Discover

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.
• 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.

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:

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Discover it® Student Cash Back and NHL® Discover it® (this offer is not currently available on WalletHub and may be out of date).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. 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.

The Discover card benefits include no annual fee and no foreign transaction fees on any card, along with security features such as SSN alerts and the ability to freeze your account on demand. Discover will also match all the rewards you earn in your first year. Plus, there's a “Cash at Checkout” feature that allows cardholders to withdraw cash when making a purchase with a Discover card at specific retailers. Withdrawals are limited to $120 every 24 hours. They are charged at the card's regular purchase APR, rather than the higher cash advance APR. All of these perks come standard on all Discover cards.

It's important to note that Discover discontinued several key benefits in 2018. Travel insurance and auto rental coverage are no longer available as of February 28, 2018. Purchase protection, extended warranties, and return guarantee protection were also dropped at that time. The price protection benefit was cut on October 31, 2018. Purchases and claims posted before the expiration dates still received coverage.

Discover will continue to provide free security benefits on all cards. They include 24/7 account monitoring, alerts that notify cardholders if their personal information has been compromised, and a “Freeze it” account feature. “Freeze it” allows cardholders to temporarily prevent any new purchases, cash advances or balance transfers if their card is lost or stolen.

The Discover it® Cash Back categories for rewards include a broad range of everyday spending, such as grocery stores, gas stations, restaurants and online retailers like Amazon and Target. 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 2022

• January-March: Grocery Stores and Fitness Club & Gym Memberships
• April-June: Gas Stations and Target
• July-September: Restaurants and PayPal
• October-December: Amazon.com and Digital Wallets (Apple Pay, Google Pay, Samsung Pay, and Garmin Pay included)

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.