How can Discover offer 15% cashback on Groupon?

[Open123]

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.

[Anonymous]

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@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.

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Wow, do you have link for this info?

[HiLine]

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.

[Anonymous]

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

[Open123]

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.

[Anonymous]

Thanks...

[HiLine]

Here's the link: 

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

[Anonymous]

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.....

[Open123]

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@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.....

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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.

[Anonymous]

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.