Debit cards: A good deal gets better 2

With most debit cards, however, points are earned only on signature purchases and aren't earned in specified cases, including ATM withdrawals, balance transfers or payments made to prepaid or reloadable cards.
"I guess consumers have shown that they do respond to rewards, even when those rewards are less substantial than on the credit side," Sloane says. "I still believe the primary consumer motivation is better management of their finances. Secondary motivation is the thought that, 'as long as I'm using my debit card, I might as well get something back from that.' "
Regardless of the differences between credit card and debit card reward programs, one has to evaluate how one uses them.
"Credit card reward programs only work if you use the rewards and pay off the balance every month," McBride says. "If you do pay off your balance every month, you have no need to use a debit card. You can use the issuer's money until the bill comes and keep your own cash in an interest-earning account."