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This promotion has ended, however, you can check out the Current Discover Quarterly Bonus promo.
Discover has just made a key update to the 5% bonus categories for the second half of 2019. This is an all-positive change since the original categories, announced at the beginning of the year, remain unchanged. Discover it® Cash Back and Discover® More cardmembers will now earn 5% back on PayPal transactions in Q3 (in addition to restaurants) and on Target and Walmart.com in (addition to Amazon.com) in Q4.
July–September — Restaurants & PayPal
Although many cardholders were probably in a good position to max out the 5% category by spending $500 per month on restaurants, the addition of PayPal is a big win. Since there are so many other cards that offer extra points on restaurants, putting all that spend on a Discover card means you’re likely to forego valuable points you could have earned with the Chase Sapphire Reserve® or the Citi Prestige® Card.
With PayPal, you can earn 5% when you use PayPal as the payment method for online transactions and for in-person transactions using PayPal Here (where available). Best of all, you can earn the 5% cash back on sending money to friends and family using your eligible Discover Card. Unlike buying goods online via PayPal, payments to friends and family incur a 2.9% fee, so you’ll loose part of your cash back.
That said, you can earn $31.50 in free money by sending $1,500 to a PayPal account of a trusted friend. Your Discover card will earn $75 in cash back, maxing out the Q3 category in a single transaction. After subtracting $43.50 in PayPal fees, you come out with a nice profit of $31.50 for five minutes of work.
October–December — Amazon.com, Target, and Walmart.com
The fourth-quarter bonus category additions should make it even easier to maximize the 5% category with your holiday shopping. Target, which often features great Black Friday promotions is eligible for 5% cash back for both in-store and online transactions.
Walmart notably excludes purchases made in-store, so you’ll need to do your shopping through the Walmart app or at Walmart.com. However, the Discover T&C state that grocery pickup orders made through the Walmart app will be eligible, so this category could potentially be maximized on grocery purchases alone.
Current Categories
As a reminder, you still have a little over a month to maximize the current Discover 5% cash back categories of gas stations, Uber, and Lyft. If you forgot to activate the Q2 bonus, you won't receive retroactive credit for purchases in April and May, but you can still make decent progress by swiping your eligible Discover card at the pump and adding it as the preferred payment method with your favorite rideshare app.
Discover notes in their Terms & Conditions that gift cards may not be eligible, but these types of restrictions are often difficult to enforce. If you're short of the $1,500 in spending needed to maximize the category, consider testing gift card purchases from your local gas station or Uber/Lyft in small amounts. (And please let us know in the comments if these purchases have earned 5% cash back.)
Key Terms
- You can now activate your 5% cashback bonus category.
- Discover Q2, 2019 runs from April 1, through June 30, 2019.
- This quarter, earn 5% cash back at gas stations, Uber, and Lyft.
- The 5% is earned on the first $1,500 of spending per quarter (max $75 earned) — 1% after that.
- Cashback is earned when using the Discover it® Cash Back or the Discover® More® Card (no longer accepting applications).
- Purchases made using tap-and-pay, mobile or wireless card readers, virtual wallets or similar technology may not be eligible.
- Cashback will be credited to your account within two billing cycles
Our Take
Unlike the Chase Freedom® 5% bonus categories which will give you retroactive credit for the 5x earning categories as long as you register by the June-14th deadline, Discover requires you to activate the earning category before any transactions will earn 5%. That means you want to activate the Q3 earning category by July 1, 2019 at the latest.
Q3 activation is available now on the Discover 5% cash back bonus home page. Q4 activation starts August 1st, so be sure to set a reminder.
Source: Discover
The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
Just changed my Paypal so that it uses my Discover Card as the preferred payment method. This is really good. Since Amazon and Walmart.com and others take Paypal, it essentially EXTENDS the 5% cash back to all of these retailers. My Chase card hasn’t been as good of late. It pays to Discover, I guess.
I like that PayPal is paying off
Excellent advice! I have been a discover member for 10 yrs and they are constantly imprving their bonus categories.
PayPal here I come!
Does Discover still allow 2 cards per person? I am thinking of open another one
Great news about PayPal !
This is a welcomed improvement from Discover. I still prefer the AMEX and Chase points system, but that is just because of the way I redeem points. Cash back works really well for some people. Discover’s customer service is the best bar none.
Is it worth getting a discover card for these alone??
I have had Discover a little over a year now!!! Cannot live without the Discover Card!!! It really makes a lot of sense to have and carry the Discover Card with Pride and Joy. Carl D. Zendler Thank you Discover Card!!!
This is definitely an all-positive change. You called it. Thanks for keeping us informed.
Too bad they cap at $75.
I have never had a discover card, this makes it actually very tempting to look into….
Q4 will be easy.
Paypal included ? I’m impressed.
Good improvement by Discover. Wish they increased the $1500 limit. It’s too low.
Should be very easy categories to maximize during Q3/Q4.
In a world of devaluation upon devaluation, this move is a shining light in the game. Thanks Discover.
Wow really a good choice once I would max out the bonus on Chase, I could then earn with Discover.
Always good to get more options. I wonder if they are competing with Chase?
I don’t yet have a Discover card but it’s looking like I will soon. I just wish it was automatic instead of having to activate each individual offer. Still great.
I REALLY LIKE THE retroactive credit for the 5x earnings. Anything with retroactive is a big plus.
Categories that allow for general spending are great. And of course you can stack the online purchases with a shopping portal also!
These are welcome additions to the Discover 5% categories that are upcoming. Always better to have more categories.
This addition of Paypal is great news indeed.
That is certainly a welcome change. I’ve always seen Chase Freedom cannibalize Discover’s 5% categories. And the Paypal is a welcome addition since for restaurants, there already are multiple good cards like the Prestige and AmEx Gold.
I use Paypal almost exclusively on Ebay and need to look at where else it can be used
It can be used at tons of places online and almost all offline stores, if you set it up properly. Here’s a current list of online stores: https://www.paypal.com/ca/webapps/mpp/where-to-shop-with-paypal And, here’s several options for how to shop with it offline: https://www.lifewire.com/pay-with-paypal-in-stores-4582591
Awesome categories for Q4. Maxing those out should be easy!
Yeah, but so few of us have a discover card
That’s true.
Awesome to see paypal!!! The very least you can use it to pay tax and get some money back!
Agreed!
Restaurants + paypal, then Walmart + Amazon… any one of the 4 on their own, and both Q3 & Q4 would be In the bag. Discover is making it too easy!