Discover it® Cash Back is a rewards credit card offering 5% cash back in categories that rotate quarterly. The card is great for people who want to focus on cash-back earnings and enjoy the mild gamification of 5% rotating category rewards.
Cards and Points Rating: 4.0/5
Discover it® Cash Back welcome offer: $100 statement credit + double cash back in your first year. (Annual fee: $0)
Get a $100 statement credit when you’re approved and use the card within the first three months. Plus, get all of your cash back doubled in your first year of having the card. Get this welcome bonus.
The $100 statement credit after approval is an easy welcome bonus, even if it is smaller than other easy welcome bonuses. More interesting is the doubled cash back in the first year of having the card which turns the cards 5% rotating categories into 10% rotating categories.
5% cash back in rotating categories. (More in our card review.)
This is a referral link. All information about Discover it® Cash Back has been collected independently by cardsandpoints.com.
Our 30 second review of the Discover it® Cash Back
When the Discover it® Cash Back card features increased cash back rewards on a category as part of its 5% rotating cash back categories, you’ll usually earn market-leading rewards in that category. At least on up to $1,500 of spending during the quarter. Unfortunately, the card only offers 1% cash back rewards on general purchases and it doesn’t include any benefits like extended warranty or purchase protection that we expect most cards to have.
Get the Discover it® Cash Back card if you like earning rewards and don’t mind a bit of gamification. You’ll need enroll in the 5% categories each quarter, but this can be done with one click from an email or a few clicks from the website.
Likes
- 5% cash back in rotating categories.
- Double cash back in the first year.
- Additional rewards value on gift card redemptions.
- No annual fee.
Dislikes
- No substantive benefits.
- Low 1% cash back rewards on general purchases.
Discover it® Cash Back at a glance
Here’s what you need to know about the Discover it® Cash Back card.
Rewards
| Double rewards, including in rotating categories, in the first year of having the card. | ||
| Rotating quarterly bonus categories on up to $1,500 of purchases each quarter. Quarterly enrollment required. | 5% | |
| Other purchases | 1% |
Rewards are earned as cash back, but can be redeemed for gift cards for additional value.
Benefits
| Consumer insurance benefits None | |
| Travel insurance benefits None | |
| Travel benefits None | |
| Third-party merchant benefits None |
Terms
| Annual fee: $0 Foreign transaction fee: foreign_transaction_fee Balance transfer fee: balance_transfer_fees | |
| Intro APR on Balance Transfers: balance_transfer_intro_apr,balance_transfer_intro_duration Intro APR on Purchases: intro_apr_rate,intro_apr_duration Regular APR: reg_apr,reg_apr_type | |
| Helpful features FICO credit score for free 100% U.S. based customer service Friend referral program |
My take on the Discover it® Cash Back card
The Discover it® Cash Back is a fun addition to your wallet if you enjoy chasing 5% cash back category rewards. But outside of the card’s rotating categories, you won’t find much use in the card if you want decent rewards or benefits.
I use my Discover it® Cash Back exclusively for its 5% rotating bonus categories. Discover’s rotating bonus categories have historically included useful categories like grocery stores, gas stations, restaurants, wholesale clubs, Target, Amazon.com, select pharmacies, and digital wallet payments. All of these are useful categories, and many times benefits like extended warranty don’t matter on these purchases. This card complements other 5% rotating category cards cards like the Chase Freedom Flex℠ and the Citi Dividend Card.
Outside of the card’s rotating bonus categories, the card doesn’t get much use. While you will get your cashback rewards (including your 5% rewards) doubled at the end of your first year of being a cardmember, after the first year, a 2% cash back card offers better rewards on general purchases. Unfortunately, the card doesn’t offer and extended warranty, purchase protection, or travel insurance benefits, so there isn’t a compelling reason to use it outside of its bonus categories.
Should you get the Discover it® Cash Back card? If you enjoy a bit of the gamification of credit card rewards, adding the card to your wallet can increase the total rewards you earn and you can have some fun chasing 5% categories. But I wouldn’t use the card as your go-to card for everyday spending.
Discover it® Cash Back new cardmember welcome bonus
The Discover it® Cash Back card offers double cash back for the first year through all channels, but it only offers a $100 statement credit upon approval through referral links. Here’s our referral link that can get you the best available bonus on the card:
Discover it® Cash Back welcome offer: $100 statement credit + double cash back in your first year. (Annual fee: $0)
Get a $100 statement credit when you’re approved and use the card within the first three months. Plus, get all of your cash back doubled in your first year of having the card. Get this welcome bonus.
The $100 statement credit after approval is an easy welcome bonus, even if it is smaller than other easy welcome bonuses. More interesting is the doubled cash back in the first year of having the card which turns the cards 5% rotating categories into 10% rotating categories.
5% cash back in rotating categories. (More in our card review.)
This is a referral link. All information about Discover it® Cash Back has been collected independently by cardsandpoints.com.
Rewards: How to earn and use the rewards of the Discover it® Cash Back rewards card
The Discover it Cash Back Card is the original “rotating category” card that offers 5% rewards in up to $1,500 of spending in categories that change quarterly.
Earning rewards
Earning rewards from spending
Earning rewards from the Discover it® Cash Back card is simple. Just use your card on purchases and earn rewards. You’ll earn 1% cash back rewards on general purchases, plus 5% cash back on purchases in rotating categories on up to $1,500 in purchases during the quarter when you activate your category bonuses.
Here’s what the Discover it® Cash Back card earns:
| Double rewards, including in rotating categories, in the first year of having the card. | ||
| Rotating quarterly bonus categories on up to $1,500 of purchases each quarter. Quarterly enrollment required. | 5% | |
| Other purchases | 1% |
Rewards are earned as cash back, but can be redeemed for gift cards for additional value.
Discover it® Cash Back card rotating categories
The most attractive rewards of the Discover it® Cash Back card are earned in the card’s quarterly rotating bonus categories. Discover typically announces new bonus categories on or near the first of the month prior to the calendar quarter start. For example, the July-September bonus categories will usually be announced around June 1.
We update our post on the Discover 5% categories when Discover makes its quarterly announcement. But here are this year’s announced categories:
| Q1 2024 January – March | Q2 2024 April – June | Q3 2024 July – September | Q4 2024 October – December |
|---|---|---|---|
| Drugstores and Restaurants | Gas stations, electric vehicle charging stations, home improvement stores, and public transit | Grocery stores and Walmart | Amazon.com and Target |
Redeeming Discover it® Cash Back rewards
The easiest way to redeem your Discover it® Cash Back is for cash back redemptions through the Discover website, but you can increase the value of your cash back rewards by redeeming your rewards for gift cards. Discover offers a selection of gift cards that you can get using your rewards and they’ll give you 5% – 20% additional value when you redeem for gift cards
How to redeem your cash back rewards
Here’s how to redeem your Discover cash back rewards from the website or mobile app.
On the Discover website, hover over the “Rewards” menu at the top of the screen and select “Redeem Cashback Bonus.” You’ll be taken to a screen that shows you your options for redeeming your Cashback rewards.
On the mobile app, you can find the option to redeem your rewards by tapping the “Rewards” button on the app main screen. The next screen will have a button that says “Redeem” at the top of the screen. Click on “Redeem” to see your redemption options.
Redeeming for gift cards – Get more value from your rewards
You’ll get $1 of value per $1 of rewards with most redemption options, but one way to increase the value of your Discover Cashback rewards is to redeem for gift cards. When you redeem for gift cards, you’ll get additional value for your rewards. For example, if you redeem for Amazon gift cards, you get get 5% additional value. Speciality merchants like Bath & Body Works, Nike, and Domino’s Pizza sometimes offer as much as 20% additional value.
When I checked, I found several useful options for gift cards, including Amazon, Best Buy, The Home Depot, Lowes, Lululemon, Staples, Starbucks, and Walmart.
Automatically redeem your Discover it® rewards
Discover offers you the ability to redeem you rewards automatically through its website. Since the rewards on the Discover it® card come as cash back rewards, you should set up automatic reward redemptions. There’s no reason to keep a stash of unredeemed Discover cash back rewards, since cash back rewards are the highest-value redemption available.
Benefits of the Discover it® Cash Back card
The value offered by the Discover it Cash Back Card is its quarterly cash back bonus; the card offers no additional notable benefits.
| Consumer insurance benefits None | |
| Travel insurance benefits None | |
| Travel benefits None | |
| Third-party merchant benefits None |
Cards that pair well with the Discover it® Cash Back card
Whether you’re looking for rewards or benefits, the Discover it® Cash Back card likely should not be the only card in your wallet. Here are some cards that we think go well with the Discover it card:
If you enjoy earning 5% rewards, the other cards with rotating category rewards are worth a look. The Chase Freedom Flex℠ also earns 5% rewards in categories that rotate quarterly—and are usually different than the categories offered on the Discover card. If you’ve got a Citi Dividend Card (no longer available to new cardmembers) that’s a great complementary card as well. You also might want to pick up the Citi Custom Cash℠ Card or the U.S Bank Cash+® Visa Signature® Card. Both of these cards have 5% categories that you have some control over. The Cash+ lets you choose your 5% categories and the Custom Cash effectively lets you do the same by selecting what to charge to the card.
Having a 2% cash back credit card for spending outside bonus categories could come in handy. We would also recommend getting a card with extended warranty for purchases of electronics and other expensive items. (The Chase Freedom Freedom Flex℠ listed above offers Chase’s extended warranty benefit.)
When is the Discover it® Cash Back card right for you?
The Discover it® Cash Back card is a great if you enjoy the gamification of 5% rotating category rewards. To maximize the card, you’ll want to rotate the card in and out of your wallet based on the categories. The card works best if you hold a number of other cards that can fill augment the Discover it’s category rewards and cover the card’s lack of benefits.
If you want a single card to use everywhere, there are better options. Get a 2% cash back credit card or a card that offers an extended warranty benefit instead.
How to apply for the Discover it® Cash Back card
You can apply for the Discover it® Cash Back card through the link below. The card’s $100 statement credit bonus is available exclusively through referral links.
Discover it® Cash Back welcome offer: $100 statement credit + double cash back in your first year. (Annual fee: $0)
Get a $100 statement credit when you’re approved and use the card within the first three months. Plus, get all of your cash back doubled in your first year of having the card. Get this welcome bonus.
The $100 statement credit after approval is an easy welcome bonus, even if it is smaller than other easy welcome bonuses. More interesting is the doubled cash back in the first year of having the card which turns the cards 5% rotating categories into 10% rotating categories.
5% cash back in rotating categories. (More in our card review.)
This is a referral link. All information about Discover it® Cash Back has been collected independently by cardsandpoints.com.
A few notes on applying for Discover credit cards
- You can have as most two credit cards issued by Discover at the same time. You can have only one student card.
- Your first account must be opened for a year before Discover will issue you a second credit card.
- You can get welcome bonuses for Discover cards if you have had the same card in the past.
- Discover reports business credit cards to the personal credit bureaus. Keep this in mind if you are trying to stay under 5/24 for Chase applications.
- You can check the application status of your Discover card application online, at Discover’s website.
Frequently asked questions
How much cash back can I get from Discover?
With the Discover it® Cash Back card, you earn 5% rewards in rotating categories on up to $1,500 in category spending per quarter, plus 1% cash back on other purchases. If you maximize two cash back categories during the year and spend another $500 per month on the card, you’ll earn $210 cash back.
Can I get cash from a Discover card?
You can get cash from your Discover card at checkout when you make a purchase at many merchants. The cash you take out gets charged as a purchase and is subject to your purchase APR if you carry a balance month-to-month. Cash taken out at a register does not earn rewards.
Is Discover it® a good credit card for everyday purchases?
The Discover it® card won’t earn you as much on your everyday purchases as a 2% rewards credit card will, and it doesn’t have features like extended warranty protection or purchase protection. The best use of the card is to maximize its bonus categories and use another card for your daily spending.
Can I get increased value from my Discover cash back rewards?
Yes. Redeeming your rewards for gift cards can get you 5%-20% increased value from your cash back rewards.
