3 Little-Known Benefits of the Discover it® Cash Back Card

The Discover it® Cash Back Credit Card is a popular cash back credit card with one of the richest welcome bonuses I've ever seen – Discover will match all the cash back you earn by the end of your first year. The card also earns 5% back through rotating quarterly bonus categories (up to $1,500 in quarterly spend) that you must activate before the quarter begins. In the past, these reward categories have included groceries, restaurants, gas, Amazon, Target, Walmart, home improvement stores, and more.

While these headline benefits are pretty amazing, there's something extra about this card that's worth getting excited about. If you've had this card for a while (or are considering using it), here are three perks you might not know about.

1. Special offer

Before receiving Discover it® Cash Back, I learned about the 5% quarterly rotating bonus categories. What I didn't know was that Discover would send me special offers throughout the year on additional 5% bonus categories.

Special offers: Save money when paying off debt with one of these top balance transfer credit cards

For example, as of June 30, 2024, I currently earn 6% back on new purchases on Amazon.com when I spend $1,000 or less. $120 with one year's cash back matching). Earn more cash back on Amazon.com than any other credit card I have (including mine) Priority visa. I've also received 5% back on groceries in the past, which was on top of the normal 5% discounts in rotating bonus categories (restaurants and wholesale clubs) at the time.

Now, I don't know how Discover delivers these special offers, whether they are offered equally to all accounts, or only to certain cardholders. So I can't say for sure that you will get such a special offer. But every year I've been a cardholder, I've gotten at least one special offer.

Most cardholders will exchange cash back for statement credit or have the cash deposited into their bank account. However, technically speaking, these options don't always give you the best value. In fact, although Discover does not often advertise, You can increase the value by approximately 5% to 20% by redeeming cash back gift card.

For example, you can redeem a $25 Instacart gift card for a reward of $23.75, which equates to a 5% discount. The same goes for Amazon and Airbnb. Some gift cards will give you a higher valuation. For example, Uber gift cards are 15% off. In other words, if you can use $17 in Discover cash back to get a $20 Uber gift card.

Of course, this works best when you're already shopping at these stores and you're not getting a better value from other promotions. For example, exchanging my Discover cash back for Amazon gift cards saves me about 5%. But since my Discover it® Cash Back Card now earns 6% back on Amazon.com, that doesn't make sense to me. Not every option will work, but it's something to keep in mind.

3. Waiver of first late payment fees

There are no fees with the Discover it® Cash Back Card first Late payments. What's more, it also doesn't penalize APR. Since many of the best credit cards charge fees and The APR on late payments is higher, making this card slightly more generous than others when it comes to missing an initial payment.

This means that any late payment after the first payment will incur a late fee of up to $39. While the card does offer 0% APR for 15 months on new purchases and balance transfers, you may also have to pay interest on past-due balances.

To be sure, I don’t think the Discover it® Cash Back is ideal for a single-card wallet. Its reward categories are hit or miss, and the card's 1% base interest rate is low compared to the best cash back cards. But when it has some friends — like a card that earns 2% back on every purchase — it can add a ton of money to your credit card fleet.

Reminder: Our top-rated cash back card now has 0% APR until 2025

Not only does this credit card perform well, it's so good that our experts use it themselves. It comes with a lengthy 0% APR introductory period, up to 5% cash back rate, and all with no annual fee! Click here to read our full review for free and apply in just 2 minutes.

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