Discover just did something I’ve never seen before.
I’ve had my Discover card for decades, and the only offers I ever get are for balance transfers—boring. But this time, they hit me with a targeted deal for an extra 4% cash back on new purchases. When stacked with their standard 5% quarterly categories, I can now earn up to 9% back in some cases.
How Discover’s Cashback Program Works
For those who prefer a simple rewards structure, the Discover It card makes earning cash back easy. It has no annual fee and offers straightforward rewards on all purchases:
- 1% back on everyday purchases
- 5% back in rotating categories (on up to $1,500 per quarter)
Depending on the category, I sometimes max out the bonus, earning $75 per quarter. However, Discover’s 5% categories often overlap with other cards I use. While 5% back is great, I’d rather earn 3X Ultimate Rewards or Membership Rewards when possible.
A Rare & Lucrative Targeted Offer
This new extra 4% cash back offer is what really caught my attention.
I’ve never received a deal like this from Discover—only balance transfer promotions. But this time, Discover clearly states:
“This offer is different from the quarterly 5% Cashback Bonus program.”
That means if a category qualifies for the 5% bonus, I’ll earn 9% cash back. Others have received a 5% offer, earning 10% back.
Where Can You Earn 9–10% Back?
This quarter’s 5% bonus categories include:
- Restaurants
- Home improvement stores
- Select streaming services
That’s a better return than I’d get on any other card. Even better, home improvement stores sell gift cards, so maxing out the offer could be easy.
Why Is Discover Doing This Now?
That’s the big question. Why is Discover suddenly offering higher-than-usual cash back to existing cardholders?
This comes just as Capital One is acquiring Discover, a merger expected to close in early 2025. (Yahoo Finance)
Could this be a way to boost customer engagement and spending before the transition? The future of Discover’s card lineup is unclear, so maybe they’re trying to solidify habits now.
Check Your Account—Offers Vary
Not everyone got the same offer. I’ve seen reports of different targeted promotions, so it’s worth checking your Discover account. (Miles to Memories)
Did you get a similar offer? Let me know in the comments!
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