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From October to December 2022, Discover’s cash back categories are Amazon and digital wallets.
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Some Discover credit cards offer cash back bonus categories that change every three months.
These include the Discover it® Cash Back and Discover it® Student Cash Back.
You can earn 5% back on up to $1,500 in combined spending in these categories each quarter (then 1%) after you activate Discover It Cashback rotation.
Read Insider’s guide to the best rewards credit cards.
If you want to make the most of cash-back credit cards, there are different earning structures to be aware of. Some cards offer a flat cash-back rate for all purchases, others include extra rewards in specific categories, and a few offer increased earnings in bonus categories that rotate every quarter.
The Discover it® Cash Back and Discover it® Student Cash Back fall into the last category. Both earn 5% cash back on up to $1,500 spent in combined bonus categories (then 1%) that change every three months, and 1% back on all other purchases. To earn 5% cash back, you’ll first need to activate the bonus through your Discover online account, and if you enroll after the start of the quarter, the bonus will be in effect from the day you activate Discover It Cashback rotation.
New cardholders will also have all of their rewards matched after their first 12 months through the Discover cash back match program, which can add up quickly if you spend a lot on your card throughout the year.
We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.
Discover it cash back calendar for 2022
Discover’s bonus categories for the entire year are released well in advance, so you can plan your credit card strategy and maximize rewards each quarter. Right now you can activate the bonus for the remainder of Q4 2022 (October through December).
Q1: January – March
Grocery stores and fitness club/gym memberships
Q2: April – June
Gas stations and Target
Q3: July – September
Restaurants and PayPal
Q4: October – December
Amazon.com and digital wallets
We’ve seen most of these Discover cash-back categories before, but there are two entirely new options for 2022. From January to March 2022, fitness club and gym memberships were included, and from October to December 2022, digital wallets are another new addition.
In Q2 (April to June), Target was a bonus category — and this time, it included both in-store and online purchases. Other times (such as Q4 2021), it’s been limited to online purchases only at Target.com, so this was a nice addition for those who prefer shopping in person.
How to redeem Discover cashback rewards
Discover offers more redemption options than many people realize. If you have any of its cash-back credit cards, you can apply rewards to your bill as a statement credit or request a direct deposit to your bank account, redeem them toward Amazon and PayPal purchases, or cash them in for gift cards from select retailers.
You can also donate your rewards to select charities, including:
American Cancer SocietyASPCAAmerican Red CrossCarbonfund.orgChildren’s Miracle NetworkJunior AchievementJuvenile Diabetes Research FoundationMake-A-WishOperation HomefrontWorld Wildlife Fund
Discover credit cards don’t charge annual or foreign transaction fees, so they’re a good choice if you want to minimize out-of-pocket costs and maximize rewards.
Other cards with rotating categories to consider
If you like the idea of earning a bonus in categories that rotate each quarter, you should consider the Chase Freedom Flex℠. Like its predecessor, the Chase Freedom® (no longer open to applicants), the no-annual-fee Chase Freedom Flex℠ offers 5% cash back in rotating categories after activation that are often different from Discover’s in the same quarter. For Q4 2022, the Chase Freedom bonus categories are Walmart and PayPal.
With the Chase Freedom Flex, you’ll earn 5% back (5x Chase Ultimate Rewards® points) on up to $1,500 spent in combined quarterly bonus categories after activation (then 1%), 5% back on travel purchases made through Chase Ultimate Rewards, 3% back on drugstore and dining purchases, and 1% back on everything else. Similar to Discover, you can redeem rewards from the Chase Freedom Flex for statement credits, cash back, gift cards, merchandise, and more.
If you’re not sure which card is right for you, check out our comparison of the Discover it Cash Back and Chase Freedom Flex to help decide.
If you also have a Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, or Ink Business Preferred® Credit Card, you can turn your cash back into Chase Ultimate Rewards points and unlock more redemption options, including transferring points to Chase’s airline and hotel partners, like United Airlines and Hyatt.