Discover it Cash Back overview
The Discover it Cash Back provides 5% cash back on the first $1,500 in purchases that you make each quarter at select merchants. The eligible merchants rotate quarterly and require enrollment. You’ll earn 1% cash back on all other purchases and the card doesn’t charge an annual fee. There’s 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 rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.
Determining how to maximize the points and miles earned by many credit cards can be complicated and time-consuming — and may seem less valuable if you don’t travel. For both of these reasons, some folks opt for credit cards that earn cash back.
Among them, the Discover it Cash Back card provides 5% cash back on the first $1,500 in purchases that you make each quarter you enroll at select merchants, which change every three months. These merchants typically include gas stations, grocery stores, restaurants and more. Even if you use travel rewards cards for most purchases, you may find value in adding this card to your wallet thanks to the fact that 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, earning, redeeming and how it compares to other cards to decide if the Discover it Cash Back card is right for you.
The information for the Discover it Cash Back card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Discover it Cash Back pros and cons
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Discover it Cash Back welcome offer
The 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 that your new account is open. The match for the entire year occurs at the end of the 12th billing period. That effectively means that the earnings rates on this card are doubled for the first year, making for a potentially lucrative opportunity if you use this card often in those first 12 months.
Related: The top credit cards with 0% intro APR
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Discover it Cash Back benefits
The Discover it Cash Back card has benefits and perks that are well-suited for first-time or less experienced cardholders. It is simple and straightforward to earn and redeem cash back — but we’ll 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 U.S. street address
- Freeze your account in seconds to prevent new purchases with an on/off switch available on both the mobile app and website
- Free Credit Scorecard that includes your credit score, number of recent inquiries and more
- Free alerts you can activate that notify you if your Social Security number is found on any of thousands of dark web sites
Those aren’t anything to write home about if you’re used to lavish travel perks, but it is a pretty decent list of standard benefits for a no-annual-fee cash-back card.
Related: Your ultimate guide to Discover cards
Earning cash back with the Discover it Cash Back
Discover it Cash Back earns 5% cash back with different merchants each quarter you enroll, such as gas stations, grocery stores, restaurants, Amazon.com and more.
You need to activate the 5% categories before making purchases in the bonus category each quarter — but Discover makes the process easy online, and you can activate up to two months before each quarter begins.
However, you’ll only earn 5% cash back on up to $1,500 in purchases each quarter at eligible merchants. Assuming you spend $1,500 on purchases in the 5% categories during a quarter that you activate the bonus, you’ll earn $75 in cash back on these purchases.
You’ll also earn 1% cash back on all other purchases with the Discover it Cash Back. You may want to boost your cash-back percentage on other purchases by using another card with better flat-rate earnings or increased earnings in select categories. One example is the Discover it Miles, which also matches the cash back you earn during your first year.
Related: Why you should get the Discover it Miles
Redeeming cash back with the Discover it Cash Back
Some cards earn cash-back rewards but then make it difficult to actually obtain your cash back. This is one place where the Discover it Cash Back card excels. There are many options and most will allow you to obtain as little as a penny in cash back.
These options include:
- Gift cards or instant eCertificates, starting at $20
- Charitable donations to select charities, starting at a penny
- Credit to your account, starting at a penny
- Electronic deposit into any account you designate, starting at a penny
- Pay with Cashback Bonus at select merchants, starting at a penny
For all but one of these options, your cash back is worth its face value. Gift cards can be the exception — some are available with a bonus. For example, you may be able to find some merchants offering a $25 or $30 gift card for $20 in cash back.
If you shop with any of these merchants, this will provide the best value. Otherwise, TPG editor Emily Thompson would recommend simply redeeming for a credit to 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 the Discover it Cash Back?
There are plenty of card options out there if you’re looking to earn cash-back rewards.
For additional options, please see our lists of the best cash-back cards and the best cards without an annual fee.
Related: Chase Freedom Flex vs. Chase Freedom Unlimited
Is the Discover it Cash Back worth it?
If you’re a beginner or looking to add more bonus categories to your cash-back strategy, the Discover it Cash Back is a great choice. However, if you’re looking for more consistent bonus categories or a longer list of benefits, you’ll want to go with a different card.
Bottom line
The Discover it Cash Back provides 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 exhausted your Chase 5/24 slots.
However, the potential cash back in these 5% categories is limited to the first $1,500 in purchases each quarter and you’ll only earn 1% cash back on all other purchases, so this shouldn’t be your everyday go-to card.
Related: How to choose a credit card