Discover has announced its 5% bonus cash-back categories for all of 2020. They’re mostly the same as 2019’s categories, with a few tweaks.
Several Discover credit cards earn 5% cash back in categories that change every three months. Once you activate categories online, you get that rate on up to $1,500 in category purchases in the quarter. All other purchases earn 1% cash back.
Here are the 2020 categories, with the 2019 categories for comparison:
| 2020 categories | 2019 categories | |
|---|---|---|
| Q1 (January to March) | • Grocery stores • CVS • Walgreens | • Grocery stores |
| Q2 (April to June) | • Gas stations • Uber and Lyft • Wholesale clubs | • Gas stations • Uber and Lyft |
| Q3 (July to September) | • Restaurants • PayPal | • Restaurants • PayPal |
| Q4 (October to December) | • Amazon.com • Walmart.com • Target.com | • Amazon.com • Walmart.com • Target (in-store and online) |
» MORE: Which 5% rotating bonus category card should I choose?
Key changes in 2020:
- The nation’s two largest drugstore chains, CVS and Walgreens, join grocery stores as bonus merchants in the first quarter.
- Wholesale clubs, such as Sam’s Club and BJ’s, have been added to the second quarter. (Costco’s stores do not take Discover, although you can use Discover for online purchases at costco.com.)
- In the fourth quarter, Target purchases will earn 5% only if they are made online or in the Target app. In-store purchases won’t qualify as they did in 2019.
Discover cards that earn 5% cash back include the Discover it® Cash Back, the Discover it® Balance Transfer and the Discover it® Student Cash Back.
Two other issuers have cards with similar bonus category rewards programs — the Chase Freedom® and the Citi® Dividend Card. As of Nov. 1, 2019, neither of those cards had announced any categories for 2020.
» MORE: Current and past categories for Discover and other 5% cards
