Advertiser Disclosure

Discover Cash Back Redemption Just Got Easier

Credit Cards, Rewards Credit Cards
With so many websites offering free financial tools, it can be hard to know whom to trust. At NerdWallet, we thoroughly research financial products and companies, and adhere to strict standards of editorial integrity to find you the best choices. We even share how we make money so you can rely on our expert advice and recommendations with clarity and confidence.
discover cash back redemption

If you have a Discover credit card that earns cash back, the Nerds are excited to announce some great news: Redeeming your rewards just got way more flexible. You’ll now have multiple options for cashing in on your cash back, including the ability to donate it to a worthy cause.

Ready to learn more? Check out the details below.

Discover announces new options for redeeming cash back

Discover customers with cards that earn cash back can redeem their rewards in the following ways, according to a Nov. 19, 2014, press release:

  • As a statement credit
  • As a direct deposit into their bank accounts
  • To buy items with select retailers online
  • To donate to charity

What’s more, you can also redeem your rewards in any amount. This is much more flexible than most other credit cards, which require you to have at least $20-$25 in accumulated rewards before you can cash in.

In addition, Discover said that when a credit card is closed due to inactivity or at the customer’s request, there’s no need to worry about losing rewards. Any unclaimed cash back will be credited to the customer’s account. Again, this is fairly unusual for a credit card issuer, and definitely a consumer-friendly move on the part of Discover.

Our favorite credit card from Discover

If you like Discover’s new cash-back redemption options and are interested in one of their cards, our favorite is the Discover it® - Cashback Match™. With it, you’ll earn 5% cash back in rotating quarterly bonus categories (up to $1,500 spent per quarter) and 1% cash back on all other purchases. The Discover it® - Cashback Match™ particularly shines during the holiday season, when online and department store shopping have historically been featured as 5% bonus categories.

Also, you’ll get access to Discover Deals, one of the best credit card bonus malls around. When you shop through the portal, you’ll have the opportunity to earn extra cash back. Plus, using the Discover Deals mobile app could score you some great savings when you shop in brick-and-mortar stores, too.

Another great aspect of the Discover it® - Cashback Match™ is that you’ll get free access to your FICO credit score on every monthly billing statement you receive. This will help you track how you’re doing with your credit month over month, a feature that’s especially handy if you’re trying to rebuild your score.

In terms of fees, the Discover it® - Cashback Match™ charges no foreign transaction fee and an annual fee of $0. All in all, it’s a great card to consider.

Is the Discover it® - Cashback Match™ right for you?

The Discover it® - Cashback Match™ is a great card if you like rotating bonus categories, flexible cash-back redemption options and access to great shopping deals. But if you want a slightly higher ongoing rewards rate, there are a couple of other cash-back cards to consider:

Chase Freedom®

The Chase Freedom® is similar to the Discover it® - Cashback Match™ in many ways, but has a couple of extra perks you might be interested in. With it, you’ll earn 5% cash back in rotating quarterly bonus categories (up to $1,500 spent per quarter) and unlimited 1% cash back on all other purchases. The Nerds tend to prefer the 5% retailers featured by the Chase Freedom® over those of the Discover it® - Cashback Match™, but it really depends on where you tend to shop.

All this comes at an annual fee of $0, so this is a card to keep on your radar.

Citi® Double Cash Card – 18 month BT offer

If you think rotating bonus categories are a hassle, the Citi® Double Cash Card – 18 month BT offer might be just the ticket. You’ll earn 1% cash back on all your purchases, then an additional 1% cash back when you pay them off. That adds up to a very high rewards rate, and there’s no limit to the cash back you can earn.

The beauty of the Citi® Double Cash Card – 18 month BT offer is in its simplicity, and since it charges an annual fee of $0, there’s not a lot of room for complaints.

Shopping with credit card image via Shutterstock