Your old Discover Card from college becomes useful again for the next 3 months

For the third quarter of 2023, those of you with the Discover it® Cash Back Card that gives 5% back on rotating quarterly categories will find the cash back category widely applicable and generally useful for a limited time.

From July to September 2023, in addition to 5% back on gas station purchases, all purchases made with Apple Pay, Google Pay, Samsung Pay, and Garmin Pay will also give 5% back, for up to $1,500 of spending.

To get started, you must activate at: https://card.discover.com/cardmembersvcs/promotions/app/5percent

What’s the catch?

• Must have the regular Cash Back card. Discover Chrome isn’t eligible for this deal.
• Must activate the 5% back on Discover’s website.
• Only the first $1,500 of eligible spend will be given 5% back.

When should I use my Discover Cash Back Card this quarter?

Obviously, don’t use your physical Discover card, as it won’t give you anything special! Be sure to only use Apple Pay, Google Pay, Samsung Pay, or Garmin Pay, as only these transactions will qualify for the 5% back.

If you have any other credit cards with special elevated cash back deals, and your spending typically exceeds $1,500 per 3 months, then save your special category spending for those other cards.

For instance, I have a Chase Freedom Unlimited, Chase Freedom Flex, and Chase Sapphire Preferred. All three cards offer 3x points on dining and drugstores and the Sapphire Preferred offers 2x points on travel. In general, I am continuing to use these cards for all dining and drugstore purchases. For travel, there are few if any chances to use Apple Pay or Samsung Pay to pay for travel-related purchases, so I stick with my Chase Sapphire Preferred.

If I go to Costco, I’ll still use my Chase Freedom Unlimited (unfortunately) since they only take Visa cards.

My Chase Freedom Flex is also giving me 5% back this quarter on gas station purchases. I’ll be using it for gas instead of the Discover deal because Chase Ultimate Rewards points tend to be more valuable for me compared to Discover’s straightforward cash back program.

But if I go to any shop like a grocery store, I’ll definitely use my Discover card if they take Apple Pay.

Should I apply for the Discover card?

Would I recommend applying for a Discover card to get this benefit? If your goal is simply to get this 5% back, no, as the Discover card does not feature a sign-up bonus. Plus, the maximum benefit of this 5% back is $75 (which is 5% of $1,500) and this will only last for 3 months. Last but not least, the general 1% cash back is weak compared to cards like the Chase Freedom Unlimited, which gives 1.5x points, and the Citi DoubleCash card, which gives 2% cash back.

Keep in mind Discover is usually a great starter card for people building credit, simply because they accept almost everyone who applies. Most people I know will have a Discover card but have since moved on to greener pastures (i.e. Visa, Mastercard, and American Express).

And just a reminder…

If you’ve moved on to better cards, be sure to never close your older cards. Not only do you get occasional gems of deals like these, but keeping the oldest cards on your credit history will help boost your average credit line age and will prop up your credit score.