What is the best digital wallet for earning rewards?

The "best" digital wallet for earning rewards depends on your primary credit cards and spending habits. Apple Pay, Google Pay, and Samsung Pay all support linking various rewards credit cards. They allow you to earn points or cashback. The key is to link your highest-earning cards for specific spending categories and look for exclusive digital wallet promotions from your bank or card issuer.

How do I add a loyalty card to my digital wallet?

Most major digital wallets like Apple Pay, Google Pay, and Samsung Pay allow you to add loyalty cards. Typically, you open the wallet app, look for an option to add a "loyalty card," "store card," or "pass," and then either scan the barcode on your physical card or manually enter the membership number. This stores a digital version you can use at checkout.

Is it safe to store all my credit cards in a digital wallet?

Yes, it is generally considered very safe to store multiple credit cards in a digital wallet. Digital wallets use advanced security features like tokenization, which replaces your actual card number with a unique, encrypted number for each transaction. They also require authentication (like fingerprint, face ID, or PIN) for every purchase, adding an extra layer of protection against fraud compared to carrying physical cards.

Can I use my digital wallet if my phone battery dies?

No, if your phone battery dies, you will not be able to use your digital wallet for payments. Digital wallets require power to operate the device and its NFC chip for contactless transactions. It's always wise to carry a physical backup card or some cash for emergencies.

What are the common fees associated with using a digital wallet?

Generally, there are no direct fees charged by the major digital wallet providers (Apple Pay, Google Pay, Samsung Pay) for making payments. However, standard fees from your linked bank accounts or credit cards, such as foreign transaction fees or interest charges, still apply. Some peer-to-peer payment apps within the digital wallet ecosystem might charge fees for instant transfers or certain types of transactions.

How do digital wallets protect my privacy?

Digital wallets protect your privacy by using tokenization, meaning your actual card number is never shared with the merchant. They also often do not store transaction details on their servers. Instead, transactions are processed directly between your device, the payment terminal, and your bank. This minimizes the risk of your personal financial data being compromised during a purchase.

Can I use a digital wallet for ATM withdrawals?

Some banks and credit unions offer cardless ATM withdrawals that can be initiated through their mobile banking apps or directly through certain digital wallets. This feature is not universally available across all banks or digital wallet platforms. You would typically select the "cardless ATM" option at a compatible ATM and follow the prompts on your phone.

Mastering Digital Wallets: Rewards, Payments, & Security |…