What are the Discover it Cash Back categories for rewards? This question is about the Discover it® Cash Back

What are the Discover it Cash Back categories for rewards?

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This question is about the Discover it® Cash Back

Charlie Smith, Member

@charliesmith • 02/14/22 This answer was first published on 12/03/21 and it was last updated on 02/14/22.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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The Discover it® Cash Back categories for rewards include a broad range of everyday spending, such as grocery stores, drug stores, and select streaming services. Cash back categories are the types of purchases that cardholders can earn 5% cash back on, up to $1,500 spent per quarter.

Here are the Discover it Cash Back Categories for 2023

January-March: Grocery Stores, drug stores, and select streaming services
April-June: To be announced
July-September: To be announced
October-December: To be announced

The categories rotate every quarter, and any purchases in these categories over the $1,500 quarterly limit earn 1% cash back until the next quarter. Purchases that don’t qualify for the Discover it Cash Back card’s bonus categories also get you 1% cash back.

Purchases fall into a bonus category based on "Merchant Category Codes," which are assigned by credit card networks to merchants according to the type of business they're operating. Keep in mind that you need to “activate” the categories each quarter on Discover’s website. Fortunately, it’s a simple process – you’ll just have to log in to your online account and confirm the activation.

You can see the fine print for any exceptions to the categories on Discover’s website. For example, Walmart and Target don’t count as grocery stores.

It’s also good to note a few other Discover credit cards have the same categories as the Discover it® Cash Back card each quarter. They are the Discover it® Student Cash Back and the NHL® Discover it® credit cards.

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Ronan Agan, Member

@ronan_agan • 02/11/20 This answer was first published on 01/17/18 and it was last updated on 02/11/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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The Discover it rewards categories change quarterly.

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What is the Discover calendar?

The Discover calendar shows what purchases qualify for Discover’s 5% cash back bonus rewards categories. Eligible cardholders can earn 5% cash back on up to $1,500 spent per quarter in the purchase categories listed on Discover’s bonus rewards calendar, when they activate.

2022 Discover Calendar for 5% Rewards Categories:

… read full answer Dates	Bonus Categories
January - March	Grocery Stores, drug stores, and select streaming services
April – June	To be announced
July – September	To be announced
October – December	To be announced

Discover’s 5% cash back calendar applies to three Discover credit cards: Discover it® Cash Back, Discover it® Student Cash Back and NHL® Discover it® (this offer is not currently available on WalletHub and may be out of date). Cardholders must activate new bonus categories by the end of each quarter for purchases to qualify for the 5% rewards rate. And the bonus rate will apply only from the date of activation through the last day of the quarter. To activate a category, click the blue “Activate Now” link on the calendar.

Just bear in mind that there are exceptions to Discover’s calendar categories. For example, purchases at restaurants inside other locations – like hotels, convenience stores and grocery stores – are not eligible. Neither are restaurant delivery purchases. Each category has a bit of fine print. Be sure to read it.

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How does the Discover cashback bonus work?

The Discover cash back bonus pays you back a certain percentage of the money you spend as a reward. The Discover cash back bonus can be redeemed either at select merchants or for cash. More specifically, there are three types of Discover cashback bonuses:

5% bonus rate: You earn 5% cash back on up to $1,500 spent per quarter in bonus categories (which change every quarter and require activation), and 1% back on all other purchases. The Discover credit cards that offer this deal are the Discover it® Cash Back, the NHL® Discover it®, and the Discover it® Student Cash Back.… read full answer

Cash back in categories that don’t change: Other Discover cards offer a cashback bonus in certain categories that never change. Discover it® chrome, Discover it® Student chrome and Discover it® Secured Credit Card offer 2% cash back at gas stations and restaurants (up to $1,000 spent each quarter combined), and 1% back on all other purchases.

Cashback Match: There’s a final Discover cashback bonus that all Discover cards have. With Cashback Match, Discover will match all the rewards you earn the first year your account is open. So, if you rack up $500 in rewards during the first 12 months, for example, Discover will tack on another $500 as an anniversary present.

Discover’s 2% cash back bonus and Cashback Match are fairly simple, but there are several other details you’ll need to know about the 5% bonus. To start, Discover has a cash back calendar showing when the categories rotate. And to get the 5% Discover cashback bonus, you need to “activate” it every quarter. You can easily do so by logging in to your Discover account from their cash back bonus page. You can activate the new categories on the first day of the quarter.

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Does fast food count as a restaurant for credit cards?

Yes, fast food does count as a restaurant for credit cards that have dining as a bonus rewards category. All major credit card companies include fast food locations within their definition of a restaurant for rewards purposes, including American Express, Bank of America, Capital One and Chase. For cardholders to earn bonus rewards, the fast food restaurant simply needs a … read full answer merchant category code that properly reflects that it’s a restaurant.

Credit Card Companies That Count Fast Food as a Restaurant for Rewards

American Express

Bank of America

Barclays

Capital One

Chase

Citibank

Discover

US Bank

USAA

Wells Fargo

In some cases, it is possible that a particular fast food location won’t code as a restaurant, even if your card gets bonus rewards at fast food restaurants. If this occurs, it’s generally because the fast food restaurant is located within a larger establishment that codes as something else, such as a shopping mall or a stadium.

You should also note that merchant category codes are separate for traditional and fast food restaurants, so some cards could offer bonus rewards just at traditional restaurants. Most of the time, though, traditional and fast food restaurants are grouped together. You can always confirm this by calling your card issuer.

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