Show menu

United and Southwest Bring Back Debit Cards

United Airlines 737 taxiing at Chicago O'Hare with the control tower in view, illustrating supplier news on new airline debit cards
by
4 min read

Key points

  • United and Southwest launched Visa debit cards with Sunrise Banks
  • Both cards earn one point per dollar on airline purchases and one per two dollars elsewhere
  • Monthly fees are waived with average balances of $2,000 at United and $2,500 at Southwest
  • No credit check is required, positioning both products for younger or credit averse travelers
  • Perks are slimmer than co-branded credit cards, which still drive most loyalty revenue
  • The launches mark a return of airline debit cards after post-2010 interchange caps

Impact

Who Benefits
Flyers who prefer debit over credit, including students and thin file consumers
What You Get
Entry level mileage earning on everyday spend, small welcome bonuses, and limited annual perks
What You Give Up
Richer multipliers, bag and boarding benefits, and status opportunities common on airline credit cards
Costs And Waivers
United waives a $4 monthly fee at a $2,000 average balance, Southwest waives a $6.99 fee at $2,500
How To Decide
If you will reliably keep the required average balance and want to avoid a credit pull, the debit route can fit, otherwise a starter airline credit card still delivers more value for most travelers

United Airlines and Southwest Airlines have moved back into debit cards, each launching a Visa product issued by Sunrise Banks with technology from Galileo. United's MileagePlus Debit Rewards Card went live on November 4, 2025, and Southwest's Rapid Rewards Debit Card debuted on October 28, 2025. Both earn one mile or point per dollar on spending with the airline and one per two dollars on other purchases, with no credit check to apply, and with monthly fees waived above set average balances. For budget minded or credit averse flyers, this is a new way to earn entry level miles on everyday spend without opening a credit line.

The economics look very different from the pre 2010 wave of airline debit cards. Congress capped debit interchange under the Dodd Frank Act's Durbin Amendment, which reduced the fees merchants' banks pay issuers per transaction. That policy change made rich debit rewards hard to fund, which is why airlines shifted almost entirely to credit cards for the last decade. The cap remains in place today, and helps explain why United and Southwest are launching leaner debit propositions with modest earn rates and small bonuses.

What is on the table now. United's card offers a limited time 10,000 mile bonus for spending $500 in four months, one mile per dollar on United purchases, one per two dollars on other eligible spending, a 2,500 mile annual bonus after $10,000 in card spend, and balance based bonus miles for maintaining higher average balances. United waives a $4 monthly fee with a $2,000 average daily balance. The account is issued by Sunrise Banks on the Visa network and is powered by Galileo.

Southwest's card mirrors the structure. It offers a 2,500 point welcome bonus after two recurring deposits and $100 in spend within 90 days, one point per dollar on Southwest, dining, and subscriptions, one per two dollars on other everyday purchases, the ability to earn up to 7,500 points on anniversary with sufficient annual spend, a 7,500 Companion Pass points bonus each year, and an annual 20 percent promotion code plus a small travel credit. Southwest waives a $6.99 monthly fee with a $2,500 average balance. This product is also issued by Sunrise Banks on Visa, using Galileo's issuing stack.

Why airlines care. Loyalty and co-brand economics have become central to airline revenue and cash flow. IdeaWorks' latest ancillary revenue research, including a focused paper on bank partnerships, highlights how co-branded card revenue has grown into the multi billion dollar range for the largest U.S. carriers. United's public disclosures and industry analysis point to loyalty as a durable profit engine, which makes acquiring members early with a debit on ramp strategically attractive even if the immediate unit economics are thinner than credit.

How these debit cards compare to credit cards. Compared with airline credit cards, which commonly offer one point per dollar everywhere and multipliers on the airline, plus free checked bags, early boarding, status credits, and sometimes lounge access, the debit cards are intentionally restrained. That is a rational trade for consumers who do not want a credit line or a credit inquiry. As NerdWallet's reporting notes, the United debit account waives its fee at a $2,000 average balance, which keeps ongoing costs predictable if you can maintain that threshold. If you cannot, small monthly fees can erode the value of the modest earn rate.

What to watch next. With two launches in two weeks, competitive responses are likely. When one or two airlines introduce a consumer financial product, others often follow, especially if the product is designed to seed long term loyalty and create a path into richer co-branded credit cards later. If you are evaluating these debit cards, compare the fee waiver thresholds against your typical checking balance, look closely at the welcome terms, and decide whether you value a debit only profile or would earn far more from an entry tier co-branded credit card. Regulatory developments that change interchange or routing rules would also affect debit economics, so any policy movement is worth monitoring.

Final thoughts

United and Southwest re entering the debit space is a measured play, not a revival of the pre 2010 perk rich era. For younger travelers and those who avoid credit lines, the cards provide a simple way to accumulate miles on everyday spending, provided you can maintain the balance needed to waive monthly fees. Airline credit cards still deliver more value for most travelers, but these debit options add a practical on ramp to loyalty for the segment that wants it.

Sources

Topics