If you’re an obsessive loyal Southwest flyer like me (thank you Southwest for being so awesome), you’ve probably loved their no-nonsense perks, especially the two free checked bags. But starting May 28, 2025, that perk is taking a hit: Southwest will now only offer one free checked bag, and only for A-List members so that leaves the rest of us trying to get creative to get some steals and deals.

If you want to jumpstart your journey, here’s my referral link to apply for the Southwest card of your choice to grab all these same deals I do!

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After sitting down to book my families summer 2025 trip today, I realized it’s time to start thinking more strategically. So I put Chat GPT to the test to help me find out more info and strategies. I recently saw you could get a $500 Southwest Gift Card at Costco but I missed the deal since they stopped offering it Jan 1, 2025. However, after a quick Google search, I saw that Sam’s Club is still offering the same deal for all those membership holders.

This post dives into a little-known trick I’ve used to save real money on Southwest flights with their credit card point system, even when booking flights with points (sorry Dave Ramsey’s Financial Peace course – I learned how to hack the systems for free stuff.)

I’m breaking it all down:

• How some gift card hack works
• When it actually saves you money
• Whether upgrading to A-List is worth it under the new bag fee changes
• And how to stack rewards, discounts, and real cash value on flights you’re already booking

Let’s beat the system (legally) and fly smarter.

About 15 years ago I realized I was already spending money on every day things in my personal life: groceries, clothing, necessities, gas/utilities, trash, house items and repairs etc. Even in my business life I was paying taxes, bills, for new equipment, memberships etc. So if I’m already spending money every month, it’s a no brainer to put it on a card like a personal Southwest credit card and get perks. I dove in and got a Southwest business card also. I literally put about 95% of all my monthly bills on these two cards. The only thing is, you have to be DISCIPLINED, not over spend outside your means, and pay it off just like you would pay in person for those items, every month.

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WHY DID I CHOOSE A SOUTHWEST CARD OVER THE OTHERS?

1. I love to travel and travel often and I also like simple systems to understand.
2. Southwests customer service is also so stellar from quick phone support, as well as their inflight comedy from a great majority of their attendants.
3. You can always book flights and then cancel or change them later with no penalties (THE BEST).
4. You can get up to 3 friends to fly for FREE with you for TWO YEARS! Read my post here about how I hacked their Companion Pass to get 4 of us to travel free for two calendar years.

Due to me going this route, I haven’t actually paid for a flight in about 15 years.. for me OR my two children (since they’ve been alive)! I purchase all my flights with my points from my daily/monthly spending I was already doing.

If you don’t already know, enrolling in Southwest Airlines’ Rapid Rewards® program is completely free. Once you’re a member, you can start earning points on flights and through various partners also. So why then get a credit card Jana?

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✈️ Why Get a Southwest Credit Card?

While you can earn points through flights and partners, a Southwest Rapid Rewards® credit card can significantly boost your point accumulation and offer additional perks and it has a small yearly fee depending on the card you get:

Consumer Cards:

• Southwest Rapid Rewards Plus Credit Card: $69
• Southwest Rapid Rewards Premier Credit Card: $99
• Southwest Rapid Rewards Priority Credit Card: $149 

Business Cards:

• Southwest Rapid Rewards Premier Business Credit Card: $99
• Southwest Rapid Rewards Performance Business Credit Card: $199 

With any card, you can earn more points:

• ✅ Accelerated Point Earnings: Earn more points per dollar on Southwest purchases and other categories.
• ✅ Anniversary Bonus Points: Receive bonus points each year on your cardmember anniversary.
• ✅ Companion Pass® Boost: Points earned with the card count toward the Companion Pass®, allowing a designated companion to fly with you for free (excluding taxes and fees). See my “Strategies for getting a friend to fly TWO years with you via Southwest’s Companion Pass.”
• ✅ A-List Status Boost: Earn tier qualifying points (TQPs) toward A-List status through card spending.
• ✅ Additional Perks: Enjoy benefits like no foreign transaction fees, in-flight discounts, and more.

These benefits can make a Southwest credit card a valuable tool for frequent travelers looking to maximize their rewards and enjoy added conveniences.

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✈️ Southwest Rapid Rewards® Credit Card Earning Rates

1. Southwest Rapid Rewards® Plus Credit Card

• 2 points per $1 on:
  • Southwest purchases (including flights, gift cards, and in-flight purchases)
  • Rapid Rewards hotel and car rental partners
  • Local transit and commuting (including rideshares)
  • Internet, cable, phone services, and select streaming services
• 1 point per $1 on all other purchases
  

2. Southwest Rapid Rewards® Premier & Priority Credit Card

• 3 points per $1 on:
  • Southwest purchases
• 2 points per $1 on:
  • Rapid Rewards hotel and car rental partners
  • Local transit and commuting (including rideshares)
  • Internet, cable, phone services, and select streaming services
• 1 point per $1 on all other purchases

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💡 Additional Perks

All three cards offer bonus points on your cardmember anniversary:

• Plus Card: 3,000 bonus points
• Premier Card: 6,000 bonus points
• Priority Card: 7,500 bonus points

These anniversary points can add significant value, especially if you fly Southwest frequently.

Yes, points cover your fare, but you’re still on the hook for taxes and fees on every flight.

And here’s the hack: you can cover those pesky fees using discounted Southwest gift cards from Sam’s Club—and earn flight points doing it. Buy that gift card with your SW card, and not only do you earn points, you save $50 essentially getting rid of a few of your taxes on a few flights.

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🧮 Let’s Run the Numbers

Let’s say:

• Costco or Sam’s Club sells a $500 Southwest gift card for $449.99 → ~$50 discount.
• You use your Southwest Rapid Rewards® credit card, which earns you 2 points per $1 spent on Southwest-related purchases.

However, Costco or Sam’s Club purchases are not coded as Southwest purchases—so you’d only earn 1 point per $1.

So:

• You spend $449.99 on your Southwest card
• You earn 450 Rapid Rewards points (worth about $6.75 based on 1.5¢/point)
• You get $500 in flight value for $449.99
• Net gain = $50 gift card savings + $6.75 in points = $56.75

BUT…

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🧾 The Catch: Paying It Off

If you don’t have the cash to pay the credit card off immediately, and you:

• Carry a balance, your APR (likely around 20–25%) wipes out all savings very quickly.

For example:

• $449.99 carried for 1 month at 25% APR = ~$9.37 in interest
• Carried for 3 months = ~$28.11 in interest

So after 3 months, your $56.75 gain drops to $28.64, and your credit utilization goes up, which can hurt your credit score if you’re not careful.

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🤔 Can You “Beat the System” Without Spending Tangible Money?

Not really—

🔍 So here’s the real answer:

When you book a flight using Southwest Rapid Rewards points, you always have to pay:

• $5.60 per one-way domestic flight (so $11.20 round-trip) in mandatory TSA/security taxes
• Sometimes more on international or multi-leg trips (can be $30+)

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✅ Can You Use a Southwest Gift Card to Pay for These Taxes?

YES. Southwest does allow you to use:

• Southwest gift cards
• Credit cards
• Travel funds

…to pay for the taxes and fees portion of award tickets.

🔗 From Southwest’s official policy:

“Taxes and fees associated with Rapid Rewards® tickets may be paid with a credit card, Southwest LUV Voucher®, or Southwest® gift card.”

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🧠 Strategy: How This Can Save You Real Money

Let’s say:

• You use points for 4 round-trip flights this year.
• Average taxes/fees = $22 per flight → $88 total
• You buy a $100 Southwest gift card at Costco for $90.

➡️ You’ve just:

• Saved $10 on money you’d have to spend anyway
• Possibly earned 90 Rapid Rewards points for the gift card purchase (~$1.35 in value)
• Used no real additional cash if you pay your credit card bill on time

Net savings: ~$11.35 on required fees you can’t avoid anyway.

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📌 Final Word:

Yes—you can absolutely use a Southwest gift card from Sam’s Club to pay just the taxes and fees on award flights. So:

• You’re not spending money you weren’t already going to spend
• You’re getting the discounted value
• You’re getting points on the purchase
• You are beating the system— legitimately

Does this math and calculations from my brain help you? I’m a bullet list sort of girl and I have to see it to see how it makes sense.

Drop a comment below if you enjoy this hack, if you have others you want to share or if you just love Southwest all around! Would love to hear your travel experiences.