There have been several airline and hotel-related debit cards launched in the US and UK lately, and Hilton itself has one with Currensea for the UK (read more here).
Now, Hilton has surveyed members in the US about the possibility of launching a debit card with their co-branded credit card issuer, American Express.
You can access Hilton here.
READ MORE: Hilton Honors Rate & Bonus Points Offers
Here are some of the questions:
There are significantly lower fees for merchants to accept debit cards, and obviously, consumers cannot carry debt on them, and thus, there are no interest charges (usually very high with cobranded credit cards).
There are obviously no credit losses for issuers on these, as consumers cannot default.
Hilton’s UK Debit Card Product:
New Hilton UK Debit Cards With Honors Status
Conclusion
I am not sure what the business case is for these debit cards, as fees in most markets are very low and sometimes capped, leaving very little fee income for issuers to fund rewards.
They have gained popularity in the US among consumers who find it difficult to control their credit card spending and are unable to pay off their balances each month, resulting in high interest and possibly other fees.
It is always good to have more options, and the Hilton Amex debit card would likely be very similar to the one in the UK.
Source
