Discover Adds Extra 5% Cash Back Categories at PayPal, Target and Walmart
Update: Some offers mentioned below are no longer available. View the current offers here.
This page includes information about the Discover it Cash Back that is not currently available on The Points Guy and may be out of date.
Discover card holders were treated to a nice little surprise today when the bank announced it would be adding three more categories to its rotating quarterly cash-back bonus calendar.
Discover it Cash Back card holders will now be able to earn cash back on PayPal in Q3 (July 1 to Sep. 30) and at Target and Walmart.com (including grocery delivery) in Q4 (Oct. 1 to Dec. 31). Note that you can only earn 5% in each quarter upon enrollment, on up to $1,500 in purchases, you'll earn 1% back after hitting the $1,500 limit and 1% back on all other purchases.
The addition of PayPal is great, considering you can use the service across hundreds of popular online retailers. You could even make straight cash by sending payments through the service and just eating the 2.9% processing fee — you'd still be ahead 2.1%.
Target and Walmart.com are clear complements to Amazon, which was already loaded into Discover's cash back calendar, and the department stores offer myriad items that can appeal to a wide variety of consumers.
These new categories are in additions to the one earlier announced. Here's a breakdown of everywhere you can earn 5% back (up to $1,500 each quarter you activate) through the rest of 2019:
- April – June 2019: 5% back at gas stations, Uber and Lyft
- July – September 2019: 5% back at Paypal and Restaurants
- October – December 2019: 5% back at Target, Walmart.com and Amazon.com
If you want to max out the categories (each quarter you activate) but can't meet the $1,500 cap through organic spend, you can purchase gift cards that you can use later. You could even load up your Amazon balance if you know you'll be making purchases through the online retail giant. Target, Walmart and Amazon all sell gift cards to third-party retailers, too.
Remember, Discover matches all cash back at the end of your first card member year. If you can max out each category, you can end up with up to $600 back by the end of the year.
The Chase Freedom (No longer open to new applicants) also offers 5% back (or 5x points) on rotating quarterly categories (up to $1,500), and you can currently earn the bonus on purchases made at grocery stores (not including Target and Walmart) and home improvement stores.
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.