The Discover it® Cash Back features rotating 5% quarterly bonus categories that can boost your rewards, though it only earns a basic 1% back on all non-bonus purchases. While the lackluster base rate is a drawback, strategic spenders can maximize value through the quarterly categories and first-year cash back match.
This credit card review will cover everything you need to know about this card to determine if you should add this card or a different card to your wallet. Let's dive right in.
- 5% Cash Back in Rotating Quarterly Categories up to $1,500 Each Quarter When You Activate Offer
- 1% Cash Back On All Other Eligible Purchases
- Cash Back Match for the First Year
- No Annual Fee
Welcome Bonus
The Discover It offers a unique welcome bonus where Discover automatically matches all the cash back earned at the end of the first cardmember year.
For example, if you earned $200 in cashback your first year, Discover would give you another $200.
This feature makes it an appealing option for those looking to boost their rewards in the first year of ownership.
This distinctive matching structure means there’s no minimum spending requirement or cap on how much you can earn – the more rewards you accumulate, the bigger your bonus. For example, if you earn $300 in cash back from your spending, Discover will double it to $600 at the end of your first year.
The matching bonus is applied automatically, so you don’t need to worry about meeting specific timeframes or registering for the offer. Since it matches all cash back earned, this includes both the 5% rotating category rewards and the standard 1% back on other purchases.
Earning Cash Back
The Discover it card earns cash back at the following rates:
- 5% cashback in rotating quarterly categories on the first $1,500 in purchases each quarter (10% back the first year); and
- 1% cashback everywhere else (2% back the first year).
The rotating categories offer solid value but require active management to maximize rewards throughout the year. While the 5% rate is excellent when it aligns with your spending, the $1,500 quarterly cap limits the earning potential for high spenders.
The 1% base rate on non-bonus purchases is below average compared to flat-rate cards earning 1.5-2% back.
Overall, this card works best as part of a multi-card strategy where you can leverage other cards’ bonus categories when Discover’s quarterly categories don’t align with your spending patterns.
Discover It Benefits
The Discover it offers the following benefits for its cardholders:
Digital Tools: Gain 24/7 access to your free FICO score and credit monitoring alerts through Discover’s user-friendly mobile app and online account center. You can also easily freeze your card if it’s lost or stolen.
Customer Service: Connect with U.S.-based customer service representatives any time day or night. Discover consistently ranks at the top of credit card satisfaction surveys for their helpful, knowledgeable support.
Balance Transfer Offer: Move high-interest debt to this card and pay no interest for 15 months on balance transfers, though you’ll need to pay an introductory 3% transfer fee. After the intro period, you’ll pay the standard variable APR.
No Foreign Transaction Fees: Use your card abroad without worrying about added fees since there are no foreign transaction charges. However, keep in mind that Discover isn’t as widely accepted internationally as other card networks.
Redeeming Rewards
Discover rewards are refreshingly flexible, and you won't run into blackout dates or minimum thresholds that lock up your money.
You can redeem for any amount, starting at a penny, which is rare in this space.
Here are the main ways to cash in your rewards:
- Statement credit: apply any amount toward your balance.
- Direct deposit: send cash straight to a checking or savings account.
- Gift cards: available starting at $5, with some merchants offering bonus value.
- Amazon.com, Apple Pay, or PayPal: use your rewards at checkout.
- Charitable donations: give to select charities starting at a penny.
For most of these options, your rewards are worth exactly their face value, penny for penny.
Gift cards are the one exception worth watching. Some merchants offer $25 or $30 gift cards for just $20 in rewards, which stretches your balance further.
If you already shop at one of those merchants, that's the better deal.
Otherwise, a statement credit is your best bet. You can put the credit toward your balance, then charge another purchase to your card and keep earning rewards on top.
Redeeming is simple whether you use the app or the website. Just head to the rewards section, click "Redeem," and choose your preferred option: cash to your account or bank, or a set amount toward your bill. You can also automate a monthly redemption so your statement credit applies without any extra effort.
One more thing worth noting: your rewards never expire, so there's no pressure to redeem them right away.
Pros and Cons
Here’s a quick overview of this card’s advantages and disadvantages:
Pros:
Strong First-Year Value: Thanks to the Cashback Match feature that doubles all rewards earned in the first year, potentially providing significant value for high spenders.
No Annual Fee: The card has no annual fee, making it an accessible option for maximizing rewards without ongoing costs.
Rotating 5% Categories: Offers one of the highest cash back rates available on rotating quarterly categories for everyday spending like groceries, gas, and restaurants.
Customer Service Excellence: Consistently ranks at or near the top in customer satisfaction surveys with acclaimed U.S.-based 24/7 support.
Cons:
Low Base Earning Rate: Outside of bonus categories, you’ll only earn 1% cash back, which is below average compared to many flat-rate cards offering 1.5% or 2% back.
Category Management Required: Requires active quarterly category activation and tracking spending to maximize rewards, which can be complex for some users.
Quarterly Spending Caps: The 5% rewards rate is limited to $1,500 in spending per quarter, restricting potential earnings for bigger spenders.
Limited Benefits: The Discover It lacks meaningful travel and purchase protections, with only basic features like FICO score access and card freezing available.
Is the Discover It Worth It?
The Discover it® Cash Backoffers rotating 5% quarterly bonus categories that require activation and strategic planning to maximize value, with rewards capped at $1,500 in spending per quarter.
The card’s welcome bonus matches all cash back earned in the first year, which can provide solid value for those who maximize the quarterly categories.
Beyond the quarterly bonuses, the card earns just 1% back on other purchases, making it less competitive for everyday spending compared to flat-rate cards.
While the card has no annual fee and minimal fees overall, it offers limited benefits beyond cash back rewards, making it best suited for those who don’t mind tracking categories and want to focus purely on maximizing cash back earnings.
- 5% Cash Back in Rotating Quarterly Categories up to $1,500 Each Quarter When You Activate Offer
- 1% Cash Back On All Other Eligible Purchases
- Cash Back Match for the First Year
- No Annual Fee
For rates and fees of the Blue Cash Everyday® Card from American Express, please click here. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
