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Methods To Ease Debit Card Purchase Requirements For Reward Checking

Monday, July 19, 2010 - 5:13 AM
It can be time consuming to meet the debit card purchase requirements for reward checking accounts, and this is especially true if you have multiple accounts. FW member dukeboy shows how you can automate making multiple purchases.

It should be noted that multiple small purchases can cause the financial institution to close your account. Even if the institution doesn't close your account, you may still want to add a few large purchases to help your institution. Too many people making too many small purchases will make it difficult for the institution to continue the high-yield reward checking account.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
1. Monday, July 19, 2010 - 9:52 AM
This method should be titled, "How to kill the goose that laid the golden egg."  Especially in the current financial environment, we don't need to give banks reasons to discontinue Rewards Checking plans for all of us by scamming the system with multiple payments in pennies.
AlanAlan33 posts since
Jun 7, 2010
Rep Points: 206
2. Monday, July 19, 2010 - 6:18 PM
Ken, I think this post (and link) are unnecessary - why encourage such behavior?


I have multiple RCA's and what I do is the following: I divide grocery or drug store visits into two separate (smaller) orders at the cash register and pay with two different debit cards (about $5-15 each). Towards the end of the cycles when I have almost all the required debit card purchases made, I sometimes split orders into a small debit card purchase and the (bigger) rest of the order goes on a cashback credit card.
darkdreamer4udarkdreamer4u178 posts since
Jun 11, 2010
Rep Points: 638
3. Monday, July 19, 2010 - 7:28 PM
I was a little concerned also, but I figured it was better to openly discuss the issues. I made sure to note the issues involved.

If someone has a few large payments, this could allow them to easily meet debit card requirements and still meet the requirements. Breaking up a $500 payment into several smaller payments should allow the institution to get a sizable amount of interchange fees while allowing the customer to meet the reward checking requirements.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
4. Tuesday, July 20, 2010 - 2:54 AM
I find the link posted above and the overall attitude of the Fat Wallet people in general to be repugnant.  I agree with Alan.  This approach is going to kill RCAs for those of us who are looking for an honest way to earn around 4% on our savings, not rip off banks by  dividing utility bills into $1 increments or buying single ice cream cones at McDonalds. 

And as much as we all appreciate the great work Ken does to help us find ways of maximize the interest on our savings, disclaimer or not, I think it's inappropriate to link to that thread which glorifies ways to legally cheat banks out of a reasonable profit.  In the end activities like those discussed in the link are only going to cause banks to continue limiting RCAs to local customers and reducing interest rates. How to break up a $500 payment into smaller payments is an appropriate topic for discussion in this forum.  But I just don't think the FW thread is.  The members of this forum are better than that.
dunkerdunker136 posts since
Jun 11, 2010
Rep Points: 413