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Discover it® Cash Back review: Discover’s flagship rewards card

It’s one of the best no-annual-fee cards for low rates and fees, cash back, first-year value and customer service if you don’t mind rotating categories.

 /  17 min
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Snapshot

4.4

Bankrate rating
Info
Rating: 4.4 stars out of 5

Bottom line

Cardholders that don’t mind a little elbow grease to make their rewards cards shine will find the Discover it® Cash Back is one of the best no-annual-fee credit cards for low rates and fees, cash back, first-year offers and customer service.

Image of Discover it® Cash Back
Apply now Lock
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Best For Cash Back Category Variety

Discover it® Cash Back

Rewards rate

1% - 5%
Info

Annual fee

Intro offer

Info

Good to Excellent (670 – 850)
Info

Discover it® Cash Back overview

Earning cash back from your credit card is an easy way to save a little money on your usual spending. In exchange for a bit more effort than a typical cash back card, the Discover it® Cash Back packs one of the highest rewards rates on various everyday expenses.

Activating your categories, tracking your spending and adjusting your spending habits to the quarterly categories can make this card one of the best for maximizing earnings on routine purchases. This extra effort could also make Discover’s Cashback Match the most valuable first-year offer for a personal cash back card.

The Discover it Cash Back can be an excellent tool for earning cash back, but you’re at the mercy of Discover’s rotating category calendar. You should consider another no-annual-fee credit card if you’re not a fan of the extra legwork it takes to maximize rotating categories.

  • Credit Card Cash Back

    Rewards

    • 5 percent cash back after activation on rotating categories each quarter (up to $1,500 in purchases, then 1 percent)
    • 1 percent for all other purchases

    Expert Appraisal: Good
    See our expert analysis

  • Rewards

    Welcome offer

    • Automatic Cashback Match™: All cash back earned at the end of the first 12 months is matched.

    Expert Appraisal: Exceptional
    See our expert analysis

  • Credit Card Apr

    0% APR offer

    • 0 percent intro APR on purchases for 15 months
    • 0 percent intro APR on balance transfers for 15 months
    • 17.24 percent to 28.24 percent variable ongoing APR

    Expert Appraisal: Typical
    See our expert analysis

  • Credit Card Search

    Rates and fees

    • No annual fee
    • No foreign transaction fee
    • No fee for the first late payment (then up to $41)
    • No penalty APR
    • 3 percent intro balance transfer fee, up to 5 percent fee on future balance transfers (see terms)*

    Expert Appraisal: Good
    See our expert analysis

  • Congrats

    Other cardholder perks

    • Acclaimed, U.S.-based customer service 24/7, including staple features like free overnight shipping for replacement cards
    • Free FICO score access
    • Free credit monitoring service and alerts, including scanning the dark web for the cardholder’s Social Security number
    • Freeze it® card locking in the mobile app
    • $0 fraud liability for unauthorized purchases

    Expert Appraisal: Typical
    See our expert analysis

Discover it® Cash Back pros and cons

Pros

  • Checkmark

    The rotating categories may offer the highest rewards rate on a no-annual-fee card for several popular, everyday categories.

  • Checkmark

    Poses some of the lowest rates and fees on the market, including no annual fee, foreign transaction fees, penalty APR or fee on your first late payment (then up to $41).

  • Checkmark

    The Cashback Match program could be the strongest welcome offer among no-annual-fee cash back cards since it essentially doubles all cash back you earn at the end of the first year.

Cons

  • Rewards can be hit-or-miss depending on whether your spending aligns with the rotating categories, which Discover announces around a month beforehand.

  • Unlike a few other issuers’ cash back programs, cardholders can’t increase the value of rewards by transferring them to other loyalty programs through a premium Discover card.

  • The rotating category rewards program requires quarterly activation and may be too high maintenance for first-time rewards cardholders.

Why you might want the Discover it® Cash Back

The Discover it® Cash Back isn’t the only rotating rewards card with a high cash back rate, but it stands out from the crowd thanks to its unique first-year offer and low fees.

Rewards rate: Stellar cash back for savvy spenders

Earning cash back with the Discover Cash Back card does take a little effort, as you’ll need to keep track of the rotating bonus categories and enroll each quarter, but the bonus cash is well worth it.

Based on a $15,900 average yearly spend and the latest data from the Bureau of Labor Statistics*, the Discover it® Cash Back has the potential to earn more rewards each year than most other no-annual-fee cash back cards from major issuers — about $399. (5 percent after enrolling in rotating categories each quarter on up to $1,500, then 1 percent) Only the Chase Freedom Flex℠ eclipses it with $493 per year using the same spending formula.

Discover’s rotating categories can fit into your rewards strategy pretty well since they tend to align with seasonal expenses and include at least one major category. For example, January through March has included gym memberships, drug stores or grocery stores in the past as bonus categories — perfect for New Year’s resolutions and flu season.

Although there aren’t any consistent yearly categories, this card may provide the highest rewards rate available on several categories when the opportunity rolls around, such as for gas stations, wholesale clubs and digital wallet purchases. When it’s time to cash in your rewards, you can redeem your Discover rewards for cash back as an electronic direct deposit to your chosen account or as a statement credit to your card balance. You also have the option to use your rewards for gift cards (partner gift cards range from $5 to $200 in increments of $5), charitable donations to select charities or even payments toward Amazon.com.

All reward options carry a 1:1 redemption rate, which is rare when it comes to Amazon.com reward payments and non-cash redemption choices. Discover’s partner gift cards also sweeten the deal by occasionally adding 5 percent to 20 percent value to the balance depending on the merchant.

Welcome offer: Could deliver the best first-year cash rewards value

The Discover it® Cash Back welcome offer differs from the typical sign-up bonus on other cards. Discover offers its Cashback Match program, which takes the total amount of cash back you accumulate at the end of your first year and matches it.

With this program, the size of your new cardholder bonus is up to you — the more you use your Discover it® Cash Back card, the bigger your bonus will be. By maximizing your 5 percent categories’ $1,500 spending cap each quarter after activation, you could stack another $300 on top of the $300 you already earned, then 1 percent. That’s a worthwhile reward for your patience since it’s well above the usual $150 to $200 upfront welcome offer on many other no-annual-fee cash back cards.

Rates and fees: Some of the lowest card costs on the market

Only a few credit cards minimize their rates and fees to the extent Discover cards have. There’s no annual fee, no penalty APR for late payments and no penalty fee for the first time you make a late payment (late payment fees are up to $41 after that). Even the ongoing variable APR could be well below the average current interest rate, making this a potentially great low-interest card.

These rates and fees are some of the lowest you’ll find from a major credit card issuer, which makes for a helpful safety net if you’re learning the ropes for credit cards or rotating categories.

0% APR offer: Solid intro APRs make it a well-rounded card

The Discover it® Cash Back offers new account holders a 0 percent intro APR on purchases and qualifying balance transfers for the first 15 months (then 17.24 percent to 28.24 percent variable). This offer is on par with many no-annual-fee rewards cards’ offers and is generally the longest intro APR on both purchases and balance transfers you’ll find with a rewards card. Just keep in mind there is also the typical intro balance transfer fee of 3 percent, up to 5 percent on future balance transfers (see terms).

When combined with a strong cash back rate, a potentially high welcome offer and limited fees, intro APR periods round out the Discover it® Cash Back as an excellent all-around credit card.

Why you might want a different cash back card

Although the Discover it® Cash Back can be a lucrative credit card, its rotating category program may not suit everyone’s spending habits. Other cards may be more rewarding for your specific purchases or offer unique features that add value.

Rotating categories: Not suitable for everyone

No matter how high a cash back rate may be, it won’t be enough to bring value if it doesn’t suit your spending habits. There’s no guarantee which categories Discover will boost next quarter or whether they’ll align with your biggest expenses or favorite merchants. At the very least, you’ll need to activate and remember your eligible categories each quarter. Your cash back earnings with this card can be hit or miss, so if you’re stuck with incompatible categories for three months the card can’t do much for you.

The 5 percent cash back rotating categories also have a $1,500 combined purchase limit each quarter before your cash back rate drops to 1 percent back on all purchases. You’ll want to track your spending and potentially change how or where you shop every few months to maximize your cash back.

These factors could make this card too high maintenance for some people, especially first-time cardholders who want to start off with a less-strenuous rewards experience.

Lightbulb

Bankrate Insight

The Discover it® Cash Back used to have a leg up over its rival, the Chase Freedom Flex card, since Discover previously announced the entire next year’s quarterly categories in advance. This was incredibly helpful for adding a bit of consistency since you could plan out your rotating category rewards strategy ahead of time. However, you now need to study previous years’ category calendars to somewhat anticipate which categories are coming up.

Perks: Few benefits beyond rewards and limited fees

The Discover it® Cash Back's benefits are somewhat light beyond its cash back and minimal fees. If you rely on traditional perks like purchase and travel protections, perhaps consider other options since Discover has trimmed its card features to focus on its signature low-cost reward offerings.

You’ll have basic perks like $0 fraud liability for unauthorized purchases, free FICO score access and the ability to freeze your card whenever you like. The latter is helpful if you’re unsure whether your card is lost or stolen and you want to buy some time instead of canceling your card immediately — especially since prior recurring expenses, returns, credits, delayed payments, account fees and interest will still occur.

The Social Security Protection perk is pretty in-depth as well, since a screening of this caliber usually requires subscribing to a third-party credit monitoring service. Discover provides it at no additional cost after activation. However, the only remarkable benefit is Discover’s acclaimed customer service. In fact, the issuer consistently ranks at or near the top of J.D. Power’s credit card customer satisfaction surveys. Discover ranked second overall in the most recent 2022 study, having previously won first place five times and tying for the top spot in 2014.

On the other hand, if you’re not as concerned with customer service or won’t run into the fees that Discover waives, a few competing cards offer perks like purchase and travel protections, streaming service annual credits and perks with partner rideshare or food delivery services.

First-year value vs. ongoing value

The Discover it® Cash Back is a frontrunner for first-year value with no annual fee, thanks to Discover’s CashBack Match offer. This feature could make the Discover it® Cash Back card a significantly better option for first-year value than competing cards, depending on how much you spend. 

However, you’ll only earn 5 percent cash back on up to $6,000 across the whole year, which amounts to up to $300 back. You’ll earn 5 percent back on up to $1,500 in rotating category purchases each quarter when you activate the bonus category, then 1 percent.

Benefits and costs First-year value Ongoing value (no welcome offers)
Yearly rewards* +$399 +$399 (may change depending on announced quarterly categories and your personal spending)
Welcome offers +$399 (matches first-year rewards)
Perks (of monetary value) N/A N/A
Annual fee $0 $0
Total value $798 $399

*Based on our formula used to calculate each card’s average rewards rates and average ongoing rewards value, using Bureau of Labor Statistics spending data and an assumed $15,900 yearly spend over three years ($1,325 per month).

We tried it: Here’s what our experts say

Around the Bankrate office, plenty of Discover it® Cash Back fans have found it valuable well beyond its honeymoon period. Bankrate editor Robert Thorpe finds the Discover it® Cash Back fits in with his other credit cards, and he takes advantage of it for the impressive rewards rates on seasonal cash back categories.

I like that the card is versatile. I can sample earning 5 percent cash back in unique areas, such as purchases made with my digital wallet. I can also “rest” my Blue Cash Preferred® Card from American Express for three months and avoid going over that card’s $6,000 annual spending limit at U.S. supermarkets. And, thanks to the Cashback Match, this card effectively lets me earn at least 2 percent cash back for the first year on all my general purchases.*

— Robert ThorpeBankrate editor

*Discover it® Cash Back offers 5 percent cash back on everyday purchases at different places each quarter, enrollment required (on up to $1,500 maximum, 1 percent thereafter). Earn unlimited 1 percent cash back on all other purchases. Discover will automatically match all of the cash back you've earned at the end of your first year with no maximum.

How the Discover it® Cash Back compares to other cash back cards

The Discover it® Cash Back is one of the best rotating category cards thanks to its low-cost terms, but you may earn more rewards and enjoy richer card features by selecting another card.

Image of Discover it® Cash Back
Bankrate Score
See Rates & Fees , Terms Apply
Apply now Lock
on Discover's secure site

Annual fee

$0

Intro offer

Cashback Match™
Info

Rewards rate

1% - 5%
Info

Recommended Credit Score

Good to Excellent (670 – 850)
Info
Image of Discover it® Chrome
Bankrate Score
See Rates & Fees , Terms Apply
Apply now Lock
on Discover's secure site

Annual fee

$0

Intro offer

Cashback Match™
Info

Rewards rate

1% - 2%
Info

Recommended Credit Score

Good to Excellent (670 – 850)
Info
Image of Chase Freedom Flex℠

Chase Freedom Flex℠

Annual fee

$0

Intro offer

$200
Info

Rewards rate

1% - 5%
Info

Recommended Credit Score

Good to Excellent (670 – 850)
Info

Best cards to pair with the Discover it® Cash Back

Stacking different cards is a great way to ensure you earn the most rewards. While the Discover it® Cash Back earns a fantastic rate on its quarterly categories, there are better options for travel purchases and purchases outside of those seasonal categories.

Who is the Discover it® Cash Back right for?

If you fall into any of these cardholder profiles, Discover’s flagship credit card can be a great addition to your wallet.

Bankrate’s Take — Is the Discover it® Cash Back worth it?

The Discover it® Cash Back is perfect for people who can adjust their spending to take advantage of Discover’s cash back calendar each quarter. Its high-earning rewards scheme maximizes Discover’s Cashback Match bonus, making it one of the best welcome offers for a no-annual-fee card. The Discover it® Cash Back carries perhaps the lowest rates and fees available from a major issuer, and it’s accessible with just a “good” or higher credit score (670+ FICO score).

Although it isn’t the most feature-rich or newcomer-oriented card in its class, the Discover it® Cash Back’s focus on accessibility, affordability and excellent customer service give it all the hallmarks of a great rewards card for those who don’t mind putting in a little elbow grease to make it shine.

The information about the Chase Freedom Flex℠ has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.

Dig deeper: Is the Discover it® Cash Back worth it?

How we rated this card

Document
150+
cards rated
Congrats
50+
rewards programs valued
Location
1800
data points analyzed
Credit Card Reviews
40+
perks evaluated

We rate credit cards using a proprietary card scoring system that ranks each card’s estimated average rewards rate, estimated annual earnings, welcome bonus value, APR, fees, perks and more against those of other cards in its primary category.

Each card feature is assigned a weighting based on how important it is to people looking for a card in a given category. These features are then scored based on how they rank relative to the features on other cards in the category. Based on these calculations, each card receives an overall rating of 1-5 stars (with 5 being the highest possible score and 1 being the lowest).

We analyzed over 150 of the most popular rewards and cash back cards to determine where each stacked up based on their value, cost, benefits and more. Here are some of the key factors that influenced this card’s overall score and how the score influenced our review:

Frequently asked questions

Written by
Garrett Yarbrough
Writer, Credit Cards

Bankrate expert Garrett Yarbrough strives to make navigating credit cards and credit building smooth sailing for his readers. After regularly featuring his credit card, credit monitoring and identity theft analysis on NextAdvisor.com, he joined the CreditCards.com and Bankrate teams as a staff writer to develop product reviews and comprehensive credit card guides focused on cash back, credit scores and card offers.

Edited by Senior Editor, Credit Cards
Reviewed by Former Senior Editor, Credit Cards

* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.

Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.