I’ve had my Discover credit card from before I started credit card churning. Even though it does not earn travel points, its 5X rolling categories (similar to Chase Freedom) is still worth pursuing. I would rather earn 5% cash back than 2 or 3X Chase points. Maxing out the 5% cash back every quarter could be worthwhile, especially if it does not require much effort. For this quarter, Discover offers 5% cash back on online shopping. I tested out a recent experiment. Does Discover Card Earn 5X on Amazon Payments?
If you are unfamiliar, Amazon payments is an online service similar to Paypal that lets you transfer up to $1,000 a month through a credit card with no fee. Even though Amazon Payments is from Amazon, the purchase doesn’t seem to code as an Amazon purchase per se. Instead, Amazon Payments transactions are treated as online shopping. Therefore in theory, Discover credit cards should earn 5X on Amazon Payments. I tested the transaction this month and waited for the statement to post. Here are the results.
Does Discover Card earn 5X on Amazon Payments? Yes, it does! My plan is to reach the $1,500 this quarter to max it out. This should be an easy $75 of free cash for everyone with a Discover card. Note that Chase Freedom does not get 5X on Amazon Payments according to Frequent Miler. Therefore, I didn’t bother testing Chase Freedom.
My second favorite use for Discover Card is the 15% Groupon cash back. I like eating discovering new restaurants at a discount around my area. Groupon counts as online shopping, so stacking a Groupon with the 5% cash back would equate to a 20% rebate. As you can see, I received the 5% back for online shopping, but not the 15% through Shopdiscover. I’m hoping it will post soon.
The current Discover It Card normally does not have a sign up bonus. However, anybody can refer anyone to Discover Card. If you use my Discover It Card link here, we will both earn $50 after first purchase. Not the biggest bonus, but Discover can be useful for its Shopdiscover portal and high cash back payouts. For a cash back oriented person, Discover card is a decent card. If you strictly care about travel points, not sure if Discover card will be a good choice. I do both from time to time because 5% cash back is quite valuable to me.