Southwest Airlines cardholders can now earn bonus points on all Lyft rides through December 31, 2027. The update to Chase’s partnership with Lyft simplifies the rewards process, removing the need for activation while increasing earning potential for users of select Southwest credit cards. This means that by simply setting a Southwest card as the default payment method in the Lyft app, cardholders will automatically begin accumulating additional rewards points on every ride.
Tiered Rewards Based on Card Type
The number of points earned per dollar spent varies depending on the specific Southwest card held:
- Southwest Rapid Rewards® Priority Credit Card & Southwest® Rapid Rewards® Performance Business Credit Card: Earn 5 points per dollar spent.
- Southwest Rapid Rewards® Premier Credit Card & Southwest® Rapid Rewards® Premier Business Credit Card: Earn 3 points per dollar spent.
- Southwest Rapid Rewards® Plus Credit Card: Earn 2 points per dollar spent.
This tiered structure reflects the differing annual fees associated with each card, providing higher rewards to those who invest more in their Southwest loyalty.
Maximizing Rewards: Consider Alternatives
While the new perk is convenient for Southwest loyalists, it’s crucial to compare earning rates against other credit cards. For instance, the Chase Sapphire Preferred® Card offers 5 points per dollar on Lyft purchases, exceeding the rate of the Southwest Rapid Rewards® Plus Credit Card (which earns only 2 points per dollar). Therefore, cardholders should evaluate whether another card in their wallet might yield higher overall rewards for ride-hailing spending.
Why This Matters
This update reinforces a trend among credit card issuers: incentivizing spending on popular services like Lyft to boost card usage and customer loyalty. The ease of integration—no activation required—is a smart move, as friction often deters customers from maximizing rewards. The decision to scale rewards based on card tier also encourages customers to upgrade to higher-fee cards for better earning potential, a common tactic in the credit card industry.
Ultimately, Southwest cardholders should assess their spending habits and compare rewards options to ensure they’re maximizing their earnings. The convenience of automatic Lyft rewards is valuable, but informed card usage remains the key to optimal benefits.
