Discover is giving eligible cardholders a new way to redeem rewards, and it may be welcome news for online bargain hunters who haven’t yet wrapped up their holiday shopping lists.
Select Discover cards now allow you to redeem cash-back earnings and miles via PayPal when making a purchase. With this redemption option, $1 in rewards equals $1 to spend through PayPal, which is similar to the way Discover’s “Shop With Points” via Amazon works.
Cards eligible for the PayPal “Pay With Rewards” program include:
- Discover it® Cash Back.
- Discover it® Balance Transfer.
- Discover it® Miles.
- Discover it® chrome.
- Discover it® Student chrome.
- Discover it® Student Cash Back.
- NHL® Discover it®.
- Discover More Card.
You can redeem any amount of rewards through PayPal, but some restrictions apply. For example, you can’t redeem rewards for recurring payments, in-store transactions, non-U.S. dollar transactions or peer-to-peer transactions.
And you must first link your eligible Discover card to your PayPal account. In fact, even if you don’t plan to use the PayPal redemption option, it’s still a good idea to link your eligible Discover card in this way. That’s because from July 1 through Sept. 30, 2020, PayPal will be a featured bonus category for eligible Discover cards, just as it was in the third quarter of 2019.