How do I redeem Discover itÂ^® Cash Back?

As one of the top cash back cards currently on the market, Discover credit cards are popular among consumers who are attracted to lucrative rewards, the most popular being the Discover it^® Cash Back and the Discover it^® Student Cash Back Cards. Both offer reward cardholders 5% cash back on rotating quarterly categories such as grocery stores, gas stations, rideshares, and online shopping for the first $1,500 spent in combined purchases. Cardholders also automatically earn unlimited 1% cash back on all other purchases.  To top it off, Discover will even match all the cash back you've earned at the end of your first year, doubling you rewards. 

Redeeming cash back seems like a straightforward process. However, with its various redemption options, the process may not be as simple as one may think. Discover offers four ways to redeem your cash back:

1. Cash back as a direct deposit or a statement credit 
2. Use cash back checkout at Amazon.com
3. Purchase a gift card 
4. Donate your cash back to charity

To help maximize your rewards earned with the Discover it card, take a look at the ways you could redeem your Discover cash back in detail. 

Sign in

1. Log in to your Discover account. 
2. Click on the “Ways to Redeem” button, which is below your current cash back balance. 
3. Click on the cash back redemption option you want. 

After these steps, completing your redemption will depend on the option you choose. 

Redeem for cash back 

The first redemption option is the standard cash back in the form of a direct deposit or a statement credit. You will get the full value of your regards and there is no minimum redemption amount. 

To redeem for cash back, enter the amount of cash back want. Select whether you want to apply your bill as a statement credit or make a direct deposit to your bank account. Then, press continue to submit your redemption. 

Shop at Amazon.com

With your Discover card, you have the option of transferring your rewards to Amazon.com at a $1-to-$1 value, after which you can make Amazon purchases. However, this option does not have any advantages. Instead, use your Discover card to pay for Amazon purchases so that you can earn rewards on what you spend. Then, apply your existing cash back as a statement to cover the expenses. 

If you still wish to transfer your rewards to Amazon, you must first link your Amazon.com account to your Discover card by going to the Amazon “Cashback Bonus from Discover” page. After linking your card to your Amazon.com account, you are ready to make purchases. During the checking process for an order, select Discover as your payment method, and you’ll be able to apply your cash back. 

Purchase a gift card

Redeeming your cash back for gift cards is a great way to increase the value of your rewards, especially if you find one with a merchant you like. When purchasing gift cards that start at $20, you earn at least a $5 bonus; the minimum redemption amount and bonus varies with the merchant. For example, if you spend $20 in cash back, you can get a $25 gift card at Bed, Bath, and Beyond. Other merchants include GAP, Whole Foods, and Applebee’s. 

To purchase a gift card with your cash back rewards, choose the gift you want, and submit your redemption. You can filter gift cards by the type of business or the minimum gift card amount. The minimum redemption amount is normally $20 for a $25 gift card, but some gift cards will have higher minimums. 

Make charitable donations 

Donating to a charity is the easiest, and perhaps the most rewarding way to redeem your cash back. All you have to do is enter the amount you want to donate, and submit your redemption. 

Bottom-line

The Discover it^® card is a winner when it comes to robust rewards, making it one of the most valuable everyday cash back cards out there. If you don’t mind the rotating spending categories every 3 months, this card is ideal for earning and taking advantage of lucrative rewards that cater to your needs and wants.