Discover’s 5% Cash Back Categories for 2020: What to Know

Discover announces 5% cash back categories for 2020. Here’s what you need to know.

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If you have the Discover it® Cash Back card, get ready to plan your 2020 spending.

Discover has announced next year’s quarterly 5% cash back calendar for the Discover it® Cash Back. Here’s a breakdown of the 2020 rotating bonus cash back categories.

January to March: Grocery stores, Walgreens and CVS
April to June: Gas stations, Uber, Lyft and wholesale clubs
July to September: Restaurants and PayPal
October to December: Amazon.com, Walmart.com and Target.com

You can activate your first-quarter cash back categories right now by logging into your Discover account. And the quarterly cap hasn’t changed — after spending $1,500 in the bonus category each quarter, your cash back earning rate drops to 1%.

What’s changing in 2020?

The cash back categories available in 2020 should provide cardholders with plenty of opportunities to earn 5% cash back throughout the year.

The table below compares 2020 and 2019 cash back categories.

Discover cash back categories: 2019 vs. 2020

	Q1: Jan.–March	Q2: April–June	Q3: July–Sept.	Q4: Oct.–Dec.
2020	Grocery stores Walgreens CVS	Gas stations Uber Lyft Wholesale clubs	Restaurants PayPal	Amazon.com Target.com Walmart.com
2019	Grocery stores	Gas stations Uber Lyft	Restaurants PayPal	Amazon.com Target Walmart.com

Discover’s added extra ways to earn bonus cash back in the first and second quarters of 2020. But the third and fourth quarters will remain similar to what cardholders saw in 2019.

If you were hoping to be able to use your Discover it® Cash Back card to earn 5% cash back in physical Target stores next year though, you’re out of luck — only online Target purchases will earn rewards in the fourth quarter of 2020.

And while the Discover it® Cash Back card gives you more ways to earn 5% cash back next year, remember that there’s a limit on how much you can earn each quarter — you only earn 5% cash back on the first $1,500 spent in the bonus categories and then 1% after that cap. You also earn 1% on all other purchases. And remember that you’ll have to activate the bonus categories each quarter

What else should you keep in mind?

As with any credit card, it’s important not to overspend on your Discover it® Cash Back card just to earn the maximum 5% cash back each quarter.

It’s also a good idea to make sure you’re paying your entire balance on time and in full each month to avoid any late fees and interest charges. See our guide to managing debt for tips on dealing with credit card debt.

About the author: Paris Ward is a content strategist at Credit Karma, providing readers with the latest news that will aid their financial progress. She has more than a decade of experience as a writer and editor and holds a bachelor’s… Read more.