June 7th, 2010
REVIEW: Chase RealCash Debit Card
If you crave the rewards a credit card offers but need the security of a debit card, Chase’s new RealCash Debit Card comes close to a perfect union of the two. RealCash’s cash back program turns your debit card into a moneymaker, minus the risks of paying interest, getting charged fees, and piling up debt that a credit card poses.
Chase’s RealCash card pays you up to 3% cash back on what you spend for the month. Here’s how it works:
- If your total debit card purchases for the month are up to $499, you earn 1% back on your “qualifying purchases” of that month in grocery, gas, coffee, fast food, and drugstore purchases.
- If you spend a total of up to $999 on your debit, you earn 2% cash back on the same categories of qualifying purchases.
- If you exceed $1,000 in total debit purchases, you earn the highest rate of 3% cash back on qualifying purchases.
- Chase caps your total annual cash back earned to $500.
- You can also earn up to whopping 20% cash back when you shop online at the Chase RealCash Mall.
Chase also rewards you for acting fast. You receive a $10 bonus after your first non-PIN purchase on a RealCash debit card. Also, if you open a RealCash debit card before July 31, you receive double cash back (up to $50) on qualifying purchases for the first 2 months after opening the card. Extra rewards on top of rewards make the RealCash debit card more appealing.
Reward debit cards are growing in popularity because, in lieu of a rewards credit card, you get the perks without having to face the consequences that come with mismanaging a credit card (debt, steep charges, exorbitant APR, credit score damage, you name it). Other rewards debit cards include PerkStreet Financial’s debit card offering music and gift card rewards, Chase’s own United Airline and Continental card with airline mile rewards, and Citibank offering redeemable points and miles. But not many issuers offer actual cash back, giving RealCash an edge in a market where cash is king.
However, while cash back debit cards usually offer about 1% cash back, Chase’s RealCash offers 1-3% cash back on only “qualifying purchases”, which is a smaller percentage of specific categories of your total monthly spending. Another downside is that RealCash comes with a $25 annual fee. But if you spend in the highest percentage tier and spend a big chunk on “qualifying purchases” to offset the annual fee and maximize your earning potential, then this debit card’s rewards is worth its weight in plastic.
I work for PerkStreet Financial and there are a couple things I wanted to clarify:
You mention that “cash back debit cards usually offer about 1% cash back” which isn’t true. Most cards offer substantially less than that. PerkStreet offers the only card in America that pays that much on debit (25x the average debit card) and we don’t charge an annual fee.
Also, Chase does not pay rewards on purchases you make that are not classified as grocery stores/supermarkets, gas stations, drug stores, pharmacies and fast food restaurants. So, you should ask yourself how much you really spend on these things and whether you’d be better off with a card that paid you rewards on all non-PIN purchases you make (most people would).
And finally, if you use a debit card then ATMs are something to consider. PerkStreet offers access to 3x more free ATMs than Chase offers.
Laurie
http://www.perktreet.com
Laurie,
Thank you for those clarifications. Credit Karma blog strives for accurate, relevant information for our readers.
We also review both the pros and cons about any product/service so readers are informed, with no hidden agenda. We did mention Perkstreet Financial as an alternative rewards debit card, we also stated that Chase’s cash back policy is dependent on “qualifying purchases”, and we recommend the card with some explicit reservations and warnings.
Again though, thanks for the additional information. We appreciate your help!
- Justine
Credit Karma Blog
Why I have not received my money in my account from real cash dollars? It has pass 17 bunsiness days
I think it depends what month you are looking at. For example, on August 17th you should receive July’s real cash. I’ve just started too and don’t think August will come through until Sept. 17th. I got my $10 bonus thou.
I love Chase ans I love this card! It has been two months and I have already earned almost $50.00. Yes it is true they don’t pay you for all your purchases but they can’t them towards the $1000.00 3% mark. It is easy to achieve that. You get the money deposited in your account the next month when your statement comes out. Seriously the rate I am going I will earn about $300.00 (minus the $25.00 annual fee) for the year just for using my card. I don’t know of any bank that can top that.
I am a disgruntled former WAMU employee they got laid off three times before I quit. When Chase purchased wamu I was going to switch because I was disgusted with large banks. I ended up staying and I gotta say they are a great bank!
Sorry I don’t know why my grammer is so bad! I think I was typing to fast!! OOPS!
Just got this card, how come mcdonalds, and wendys doesn’t come out as a real cash purchase.. I never go to these places, and i did just to see the real cash thing work, its been a week and there not on there…..? im dissapointed
This card is bogus. Can you believe i bought a laptop thru their website from best buy and got nothing for it.
I called about 7 times complaining and they were just rude and sometimes they brushed me off.
I think if you would be better off with a normal atm card.
this article is good.
I had this card for a year and it’s just a gimmick to make you spend more and shop online.
As far as online goes, the % back was as high as 25% or more but when you think about it, you’re paying for shipping and tax still plus a long wait. You can’t even enjoy it. So a few dollars back from say $50 didn’t excite me. Rather just go to the mall or whatever and save instantly.
Then it will give you up to 3% at a gas station, grocery or drug store but unless you do all your shopping there, you’ll spend more money to get a few cents back.
Plus, the annual fee, the low %’s, the waiting for stuff to come from online shopping….not worth it just for a few bucks a month.
Do you mind if I quote a couple of your posts as long as I
provide credit and sources back to your site? My blog is in
the very same niche as yours and my visitors would certainly benefit from some
of the information you provide here. Please let me know if this alright with you.
Regards!
When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get four e-mails with
the same comment. Is there any way you can remove me from that service?
Thanks!
Hi Rosaura! Are you talking about a comment on an article, review, or something else? If you email support@creditkarma.com we’d be happy to help you out. Thanks!