Credit Cards

What Is Cashback Match

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 5 minute read

In the first year, you’ll get a cashback match and 5% back in selected purchasing areas.
Five percent cashback is the gold standard in credit card cashback rewards schemes. In fact, the Discover it Cash Back Credit Card offers just that. To keep things interesting, you have to remember to activate the bonus category each quarter since it varies.

This card is best suited to those who are prepared to put in the extra effort to optimize their credit card rewards because you must go into your account and activate your bonus to obtain the full cashback. However, the extra work is definitely worth it because there is no yearly cost and a hefty welcome bonus. Continue reading to find out more about the Discover it Cash Back Credit Card’s features and rewards.

Who is entitled to the Discover it Cash Back rebates?

Discover it Cash Back is a wonderful credit card if you like to receive cash back rather than points or miles on purchases. If you’re willing to keep an eye on the shifting categories, this card is the best option for your spending habits.

In order to get the most cash back on all of your transactions, you should look at a different type of cashback credit card if you want the easiest rewards program. To get the most out of Discover it Cash Back, you’ll need to unlock bonus categories and time your purchases. There are certain things that you’ll have to do in order to get the most out of your Discover card if you’re willing to put in the time and effort.

Benefits and advantages of using Discover it Cash Back

  • Introductory discount. At the conclusion of your first year, you will get an unlimited dollar-for-dollar match of all cash back you’ve earned.
  • APR for the first time. Within the first 14 months of being a cardmember, new cards will pay 0% APR (annual percentage rate) on new purchases (then 11.99 percent to 22.99 percent (variable)).
  • Rate of return. If you spend money in certain categories, you can get up to 5% back in cashback. This is one of the best cashback offers around.
  • FICO credit score for free. You can simply keep track of how your borrowing habits affect your credit score over time by keeping an eye on your credit report.
  • There are no further charges. There’s no yearly charge and no international transaction fee with this account. For the first time, there is no penalty cost for late payment. Despite the fact that you will be charged a late fee for any additional payments that are made after the due date.
  • Alerts from SSN. If your Social Security number is found on the dark web, you can opt-in to get optional SSN notifications.

The Discover it Cash Back Card has certain drawbacks.

  • Bonuses are subject to a limit. There is a limit to how much money may be spent in the bonus area. On a rotating basis, cardholders can receive 5% cashback (up to a quarterly maximum). The quarterly cap for 2021 is set at $1,500.
  • Keeping tabs on various types of expenditures. To get the most out of this card, you must enable quarterly categories and keep track of your spending. As a result, some people may find this to be a nuisance. Even if it’s for the sake of getting bonus cashback.
  • There is no warranty coverage for lengthy periods of time. In 2018, Discover stopped providing cardholders with extended warranty protection.
  • In comparison to Mastercard, Visa, and American Express, Discover cards aren’t as extensively recognized across the world. Verify that this card is accepted where you intend to go before you go if you plan to use it while traveling.

Earning and redeeming cashback

Potential earnings in years one and two

With the Discover it Cash Back Card, here’s a peek at how your cashback might grow.
Keep in mind that this is only a guess. How much you spend and where you spend it will define your true worth. Earnings for the first year are $670, in the second year, I made $335.
The figures above do not include spending in the bonus category. You’ll get the most out of this card if you stick to the 5 percent bonus areas each quarter.

Best ways to earn

Each quarter’s bonus category is the ideal method to maximize your Discover it Cashback Card’s cashback. After you activate your bonus, you can get 5% cashback. Calendar Bonus Categories for the Discover Cashback in 2021 include:

  • Walgreens, CVS, and other big-box retailers (January to March)
  • Wholesale clubs, gas stations, and a few streaming services (April to June)
  • Businesses that accept credit cards and those that accept PayPal (July to September)
  • Purchases made on the websites of Amazon.com, Walmart.com, and Target (October to December)

Uber and Lyft have previously been eligible for Discover’s bonus cash back programs. Check Discover’s bonus cash back calendar each year to find out what the bonus categories are for the next year. As a result, go into your account and activate the bonus—or make sure activation has been completed to the fullest extent possible.

All other purchases are discounted by 1% as well. It doesn’t end there: You also get a year-long unlimited cashback bonus at the conclusion of your first year. Consider signing up for the card during a period when your spending is high in order to get the most cash back possible.

Maximizing the Number of times you may redeem

It takes a little more work to earn bonus rewards with the Discover it Cash Back Card, but redeeming them is straightforward. To put it another way, you get cashback instead of points or miles that you have to figure out their worth.

Having a fixed rate of cashback means that you may redeem your rewards whenever you choose. The cashback you earn can be redeemed at any time as a statement credit or a deposit to your bank account, and it never expires as long as your account is active. Redeeming your awards in this manner is possible, but you’ll need to meet a $20 minimum before you can do so. Whenever you’re ready, simply log into your Discover account and request your money.

Bottom Line

Ultimately, the perfect credit card for you relies on your own circumstances and requirements. It is possible that some people prefer a flat-rate cashback credit card, while others want the ability to activate bonus categories at the end of each quarter.

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