Discover credit cards are unique in the world of loyalty programs and surprisingly profitable despite the lack of welcome bonuses. But what sets Discover cards apart are two standout features: cash back for the first year and a 5% cash back calendar for select cardholders.
The 5% cashback calendar consists of a rotating list of merchants who receive bonus rewards every quarter. You can earn up to $75 in cashback every quarter by continually increasing bonuses in these categories. The best part? Your rewards double during the first year, making up for the lack of a welcome incentive.
If you’re looking for simplistic rewards, the Discover Cash Back card with 5% quarterly rewards may be right for you. Here’s everything you need to know about the Discover cashback calendar so you can maximize your rewards effortlessly.
What are the Discover 5% cashback categories for 2022?
Discover 5% cashback categories change every quarter. During the current quarter, eligible cardholders receive 5% cash back on purchases made with Amazon and digital wallets. The bonus applies to both online purchases and Amazon Go. Relevant digital wallets include Apple Pay, Google Pay, Samsung Pay, and Garmin Pay.
This bonus is valid for purchases up to $1,500 made before December 2022. Once you use the bonus up to the maximum, you will receive 1% back in these categories. Here is Discover’s full refund calendar for 2022:
- January – March 2022: Grocery Stores, Gym and Fitness Club Memberships
- April – June 2022: Filling stations and purpose
- July – September 2022: Restaurants and PayPal
- October – December 2022: Amazon and digital wallets
Which Discover cards are eligible for a 5% cash back?
Three credit cards are currently eligible for 5% cash back from Discover: the Discover it® Cash Back Card, the Discover it® Student Cash Back Card, and the NHL Credit Card. All three cards have no annual fees, so you can keep them for a long time without paying for the privilege.
For the first year of a card membership, Discover offers unlimited “Cashback Match” across all three cards. This can be very beneficial if you have significant expenses ahead of you or if you can earn a maximum quarterly remuneration of 5% in cash. That’s right – the 5% Cashback Bonus rolls over to the Cashback Match, doubling to 10% in the first year.
Cashback Match is calculated at the end of 12 months and credited to your account within two billing cycles.
How to maximize the current quarter bonus
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The holiday shopping season is in full swing (including Black Friday and Cyber Monday), so this is the perfect time to maximize the current Discover Quarterly Bonus. And even apart from gifts, most people spend significant sums on food, jewelry, and travel expenses.
With 5% cash back on Amazon and Digital Wallet purchases, you can earn substantial rewards on any of those purchases.
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Digital wallet purchases
The digital wallet bonus is wider and easier to maximize than Amazon. This applies to purchases made anywhere Apple, Google, Samsung and Garmin Pay are accepted. Currently, most merchants accept these digital wallets both in store and online. All you have to do is add the Discover card to your digital wallet and use it to pay for your purchases.
Shopping on Amazon
Amazon, of course, sells just about everything you might need for the holidays. His Black Friday deals are legendary. Plus, with a Prime subscription, you get free two-day shipping.
If you can’t fully use the $1,500 quarterly limit, consider using this quarterly bonus as an opportunity to stock up on gift cards. Visa gift cards purchased on Amazon are subject to fees, but you can use them almost anywhere (including some bill payments). Or you can simply top up your Amazon balance and use it for purchases for the rest of the year. You can even buy a gift card for your local grocery store (year-round expenses).
Just don’t buy any of these on your Discover card if it could put you in debt. While getting higher rewards for purchases you were going to make anyway is ideal, you should avoid expenses that you can’t pay off at the end of the month. Remember: any interest payments you incur will void the rewards you earn.
Read more: How to budget with credit cards
How to activate Discover Cash Back rewards
You can activate your Discover cashback bonus by going to the bonus calendar page and logging into your account. You can activate the bonus at any time during the quarter, but it is better to do it in advance so as not to miss out on additional rewards. Remember that you will not receive the bonus until you complete this important step.
After activating the bonus, go to the digital wallet page and add your Discover card to your digital wallets. You can scan the QR code and indicate which platform you would like to add your card to.
Use of awards
If you want simplicity in your rewards program, nothing is easier than getting your money back.
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You don’t have to deal with complex redemption options or ways to maximize every point you earn. Cash is worth what it’s worth and you can use it for whatever you want. You can offset some of your monthly bills, cover impulse purchases, or stock up on essentials for the holidays and beyond.
You can redeem your Discover Cash Rewards for cash or credit on Amazon and PayPal. There are no redemption minimums, which is great because you don’t have to hit any minimum before you can use your hard-earned rewards.
Cashback rewards are credited to your account within two billing periods and are available for immediate redemption.
Using Discover Rewards with Amazon
To redeem your Amazon Rewards, go to the Amazon Discover landing page.
Click “Link your Discover Rewards Account” and “Register a New Rewards Account”. Then follow the instructions to link your Discover card to your Amazon account.
Select your Discover Card and check the “Buy with Points” box at checkout. Instead of being charged to your credit card, your rewards will apply.
Using Discover Rewards with PayPal
Discover’s PayPal refund is similar to Amazon’s. Go to the landing page provided and link your accounts.
When completing your PayPal transaction, select your Discover card as your payment form and check the “Use Cash Back Bonus” box at the bottom. Your rewards will be directly applied to your transaction.
Does Discover qualify for a 5% cashback return?
Discover matches all the cashback you earn in your first year of card membership, including rotating categories of 5% quarterly bonuses. You will actually earn 10% cashback on these categories, which is the highest rate you can get with a cashback card. The increased cashback rate is now capped at the first $1,500 spent. But that means a potential reward of $600 during the first year, which makes up for the lack of a welcome bonus.
In fact, most cashback cards don’t offer welcome bonuses above $200. Chase Freedom Flex℠ (which also has a 5% cashback calendar) offers $200 cashback after you spend $500 within the first three months of opening an account.
The Citi Custom Cash℠ Card provides the same bonus, minus the $1,500 spending requirement, which must be completed within six months.
So Discover cards offering 5% first year cash back are quite competitive. Compliance covers all of your credit card expenses for the first 12 billing cycles or 365 days (whichever is longer).
Please note that Cashback Match is only available to new cardholders.
Read more: The best cashback credit cards
Is cashback really worth it?
The cash back reward with Discover is well worth it considering there are no annual fees for the cards. On top of that, the 5% cash revolving rewards are very competitive compared to other credit cards.
For example, most reward cards earn 1 point for every dollar spent on Amazon and spending on digital wallets. These points are usually worth about 1-2 cents each. So you get at best a 2% return on credit card spending, making Discover’s 5% much more substantial.
When you factor in the first year cashback ratio, the 10% return on regular spending categories becomes even more valuable. Since the value of the cashback received exceeds other rewards, the Discover card is worth it.
Read more: Credit cards with the best rewards
Summary
Discover offers an excellent Cash Back Incentive Program with no annual fees and no cash back in the first year, which makes it even more valuable. There are no redemption minimums, so you can use your rewards as soon as you earn them. Cashback rewards are credited to your account within two billing periods and are available for immediate redemption.