Discover Card Rewards: A Comprehensive Guide to Cash Back and More

Discover Card Rewards offers a range of benefits to cardholders, including cash back and rewards on everyday purchases.

For example, Discover it Cash Back cardholders can earn 5% cash back on various categories throughout the year, such as gas stations, grocery stores, and restaurants.

You can also earn 1% cash back on all other purchases, making it easy to rack up rewards on your daily spending.

Earning rewards with a Discover Card is a great way to maximize your cash back earnings. You'll usually only earn rewards on eligible purchases made with your credit card, excluding interest charges, balance transfers, and cash advances.

To earn cash back rewards, simply use your Discover Card to make purchases. Note that you won't earn rewards on balance transfers or cash advances. With some cards, you might not earn bonus rewards unless you actively opt into the bonus rewards offers.

You can earn cash back rewards in various ways, including:

To earn 5% cash back, you need to activate the 5% Cash Back Bonus category each quarter. You can do this by using the Discover mobile app, activating through the online portal, calling the customer service number, or responding to the reminder email.

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Some cards, like the Discover it Gas & Restaurants Card, Student Gas & Restaurants Card, or Secured Card, offer 2% Cashback Bonus at gas stations and restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus, you'll earn unlimited 1% cash back on all other purchases.

The 5% Cash Back Bonus program offers a rotating rewards structure, where you can earn 5% cash back on everyday purchases at different places each quarter, up to the quarterly maximum when you activate. You can earn up to $75 cash back in the 5% category each quarter.

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You can redeem your Discover credit card rewards in various ways. With a Discover credit card, you can redeem your rewards for cash in any amount to pay your bill.

Discover credit cards let you redeem rewards for cash or a statement credit. You can redeem any amount, any time, and your rewards never expire.

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If you have a cash back card, your rewards may always be worth the same amount. Some cards require you to accumulate a minimum rewards balance before redeeming, but this is not the case with Discover credit cards.

You can also redeem your rewards for gift cards to popular brands. Discover cash back credit cards let you get gift cards with at least 5% added value on every card.

Here are some ways you can redeem your Discover cash back credit card rewards:

The 5% Cashback Bonus program is completely free to activate, and you can do it using the Discover mobile app, your online account, or by calling 1-800-DISCOVER.

You'll earn 5% cash back on everyday purchases at different places you shop each quarter, like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate.

Rewards never expire, which is a great perk - no need to worry about missing out on your hard-earned cash back.

You'll still earn unlimited 1% cash back on all other purchases outside of the 5% program, so you can earn rewards on all your spending, not just the big-ticket items.

We reserve the right to determine the method to disburse your rewards balance, but if your account is closed or you haven't used it within 18 months, you'll get a check with your rewards balance.

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Activating and managing your Discover Card rewards is a straightforward process. You'll only earn the card's elevated rewards once you've activated the cash-back categories online, which means you'll only get 5% back starting from the date you sign up.

To activate the 5% Cashback Bonus category, you can use the Discover mobile app, activate through the online portal, call the customer service number on the back of your credit card, or respond to the reminder email that Discover sends you. You can also log in to your account online to check your statement and cash rewards balance.

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You'll need to activate the bonus category every quarter, as it changes on January 1, April 1, July 1, and October 1. If you forget, consider setting a reminder to take advantage of bonus cash back for the entire quarter.

Here are the ways to activate the 5% Cashback Bonus category:

Activating the 5% category is a straightforward process that can be done online, through the Discover mobile app, or by phone. You can activate the 5% Cashback Bonus program at any time before the quarter ends.

To activate, log in to your account online, use the Discover mobile app, or call 1-800-DISCOVER. You can also activate through a reminder email that Discover sends you to let you know of the quarter's category.

If you're already a Discover Cardmember, you need to activate the 5% category every quarter to earn the elevated rewards. Don't worry if you forget – you'll still earn 1% Cashback Bonus on all purchases.

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You can activate the 5% Cashback Bonus category using one of the following methods:

By activating the 5% category, you'll be able to earn 5% cash back on everyday purchases at different places each quarter, up to the quarterly maximum.

The Wells Fargo Active Cash Card is a great option for earning rewards on everyday purchases. It has a $0-annual-fee.

You can earn an unlimited 2% back on all purchases with this card. This means you'll get a consistent rewards rate on everything you buy, not just specific categories.

The Wells Fargo Active Cash Card is a flat-rate card, which is different from cards that offer rotating categories or specific bonus rates. This makes it easy to use and understand.

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Rewards types and limits are crucial to understand when it comes to maximizing your Discover Card rewards. There are three common ways to earn rewards, each with its pros and cons, depending on the type of rewards and reward-earning structure of your card.

You can earn cash back, miles, or points, and many retailers offer store-related rewards credit cards. Some cards offer bonus rewards for certain purchases or categories, but you'll usually only earn rewards on eligible purchases made with your credit card.

There's no limit on the overall amount of Cashback Bonus you can earn, and your rewards never expire, so you can redeem any amount, any time. However, individual promotions may include a cap on the additional Cashback Bonus you can earn.

You won't earn rewards on interest charges, balance transfers, cash advances, or cash-like purchases like money orders, gift cards, and lottery tickets. With some cards, you might need to opt into bonus rewards offers to earn them.

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Discover Card Rewards offers a variety of rewards programs, each with its own unique benefits.

The Cashback Bonus program rewards cardholders with 1% to 5% cashback on purchases, depending on the category. This can add up quickly, especially for frequent shoppers.

One of the most popular rewards programs is the 5% cashback on gas and restaurants, which can save you a significant amount on your daily expenses.

The Discover it Cash Back card also offers a rotating 5% cashback category, which changes every quarter, and a $150 bonus after spending $500 in the first 3 months.

Some rewards programs offer a match on the cash back you earn, which can be a huge bonus. This is exactly what happens with the Cashback Match, where you get an unlimited dollar-for-dollar match on all of the cash back you've earned at the end of your first year.

You don't have to sign up for this benefit, and there's no limit to how much they'll match.

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The Chase Sapphire Preferred is a solid choice for earning rewards. It pays 5 Chase Ultimate Rewards points per $1 spent on all travel purchased through Chase.

This card also offers 2 points per $1 spent on travel not booked through Chase. The annual fee is a manageable $95.

One of its standout features is the lack of a spending cap on its travel rewards.

The Chase Freedom Flex is a $0-annual-fee card that offers 5% cash back in rotating bonus categories on up to $1,500 in combined quarterly spending.

It's worth noting that this card has a unique feature that allows you to earn 5% cash back in multiple categories at once, if you have other cards that offer similar rewards.

The card also earns 5% on travel booked through Chase, which can be a great perk for frequent travelers.

If you have both the Discover it Cash Back and the Chase Freedom Flex, you'll have an increased chance of having an active 5% rewards category in one of your largest budget areas at any given time.

In addition to its rotating categories, the Chase Freedom Flex earns 3% on dining and drugstores, and 1% on all other non-bonus-category purchases.

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You earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum, when you activate. This means you'll earn $5 cash back for every $100 spent in the quarterly bonus rewards category.

Discover Cashback Match automatically matches all the cash back you've earned at the end of your first year, with no minimum spending or maximum rewards. This is a dollar-for-dollar match, so you'll get double the cash back.

You earn unlimited 1% cash back on all other purchases, automatically, on any Discover rewards card.

If you're not sure which rewards card is right for you, consider what you spend your money on and where you tend to use credit cards. Checking your previous purchase records can help you compare the best rewards card for you.

No matter which card fits you best, a Discover rewards credit card gives you Miles or cash back with every purchase. You can earn cash back on everyday purchases, and some cards give extra cash back in special categories.

To choose the best rewards card, think about any upcoming large purchases you'll need to make. Using a rewards card to buy an expensive item could be a good way to get some return on that investment, whether that be cash back or travel miles.

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Discover Cards come with the same suite of security and service features, and all have no annual fee. You can also enjoy a dollar-for-dollar match on all the cash back you've earned at the end of your first year with Discover Cashback Match.

If you're able to manage multiple cards at once, it can be valuable to pair a Discover it Cash Back card with another card. You can earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum when you activate.

You'll earn unlimited 1% cash back on all other purchases, automatically, with a Discover it cashback rewards card.

Foreign transaction fees can be a hidden cost when using your credit card abroad. Discover has no foreign transaction fee, making it a great option for international travel.

Some credit cards charge a fee of 3% or more per transaction for foreign purchases. This can add up quickly, especially if you're making large purchases or exchanging money frequently.

If you plan on using your credit card outside the United States, it's essential to check the terms and conditions to avoid any surprise fees.

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You can redeem rewards through various payment methods, including Amazon.com and PayPal.

Redeeming rewards through these platforms is a convenient way to use your earnings.

Amazon.com allows you to pay with rewards, and you can also use Apple Pay to make online or in-app purchases, then get a statement credit for the amount you choose to redeem.

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Your rewards won't disappear into thin air, but there is a time limit to claim them. Your Cashback Bonus balance will expire if you don't use it within 18 months.

If you close your account, you'll still be able to access your Cashback Bonus balance, which will be credited to your account or sent to you as a check.

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A category is a specific type of purchase that earns a higher cashback reward rate than usual. This can be a great way to boost your earnings, but be aware that there are limits on how much you can earn in these bonus categories.

Some credit cards offer bonus categories that change throughout the year, like the Discover it Cash Back Credit Card or Student Cash Back Card, which gives you 5% cash back on everyday purchases at different places you shop each quarter.

The quarterly maximum for earning 5% cash back in these bonus categories can vary, so be sure to check your card's terms to see what the limit is.

You'll also earn 1% cash back on all your other purchases automatically, with no maximum or activation needed.