Discover Cashback vs. Discover Chrome

On the surface, Discover® Cash Back as well as Discover it® chrome look the same – they have the same simple look with the words “Discover this” emblazoned on the front.

However, the structure of the cards is very different from their cash back programs. Discover it Cash Back is a rotating category card offering a 5% bonus in another category that you must redeem each quarter (on spending up to $1,500 per quarter, then 1%). The Discover it Chrome Card is a bonus tier card offering the same 2% cash back on restaurant and gas station purchases (up to $1,000 per quarter) for a year without having to activate any tiers.

Both cards are good cashback cards that offer their own unique benefits and are suitable for different types of cardholders.

Discover Cash Back vs. Discover it chrome

	Discover cashback	Discover Chrome
Interest rate	5% cashback on quarterly rotating categories (up to $1,500 on purchases per quarter when activated) 1% cashback on other purchases	2% cashback on purchases at restaurants and gas stations (up to $1,000 per quarter) 1% cashback on other purchases
Bonus for registration	Double your entire cashback at the end of the first year of the card	Double your entire cashback at the end of the first year of the card
Annual fee	$0	$0
pros	No annual fee High rate of 5% on rotating categories Great signup bonus that increases as you spend more	No annual fee Bonus in two very useful categories: gasoline and restaurant purchases. Great signup bonus that increases as you spend more
Minuses	Requires registration and tracking of rotating categories $1,500 spend limit with 5% cashback per quarter Not great as a standalone card – for a typical cardholder spending pattern, the overall card reward rate is low.	Gasoline and restaurant spending limit of $1,000 each quarter

Receiving awards

Discover it Cash Back is a good cash back card with no annual fee, with a generous 5% cashback rate for categories that change quarterly. The card requires some maintenance as you must remember to activate the categories at the beginning of each quarter to start earning 5%.

Cardholders willing to go the extra mile and follow the Discover cash back calendar will be rewarded with significant income in highly lucrative categories such as shopping at grocery stores and restaurants. However, if there is one quarter with categories where you generally don’t spend a lot of money, such as Q4 2022 (Amazon.com and digital wallets), your rewards could be quite low. Be sure to check the cashback calendar to maximize your earnings in these categories.

On the other hand, chrome Discover it is much easier. The chrome-plated Discover it Card offers 2% cash back on purchases at restaurants and gas stations, making it the perfect card for night outs and weekend trips. Unlike the Discover it cashback, the categories of restaurants and gas stations on the Discover it chrome card remain the same all year round, so you don’t have to worry about activating them.

Use of awards

The reward payout for both Discover cards is the same. Cashback Rewards never expire and you can use them at any time, even if you only have 1 cent in rewards. Redemption methods include a deposit to your bank account, a credit statement, gift cards (at least $5) and more.

Bonus for registration

Both Discover it cards offer the same signup bonus: they will refund all of the money you earned in your first year of membership.

For Discover it Cash Back cardholders, this means that the 5% category bonus is essentially a 10% bonus. For Discover it Chrome cardholders, this initial bonus boosts the gas and restaurant cashback rate to nearly 4% in the first year.

Discover chrome: best for simplicity

Chrome Discover it can be summed up in one word: simplicity. Since the card offers bonuses in categories that people usually spend a lot of money on – restaurants and gas – you can use it as a general card for all your purchases without worrying about juggling cards or managing alternating categories. The cash match bonus makes this card especially strong for buying gas and restaurants during the first year.

In 2020, the average U.S. household spent $1,568 on gas and $2,375 on eating out, according to the U.S. Bureau of Labor Statistics. These two categories add up to just under $1,000 per quarter, which is about the maximum quarterly spend per card. All this said, if your spending habits are similar to those of the average consumer, this card is perfect for you.

Discover Cash Back: Best for Maximum Rewards

Discover it Cash Back is mainly for cardholders who like to experiment with different categories and maximize them. We estimate an average cashback rate of 2.76%. Based on an annual spend of $15,900, you will receive $438 in cashback, even before the Cashback Match welcome bonus is applied. No wonder this is one of the best cashback credit cards on the market.

However, if you look at the Discover cashback calendar and already feel like the categories don’t match your spending habits, you’re better off using a different card. However, for cashback enthusiasts, maximizing Discover it’s cashback will definitely generate generous returns even after the first year.

We should also mention that Discover it Cash Back has other added benefits such as 0% APR on balance transfers and new purchases for 15 months (from 11.99% to 22.99% thereafter) and no fees for foreign transaction.

bottom line

Discover it Cash Back and Discover it chrome are good cashback cards from a card issuer that values ​​customer service and consistently ranks at the top of JD Power’s customer satisfaction rankings. That alone might be a good enough reason to subscribe to these cards.

However, for the average consumer, Chrome Discover it works better as a standalone card. Because gas and restaurant expenses are the two largest expense categories, the overall card reward rate is high. For those looking for an additional card in addition to their existing cards, Discover it Cash Back is a great choice. It’s actually a great idea to get both cards – use Chrome Discover it during quarters when you know you’ll spend less with Discover it cashback, then switch to Discover it cashback during quarters when you’re likely to reach maximum. spending limit.