If cash back is your game, then the Discover it® Cash Back could be a good fit for you. Its easy-to-understand earning rates, straightforward reward redemptions and simple benefits will be a welcome sight for anyone seeking simplicity.
However, if you're looking for comprehensive travel benefits, bonus categories that cover a wide range of everyday purchases or access to transfer partners, this card may not be the right pick. Card rating*: ⭐⭐⭐½
*Card rating is based on the opinion of TPG's editors and is not influenced by the card issuer.
Discover it Cash Back: The basics
One of the main draws of the Discover it Cash Back is its rotating 5% cash back bonus categories. The cash back you earn on this card is easy to redeem, making it a solid option for beginners or anyone looking to simplify their rewards strategy.
You won't find extensive travel or lifestyle benefits on this card, but that's understandable given it charges no annual fee. You also won't pay foreign transaction fees on international purchases.
There's one important change to know about: Through 2027, Capital One is migrating Discover's card products into its system. New cardholders will be added to Capital One's network immediately, while existing cardholders will transition over time.
Existing cardholders will keep their current Discover benefits and earning rates throughout the transition. Once your account moves to Capital One, you'll also gain access to additional Capital One perks and earning opportunities discussed below.
Existing cardholders should keep an eye out for an email with details about when their account will migrate.
Discover it Cash Back pros and cons
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Discover it Cash Back benefits
As a no-annual-fee card that can work well as a first credit card, the Discover it Cash Back doesn't offer comprehensive benefits. That's not necessarily a drawback, though, given there's no annual fee to justify year after year.
You'll receive standard benefits like fraud protection, free Social Security alerts and an instant virtual card, if eligible. Using the card responsibly, including paying on time and keeping your balances manageable, can also help you build credit over time.
Once your account is on Capital One's network, you'll also receive access to Capital One Offers, which can provide opportunities to earn additional cash back on purchases with select merchants.
If you're new to earning rewards, this card is an easy way to get used to earning and redeeming cash back. Once you're comfortable with your rewards card, you can move on to transferable rewards if you wish, or stick with the simplicity offered by cash back.
Related: Getting started with points, miles and credit cards to travel
How to earn and use your rewards
The Discover it Cash Back has a straightforward earning structure.
All cardholders earn:
- 5% cash back on up to $1,500 in combined purchases each quarter in rotating categories after activation, then 1%
- 1% cash back on other purchases
Discover announces its 5% bonus categories quarterly, so the purchases that earn the elevated rate change throughout the year.
- In Q3, drugstores, gas stations and transportation were the featured categories.
- In Q4, entertainment, restaurants and utilities are the featured categories.
If you don't have a card that earns bonus rewards on common everyday purchases, the Discover it Cash Back card still lets you earn rewards on a variety of purchases.
The downside is that you won't consistently earn in the same categories throughout the year, so the value you find in this card's 5% bonus category may fluctuate from quarter to quarter.
Once your account is on Capital One's network, you'll also earn:
- 5% cash back on hotels, rental cars and activities booked through Capital One Travel
- 5% cash back on tickets and events booked through Capital One Entertainment
This distinction is important for existing cardholders: You won't receive the new Capital One earning rates until your account has migrated.
Your rewards can be redeemed in a variety of ways, including for:
- Gift cards
- Purchases through Amazon.com or PayPal
- Statement credits
- Deposits into a checking or savings account
After your account migrates to Capital One, you'll also be able to use your rewards toward eligible bookings through Capital One Travel and Capital One Entertainment.
While you probably won't receive as much value as you would with transferable rewards, this is a great variety of options for cash back fans to take advantage of.
Where the Discover it Cash Back falls short
If you're looking for a card that earns transferable rewards, the Discover it Cash Back isn't it. In addition, those looking for perks like lounge access, elite status boosts and statement credits won't find them with this card.
The card is a better fit for cash-back fans who are willing to activate and maximize its rotating quarterly bonus categories.
Discover it Cash Back vs. Discover it Miles
The closest comparison to the Discover it Cash Back is the Discover it® Miles. While the Discover it Miles doesn't earn bonus rewards on everyday purchases like the Discover it Cash Back's rotating quarterly category, it earns more per dollar spent on nonbonus purchases.
With the Discover it Miles, you'll earn 1.5 miles per dollar spent, slightly higher than the Discover it Cash Back's 1% cash back rate. Despite the name, the "miles" you earn on the Discover it Miles are primarily designed for cash-back-style redemptions, such as statement credits or to offset eligible travel purchases.
Neither card charges an annual fee or foreign transaction fees, and both offer fairly standard perks like fraud protection. The better option for you will largely depend on whether you prefer rotating bonus categories or a stronger flat earnings rate.
Is the Discover it Cash Back worth it?
If you're looking for a basic starter card to build your credit or you want to keep your wallet simple with a strong cash-back card, the Discover it Cash Back could be the right choice for you. Just make sure its redemption options make sense for your lifestyle.
Since this card has no annual fee, it isn't one you have to worry about maximizing year after year to justify keeping. If you don't want to go through the effort of tracking quarterly bonus categories, however, this card may not be the right fit for you.
When to apply for the Discover it Cash Back
With the Discover it Cash Back, new cardholders can earn a $200 statement credit after spending $500 on purchases in the first three months from account opening.
Additionally, Discover will automatically match all of the cash back you earn dollar-for-dollar in your first cardholder year.
That means your reward rates effectively become 10% (on up to $1,500 of combined spending each quarter you activate for the rotating categories) and 2% cash back, respectively, for the first year.
That's an incredible return on Capital One Entertainment, Capital One Travel and rotating category spend and significantly higher than what you'll find on virtually any other card.
This is the best offer we've seen on the Discover it Cash Back. Discover rarely offers elevated bonuses on this card, so now is a fantastic time to apply.
Other cards to consider if you don't want the Discover it Cash Back
If the Discover it Cash Back isn't right for your wallet, consider one of these other options instead:
- If you want stronger nonbonus earnings without giving up bonus categories: The Chase Freedom Unlimited® (see rates and fees) earns 3% cash back on dining and at drugstores, plus 1.5% cash back on all nonbonus spending. To learn more, check out our full review of the Freedom Unlimited.
- If you want a rotating category card with more bonus categories: The Chase Freedom Flex® (see rates and fees) earns 5% back on up to $1,500 in spending each quarter you activate on rotating categories, plus 3% back on dining and at drugstores. To learn more, check out our full review of the Freedom Flex.
- If you want a cash-back card with a high earning rate for nonbonus spending: The Citi Double Cash® Card (see rates and fees) earns 2% cash back on all purchases (1% when you buy and 1% when you pay off your bill). That's one of the highest cash-back earning rates for nonbonus spending. To learn more, check out our full review of the Double Cash.
For additional options, check out our picks for the best cash-back credit cards.
Bottom line
The Discover it Cash Back is a strong no-annual-fee option for cardholders willing to keep track of rotating 5% cash back bonus categories. While these bonus categories share a quarterly spending cap, most cardholders should be able to maximize it to earn significantly more rewards on qualifying purchases.
Cashback Match also makes the first year particularly rewarding, while the card's transition to Capital One is adding new earning and redemption opportunities.
Whether you're just getting started with credit cards or you're a seasoned pro looking to dabble in cash back, the Discover it Cash Back is worth keeping on your radar.
New Discover it Cash Back cardholders will receive the new Capital One features immediately, while existing cardholders will gain access once their accounts migrate.
Learn more: Discover it Cash Back
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.