Clark Howard

Discover it® Cash Back: New Info on the 2024 Rotating 5% Category Calendar

The Discover it® Cash Back Credit Card has a fresh set of 5% spending categories that are set to go into effect on July 1, 2024.

The popular cash back credit card rotates the spending categories in which cardholders can earn 5% cash back every three months.

That means cardholders will have a new 5% cash back opportunity every quarter: January through March, April through June, July through September and October through December.

Let’s take a look at the opportunity for Quarter 3 of 2024:

Discover it® Cash Back: What Is the Current 5% Cash Back Category?

Beginning July 1, 2024, Discover it® Cash Back cardholders will be able to earn 5% cash back on the following spending categories:

  • Walmart
  • Grocery Stores

Activate the offer via your Discover account to earn 5% cash back on up to $1,500 in combined purchases in this quarter’s bonus categories.

Discover says this is the first time that it has offered 5% back on in-store and online purchases from Walmart:

"Earn 5% Cashback Bonus at Walmart and Grocery Stores, July 1 to September 30, 2024, on up to $1,500 in purchases when you activate. For the first time ever, Walmart purchases – both in store and online – will earn 5% cash back."

For a purchase to qualify for the 5% bonus cash back, the merchant must submit charges to your credit card by the last day of the relevant calendar quarter.

If you hit the $1,500 spending in those categories for the three month period, you’ll be able to earn up to $75 in cash back. Spending done in the categories after that $1,500 cap is met will only earn at the regular 1% cash back rate.

Discover offers the following clarifications for each spending category this quarter:

Grocery Store purchases include those made at supermarkets, meat lockers, bakeries, smaller grocery stores, and grocery delivery services. All purchases made from Target, convenience stores, wholesale clubs, and discount stores are not eligible.

Walmart purchases include those made at, through the Walmart app, in-store at Walmart Discount Stores, Walmart Supercenter Stores, Walmart Neighborhood Market Stores, Curbside Pickup, Walmart +, and Walmart Gas Stations. Purchases using Walmart Pay with your Discover Card will also be included. Purchases from individual merchants and stand-alone stores within physical Walmart locations may not be eligible for this promotion. Sam's Club purchases are not eligible.

2024 Discover it® Cash Back Credit Card Bonus Calendar

  • January through March: Restaurants and Drug Stores
  • April through June: Gas Stations, EV Charging Stations, Home Improvement Stores and Public Transit
  • July through September: Walmart and Grocery Stores
  • October through December: To be announced at a later date

Is the Discover it® Cash Back Credit Card Worth It?

If you’re not already a Discover it® Cash Back cardholder, you may be wondering if it’s worth adding to your wallet.

The rotating 5% cash back opportunities are tempting, and we keep it on our list of best rewards credit cards thanks to the unlimited dollar-for-dollar match of all the cash back you can earn in your first year of membership.

Throw in a 15-month 0% intro APR period and easy cash back redemption methods, and you may be tempted to sign up.

Money expert Clark Howard generally recommends that you sign up for a no-annual-fee credit card that earns at least 2% cash back on everyday purchases. That way you can lock in a 2% discount on everything you buy.

This card doesn’t do that, but it could be a secondary card to use in addition to your everyday spender.

Do you have the Discover it® Cash Back Credit Card? We’d love to hear about your experiences in the community.

The post Discover it® Cash Back: New Info on the 2024 Rotating 5% Category Calendar appeared first on Clark Howard.

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