Discover Card: Get Set for Fall

As far as cash back, points, miles, and bonuses go, Discover is not among the best.  It's somewhat ironic, because they were the originator of the cashback bonus, and touted as America's #1 Cash Rewards Program.  Touted by themselves, of course, but nonetheless touted.  There are really only two reasons that I keep my Discover Card.  1) Cash at the Grocery Store and 2) the Get More Program.

 

Let me explain.

Cash at the grocery store.  Discover is the only credit card that allows you to request cash at the grocery store checkout line.  Frankly, I'm surprised the stores allow it.  Most people are familiar with getting cash back on a debit purchase.  That's a simple process.  You buy $20 worth of groceries, and before you punch in your PIN, you request $40 cash back.  The purchase rings up an additional $40, and the full $60 is taken out of your checking account immediately.  The grocery store doesn't mind, because they pay flat fees for Debit purchases, unlike the percentage they pay for credit purchases.

When you make a purchase at the grocery store with your Discover Card, you will be given an option (perhaps not at all grocery stores), "Cash Back?"  to which I ALWAYS say "yes."  Just like the debit purchase, it is added onto your grocery tab.  Normally when you use your credit card to get cash, they call it a cash advance and charge fees and immediate interest.  Not here.  The cash, up to $50, is added to your tab, and is charged like a purchase.  Not only do you avoid fees, but you earn Discover Cash Back points.  Just be sure that cash doesn't burn a hole in your pocket.  But, instead of using the ATM, I get my cash whenever I go to the grocery store.

The Get More Program.  Discover's Cash Back program lags others because it is a graduated program that allows you to earn up to 1%.  What they mean by that is that you earn .25% up to a certain amount, then .50%, etc. until you get to the magic amount at which you are earning 1%.  I wrote about it in greater detail in Discover Card Cash Back Review.

The Get More Program offers 5% on all purchases that fall within a specific category of spending.  They change the offer every quarter, and you have to sign up each time, but the process takes seconds.  The quarter ending June 30 was gas, car washes, Pep Boys, Auto Zone, etc.  They called it Fill up.  Fix up.  Tune up.  It was a great promotion, as it was easy to start using this card for all gas  fill ups.

For the period July 1 to September 30, the Get More Program is called Get Set for Fall.  You can earn 5% cash back on all tuition payments at any institution from Pre-school to college.  Also apparel at Gap, Kohls, T.J. Maxx and Famous Footwear.  Home and office from Dell, Office Depot, OfficeMax, Staples, Linens n' Things, and Pier One Imports.  If you are paying for tuition, this one is awesome.  However for those of us no longer in school, it's not nearly as good as the auto promo.

Comments

[Joel]

The cash back reward you can earn from credit cards depends on your particular spending profile -- especially how much you spend in various categories (e.g. gas, grocery, restaurants, utilities, etc.)

The calculator tool at Credit Card Tune-Up (www.creditcardtuneup.com) makes choosing the best cash back card (or mix of cards) easy. Given your spending pattern, it calculates your expected annual rewards for each of the leading cash back credit cards and even for your best mix of cards.

See the tool at http://www.creditcardtuneup.com/ .

[Credit Card Cash Back Rewards Enthusiast]

That site is now named: Credit Card Tune-Up: Maximize Your Cash Back Rewards.

There's a forum there now too.

[G-Man]

Sweet! (Cash at the grocery store.) Assuming you pay your balance in full each month, it's like an interest-free cash withdrawal at an "ATM" that pays YOU fees.

Now I am curious which stores work. I found that in Houston, it works at Sam's Club (20/40/60 bucks) but not at HEB or Kroger. Where else does it work and not work? (If you have a Discover Card and have tried getting cash back at a store, then I'm asking you!)

I, too, am surprised that any stores are willing to supply cash back for credit card purchases. The store has to pay merchant fees but gets no profit on the cash back portion.

Another reason to get a Discover Card (and the main reason I did) is that it's the only regular credit card accepted at Sam's Club.

[Amex Blue Cash credit card owner]

I think Amex Blue cash is the best: for year-to-date expenditures up to 6500 earn 1% for purchases at supermarkets, gas stations, drug stores and all others purchases 0,5$
Then for year-to-date expenditures from 6501 earn 5% for for purchases at supermarkets, gas stations, drug stores and 1,5$ evrywere else. And it is very important that there is no limit to your annual rewards.