Though credit cards offer a plethora of perks like welcome bonuses, access to airport lounges and rewards on everyday spending, there are some downsides to holding a credit card, like paying late fees and sky-high interest rates on revolving balances. In Nov. 2021, the average APR for credit cardholders paying interest on their balances was 16.44%, according to Federal Reserve data.
For people who are prone to overspending, credit cards can be a bad choice because of high APRs, late fees and annual fees. For some, the interest and late fees end up costing more than the benefits they earn through welcome bonuses and rewards. Patrick Mrozowski was determined to solve this issue by creating a debit card that would earn rewards.
"I realized that rewards and the incentives of credit cards are very misaligned because credit cards are fundamentally designed to get you into debt since credit card companies monetize off of the interest [that customers pay]," says Mrozowski.
Mrzowski — with the help of Sid Parihar and Kenan Pulak — went on to found the Point Card, a debit card that was launched in 2020 which caters to individuals considered HENRYs or 'high earners, not rich yet.' With the Point Card, debit cardholders can earn generous rewards on subscriptions, ridesharing and food delivery services and select companies.
Below, Select takes a look at what makes the Point Card different from credit cards and other debit cards, as well as its fees and rewards.
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Point Card debit card review
How does the Point Card work?
There are two versions of the Point Card: The Point Card™ Neon and The Point Card™ Titan. The Point Card Neon is a debit card while the soon-to-be released Titan is a charge card with more perks. Each provide cardholders with rewards on their spending and other benefits typically exclusive to credit cards, like cell phone insurance and zero liability protection.
Point Card Neon debit card
Most people will be eligible for the Point Card Neon, which costs $9.99 a month or $100 a year. Point does not perform credit checks — potential cardholders go through an online verification process that takes a couple of minutes, says Mrzowski. Since the Point Neon Card is a debit card, you won't be able to build your credit score with the card.
Point Card Neon
Rewards
5x points on select subscriptions, 3x points on select food delivery & rideshare services, 1x points on everything else, rewards on changing select retailers
Welcome bonus
None
Annual fee
$9.99 a month or $100 a year
Foreign transaction fee
None
Credit needed
None/No credit check required
Pros
- You can earn generous rewards and have access to insurance and protections that you wouldn't have with a traditional debit card
- No credit check
Cons
- Can't revolve your balance because it's a debit card
- Annual fee of $100
After a cardholder has been approved, they'll gain access to a bank account through Point. In order to spend money with a Point Card, cardholders will need to transfer money from another bank account or from payment apps — like Venmo, Cash App or Apple Cash — into a Point account. Point accounts are covered through FDIC insurance for up to $250,000.
After that, cardholders can use either the physical or virtual card at retailers. Since Point Card is a debit card, cardholders can withdraw money from their account using any ATM. Point Card covers two withdrawals a month, reimbursing up to $8 in fees. However if you want more traditional banking features, you won't find it here — the Point Card does not allow you to deposit cash or checks (either in person or through mobile deposit). You also won't be able to write or send checks with the account.
What makes the Point Card distinctive from other debit cards is the protections, insurance and rewards you'll get with the card. While most debit cards don't offer zero liability protection, the Point Card will compensate cardholders for damaged or stolen items within 90 days of the date of purchase, up to $1,000 per loss. Most debit cards offer no rewards for spending, so offering uncapped rewards is a unique feature, although it does come at a cost since you'll be paying an annual or monthly fee.
Point Card Titan charge card
A charge card, unlike a credit card, does not have a revolving line of credit. Cardholders don't pay any interest and must pay their balance off in full after an interval of time. According to Mrzowski, those who have the Point Card Titan can choose how frequently they want to pay off their balance in full — whether it's every day, week or month. Since the Point Card Titan is a charge card, it can influence your credit score.
The Titan has a $399 annual fee and will be available sometime in spring of 2022. In order to be eligible for the card, individuals must make at least $100,000 in annual income or have $10,000 in liquid assets, including cash or investments such as stock and crypto. Currently, people can sign up to be on the waiting list for the card via the website.
With both Point Card Neon and Point Card Titan, cardholders gain access to features like new purchase insurance, trip cancellation insurance, event ticket protection, extended warranty, phone insurance, car rental insurance and more.
Rewards
Point Card Neon rewards
The Point Card Neon offers rewards on all spending. You'll earn points at the following rates:
- 5x points on select subscriptions such as Netflix, Hulu, Spotify and HBO Max
- 3x points on select food delivery & rideshare such as Uber, Lyft, MTA, Instacart, Grubhub, Seamless, Uber Eats and Doordash
- 1x points on everything else
Cardholders can only redeem their rewards as cash back deposited directly back into their Point account, and the redemption value is one point per cent. So essentially you're earning 5% back on select streaming subscriptions, 3% on food delivery and rideshare services and 1% back on everything else
The Point Card also offers elevated cash-back rates with rotating retailers for a limited time. In the past the company has offered 5x points at Walmart, Amazon, Whole Foods and more.
Point Card Titan rewards and benefits
For people seeking a luxury card with more generous rewards and perks, the Point Card Titan could be a good choice because it allows cardholders to choose which spending categories they earn bonus points in.
Cardholders can choose two categories to earn 5x points per dollar spent and two categories where they earn 3x points per dollar spent. They can switch the bonus categories whenever they want.
5x categories:
- Rideshare
- Food delivery
- Subscriptions
- Fitness
- EV charging
3x categories:
- Travel
- Dining
- Groceries
- Entertainment
- Fashion
1x point on everything else
While the Point Card Titan has a higher annual fee of $399, you'll get more redemption options and perks. You can redeem your points for cash back, transfers to airline partners and for cryptocurrency.
The Point Card Titan also offers additional benefits like Priority Pass airport lounge access and a TSA PreCheck® and Global Entry fee credit.
Alternatives to the Point Card
While the Point Card is compelling because it offers cardholders rewards, insurance and protections typically reserved for credit cards, credit cards do offer unique perks over debit cards. Credit cardholders can build credit, and there are many credit cards without any annual fees with generous welcome bonuses.
However, if you opt for a credit card, you should be diligent about making your credit card payments on time and in full in order to avoid paying interest and hurting your credit score.
The Chase Freedom Unlimited® (see rates and fees) is a no-annual-fee credit card that offers similar cash back categories to the Point Card Neon. The Chase Freedom Unlimited intro offer is a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. Cardmembers can earn 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers get long intro APR
- No annual fee
- Travelers face a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
The Capital One Savor Cash Rewards Credit Card is another no annual fee credit card with rewards categories similar to the Point Card Neon. It provides 3% cash back on dining, entertainment, select streaming services and grocery stores (excluding superstores like Walmart® and Target®), and 1% on all other purchases. The Capital One Savor Rewards Credit Card also allows you to earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening.
The Capital One Savor Cash Rewards Credit Card is one of the most rewarding options for earning cash back in categories such as entertainment and dining without paying an annual fee.
- One of the most rewarding cash back cards for entertainment and streaming services
- No annual fee
- Easy-to-earn welcome bonus
- High APR
- Requires a good to excellent credit score
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening
- $0 annual fee and no foreign transaction fees
- Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
- Earn 8% cash back on Capital One Entertainment purchases
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 12 months; 18.74% - 28.74% variable APR after that; balance transfer fee applies
- Top rated mobile app
Balance transfer fee
Introductory fee of 3% of the amount of each transferred balance that posts to your account during the first 12 months that your account is open. After that, 4% of the amount of each transferred balance that posts to your account at a promotional APR that we may offer you at any other time.
Lastly, if you're thinking about being placed on the wait list for the Point Card Titan, you might consider a luxury credit card such as the Chase Sapphire Reserve® (see rates and fees) which has a $795 annual fee, and comes with perks like a $300 travel credit, Global Entry/TSA PreCheck fee credit, Priority Pass Select lounge access and a variety of travel and purchase insurance and protections.
The Chase Sapphire Reserve® is a standout premium credit card with plenty of luxury perks and statement credits to justify its annual fee.
- Access over 1,300 airport lounges worldwide with a complimentary Priority PassTM Select membership, plus every Chase Sapphire Lounge® by The Club with two guests.
- Up to $300 in annual travel credit each account anniversary year
- You can transfer rewards to all of Chase's travel partners including World of Hyatt, Southwest Rapid Rewards and many more
- Top-tier travel and shopping protections
- High annual fee
- Requires a high credit score
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 150,000 bonus points after you spend $6,000 on purchases in the first 3 months from account opening.
- Get $3,000 in annual value with Sapphire Reserve.
- Earn 8x points on all purchases through Chase TravelSM, including The EditSM and 4x points on flights and hotels booked direct. Plus, earn 3x points on dining worldwide & 1x points on all other purchases
- $300 annual travel credit as reimbursement for travel purchases charged to your card each account anniversary year.
- Access over 1,300 airport lounges worldwide with a complimentary Priority PassTM Select membership, plus every Chase Sapphire Lounge® by The Club with two guests. Plus, up to $120 towards Global Entry, NEXUS, or TSA PreCheck® every 4 years
- Get up to $150 in statement credits every six months for a maximum of $300 annually for dining at restaurants that are part of Sapphire Reserve Exclusive Tables.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Coverage, Lost Luggage Insurance, no foreign transaction fees, and more.
- Get complimentary Apple TV+, the exclusive streaming home of Apple Originals. Plus Apple Music — all the music you love, across all your devices. Subscriptions run through 6/22/27 — a value of $288 annually
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
But if you really want to stick with a debit card, consider the Discover® Cashback Debit Checking, which offers 1% cash back on all purchases on up to $3,000 in debit card purchases per month. This functions as a checking account, but you'll earn cash back on your debit card purchases in addition to having access to fee-free cash withdrawal at 60,000+ Allpoint® and MoneyPass® ATMs and mobile check deposit.
Bottom line
The Point Card Neon is a good option for people looking to earn rewards with the protections of a credit card without having to actually use a credit card. If you have trouble making your credit card payments on-time and are regularly carrying a balance on your card, a debit card could be useful while you get your finances in order.
However, the Point Card Neon does have an annual fee of $100 and no welcome bonus, so using this debit card does come at a cost.
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Information about the Point Card™ Neon and Point Card™ Titan has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
