Key takeaways
- Discover offers a variety of flat-rate and bonus category credit cards that can earn you cash back or miles on your purchases.
- All Discover cards are eligible for the first-year Cashback Match bonus, through which Discover will match all your earnings at the end of the first year.
- The value of your rewards is typically 1:1, meaning one dollar earned is one dollar when redeemed, with redemption options including cash back, gift cards, paying for purchases on Amazon.com or via PayPal and donating to charity.
- Whether a Discover credit card is right for you comes down to your credit card goals. Are you looking to build credit, or do you want to maximize your rewards value toward travel?
Discover offers a broad range of rewards credit cards that let you rack up cash back or miles for everyday purchases. None of the issuer’s cards charge an annual fee, nor do they charge foreign transaction fees for purchases made in foreign currency. The issuer also offers an easy-to-use rewards program, and that’s true regardless of which card option you choose.
Looking to earn cash back or travel rewards? Keep reading to learn how the Discover rewards program works, which Discover credit cards fall under this program and how to use the rewards you earn.
How does the Discover rewards program work?
The Discover rewards program is extremely flexible, especially when you consider all the different ways you can redeem your rewards. For the most part, Discover cash back credit cards let you redeem rewards for statement credits, cash back, gift cards, merchandise and charitable donations.
There’s also the Discover it® Miles card, through which you earn miles that you can redeem for travel purchases made on your card within the last 180 days. Simply cash in your miles to cover the purchase.
What is the value of Discover rewards?
Discover cash back rewards are worth the exact cash back dollar value. For example, if you earn 1 percent cash back on all of your regular purchases, you would earn $1 in cash back for every $100 you spend on your card.
Miles that you earn with the Discover it® Miles, a Discover travel credit card, are worth 1 cent each. This means if you rack up 10,000 Discover miles, you can redeem them for $100 in travel purchases.
No matter how you choose to redeem your rewards, you can bank on a 1:1 value when it comes time to redeem. That means you won’t have options to boost your redemption value by combining with other cards or rewards, but you will have flexibility to redeem rewards how you need to without worrying that you’re getting less value. The one exception is that you could see some extra value with select gift card redemption offers.
How does Discover Cashback Match work?
The Discover welcome offer, known as Cashback Match (or Discover Match™ for Discover it Miles), is a program that lets you earn a lucrative, though delayed, welcome bonus.
With this bonus, Discover will match all the rewards you earn at the end of your first year as a new cardholder. For example, if you earn $300 in cash back during your first year as a Discover it Cash Back cardholder, Discover will add another $300 to your rewards balance at the end of your first year. If you earn 35,000 Discover miles, on the other hand, Discover will match that amount, effectively doubling your rewards earnings, at the end of the first year.
Who gets the welcome bonus?
Anyone can earn the bonus on a participating Discover credit card. Just keep in mind this bonus applies to new accounts, and rewards are only matched at the end of the first year. This means if you already have a Discover credit card that’s more than a year old, you won’t be eligible for the match.
Best Discover credit cards for 2024
There are quite a few Discover rewards credit cards, all of which are geared toward different types of consumers. The following are some Discover cards worth considering if you want to earn rewards without paying an annual fee.
Best for cash back rewards
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Discover it Cash Back is a regular resident on lists of the best cash-back credit cards. With its 5 percent cash back on up to $1,500 spent in quarterly rotating categories when you activate (then 1 percent) and 1 percent on other purchases, this card does some heavy rewards lifting. No-annual-fee cash back cards aren’t rare, but this one brings an excellent intro APR to the table as well as no foreign transaction fees.
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- Rewards rate: Earn 5 percent cash back with activation on up to $1,500 spent in rotating bonus categories each quarter (then 1 percent); 1 percent cash back on everything else
- Welcome offer: Discover Cashback Match
- Intro APR: Intro 0 percent APR on purchases and balance transfers for 15 months from account opening, followed by a 18.24 percent to 28.24 percent variable APR thereafter.
- Cardholder perks: Access to a free credit monitoring service and alerts and free FICO credit score access
- Annual fee: $0
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Pros
- High cash back earning potential in popular everyday categories.
- The welcome bonus opportunity is as lucrative as you want to make it thanks to Cashback Match™.
- No foreign transaction fees.
Cons
- High-maintenance rewards structure requires cardholders to keep track of categories and spending caps as well as to activate quarterly to earn top rewards.
- Discover isn’t as widely accepted as Visa or Mastercard, especially abroad.
- Welcome offer isn’t credited until the end of the first year.
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While Discover it Miles isn’t a blockbuster travel rewards card, it does offer a decent rewards structure and potentially lucrative bonus ideal for a novice wanting to test the waters of travel rewards. The card offers a flat 1.5X miles for every dollar spent, and you can redeem those miles for completely flexible travel. There’s no need to think about transfer partners or rewards charts; just pay for your travel with the card and redeem rewards for statement credit to cover the purchase.
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- Rewards rate: Earn an unlimited 1.5X miles for each dollar you spend
- Welcome offer: Discover Match®
- Intro APR: Intro 0 percent APR on purchases and balance transfers for 15 months from account opening, followed by a 18.24 percent to 28.24 percent Variable APR thereafter.
- Cardholder perks: Access to a free credit monitoring service and alerts and free FICO credit score access
- Annual fee: $0
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Pros
- Intro APR for purchases and balance transfers, a rarity among travel rewards cards.
- No annual fee to offset.
- Flexible redemption options without blackout dates or restrictions.
Cons
- Flat-rate rewards are simple, but won’t add up as quickly as cards with bonus rewards in specific categories.
- The bonus opportunity is high, but you have to wait until the end of your first year as a cardholder to receive it.
- Card doesn’t pair with other cards or partner with travel loyalty programs that could make your rewards more valuable.
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The Discover it Student Cash Back card is a perennial recommendation as a first credit card for people looking to start their credit card journey and begin building a credit history. The rewards structure is the same as for Discover it Cash Back, meaning there are good opportunities to rack up rewards. There’s even an intro APR period, which is nearly impossible to find on student cards.
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- Rewards rate: Earn 5 percent cash back on up to $1,500 spent in rotating bonus categories each quarter when you activate, then 1 percent; 1 percent cash back on everything else
- Welcome offer: Cashback Match
- Intro APR: Intro 0 percent APR on purchases for six months from account opening as well as an intro 10.99 percent on balance transfers for six months after the first qualifying balance transfer. An 18.24 percent to 27.24 percent variable APR thereafter.
- Cardholder perks: Access to a free credit monitoring service and alerts and free FICO credit score access
- Annual fee: $0
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Pros
- High rewards-earning potential for a student credit card.
- No penalty fee on the first late payment.
- No foreign transaction fees, so it works for a fun trip overseas or a semester abroad.
Cons
- Rewards structure requires a hands-on approach to maximize earning, which may be more than busy college students want to handle.
- The quarterly rotating categories are the same for this card as for other Discover cards, which means the categories may not fit into the typical student spending patterns.
- There aren’t a lot of extra perks with this card.
Best for building credit
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The Discover it® Secured Credit Card is one of the top secured credit cards on the market today since it allows consumers to build credit and earn rewards without paying an annual fee or other hidden fees. For rewards, this card offers 2 percent cash back on up to $1,000 spent in combined purchases at restaurants and gas stations each quarter (then 1 percent) as well as 1 percent cash back on everything else. Like other Discover cards, this card also qualifies for the Cashback Match program.
Remember, however, that secured cards require you to put down a deposit as collateral, which is typically equal to the line of credit you qualify for. For this card, the $200 minimum security deposit required is in line with other secured cards and will establish your initial credit limit of $200. Discover will automatically review your account after seven months and, if you qualify, could refund your security deposit and offer you a higher credit limit at that time.
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- Rewards rate: Earn 2 percent cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter (then 1 percent); 1 percent cash back on everything else
- Welcome offer: Cashback Match
- Intro APR: 10.99 percent intro APR for six months on balance transfers. A 3 percent intro balance transfer fee applies with an up to 5 percent fee on future balance transfers. After the intro period, a 28.24 percent variable APR applies.
- Cardholder perks: Access to a free credit monitoring service and alerts and free FICO credit score access. Discover will automatically review your account after seven months to see whether you qualify for an unsecured card.
- Annual fee: $0
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Pros
- Earn rewards while you work on improving your credit.
- No foreign transaction fees is somewhat uncommon among cards for people with limited credit.
- Welcome offer opportunities on secured cards are rare, and this card has a good one.
Cons
- The minimum security deposit to establish your line of credit is high (though not uncommonly so) at $200.
- Discover isn’t as widely accepted as Visa and Mastercard.
- The bonus opportunity is nice, but it doesn’t pay out until the end of the first year.
How to redeem Discover rewards
When it comes time to redeem your Discover card rewards, you’ll find a wide range of options available to you. This kind of flexibility is helpful if you want to earn rewards but aren’t sure how you’ll use them, or if you want to travel but don’t want to commit to a specific loyalty program.
When you’re ready to redeem Discover card rewards, here are the redemption options you can typically choose from (but check a card’s terms for details):
Cash back
You can get cash back in the form of a direct deposit to your bank account or as a statement credit on your account. This option lets you redeem your rewards however you want. You can use your rewards to cover regular spending, bills, travel or some type of splurge.
Gift cards
You can redeem your rewards for a number of gift card options, which range from $5 to $200 and come in increments of $5. Many Discover gift card options also let you get more than 1 cent in value. Cardmembers can redeem their Cashback Match bonus for a partner gift card with 5 percent to 20 percent added value (depending on the merchant). You can see which partner gift cards qualify for more rewards by logging in to your Discover account.
Pay with rewards
You can use your rewards to pay for purchases on Amazon.com or via PayPal. This opens the door to a broad range of possibilities, whether you prefer to use your rewards to cover household essentials, like toiletries or home grocery delivery, or if you want to save your rewards for a splurge.
Charity
Can’t decide how to use your rewards? Donate your rewards to a worthy cause or a charitable foundation that partners with Discover.
Is the Discover rewards program right for you?
The Discover rewards program is a good option if you want to earn rewards without having to pay an annual fee for a credit card. In particular, Discover cash back cards tend to be popular among students and consumers who need to build credit.
However, there are other top rewards credit cards from different card issuers to consider. If you’re looking to squeeze even more value out of your rewards, you should consider credit card rewards programs that let you transfer points to hotels or book travel through an issuer portal. Or, for more rewards redemption options, check out other rewards programs like Chase Ultimate Rewards and American Express Membership Rewards.
Discover rewards program FAQs
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Discover has a refer-a-friend program that rewards current cardholders for inviting friends to join. Discover cardholders get a statement credit for each friend that becomes a cardholder, and the friend also gets a statement credit when they make a purchase with their card within three months of account opening. However, keep in mind that terms apply. Certain cards are not eligible for this program, and the friend must apply for the specific offer sent via the link and be approved within a certain time frame.
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Here’s a look at the Discover cash back bonus categories for 2024:
- Q1, January to March 2024: Drugstores and restaurants
- Q2, April to June 2024: Gas stations and electric vehicle charging stations, home improvement stores and public transit
- Q3, July to September 2024: Walmart and grocery stores (Q3 in 2023: Gas stations and digital wallets)
- Q4, October to December 2024: Amazon.com and Target (Q4 in 2023: Amazon.com and Target)
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Since rewards earned with Discover credit cards are generally worth 1 cent each, there aren’t any truly “outsized” redemptions to go after. You may get slightly more than 1 cent for select gift card redemptions, but you should only pursue this option if you can use eligible gift cards to your advantage.
The bottom line
If you want a credit card that will reward you for every dollar you spend, and you don’t want to pay an annual fee or follow complicated loyalty program rules, Discover’s offerings are hard to beat.
Before you dive in, make sure to compare all of your Discover credit card options — and explore other top credit cards available today — to find the best option for your needs and spending habits.
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