Credit Cards

[compassion101]

I'm new to discovermore and confused about their rewards system (mostly was interested in their 0% APR promo, have chase freedom/checking for rewards).

How does their rewards break down? Is it 5% on some categories, .25% (changing to 1% after 3k purchases) on others, nothing in between?

[wealthcreator]

True, nothing in between. They give you 0.25% till you hit 3K mark, after that 1%.

[asteroidblues86]

.25% until you spend $3000 then it's 1%. If you buy stuff at discount or warehouse club stores (i.e. Wal-mart, Sam's Club) it's always .25%.

The 5% categories every quarter are on up to $1,500 dollars in purchases which will net you $75 cash back.

Online shopping through discover.com's "Shop Discover" nets you 5% to 20% depending on the store. 

Cash can be redeemed at $50. If you have less than that you can also redeem for gift cards and merchandise. Also you can link your Amazon account and pay for merchandise with your cashback as well.

[compassion101]

cool, thanks for the info. What's the 5% this quarter and do I need to register for it?

[compassion101]

nm I see it now, gas stations, amusement parks and movies and I am signed up. Thanks for the help!

[cardslayer]

Not sure if it was clearly stated here, but technically it's .25% on the first $3k, and then 1% on all transactions after the first $3k. It doesn't literallly switch to 1%. So, for example if you spent $10k this year, you would wind up with -

$3k @ .25% = $7.50

$7k @ 1% = $70

Total $77.50

Anyone feel free to correct me if I have it wrong.

[Autumnslight]

They have some 2% rewards as well. Right now, you get 2% cashback earnings if you use auto pay for certain TV/cable/wireless bills.

Also, the 5% purchases don't count towards your annual $3k requirement to go from 0.25% to 1%, which stinks. At this point, I'm only using my Discover for the 2% and up reward categories. Anything else goes on my Chase Amazon Visa, for 1% earnings.

[Open123]

The Shop Discover feature is very nice offering a range of 10 -15% cashback on many online merchants.

Also, the cash over purchase at participating merchants is a nice touch.  I use this feature rather than my atm card.  Also, they have some payment sites such as chargesmart who will waive the transaction fee when using a Discover.

Regular spending is certainly not this card's most attractive feature.

[iMacDrew]

The current rotating rewards category is gas and theme parks/ movies.