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Discover has launched its 5 percent cash back category for the fourth quarter of 2017. From October through December 2017, Discover it and Discover More cardholders can earn 5 percent back at Amazon.com and Target on up to $1,500 in combined spending.
The 5 percent bonus on Amazon purchases is an added perk for Discover cardholders this year - the Chase Freedom card, which offered 5 percent cash back on Amazon purchases in the fourth quarter of 2014 and 2015, is not offering the category this year.
With Black Friday, Cyber Monday and the holiday shopping season upon us, this is a great opportunity to buy everything you need from Amazon and Target, all while earning 5 percent cash back.
To activate the fourth quarter bonus category, click here .
Here's what you need to know at a glance:
- You can activate the Discover bonus category for the fourth quarter as early as Sept. 1, 2017.
- You must activate the bonus each quarter to receive 5 percent back.
- The fourth quarter bonus category is active from Oct. 1, 2017 - or the date on which you activate it, whichever is later - through Dec. 31, 2017.
- The bonus is capped at $1,500 per quarter.
- All other purchases earn 1 percent cash back.
What is included/excluded in the "Amazon" category?
The Amazon category covers a broad range of items, including purchases made through Amazon.com checkout, digital downloads, Amazon.com gift cards, Amazon Fresh orders, Amazon Local Deals and third-party merchants through Amazon.com's marketplace, according to Discover's website. The bonus rate also covers the Amazon Prime membership fee.
What is included/excluded in the "Target" category?
The Target category covers in-store and online purchases made at Target and SuperTarget, including food, clothing, cleaning supplies, electronics and more.
Note that individual merchants and stand-alone stores within physical Target locations may be excluded from the 5 percent category. So, for example, if you buy a coffee from the Starbucks within a Target store, you may not receive 5 percent cash back from that purchase.
Additionally, purchases made using third-party payment accounts, tap-and-pay, mobile or wireless card readers, virtual wallets or similar technology may not be eligible. To avoid possibly missing out on the 5 percent bonus rate, use your physical Discover card at Target instead of your mobile wallet through the end of 2017.
Tips for maximizing your 5 percent cash back at Amazon
- If you have an Amazon Prime Rewards Visa or Amazon.com Store card, use those cards to earn 5 percent on your Amazon purchases and save the Discover card bonus for your Target purchases.
- Sign up for or renew an annual Prime membership during the fourth quarter to get 5 percent back on your membership fee and receive free two-day shipping for the next 12 months.
- Look for special sales and discounts on items for Black Friday, Cyber Monday and the holiday season.
- Purchase household supplies, groceries, personal items and more using Subscribe & Save to save up to 20 percent.
- Take advantage of extra savings at Amazon:
- Save 10 percent or more through limited-time promotions on Lightning Deals . Prime members get 30-minute early access to Lightning Deals.
- Save on everyday items with Amazon's online coupons .
- Shop Amazon Warehouse for used products, such as laptops and lawn equipment.
- Shop Amazon Outlet for lower-priced, overstocked items.
Tips for maximizing your 5 percent cash back at Target
- If you have a Target REDcard, use it to earn unlimited 5 percent on your Target purchases, and save the Discover card bonus for your Amazon purchases.
- Do your holiday shopping at Target and get free shipping on orders of $35 or more, plus free returns.
- Purchase household items through Target's subscription delivery service, and save 5 percent. (You can save an additional 5 percent by using your REDcard.)
- Look for special sales and discounts on items during Black Friday, Cyber Monday and the holiday season.
- Access extra savings through Cartwheel , printable coupons and weekly ads.
Stacking your rewards
Look for additional savings on Discover Deals to stack with your 5 percent discount. Current promotions include:
- $5 off $50 or more in purchases at Target.com through Oct. 31, 2017.
- Up to a $25 Sam's Club gift card when you sign up for or renew your membership through Dec. 31, 2017.
- 5 percent cash back at Macys.com. (Ongoing)
- 5 percent cash back at Walmart.com (Ongoing)
- 5 percent cash back at Bloomingdales.com. (Ongoing)
Comparing Discover and Chase bonus categories
Chase also offers a 5 percent cash back bonus in categories that rotate quarterly. From Oct. 1 through Dec. 31, 2017, Chase Freedom cardholders can earn 5 percent cash back on up to $1,500 at Walmart and department stores.
Which card offers the best deal? Ultimately, we believe it boils down to your shopping preferences.
If you prefer Target or Amazon over Walmart, then Discover offers the better deal. Along with the 5-percent cash back bonus for Discover it and More cardholders, Target shoppers enjoy free shipping on orders of $35 or more, plus free returns. Amazon shoppers also receive 5 percent back on Amazon.com purchases, including digital downloads, Amazon.com gift cards, Amazon Fresh orders, Amazon Local Deals and Prime memberships.
Like Chase Freedom cardholders, Discover cardholders can earn a 5 percent cash back rate at Walmart and select department stores through Discover Deals for a limited time. But keep in mind that you can only use Discover Deals for purchases made online and not in-store. Discover has not yet specified when the Walmart bonus will end.
If you prefer shopping at Walmart or department stores, Chase offers the better deal. Walmart is ideal for those who prefer the convenience of shopping for a broad range of low-priced items all in one place. Although Discover currently offers a 5 percent bonus rate at Walmart.com through Discover Deals, Chase gives more flexibility by allowing cardholders to earn the bonus rate in-store and online. In addition to covering Walmart, Walmart Supercenters and Walmart.com in its bonus category, Chase also includes Walmart branded gas stations - letting you earn 5 percent back at the pump.
Besides low-priced items, Walmart offers free two-day shipping on purchases of $35 or more as well as free in-store pickup on select items. Customers can also order groceries online, and get free same-day pickup.
On top of the 5 percent bonus earned at department stores during the fourth quarter, Freedom cardholders can earn additional cash back through Chase's shopping portal - for a total of up to 11 percent cash back. Shop through Chase offers promotional cash back bonuses at select retailers. For example, the Freedom card currently offers 5 percent back at Macy's, plus an additional 6 percent bonus when you use the shopping portal. Chase has not yet specified when the 6 percent bonus rate at Macys.com will end.
If you haven't done so already, be sure to activate the fourth quarter category to start earning the 5 percent bonus rate at Amazon and Target.
See related:Chase Freedom categories 2017: Earn 5 percent back at Walmart in Q4 , Credit card special offers and limited-time promotions
The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we do receive compensation when you click on links to products from our partners. Learn more about our advertising policy
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
