Discover it® Cash Back
Rotating Categories with Year-One Match
Practical Recommendation
Great starter cash card if you're willing to tap an app four times a year. You get 5% on rotating categories (cap $1,500/quarter, then 1%), and Discover's Cashback Match doubles all cash back from your first 12 months—paid after your first year.
If you hate tracking quarters, use it only when the category fits (groceries, gas, Amazon, etc.) and keep a flat 2% card for everything else. No annual fee and no foreign transaction fees help it stay in the drawer until a 5% quarter shows up.
Perks
- 5% rotating categories (activation required) – Earn 5% in the featured categories each quarter on up to $1,500 in purchases; everything else earns 1%. You must activate each quarter (takes seconds). Plan big purchases when your category is "on."
- Cashback Match (year one) – Discover automatically matches all cash back you earn in your first 12 months as a new cardmember. There's no cap, and you can redeem during the year and still get the full match at year-end. Pairs well with high-spend quarters.
- Cool Card Designs – You can choose from multiple card designs when you apply (purely cosmetic). Options include everything from sleek minimalist patterns to vibrant artistic designs, seasonal themes, and even limited-edition collaborations. It's a nice touch that lets you personalize your wallet.
- No foreign transaction fees – Discover doesn't add the typical ~3% fee on international purchases (acceptance varies by country, so always carry a backup).
Protections
- Fraud liability – $0 liability for unauthorized charges; useful if your number is skimmed or stolen. (Standard across issuers, but still good to have.)
- What's not included – Discover does not include many common card insurances such as trip delay/cancellation, rental car collision waiver, purchase protection, or extended warranty. Plan accordingly and use another card when you need those protections.
Example: Categories by Quarter (sample year)
Here's a made-up rotation so you can see how a year might look. The real calendar changes—always activate and check the current list.
How the math works: 5% on up to $1,500 in purchases each quarter after you activate ($75 max back per quarter; then 1%). In year one, Discover's Cashback Match doubles whatever you actually earned.
Q1 (Jan–Mar): groceries • drugstores • streaming
- How to use it – Shift weekly supermarket runs here; add your streaming bills to the card.
- Watch-outs – Warehouse clubs/superstores often don't code as "grocery." Streaming must bill the service directly (app-store billing can miss).
Q2 (Apr–Jun): gas & EV charging • home improvement • wholesale clubs
- How to use it – Time spring projects; fuel up here. If you already shop at a club, concentrate big trips in this window.
- Watch-outs – Club-station fuel and in-store restaurants may code differently; compare portal vs. in-store prices before big buys.
Q3 (Jul–Sep): restaurants • transit • travel
- How to use it – Summer dining, rideshares, subways, and simple hotel/airfare bookings can all fit.
- Watch-outs – Third-party apps and some online agencies can code in odd ways; paying the airline/hotel directly is safest.
Q4 (Oct–Dec): online shopping (e.g., Amazon/Target/Walmart) • PayPal
- How to use it – Point most holiday shopping here; PayPal can stack across many merchants if the transaction runs through your wallet.
- Watch-outs – Marketplace seller charges and payment processors sometimes code as "services," not "retail." Always confirm activation before big orders.
Cap check: Maxing the $1,500 cap each quarter earns $300 for the year at 5%. With year-one Match, that becomes $600 (if you actually earn it).
Gotchas & Fine Print
- Quarterly cap math – 5% applies to the first $1,500 in purchases in the active categories each quarter (max $75 back per quarter, before any Match). After that, the same purchases earn 1%. Activation required.
- Cashback Match timing – The match posts after your first 12 billing cycles close; account must be open and in good standing. There's no minimum spend and you can redeem during the year.