Has Discover Discovered It?

Discover it 14 Month BT (RED)One of my first credit cards was a Discover Card.  I didn’t realize it at the time, but I was likely approved for the card because Discover was in the infancy of trying to grow their acceptance with merchants and users.

Twenty years later things are much different. Discover is now accepted (at over 8 million merchants says Nielsen) just as much as Visa/MasterCard, and their cards (now card) is on par with the major bank cards.  For the last several years I’ve viewed the Discover More card as the not-quite-equal twin of the Chase Freedom card (the one I use for daily spending).

Again, things have changed. Discover is scraping their Discover More card, and other cards, replacing them with just one card, the Discover it card. Which is looking like a card on-par or surpassing the best offer from Chase.

You’ve no doubt seen the advertising for the new Discover it® Card. I happen to think customer service is the last of my concerns when it comes to credit cards, but apparently some people are on the phone with their card issuer a lot.  I can certainly attest to, in-general, liking a U.S. based customer service call vs international. However, what I’d rather focus on is how Discover has improved their cash back rewards offering with this new card.

First, the card will have the familiar 5% cash back on quarterly rotating categories. These 5% rewards are capped at different levels each quarter. The categories are as follows:

  • January through March (Up to $1,500 in purchases on restaurants & movies)
  • April through June (Up to $1,500 in Home Improvement Stores, Furniture Stores, plus Bed Bath & Beyond)
  • July through September (Announced May 1, 2014)
  • October through December (Announced August 1, 2014)

The card also comes with 1% unlimited cash back on all other spending. This is the major difference between the Discover More card and the new program under the Discover it card. If you remember, the Discover More card, you had to spend a minimum amount of money ($3,000) before the 1% would kick in. Now there is no waiting. The first dollar you spend on the Discover it card earns a minimum of 1% cash back.

Beyond those basics (that make it one of the best reward cards today), the Discover it® Card is coming with some extra features:

  • 0% intro APR on purchases & balance transfers for 14 months – then a variable purchase APR applies, currently 10.99% – 22.99%. A 3% fee applies to each transferred balance.
  • Over 5,000 cardmembers rated 4.8 out of 5 stars* and now Discover “Ranked Highest in Customer Satisfaction with Credit Card Companies in a Tie” by J.D. Power*.
  • 5% cash back for online shopping and department store purchases on up to $1,500 – Oct. through Dec. 2014 when you sign up*. 1% cash back on all other purchases.
  • Free FICO® Credit Score online and on monthly statements*.
  • No annual fee, no late fee for your first late payment – APR won’t go up for paying late, no overlimit fee and no foreign transaction fee.*
  • Each Discover purchase is monitored. If it’s unusual, you’re alerted by e-mail, phone or text-and never responsible for unauthorized Discover card purchases.
  • 100% U.S.- based customer service-anytime, day and night.
  • *See rates, rewards, free FICO® Credit Score terms and other info by clicking “Apply.”

I like the late fee forgiveness feature as we all slip up occasionally. I also really like that they are eliminating the foreign transaction fee. That’s huge for those who need a card to carry while traveling.

In addition to these features, the card comes with a promotional 0% offer for 14 months on balance transfer and purchases (w/ a 3% balance transfer fee), then the variable purchase APR applies, currently 10.99% – 22.99%. The only thing that would have made this card better is an upfront cash bonus. But hey, you can’t have everything.

Kudos to the team at Discover for rolling out the Discover it® Card. It’s a much better offering than their previous line up, and should be viewed as a strong option (if not the best) for an everyday-spending-no-annual-fee-having-cash-back credit card.



Last Edited: November 6, 2014 @ 4:09 pm
About Philip Taylor

Philip Taylor, aka "PT", is a husband and father of two. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.

Comments

  1. I like that the 5% cash back bonus quarterly categories are on a different rotation from the Chase Freedom categories.  I carry both Discover and Chase in my wallet, along with a little cheat sheet of which card to use for which purchase.  :)