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page includes information about the Discover it Cash Back that is not currently available on The Points Guy and may be out of date.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.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
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- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.