Joe McConnell
Discover the Cash Back Overview
Discover it Cash Back offers 5% cash back on the first $1,500 of purchases made each quarter at select merchants. Eligible merchants rotate quarterly and require enrollment. You’ll earn 1% cash back on all other purchases, and the card has no annual fee. There is no traditional sign-up bonus, but Discover will match all the cash back you’ve earned at the end of your first year. Card Rating*: ⭐⭐⭐
*Card ratings are based on the opinion of TPG editors and are not influenced by the card issuer.
Determining how to maximize the points and miles earned from many credit cards can be complicated and time-consuming, and it can seem less valuable if you don’t travel. For both of these reasons, some people opt for credit cards that earn cash back.
Among them, the Discover it Cash Back card offers 5% cash back on the first $1,500 of purchases you make each quarter you sign up at select merchants, which change every three months. These merchants typically include gas stations, convenience stores, restaurants, and more. Even if you use travel rewards cards for most purchases, you may find it helpful to add this card to your wallet because it makes earning cash back so easy.
It has no annual fee and a recommended credit score of 670. Now, let’s dive into the card’s benefits, earnings, redemptions, and how it compares to other cards to help you decide if the Discover it Cash Back card is right for you.
The information for the Discover it Cash Back card has been independently collected by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Discover the pros and cons of Cash Back
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Discover the Cash Back welcome offer
Discover it Cash Back doesn’t offer a traditional sign-up bonus, but it does offer a unique earning opportunity for new cardholders.
Discover will match all the cash back you earn during the first 12 consecutive billing periods your new account is open. The full year’s charge occurs at the end of the 12th billing period. This means that the earning rates on this card are doubled for the first year, which is a potentially lucrative opportunity if you use this card frequently in those first 12 months.
Related: Best Credit Cards With 0% Introductory APR
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Discover the benefits of Cash Back
The Discover it Cash Back card has perks and benefits that are suitable for new or less experienced cardholders. It is simple and straightforward to earn and redeem cash back, but we will dedicate later sections of this review to earning and redeeming.
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First, let’s consider the card’s other benefits:
- No foreign transaction fees
- Free overnight shipping for card replacement to any street address in the United States
- Lock your account in seconds to prevent new purchases with an on/off switch available on both the mobile app and the website
- Free Credit Scorecard that includes your credit score, number of recent inquiries and more
- Free alerts you can turn on to be notified if your social security number is found on one of thousands of dark web sites
This isn’t anything special if you’re used to luxurious travel perks, but it’s a pretty decent list of standard perks for a no-annual-fee cash-back card.
Related: Your Ultimate Guide to Discover Cards
Earn cashback with Discover it Cash Back
Discover it Cash Back earns you 5% cash back at select merchants every quarter you sign up, like gas stations, grocery stores, restaurants, Amazon.com, and more.
You must activate the 5% categories before making purchases in the bonus category each quarter, but Discover simplifies the process online and you can activate them up to two months before the start of each quarter.
However, you will only earn 5% cash back on up to $1,500 in purchases each quarter at eligible merchants. Assuming you spend $1,500 in purchases in the 5% categories during a quarter in which you activate the bonus, you will earn $75 in cash back on those purchases.
You’ll also earn 1% cash back on all other purchases with Discover it Cash Back. You may want to increase your cash back percentage on other purchases by switching to another card with better flat rate earnings or higher earnings in select categories. An example is Discover it Miles, which also matches the cash back you earn during your first year.
Related: Why You Should Get Discover it Miles
Redeem your cashback with Discover it Cash Back
Some cards give you cash back rewards but then make it difficult to actually get the money back. This is where the Discover it Cash Back card excels. There are many options, and most will let you get as little as a penny in cash back.
These options include:
- Instant Gift Cards or eCertificates, starting at $20
- Charitable donations to selected charities, starting from one cent
- Credit to your account, starting from one cent
- Electronic deposit to any account you designate, starting from one cent
- Pay with Cashback Bonus at selected merchants, starting from one cent
For all but one of these options, your cash back is worth its face value. Gift cards may be the exception; some come with a bonus. For example, you may find some merchants offering a $25 or $30 gift card for $20 cash back.
If you shop with one of these merchants, they will offer you the best value. Otherwise, TPG editor Emily Thompson recommends simply redeeming a credit on your account: Instead of using a gift card, you can charge another purchase to your credit card and earn even more rewards.
Related: How to Redeem Discover Cash-Back Rewards
Which cards compete with Discover it Cash Back?
If you want to earn cash rewards, there are plenty of card options available.
For more options, check out our lists of the best cash back cards and the best cards with no annual fee.
Related: Chase Freedom Flex vs. Chase Freedom Unlimited
Is Discover It Cash Back Worth It?
If you’re a beginner or looking to add more bonus categories to your cash-back strategy, Discover it Cash Back is a great choice. However, if you’re looking for more consistent bonus categories or a longer list of perks, you’ll want to use a different card.
Bottom line
Discover it Cash Back offers 5% cash back on up to $1,500 in purchases each quarter in rotating categories. The card has no annual fee, so it’s a relatively easy choice to add to your wallet for use in these categories each quarter, especially if you’ve already maxed out your Chase 5/24 slots.
However, the potential cash back in these 5% categories is limited to the first $1,500 of purchases each quarter, and you’ll only earn 1% cash back on all other purchases, so this shouldn’t be your go-to card every day.
Related: How to choose a credit card
