Credit Cards Cash-Back Cards

Discover It Cash Back Credit Card Review

overall rating

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The Discover it Cash Back card offers top rewards, albeit in select categories, and a rich bonus. Cardholders earn 5% cash back on rotating categories and receive a dollar-for-dollar match on all the cash back they've earned by the end of the first year. There's also no annual fee and a decent 0% introductory period on purchases and transfers.

Discover it® Cash Back

Overall Rating
Discover it® Cash Back
On Discover's Secured Site.
Current Offer

Discover will match all the cash back you've earned at the end of your first year, automatically.

Recommended Credit
Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application.
350 579
580 669
670 739
740 799
800 850
Good - Excellent
Regular APR (%) 11.99% - 22.99% variable
Annual Fee $0
Rewards Earning Rate Earn 5% cash back on rotating categories each quarter each time you activate. Plus, earn unlimited 1% cash back on all other purchases.
INTRO PURCHASE APR 0% for 14 Months
Balance Transfer Fee 5% of the amount of each transfer
Foreign transaction fee (%) 0%
how this card stacks up
When compared among all rewards cards in our database:
Low Fees
Security/Customer Experience
Low Interest
worst best

Full Review of Discover It Cash Back Credit Card

  • Outstanding cash-back rewards on select categories

  • First-year cash-back rewards are matched

  • Decent 0% introductory offer on purchases and eligible balance transfers

  • Limited options for high-rate rewards

  • Categories must be activated

  • Relatively few benefits

Pros Explained

  • Outstanding Cash Back Rewards on Select Categories: Cardholders can earn 5% cash back on up to $1,500 spent every quarter on categories that rotate every three months. Examples are grocery stores, gas stations, restaurants, and Few cards offer such a generous cash back rewards rate, albeit on limited categories. (On other purchases, you receive a fairly standard 1% in cash back.)
  • Cash Back for Your First Year With the Card is Matched: At the end of the first year of card ownership, Discover automatically matches all of the cash back you've earned. You don't need to register for the bonus, and there's no limit on how much you can earn through it. This perk could lead to a substantial boost to your first year’s annual rewards, especially if you're able to maximize your spending in the rotating categories each quarter.
  • Decent 0% Introductory Offer on Purchases and Balance Transfers: The card offers a 0% APR on balance transfers for the first 14 months after you make a transfer for transfers made by May 10, 2021. That’s not an outstanding length of time compared with other transfer offers in the market. But this bonus has two other advantages over some competing deals. Unlike some offers, it isn't limited to only balance transfers, but includes new purchases as well. The 0% APR balance transfer offer must be initiated in during the eligibility period qualify. And, the transfer fee rises from 3% to 5% of the transferred amount for transfers made after that.

Cons Explained

  • High-Rate Categories Must Be Activated: This card requires you to activate the rotating categories each quarter in order to earn 5% rewards. Though the issuer makes it relatively simple to do so via its website, mobile app, or over the phone, it's still a chore that you may forget or be too busy to do. If you neglect to activate the bonus, you'll earn only 1% on purchases, including those in the bonus categories.
  • Relatively Few Benefits: Beyond its rewards, the Discover it Cash Back has limited perks. Other cards—even those with no annual fees—typically offer a number of robust benefits, including rental-car insurance coverage, travel insurance, and extended warranty protection. You may also want to carry another card for select purchases where you require these and other extras.

This Card is Best For

  • Avatar for Cash Back Strategist Persona
    Seeks to maximize cash back earnings across spending categories
    Cash Back Strategist
  • Avatar for Annual Fee Averse Persona
    Resists or refuses an annual fee on principle or due to cost
    Annual Fee Averse
  • Avatar for Head of Household Persona
    Primarily responsible for household grocery and other major purchases
    Head of Household
  • Avatar for Driver/Commuter Persona
    Incurs gasoline or other commuting expenses each month

If you're willing to put in some effort to earn top rewards—as in monitor and register for those with 5% cash back—the Discover It Cash back card can be very lucrative. And its generous cash back match makes the card all the more rewarding during the first year you own it. 

It's also a beneficial choice if you have some major expenses coming up. There's a 14-month 0% introductory period on purchases, which means you could carry large expenses at no cost for more than a year—and earn up to 10% in cash back on them, due to that first-year rewards match.

With its 0% APR on balance transfers, the card also has appeal if you’re laboring with a balance on another card on which you’re paying high interest. Or, even if you simply worry you might have to carry a big balance in the future. Be aware, though, that to qualify for the 0% introductory rate on balance transfers you must initiate the transfer before May 10, 2021.

The card is also more forgiving than some others to people who miss a payment. There’s no late fee on the first late payment and Discover imposes no penalty APR after you do so, a break that relatively few cards grant. 

Discover It Cash Back Credit Card Bonus

Discover will automatically match all of the cash back you've earned at the end of your first year as a cardholder. You don't need to sign up and there's no limit on how much you can earn.

That's potentially a very profitable bonus. If you reached the $1,500 maximum on 5% rewards each quarter—hardly a given, admittedly—you would earn a $300 bonus for the year on top of your $300 in cash back rewards. And that's without considering the match on the 1% cash back you’d earn on all other purchases in your first year.

The only downside to this offer is that you'll need to wait until the end of the year to get a credit on your account. Other cards that deliver a cash or points bonus, like the Chase Freedom, give you the bonus within a few months of opening an account, provided you spend a certain amount within that time.

Rewards Earning Details

This card offers 5% cash back on up to $1,500 each quarter on one or more bonus categories. Those categories rotate, but they’ve recently included purchases at grocery stores, restaurants, and gas stations, along with those from PayPal,,, and All other purchases you make outside of the bonus categories earn 1% cash back. Categories need to be activated each quarter in order to earn 5%. 

Purchases must also fit Discover's definition of the category in order to qualify for high rewards. 

Fortunately, those category definitions are generally fairly broad. For example, restaurant purchases encompass those made at full-service restaurants, cafes, cafeterias, and fast food locations. One definition that’s less generous is that of grocery store purchases; as with other card issuers, these omit those made at convenience stores, gas stations, warehouse clubs, discount stores, Walmart, and Target. 

This is Discover's calendar of rotating categories for 2020:

  • January–March: Grocery stores, Walgreens, CVS 
  • April–June: Gas stations, select streaming services, and wholesale clubs
  • July–September: Restaurants and PayPal 
  • October–December:,, and 

Rewards Redemption Details

You can receive your cash back as a credit to your account, where they can be applied to your balance at any time, or sent electronically to your bank account. There’s also an option to use them directly as payment at certain retailers, including, or to direct them to charities. An additional, potentially lucrative option is to exchange the cash back for a gift card at Discover partners. A bonus of at least $5—it varies by the merchant—is added to the value of the gift card for every $20 you redeem. Partners include American Eagle, Banana Republic, Gap, L.L. Bean, Bath and Body Works, Omaha Steaks, Old Navy, Black Angus, Foot Locker, Nike, and Under Armour.

You must accrue at least $20 in rewards to redeem them for gift cards. For the other redemption methods, you can redeem rewards when you have earned as little as one cent.  

Your rewards never expire. If your account is closed or if you haven't used your card in 18 months, Discover will credit your account with your cash back bonus. 

How to Maximize Your Rewards

Getting the most out of this card begins with being organized enough yourself to take advantage of Discover's selection of rotating categories. Set calendar reminders to activate the rotating category at the beginning of each quarter, and then use the card accordingly. 

You may even want to plan purchases that are flexible in their timing to take advantage of the bonus schedule. For example, you might want to stock up on non-perishable foods and paper goods at the supermarket during a quarter when grocery stores are featured, and postpone purchases of electronic items and beauty supplies until is on the 5% list. 

Such planning can help you reach—or at least get closer—to the $1,500 quarterly spending cap for spending in the bonus categories. And that, in turn, is especially lucrative during the first year of card ownership, when the cash back match essentially doubles your cash back earnings. Also, be vigilant about using the card for all other transactions during that year, since it’s unlikely you have another card that pays better than 2% (1% when you buy, the bonus 1% at year's end) on every purchase. 

Average Case

This scenario uses Discover's four quarterly bonus categories for 2021 (in turn, groceries; gas stations; restaurants; and,, and and assumes your spending is that of an average household in each. According to the Bureau of Labor Statistics, in each quarter you would spend approximately $1,160.75 on groceries, $523.50 on fuel, $881.50 in restaurants, and $470.75 on apparel, from retailers including,, and

Assuming you remember to activate each category during its respective quarter, that spending would earn you $151.83 for the year by using this card. In the first year, including the cash back match, you'd have $303.65 that could be redeemed at the end of the year. These figures don't take into account other purchases outside of rotating categories on which would you’d earn an additional 1% in cash back.

Aspirational Case

This scenario assumes higher-than-average spending, preferably to reach the $1,500 spending cap on bonus categories in as many quarters as possible. 

Reaching it in all four quarters of a year is not entirely realistic, given that the average spending for many featured categories, as noted above, is a half to a third of $1,500. But we’ll assume our big-spending household is able to reach the spending cap for two of the four quarters. 

Using 2021's rotating categories as a guide, we'll say that you're able to spend $1,500 in grocery stores during one quarter and purchases at,, and in another. We'll also assume you spend as much as the average consumer at gas stations and restaurants for the other two quarters. At the end of the year, your total cash back would be $220.25, which would rise to $440.50 in your first year, given the match on cash back rewards. Again, those rewards totals don't take into account other purchases outside of rotating categories, which would earn an additional 1% in cash back.

Discover It Cash Back Credit Card's Outstanding Benefits

  • No late fee on your first late payment
  • No foreign transaction fee
  • No penalty APR

Standard Benefits

  • Social Security number monitoring
  • $0 fraud liability on unauthorized charges
  • Overnight card delivery
  • 24/7 U.S.-based customer service
  • Year-end summary
  • Free FICO credit score
  • Discover identity alerts and account monitoring
  • Freeze it on/off switch (from app) to prevent unauthorized charges 

Cardholder Experience

Discover ranked second out of 11 national card issuers and scored well above average in the J.D. Power 2020 U.S. Credit Card Satisfaction Study.

Discover says its customer service is based in the United States. It's available over the phone, on its website, or through the mobile app. Help is available 24 hours a day at 1-800-DISCOVER or you can contact customer service online, including via live chat. 

Security Features

Discover, as with many other card issuers, allows you to freeze and unfreeze your account as needed and to monitor your credit report online or through the mobile app. The company will notify you if there is suspicious activity, and you’re never responsible for unauthorized charges, which are also standard features. 

Our Verdict

The Discover It Cash Back offers handsome rewards, but you need to pay attention and put forth some effort in order to earn them. Its rotating categories offer a very high rewards rate of 5% in cash back, but you must register every quarter for those. There’s also a $1,500 spending cap on those. That shouldn't be a problem for most households; indeed, if anything it’s likely you'll underspend on many or even most quarters—and so make less on these bonus categories than it might appear at first blush.

Given its unremarkable 1% cash back earnings on all other purchases, this card might best be considered as a supplement to another cash back card that pays more on all transactions. For example, it could pair well with the Citi Double Cash card, which pays an unlimited 1% + 1% combined cash back on all purchases—1% when you buy, and another 1% when you pay the purchase off. Switching between Discover's high rate on rotating categories and using the flat-rate Citi Double Cash card for everything else could best amplify your cash back rewards. 

This card has a decent 0% APR offer for balance transfers and purchases. But if a balance transfer is a high priority in your next card, there are other cards with longer introductory periods, such as the Citi Simplicity card, which offers 0% APR for 18 months on transfers made within 60 days of account opening.

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For Discover it® Cash Back
on Discover's Secured Site.
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Discover it® Cash Back
overall rating
Recommended Credit
Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application.
350 579
580 669
670 739
740 799
800 850
Good - Excellent
Regular APR (%) 11.99% - 22.99% variable
Annual Fee $0
Rewards Earning Rate Earn 5% cash back on rotating categories each quarter each time you activate. Plus, earn unlimited 1% cash back on all other purchases.
Investopedia Credit Card Rating Methodology
Investopedia is committed to delivering the best credit card recommendations in the industry. We’ll tell you when a card is good, we’ll tell you when a card is bad, and we’ll only call a card the best if we would recommend it to our friends or family members.
Overall Star Rating Explained
To rate credit cards we objectively assess, score and weight nearly 100 individual card features which roll up into five major feature sets: fees, interest, rewards, benefits and security/customer service. Here’s how we weighted those feature sets for the overall star rating of a card:
We have applied our proprietary rating methodology to every generally-accepted credit card in the U.S. domestic market to allow consumers to make fully informed choices. It’s important to note that for our overall score that we make a number of assumptions about how you would be using your credit card:
  1. While we make no assumption as to whether balances are carried on a given card we do assign varying weights to all credit cards’ introductory APR (if present) in addition to the regular, long term purchase and balance transfer interest rates.
  2. We utilize BLS (U.S. Bureau of Labor Statistics) income and average category spending data to calculate annual earnings rates for rewards cards that offer cash back, points or miles rewards at a set rate on all spending or in consideration of bonus rewards for certain spending categories, like gasoline, groceries, restaurants or travel.
  3. We determine the maximum points value of rewards cards by dividing the points, cash back or miles required to exchange for the retail price of the most valuable redemption option (for example, in the case of a card that offers a domestic roundtrip airline ticket as a redemption option vs. another redemption option of lesser value that requires the same amount of points or miles to acquire, we would base the rewards value on the airline ticket).
  • Cards that are selected best overall in their respective categories generally feature most if not all of the following attributes:
  • Low or Reasonable Fees Credit card fees come in many forms but the primary ones involve those for annual card membership and balance transfer. There are a myriad of reward and non-reward card options that charge no annual fee but for the many that do assess an annual fee the cost is often justified by their lucrative ongoing rewards and initial signup bonuses. Balance transfer fees are occasionally waived during introductory periods with certain cards, a factor which is heavily and positively weighted in our scoring model for cards offering this benefit. When charged, balance transfer fees range between 3% - 5%, which we grade accordingly. Other standard fees can generally be avoided, such as those for paying late or taking cash advances but we rate those relative to other cards in the market for reference, though with less weight assigned
  • Competitive Interest Many cards offer 0% introductory APR on purchases and balance transfers for varying lengths and then revert to a permanent or regular APR (based on a variable rate tied to the prime rate) that applies to any balances not paid in full. We rate both introductory APR percentage and length (in months) along with the midpoint of the variable regular APR interest rate range.
  • Valuable Rewards Credit card reward programs can be based on cash back, points or travel rewards (which can be generic or travel partner-specific, as with airline and hotel co-brand card programs). For cards that offer rewards we determine the value per dollar spent along with average redemption values and assign more favorable ratings to cards that offer superior consumer value. We also assign value to sign-up bonus offers and their initial spending requirements, when present.
  • Excellent Benefits Credit card benefits cover a range of offerings like concierge service, TSA Pre-check, auto rental coverage, travel accident insurance, lost luggage assistance and free credit scores. We rate cards on the number and level of over a dozen standard and upscale benefits and provide extra weighting emphasis for those travel-related perks that apply to premium travel cards when present.
  • Solid Security/Customer Service Security and customer service features like lost or stolen card replacement, being able to lock one’s card from an issuer app and 24 hour customer support are becoming more standard across the card market and we provide a significant amount of weighting to features in this area.
  • You can also read the full version of our methodology for a more in-depth look at how we assess cards and award them the best in various categories.