Discover it Cash Back Review 2023

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The Discover it® Cash Back is one of the best credit cards that offer 5% back on popular rotating categories up to a spending limit. Your rewards are matched by Discover after the first 12 months, and the card has no annual fee (from April 1 to June 30, 2023, you can earn 5% cash back at Restaurants and Wholesale Clubs on up to $1,500 in purchases after enrollment, then 1%). 

Discover it Cash Back Review: Is it the Best Credit Card for You?

If you prefer earning cash-back credit card rewards without paying an annual fee, the Discover it® Cash Back is a great choice. The card offers a solid 5% cash back in popular rotating quarterly bonus categories when you activate, on up to $1,500 in combined spending (then 1%). You’ll also earn 1% back everywhere else (from April 1 to June 30, 2023, you can earn 5% cash back at Restaurants and Wholesale Clubs on up to $1,500 in purchases after enrollment, then 1%).

While the card doesn’t offer a traditional welcome bonus, Discover will match all of the rewards you earn from the Discover it® Cash Back after the first 12 months through its Cashback Match program, so your 5% rewards are effectively worth 10% cash back in the first year. That’s an amazing deal for a no-annual-fee credit card.

The Discover it® Cash Back is great for those who don’t want to pay an annual fee, and it also comes with a 0% intro APR for 15 months on purchases and balance transfers, then an APR of 16.99% – 27.99% Variable. That’s a nice feature if you have purchases coming up that you want to pay off over time without accruing interest.

Keep in mind that Discover credit cards are not quite as widely accepted as those from larger issuers, so you may want to carry this card and a backup if you can’t use it. However, acceptance has grown in recent years, and with no annual fee, there’s little harm in pairing your Discover it® Cash Back with another cash-back card.

For example, you could look at a no-annual-fee card that offers a flat cash rewards rate on purchases without category limits, like the Wells Fargo Active Cash® Card, which earns 2% cash rewards on spending. Or, consider the Chase Freedom Flex℠
, which also offers quarterly rotating 5% bonus categories with the same spending cap when you activate. 

There’s also the Citi Custom Cash℠ Card, which earns 5% cash back on up to $500 spent in your top eligible spending category (from a list) each billing cycle (then 1%), and 1% back on everything else. This card doesn’t require you to activate the bonus, so it may be a better choice if you prefer a hands-off approach.

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Discover It Cash Back Rewards

How to Earn Rewards With the Discover it Cash Back Card

To earn the most cash back, you’ll have to activate the rotating bonus categories each quarter through your online Discover account.

Once you’ve activated the bonus, you’ll earn 5% cash back on up to $1,500 in combined spending (then 1%) in that quarter’s categories (from April 1 to June 30, 2023, you can earn 5% cash back at Restaurants and Wholesale Clubs on up to $1,500 in purchases after enrollment, then 1%). All other purchases earn a flat rate of 1% cash back.

Discover will automatically match, dollar-for-dollar, all the cash back you’ve earned at the end of your first year (even on bonus categories). You don’t need to do anything to activate this match.

How to Use Discover it Cash Back Rewards

The best way to redeem your rewards is usually as a statement credit, which lowers your balance, or simply take the cash as a direct deposit to your bank account. You can also redeem your rewards directly when you check out at Amazon. In any of these cases, the minimum redemption amount is 1 cent.

You can also use your rewards, starting at $5, for gift cards or eCertificates from partner retailers. As long as your account is open, your cash-back rewards will not expire.

One somewhat unique redemption option is the ability to donate your rewards to select charities, with a minimum of 1 cent. While this could make it more complicated to get a charitable donation tax deduction compared to writing a check or making a donation directly with a card, it’s nice to see the ability to use your cash to support causes close to your heart.

Discover’s charity partners are the American Cancer Society, the ASPCA, the American Red Cross, Carbonfund.org, Children’s Miracle Network, Junior Achievement, Juvenile Diabetes Research Foundation, Make-A-Wish, Operation Homefront, and World Wildlife Fund.

Discover it Cash Back Benefits and Features

The Discover it® Cash Back is a fairly straightforward card. Outside of the cash back you’ll earn from everyday spending, here are some useful features to know about:

• Unique designs: Choose from more than two dozen different designs, so you have a credit card that matches your personality.
  
• Security features: Freeze your account if you misplace your card or are worried about fraud using the Discover app or website. Discover can also search the web for security breaches where your Social Security number was disclosed with free Discover Identity Alerts, and remove your info from information-collecting websites through its Online Privacy Protection program.
  
• FICO credit score: Get a real, free FICO credit score that Discover uses to approve accounts, set interest rates, and choose account limits.
  
• No late payment fee on your first late payment: You won’t be charged a fee the first time you pay late, but after that, a fee of up to $41 applies.

The card doesn’t list any major purchase protections or travel insurance benefits, so keep that in mind when shopping. For big-ticket items or large purchases, you may want to consider one of the best credit cards with purchase protection instead. And for travel, a credit card with travel insurance can save you a ton of headaches and money if things go awry on the road. 

Discover it Cash Back Fees and Other Costs

Discover typically offers low fees with its credit card and banking products, and there’s no exception here. The Discover it® Cash Back doesn’t have an annual fee or foreign transaction fees, and most other charges are easy to avoid. As with all credit cards, if you pay off your balance in full by the due date, you won’t owe any interest.

When you sign up for a new account, you’ll get a 0% intro APR for 15 months on purchases and balance transfers, then a 16.99% – 27.99% Variable APR. Other fees include:

• Balance transfer fee
• Cash advance fee
• Late payment fee
• Returned payment fee

How the Discover it Cash Back Compares

Compare Discover it Cash Back vs the Discover it Chrome Card

Another popular option from the same issuer is the Discover it® chrome. Like the Discover it® Cash Back, it has no annual fee and Disover will match your cash back earned after your first account year. The biggest difference is how the card earns rewards: The Discover it® chrome earns 2% cash back on gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on everything else.

Like the Discover it® Cash Back, the bonus categories on the Discover it® chrome are capped, and the quarterly cap is slightly lower ($1,000 vs $1,500). But if you consistently spend money on gas and restaurants, the Discover it® chrome could be a better option, because the bonus category changes each quarter on the Discover it® Cash Back, and it may not always line up with your spending habits.

Compare Discover it Cash Back vs the Chase Freedom Flex

The Chase Freedom Flex℠ is similar to the Discover it® Cash Back in a few key ways: It has 5% bonus categories that change each quarter (with the same $1,500 cap) and has no annual fee. However, Chase doesn’t offer a cash back match after your first account year like Discover does, and the cards have different bonus categories and welcome bonuses. Read our Chase Freedom Flex review for more details.

Compare Discover it Cash Back vs the Citi Custom Cash 

Like the Discover it® Cash Back, the Citi Custom Cash℠ Card has no annual fee and earns up to 5% cash back, but the structure for earning maximum rewards is a bit different. The bonus categories don’t change each quarter; instead, you’ll earn 5% back on your top eligible spending category each billing cycle from the following categories: restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, and live entertainment. You’ll earn 5% cash back on your top eligible spending category on up to $500 spent each billing cycle, which translates to up to $1,500 spent each quarter. Read our Citi Custom Cash Review for more info.

Discover it Cash Back Frequently Asked Questions (FAQ)

Methodology: How We Reviewed the Discover it Cash Back Card

Personal Finance Insider considered the following factors when evaluating the Discover it® Cash Back: annual fee, welcome bonus (in this case, none), rewards, benefits, and how it stacks up to similar credit cards. For more details, read our full methodology for rating credit cards.

Eric Rosenberg

Freelance Writer

Eric Rosenberg is a finance, travel, and technology writer in Ventura, California. He is a former bank manager and corporate finance and accounting professional who left his day job in 2016 to take his online side hustle full-time. He has in-depth experience writing about banking, credit cards, investing, and other financial topics, and is an avid travel hacker.
When away from the keyboard, Eric enjoys exploring the world, flying small airplanes, discovering new craft beers, and spending time with his wife and little girls.
You can connect with him at Personal Profitability or EricRosenberg.com.

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Jasmin Baron, CEPF

Editor

Angela Fung

Marketing Compliance Manager