topic Re: How can Discover offer 15% cashback on Groupon? in Credit Cards

How can Discover offer 15% cashback on Groupon?

Open123 — Mon, 25 Mar 2013 01:29:26 GMT

Just curious if anyone knows why, how, or the reason why Discover offers such a high rebate on groupon? No one else even comes close.

Re: How can Discover offer 15% cashback on Groupon?

Anonymous — Mon, 25 Mar 2013 01:39:38 GMT

@Open123 wrote:
Just curious if anyone knows why, how, or the reason why Discover offers such a high rebate on groupon? No one else even comes close.

Wow, do you have link for this info?

Re: How can Discover offer 15% cashback on Groupon?

HiLine — Mon, 25 Mar 2013 01:44:45 GMT

Because they're Discover.

I know that's a lame answer, but Discover is often found to offer the best cashback rate by a wide margin. No idea how they are able to pull that off.

Re: How can Discover offer 15% cashback on Groupon?

Anonymous — Mon, 25 Mar 2013 01:53:39 GMT

Yea...I really would like that link! 😄

Re: How can Discover offer 15% cashback on Groupon?

Open123 — Mon, 25 Mar 2013 01:58:05 GMT

Link?

Ah, it's on your shopdiscover section. You'd have to have the discover card to access it, which I assume most here do.

Re: How can Discover offer 15% cashback on Groupon?

Anonymous — Mon, 25 Mar 2013 01:59:47 GMT

Thanks...

Re: How can Discover offer 15% cashback on Groupon?

HiLine — Mon, 25 Mar 2013 02:01:00 GMT

Here's the link:

https://www.discovercard.com/cardmembersvcs/shopdiscover/app/offerClick?catId=1&offer=2364&icmpgn=SHPD_BRWS_TXT

Re: How can Discover offer 15% cashback on Groupon?

Anonymous — Mon, 25 Mar 2013 02:23:06 GMT

Groupon is struggling, sounds like a promotion to drive people to their site. Same concept Groupon uses, conviencing merchants to heavily discount their goods or services as a promotion to drum up new business and hopefully repeat customers.....

Re: How can Discover offer 15% cashback on Groupon?

Open123 — Mon, 25 Mar 2013 02:30:17 GMT

@Anonymous wrote:
Groupon is struggling, sounds like a promotion to drive people to their site. Same concept Groupon uses, conviencing merchants to heavily discount their goods or services as a promotion to drum up new business and hopefully repeat customers.....

Maybe they are struggling. Be that as it may, there are nice discounts offered from various merchants, for whatever reason.

The 15% discount is 10% higher than anyone else. There's no reason to offer that much more than everyone else. I'm curious how or why they would offer (or, why Groupon why pay for) an enticement so much higher than everyone else.

As to the promo rate, it's been 15% the past 2 years or so. That's a pretty long time to be offering 15% just to drive people to their site.

Re: How can Discover offer 15% cashback on Groupon?

Anonymous — Mon, 25 Mar 2013 02:35:24 GMT

Groupon has a huge profit margin. So, they are able to pay Discover for the referrals the their website. Then discover is able to pass that on to their customers in the form of a cash back offer. Discover is still making money even with the 15% cash back.

Re: How can Discover offer 15% cashback on Groupon?

bettercreditguy1 — Mon, 25 Mar 2013 11:38:21 GMT

From what I have seen, Discover Bank also has some of the highest APR rates on their credit cards.Considering that credit card debt increased in the 4th qtr of 2012 and slow pays are increasing again, it could offset very easily especialy when they are in the upper teens and twenty's with their aprs.

Re: How can Discover offer 15% cashback on Groupon?

Anonymous — Mon, 25 Mar 2013 12:16:22 GMT

I'm in my late teens and my apr is 13.99 with discover and I don't pay interest to any bank.

Re: How can Discover offer 15% cashback on Groupon?

kevinjjc — Mon, 25 Mar 2013 12:20:35 GMT

@bettercreditguy1 wrote:
From what I have seen, Discover Bank also has some of the highest APR rates on their credit cards.Considering that credit card debt increased in the 4th qtr of 2012 and slow pays are increasing again, it could offset very easily especialy when they are in the upper teens and twenty's with their aprs.

YMMV. The APR on my Discover it card is only 10.99%.