Discover More Announces 5% Bonus Categories for 2012

Breaking news: the Discover More is actually good now! Discover just announced its 5% cash back bonus categories for 2012, and quietly kicked up the caliber of its card. Like all of the 5% cash back cards, the More is subject to quarterly bonus caps. Its limits used to be ridiculous – as low as $300 in purchases per month, compared to the Chase Freedom’s $1,500. While the More’s a lot better, it can’t compete with the Freedom, which we’d consider to be the king of the cash back cards.

Here are the 2012 bonus categories:

• January – March: Gas stations, movies and museums, up to $1,500
• April – June: Movies and restaurants, up to $1,500
• July – September: Gas, movies and theme parks, limit TBA
• October – December: Department, electronics and toy stores, limit TBA

Discover vs. the other 5% cash back cards

The other rotating bonus category cards are the Chase Freedom and the Citi Dividend. All of them are no-fee cards, all give cash back, and all require you to enroll in the rewards program each quarter.

Now, the Discover More starts off at a disadvantage because, well, it’s Discover, so you’re looking at limited acceptance. But beyond that, how does the More stack up?

More vs. Dividend

• The More limits you to bonus rewards on $1,500 in purchases a quarter, but the Dividend limits you to $300 cash back in total. They’d be equivalent if you spent $1,500 a quarter on bonus categories and didn’t spend on anything else at all.
• The Dividend has no spending threshold – you get 1% back on all non-bonus categories starting at dollar number one.
• The Dividend gives $200 cash back if you spend $500 in 3 months, while the More gives jack.
• Neither the Dividend or the More allow for retroactive opt-ins.

Verdict: Well, neither credit card is what you’d consider stellar (or good), but the Dividend has a signup bonus and is a Visa, so despite the more restrictive rewards cap, it’s got the More beat out.

More vs. Freedom:

• The Freedom has a $100 signup bonus. The More doesn’t have one.
• The Freedom gives 1% back on non-bonus categories. The More gives 0.25% back on the first $3,000 in purchases annually, so you only get the full 1% rewards rate above that threshold.
• The Freedom always has a quarterly cap of $1,500 in purchases, but the More hasn’t told us the limit for Q3 and Q4.
• The Freedom allows for retroactive signups: if you register for the program in November, you still get 5% back on October’s purchases. Discover has no retroactive signups.
• Seriously, who needs three quarters of bonuses on movies? The Freedom variously gives rewards on Amazon.com, groceries, airlines and hotels, because apparently they’ve realized that people do more than drive and passively take in big-screen entertainment.

Verdict: Chase Freedom by a mile. Visa is more widely accepted than Discover, the Freedom’s bonus categories are much more useful, and the Freedom allows for retroactive opt-in. And, of course, $200 is a lot bigger than $0.

Chase Freedom® Visa - $100 Bonus Cash Back
	Earn $100 Bonus Cash Back after you make $500 in purchases in your first 3 months 0% Intro APR for 15 months on purchases and balance transfers 5% Cash Back on up to $1,500 spent at grocery stores and movie theaters from 4/1/12 - 6/30/12 You'll enjoy new 5% categories every 3 months like gas stations, restaurants and even airlines. It's free and easy to activate your bonus each quarter! Unlimited 1% Cash Back on all other purchases Up to an additional 10% Cash Back when you shop online at select merchants through Chase No annual fee and rewards never expire
Annual Fee Signing Promo APR, variable* Intro APR Promotions $0 $100 Cash Bonus after spending $500 - in first 3 months Min APR: 12.99% Max APR: 22.99% Default APR: 29.99% Cash Adv: 23.24% Purchase: 0% for 15 mos Bal Trans: 0% for 15 mos