How does the Discover cashback bonus work?

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.

2021 Discover Calendar for 5% Rewards Categories:

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®. 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. PayPal purchases using tap-and-pay, virtual wallets or similar technology may not qualify, either. Each category has a bit of fine print. Be sure to read it.

Current Discover card promotions include a dollar-for-dollar rewards match at the end of the first year, up to 5% cash back on purchases, 0% APRs for up to 18 months and even $20 for good grades on student credit cards. None of Discover’s credit cards charge annual fees or foreign transaction fees, either.… read full answer

There are plenty of other perks, too, such as free credit scores. And together, all these Discover card promotions form a portfolio that can meet any cardholder’s financial needs.

Here are the latest Discover Card promotions:

• Double rewards the first year: Available on all Discover cards. Discover will match all the cash back you've earned (or miles on the Discover it Miles card) at the end of the first year. Offer only for new customers.
• 5% cash back: The Discover it Cash Back and Discover it chrome cards offer 5% cash back on the first $1,500 you spend each quarter in rotating bonus categories. You must activate the bonus each quarter by clicking “Activate Now” and logging in to your Discover account. You also receive unlimited 1% cash back on all other purchases.
• No annual fees or foreign transaction fees: Discover cards do not charge annual fees or foreign transaction fees. There are no penalty APRs for late payments, and Discover waives the fee for your first late payment. You could be charged up to $37 for subsequent late payments. There’s a 5% fee for cash advances (minimum $10) and a 3% balance transfer fee.
• 18-month balance transfer offer: Available only on the Discover it Balance Transfer card, which charges a 3% balance transfer fee and gives 0% for 6 months on purchases. Other Discover cards offer shorter balance transfer periods, ranging from 6-14 months of reduced or 0% interest.
• 14-month 0% purchase intro APR: Available on the Discover it Cash Back, Discover it chrome, Discover it Miles and NHL Discover it cards. Discover it Student Cash Back and Student chrome offer 0% for 6 months on purchases.
• $20 per year for good grades: Discover it Student Cash Back and Discover it Student chrome give you a $20 statement credit for each school year that your GPA is 3.0 or higher, for up to five years. You just have to log into your Discover account and enter your GPA. Discover may request documentation.

As you can see, there’s a lot to like about Discover card promotions. The one thing you won’t see on any current Discover cards, though, is an initial bonus for spending a certain amount after you get the card. But Discover makes up for that by matching the first year’s rewards on all their cards.

There used to be another Discover card promotion called “Discover Deals,” where you could get extra discounts or bonus points for shopping with over 200 retailers in Discover’s online mall. Unfortunately, that program ended on October 31, 2018.