Wyndham Debit Card

Wyndham has never been shy about being different with their program or promos. It looks like they are sticking to that trend with a new Wyndham debit card that is launching today, the Wyndham Rewards Debit Card. This is far outside the box, and I like that they are trying to do something different. While I don't think this is the best option for most people, as I'll explain in a bit, I like the innovation. Hopefully other loyalty programs follow suit and we get a debit card arms race going! Let's take a look at the new Wyndham debit card and discuss how I think you can do better.

*The cover photo was provided by Wyndham Hotels

Welcome Offer

Yes, the Wyndham debit card comes with a welcome offer. Surprising, I know, but don't get too excited about it.

•  Earn 2,500 Wyndham Rewards bonus points after doing the following
  • Opening a new account
  • Make at least two direct deposits
  • Spend $100 in the first 90 days.
• The account has a $6 monthly fee, which is waived with a minimum average monthly account balance of $2,500.
• Link To Offer

The Wyndham debit card was developed in collaboration with Galileo Financial Technologies, SoFi’s Technology Platform. It will be on the Mastercard interchange network.

Earning Structure

Here are the details for the Wyndham Rewards Debit Card:

• Earn 1x point per dollar spent on
  • Wyndham hotel stays
  • Gas
  • Groceries
• Earn 1x point for every $2 spent on virtually everything else
  • Essentially 1/2 a point per dollar

This card offers better earning rates than 99% of debit cards, since most earn nothing, but you can do better.

Card Perks

Here are the card perks that come with the Wyndham debit card.

• Increased booking discounts + complimentary Wyndham Rewards Gold membership
• Waived ATM and account maintenance fees
  • Out-of-network ATM withdrawals are subject to a $3 fee, and ATM operators may impose their own additional fees.
• Bonus points based on your yearly spend (up to 7,500 points)
• Link To Offer

Annual Net Purchases	Anniversary Bonus Points Awarded
$5,000 – $9,999.99	2,500 Points
$10,000 – $14,999.99	5,000 Points
$15,000 and above	7,500 Points

If you hit the bottom level of each of those spending ranges ($5K, $10K, $15K) then that is essentially another 1/2 a point per dollar. That equates to earning at least 1 point per dollar on your spend, and up to 1.5 points per dollar in certain categories. You would need to hit the bottom amounts of the tiers perfectly to get that though. Anything above those numbers, without hitting the next tier, will offer diminishing returns. For instance, if you just miss the next level you could be looking at a bonus of 1/4 a point per dollar.

Why You Can Do Better Than The Wyndham Debit Card

I like the creativity here by Wyndham, and I think it has a chance to be successful. There are a lot of people in the world that can't get credit, or hate credit cards overall. Hello Dave Ramsey cultists – how are you today? Many of them probably like to travel and have been sad missing out on travel rewards. That is where this debit card can step it. It could even make sense for those that are happy to swipe credit cards right and left (like us) in certain situations. We can do better though.

First off, you would never want to use a debit card in the areas that earn 1x per dollar with the Wyndham debit card. When all those categories accept credit cards, and you can earn 3x, 4x, 5x or even 8x with Wyndham's own credit card. That is simply giving up too much value to consider here. Where it could make sense is the 1/2 point per dollar for everything else area. If you hit those bonus tiers perfectly then you get closer to the 1x per dollar. I value Wyndham points at around a penny, so that is like getting 1% in return. We all know there are purchases out there where we simply can't make a credit card work, and why not earn some points for it? While that is true, at least if Melio etc. doesn't make sense for that purchase, but there is a better option out there.

I have written about the Discover debit card in the past. This account earns 1% back on all purchases (no tier spend levels to get there) on up to $3,000 a month in spend. That is going to give most people a better overall return, all without having to pay attention to what level their spending is it. The Discover account also has no fees, or any minimum deposit requirements to keep it fee free. You can even pair it up with their decent savings account (and bonus) or their underrated credit cards.

Wyndham Debit Card: ToP Thoughts

I applaud Wyndham for rolling out this debit card, and I hope it is wildly successful. There are enough people out there that have sworn off credit, or are unable to get it, that this should be popular. The reason I really want it to be successful is so that other loyalty programs join in on the fun. That would drive up the competition, and hopefully get us more compelling earning rates. Until then, I say grab the Discover debit card instead for all of those purchases that you can't use a credit card for. Let the muggles make this one successful for us.

Let me know what you think of the Wyndham debit card over in the ToP Facebook Group.