MaxInsights offers a numerical analysis and recommendation of how to best use this reward system.
Discover’s Cashback Bonus program offers cardholders the ability to earn cash back on every purchase: either 5% for purchases within specific categories (e.g. restaurants, Amazon.com, ground transportation), which rotate throughout the year, or 1% for purchases that do not fall within the category of the quarter.
- MaxValue Gift Cards (2 cents per point)
- MaxFlex Cash Back (1 cent per point)
- Expected Value 1.25 cents per point
The Discover Cashback Bonus program works as advertised: 5% back on purchases within rotating categories (up to the quarterly maximum) and 1% back on everything else. What’s more, Discover operates an online shopping mall, Discover Deals (formerly “ShopDiscover”) that includes deals that earn cardholders up to 20% cash back.
What exactly are the points worth?
In general, you can expect to earn at least 1 cent per point with Discover’s Cashback Bonus program. With that being said, offers found through DiscoverDeals boost the value of each point earned tremendously, saving cardholders up to 20% with certain deals. With that being said, the best redemption option is likely select gift cards, as these double the value of your points (i.e. 1 point can be redeemed for 2 cents, rather than merely 1-for-1).
|Redemption Alternative||Points||Partner Conversion Rate (Cents Per Point)||Value|
|Gift Cards||10,000||Up to 2.00||Up to $200|
Gift Card Redemption Examples: Best Values
- Cash Back
- Charity Donation
- Gift Card