Discover it Cash Back Review: Up to 5% Cash Back on Common Purchases (and Some Serious Money-Saving Features)
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Written by
Sarah Hostetler
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Edited by
Emily Gadd
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Reviewed by
Jasmin Baron
A quick glance at the Discover it® Cash Back perks and it’s clear the card is trying its hardest to save you money. It’s got a high earning rate, and it’s one of the most affordable credit cards on the market.
In our Discover it review, we’ll help you decide if the Discover it Cash Back benefits make it a contender for your wallet.
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Intro Bonus
Discover will match all the cash back you’ve earned at the end of your first year.
Purchase and Balance Transfer APR
0% Intro APR on purchases and on balance transfers for 15 months, then 17.99% – 26.99% Variable APR.
Cash Back
Earn 5% Cash Back At Different Places Each Quarter Up To The Quarterly Maximum When You Activate.
Earn 1% Unlimited Cash Back On All Other Purchases – Automatically
Recommended Credit Score
Excellent/Good
670 – 850*
Annual Fee
$0
CardCritics™ Opinion
When it comes to cash-back credit cards, the Discover it Cash Back is hard to beat. Sure, there are a few pain points (like quarterly caps on bonus cash and sometimes hard-to-remember rotating bonus categories), but the potential earnings you can receive are quite large for a no-annual-fee credit card. And its intro APR offer is generous, too.
Our Critical Analysis:
Discover it® Cash Back
- Up to 5% return on everyday purchases
- No annual fee
- Intro offer can be incredibly valuable for big spenders
PROS
- You must manually activate rotating spending categories to earn bonus cash
- Bonus cash from rotating categories is capped each quarter
- Rotating bonus categories may not complement your spending habits
CONS
Discover it Cash Back Benefits
Cash Back Earnings
The Discover it Cash Back offers 5% cash back on a handful of spending categories that rotate each quarter. These categories are typically common expenses such as Amazon, Walmart, grocery stores and restaurants. You’ll have to activate the new categories each quarter to earn the 5% bonus cash — otherwise, you’ll earn just 1%.
The 5% bonus is capped at up to $1,500 in combined spending per quarter after you activate (then 1%). For all other purchases that don’t fall into a bonus category, you’ll earn a fixed 1% back.
Even better, the Discover it Cash Back comes with a unique welcome bonus that’ll supercharge your earnings during your first year of card membership. Discover will match all the cash back you earn during your first 12 billing cycles (or 365 days, whichever is longer). Discover will deposit this bonus cash as a lump sum soon after your cardmember anniversary.
Intro APR Offer
The Discover it Cash Back comes with a 0% Intro APR on purchases and on balance transfers for 15 months, then 17.99% – 26.99% Variable APR.
There are two scenarios in which this perk could save you a ton of money:
- You’ve got a large upcoming purchase that you don’t think you can pay off within a few months
- You’re carrying a balance on another credit card that’s incurring expensive interest fees
If you’re currently paying fees for floating a balance month-to-month on a high-interest credit card, a 15-month breather could save hundreds of dollars and help you to quickly pay off that debt.
Withdraw Cash From Grocery Stores
A unique feature of the Discover it Cash Back is the ability to withdraw cash at checkout. You can use the cash register as an ATM at select grocery stores by essentially “overpaying” your bill (up to $120 every 24 hours). The cashier will give you your change in cash.
I’ve used this as a sort of fee-free cash advance several times when I just wanted a bit of cash without nipping over to the bank.
Discover it Cash Back Drawbacks
Rotating Bonus Categories May Not Complement Your Spending Habits
The Discover it Cash Back’s ever-changing bonus categories typically reward common purchases. But there may be some months that just don’t jive with your organic spending.
For example, categories like drug stores, home improvement stores and public transit tend to pop up at least once per year. Even if you do use one or two of those categories, you may not spend a meaningful amount of money on them.
Earning Cash Back Takes Some Effort
Again, maximizing the Discover it Cash Back’s earning rates takes vigilance. This isn’t the best credit card for those who mindlessly swipe whichever credit card is at the top of their wallet.
Not only do the card’s bonus categories change each quarter, but you must remember to activate them. This isn’t difficult to do, but it’s far from a set-and-forget type of card.
You Can’t Receive Outsized Value for Your Rewards
What’s considered an upside by many may be a drawback for others.
Because the Discover it Cash Back earns no-nonsense cash, there’s no way to squeeze extra value from your rewards. Rewards currencies like airline miles and hotel points often have a less fixed value, which can result in 2 cents or more per point with a bit of strategy. No such luck with Discover it Cash Back.
Who Is the Discover it Best For?
The Discover it Cash Back doesn’t do anything notably “better” than its competitors. Other cards earn 5% back on rotating bonus categories and offer introductory interest-free periods, for instance.
But its simple rewards redemptions make it a customer-friendly card that’s great for anyone interested in cash back. And the comparatively sparse Discover it cash back fees mean that every penny you earn from this card is profit.
Plus, Discover’s unique welcome bonus and “cash back at checkout” feature give it some novelty you won’t find elsewhere.
Is It the Right Card for You?
The Discover it Cash Back is worth it for you if:
- You prefer a no-annual-fee credit card
- You’re interested in earning simple cash back
- You don’t mind keeping abreast of rotating bonus categories
Alternatives to the Discover it
The Discover it Cash Back is far from the only way to earn a whopping 5% cash back credit card. Here are some other no-annual-fee options:
- Chase Freedom Flex®: Similar to the Discover it Cash Back, this card offers rotating bonus categories each quarter that must be activated. It also comes with similar bonus reward caps. But it also earns unlimited 5% cash back on Chase Travel℠ purchases and 3% back at restaurants and drugstores.
- Citi Custom Cash® Card : Instead of tracking 5% categories each quarter, this card automatically keeps tabs on your spending habits and issues a 5% bonus on the eligible category in which you’ve spent the most for the current billing cycle. Bonus cash is capped at $500 in spending per month (then 1%).
Card Details From Discover
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
- 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. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem cash back for any amount
- Apply now and you could get a decision in as little as 90 seconds. No annual fee.
- Start shopping and earning rewards in minutes with your virtual card, before your physical card arrives in the mail, if eligible.
- Get a 0% intro APR for 15 months on purchases. Then 17.99% to 26.99% Standard Variable Purchase APR applies, based on credit worthiness.
- Terms and conditions apply.
How Does the Discover it Stack Up Against Competitors?
If you’re willing to expend the cognitive energy necessary to maximize rotating bonus categories, the Discover it Cash Back is a great pickup. Otherwise, consider the following cards.
| Discover it Cash Back | Chase Freedom Flex | Citi Custom Cash Card | |
| Welcome Bonus | Discover will match all the cash back you’ve earned at the end of your first year. | Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening! | Earn $200 in cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back. |
| Annual Fee | $0 | $0 | $0 |
| APR | 0% Intro APR on purchases and on balance transfers for 15 months, then 17.99% - 26.99% Variable APR | 0% Intro APR on Purchases and Balance Transfers for 15 months, then 18.74% - 28.24% Variable | 0% intro APR for 15 months on Purchases and Balance Transfers, then 17.99% - 27.99% (Variable) |
| Rewards Rate | Earn 5% Cash Back At Different Places Each Quarter Up To The Quarterly Maximum When You Activate. Earn 1% Unlimited Cash Back On All Other Purchases - Automatically | 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter! 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more. 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1% cash back on all other purchases. | Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. Plus, earn an additional 4% cash back on hotels, car rentals, and attractions booked with Citi Travel®. |
| Standout Feature | Rotating quarterly bonus categories | Rotating quarterly bonus categories | Automatically maximizes rewards |
The information related to Citi Custom Cash® Card was collected by CardCritics™ and has not been reviewed or provided by the issuer of this product/card. Product details may vary. Please see issuer website for current information. CardCritics™ does not receive a commission for these products.
Frequently Asked Questions About the Discover it Cash Back
What credit score do I need for Discover it Cash Back?
You should have at least a good credit score (a 670 FICO score or above) when applying for the Discover it Cash Back for the best chance at approval.
Can I use my Discover it Cash Back anywhere?
You can use your Discover it Cash Back anywhere that Discover credit cards are accepted. Admittedly, Discover isn’t as accepted as other payment networks like Visa or Mastercard — but you’ll have no problem with 99% of domestic merchants, according to the February 2025 issue of the Nilson Report.
Can I use the Discover it Cash Back at Costco?
No, Costco only accepts Visa in-store. You can’t even use the Discover it Cash Back for online purchases at Costco.com
Editorial Note: Any opinions, analyses, reviews or recommendations expressed are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
*CardCritics™ references a FICO® 8 score, which is one of many different types of credit scores. A financial institution may use a different score when evaluating your application.
