Discover it® Cash Back
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Card Summary
The Discover It Cash Back feature offers a high reward rate for certain categories. This can prove to be both complicated and lucrative.
You can get 5% cashback on your everyday purchases from different locations each quarter, including Amazon.com and gas stations, supermarkets, restaurants, gas stations, and when you use PayPal. This is up to the maximum quarterly limit when you activate.
All other purchases will only earn you 1% cashback. Discover will match any cash you receive during your first year, instead of giving you a sign-up bonus.
The Discover It Cash Back card doesn't have the same benefits as other credit cards like price protection or extended warranty coverage. You have no liability for fraud as cardholder. However, access to your FICO credit score is free and you will be notified if your Social Security numbers are found on any risky websites.
You can also freeze your card online or via mobile application to prevent theft or loss. Plus, get overnight delivery of your new card.
Review of Discover It Cash Back Card: The card offers a high cash return rate, no annual fees and an affordable APR. However, it may not be for everyone who is looking for something more flexible.
The pros:
You can earn cash back for certain categories of spending that change every quarter.
All the cash you get back at the end your first year, matches.
Purchases and balance transfer eligible for a 14-month, 0% annual introductory rate.
Card Summary - Cons
Most purchases qualify for a low reward rate. Caps its bonus rewards quarterly.
It's great for:
Individuals who want to maximise their reward on certain categories of everyday spending.
Customers who don't want to pay an annually fee.
This is not the place for:
Individuals who are looking for high-rewards rates on all purchases.
Customers who want a simple rewards program.
Rates and fees
Highlights
Unlimited Cashback Match, only at Discover: All the cash you earn in the first year will be automatically matched by Discover. You don't have to spend a minimum amount or receive maximum rewards. It's possible to turn $150 in cash into $300.
You can earn 5% cashback on your everyday purchases in different locations each quarter, such as Amazon.com and gas stations, restaurant, grocery, and restaurants. This is up to the maximum quarterly limit when you activate PayPal.
You can also earn unlimited 1% cashback on any other purchase - all automatically. Cashback can be redeemed in any amount and at any time. Rewards never expire.
Amazon.com rewards can be used at checkout. There is no annual charge. Nearly 99% of all credit card shops accept Discover.
Comparative Analysis with Other Cards
Chase Freedom Flex vs. Discover It Cash Back
Annual fees: There is no annual fee for either card.
Reward: The Discover It Cash Back program earns you 5% cashback on your everyday purchases in different locations each quarter, such as Amazon.com, gas stations, grocery stores and restaurants. You can also pay with PayPal up to the maximum quarterly limit when you activate.
Chase Freedom Flex receives 5% cashback on purchases up to $1500 combined in bonus categories every quarter. Chase also earns 5% for travel purchases through Chase. Lyft rider rides are 5% through March 2022. All other purchases get 1%.
Sign up bonus: Discover it Cash back doesn't offer a sign-up bonus like other companies, but Discover will match any cash you receive in the first year. Chase Freedom Flex gives you $200 after you have spent $500 in the first three months of your account opening. Earn 5% Cash Back on Groceries (not Target, Walmart), on purchases up to $12,000 in your first year.
Benefits: The Discover It Cash Back program includes zero liability fraud protection, access to your FICO credit score, and notifications if your Social Security Number is found on any risky websites. You can quickly freeze your card if someone takes it or loses it. Plus, get overnight delivery of your new card.
Chase Freedom Flex offers purchase protection against theft and damage up to $500 When you purchase an item that has a warranty less than three years, your Chase Freedom Flex card adds one year to your warranty.
Bank of America Customized Rewards Credit Card vs. Discover It Cash Back
Annual fees: There is no annual fee for either card.
Reward: The Discover It Cash Back program earns you 5% cashback on your everyday purchases in different locations each quarter, such as Amazon.com and grocery stores. You can also get cash back when you use PayPal to pay for groceries, restaurant, gas station, or other services.
This is up to the maximum quarterly limit when you activate.
Bank of America Customized cash Rewards credit card offers 3% cashback in your chosen category, 2% at wholesale clubs and grocery stores (up to $2,500 combined category/grocery club/wholesale store quarterly purchases), and an unlimited 1% for all other purchases.
Sign up bonus: Although Discover it Cash back doesn't offer a traditional sign-up bonus like other cards, Discover will match any cash you receive in the first year. After you spend at least $1,000 on purchases within the first 90-days of opening an account, your Bank of America Customized cash Rewards credit card will offer you a $200 bonus online in cash rewards.
Benefits: The Discover It Cash Back program includes zero liability fraud protection, access to your FICO credit score, and notifications if your Social Security Number is found on any risky websites. You can quickly freeze your account if someone takes your credit card, or you are unable to locate it. Also, your card will be delivered overnight for free. Contactless cards are available with the Bank of America Customized Cash Reward credit card.
How much is the Discover It Cash Back fee?
Annual fee: There is no annual fee for the card.
Transfer fee: Balance transfers are subject to a 3% fee. These fees will be added to your account at the initial APR. For future balance transfers, there is a 5% charge.
Cash advance fee: It is $10 per cash advance or 5%.
Penalty Fees: The late payment fee can be up to $40. However, the fee is waived for first-time late payments.
A returned payment fee of up to $40 is charged.
Conclusion
Do You Want the Discover It Cash Back?
If you are:
You prefer a card which maximizes rewards for certain purchases.
You can have a second card that offers a higher rewards rate for spending non-bonus.
You don't want to be charged an annual fee.
Note: Credit Card summary is for informational purposes only and is not an endorsement of the product. Products and services described are offered by third parties and not Bright Money or its partner banks. Bright Money strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider, or specific product’s site and the information has not been reviewed or provided by the issuer of the product before publication.
