines what a rewards card can be since it offers the benefits of both a debit card and a rewards card all in one. It allows users to manage their finances effectively without complications or fees while still providing up to 6% cashback on sustainable purchases and more.
FAQs
A reward card works by offering financial incentives, such as cashback, miles, or points, for making purchases. Each purchase earns a specific reward based on the spending category and other items, and users must redeem those rewards for various benefits.
An example of a rewards card is FutureCard Visa® Debit Card, which offers 6% cashback for purchases with FuturePartners, 5% with other sustainable brands and more, and 1% on all other purchases, whether they are green or not.
The key difference between a rewards card and a regular credit card has to do with incentives. A rewards card earns benefits like points or cashback, whereas a regular credit card provides credit for purchases but does not generally offer rewards.
If you have a FutureCard Visa® Debit Card, you can use it anywhere that accepts Visa, including in-store and online merchants. However, it is particularly beneficial for eco-friendly spending, as it offers up to 6% cashback on those kinds of purchases.
.svg){kind=icon}
.svg){kind=icon}
.svg)
%201.jpg)
.png)
Get rewarded for every mindful choice. See the impact and earnings of every transaction you make.
