Discover it Cash Back vs. Discover it Chrome

Those who prefer cash back rewards on their spending will find a lot to love with cash back cards from Discover. For no annual fee, the Discover it® Cash Back and Discover it® Chrome feature rewards on everyday categories and an automatic Cashback Match™ welcome offer at the end of your first year with the card.

While the Discover it® Cash Back offers up to 5 percent cash back after activation on rotating categories each quarter (up to $1,500 in purchases, then 1 percent), the Discover it® Chrome offers steady cash back in two categories.

Which one is better for your wallet? It all depends on your spending habits and personal preferences.

Main details

Discover it Cash Back vs. Discover it® Chrome highlights

In many ways, the Discover it Cash Back and Discover it® Chrome are very similar cards. Not only do they come from the same issuer, but they also offer the same 1 percent cash back rewards on general purchases.

The major difference between them is the bonus categories. While the Discover it® Chrome offers two fixed categories, the Discover it® Cash Back operates as a rotating bonus category card. Here’s how the two cards break down when you compare the finer details.

Welcome bonus winner: Tie

Both the Discover it® Cash Back and Discover it® Chrome offer the same exact welcome bonuses, which is why they’re tied in this category. With Cashback Match, all of the cash back you earn at the end of your first year as a cardholder is matched by Discover. In other words, if you earn $300 in cash back, Discover will give you an additional $300, for a total of $600 in first-year earnings.

Rewards rate winner: Discover it® Cash Back

In a head-to-head battle on rewards, the Discover it® Cash Back has a clear advantage over the Discover it® Chrome. With 5 percent cash back on activated rotating categories each quarter for up to $1,500 in purchases (then 1 percent), the upside is much higher for the Discover it Cash Back — compared to the $1,000 quarterly cap (then 1 percent) on 2 percent categories (gas stations and restaurants) with the Chrome.

There are, however, a couple of exceptions. Again, the Discover it® Cash Back yields higher spending rewards only if you remember to enroll in the bonus categories each quarter. Additionally, Discover has decided to release its cash back categories one quarter at a time, rather than the full calendar at the beginning of the year, like it did in the past. As a result, there’s no guarantee that the bonuses will be in categories you regularly spend in (or could spend $1,500 per quarter in).

For example, the second quarter of the Discover cash back calendar for 2023 offers bonus cash back on restaurant and wholesale club purchases. Unless you are spending an average of $500 per month across these categories, you may not be able to maximize the bonus.

In comparison, the Discover it® Chrome offers a steady 2 percent cash back rewards for up to $1,000 in combined purchases every quarter in two everyday categories — gas stations and restaurants. Furthermore, the quarterly bonus doesn’t require activation, meaning you automatically get 2 percent cash back every time you use your card for gas and dining at restaurants until you hit the quarterly limit. For those who prefer simplicity, the Discover it® Chrome may offer a better yield in terms of cash back.

Intro APR winner: Tie

Both cards offer an introductory 0 percent APR on new purchases and balance transfers for 15 months, followed by a variable APR of 18.24% to 28.24%. That means you can take 15 months to pay off a large purchase or credit card debt without owing additional money in interest.

They also both charge the same balance transfer fee: an introductory 3 percent (up to 5 percent on future balance transfers, see terms).

Annual fee winner: Tie

Discover is unique among credit card issuers because it offers rewards with no annual fee on all of its credit cards. Both the Discover it® Cash Back and Discover it® Chrome come with $0 annual fees.

Foreign transaction fee winner: Tie

Discover cards don’t charge foreign transaction fees on spending abroad. However, before you travel, you may have to alert Discover of your travel plans to ensure your card works around the world.

Which card earns the most?

Based on simple math, the Discover it® Cash Back has a higher potential to earn cash back compared to the Discover it® Chrome. Earning 5 percent cash back after activation on rotating categories each quarter on up to $1,500 in purchases (then 1 percent), cardholders could earn a maximum of $300 in cash back rewards in a year. When the Cashback Match welcome offer is applied, that bonus goes up to $600.

This only works, however, if cardholders remember to activate the bonus categories every three months. Without activation, that same $6,000 in spending would only earn $60 in cash back, even in the bonus categories.

Comparatively, the Discover it® Chrome offers a steady 2 percent cash back on gas station and restaurant purchases without activation on up to $1,000 in spending every quarter. If cardholders spent $1,000 in those categories every three months, their maximum cash back would be $80, which would be matched in the first year up to $160.

Discover it® Cash Back vs. Discover it® Chrome spending example

According to the U.S. Bureau of Labor Statistics, the average household earned $87,432 in 2021 while spending $66,928. This includes $8,289 in combined food spending ($5,259 at home and $3,030 away from home), $2,148 in gasoline and motor oil and $1,754 in apparel and services. We’ll apply these spending figures to both the Discover it® Chrome and Discover it® Cash Back.

Since Discover now releases its rotating categories one quarter at a time, we based our calculations on the 2022 calendar. In that year, cardholders could earn cash back in the following categories:

• January through March: Grocery stores, fitness clubs and gym memberships
• April through June: Gas stations and Target
• July through September: Restaurants and PayPal
• October through December: Amazon.com and digital wallets

In the first three months of the year, the average household using the Discover it® Cash Back card would earn 5 percent cash back (upon activation) on $1,314.75 in grocery store spending (up to $1,500 in spending per quarter, then 1 percent). In the second quarter, the heightened cash back percentage would apply to $537 in gas station purchases, while the third quarter would earn elevated cash back on $757.50 of restaurant spending. As for the fourth quarter, let’s assume that you bought all your apparel on Amazon.com, so you’d earn cash back on $438.50.

All other spending would earn 1 percent cash back, breaking down as follows:

• Grocery store spending: $66 earned in cash back in the first quarter, $39 in cash back earned for the rest of the year
• Gas station spending: $27 earned in cash back in the second quarter, $16 in cash back earned for the rest of the year
• Restaurant spending: $38 earned in cash back in the third quarter, $23 in cash back earned for the rest of the year
• Apparel spending: $22 earned in cash back in the fourth quarter, $13 in cash back earned for the rest of the year

Combined altogether, the average household that had used Discover it® Cash Back card on all their spending would have potentially earned $244 in cash back. When the Cashback Match at the end of their first year, the total jumps to $488 over the first 12 months.

The Discover it® Chrome offers 2 percent cash back on up to $1,000 in gas station spending and restaurant purchases each quarter (then 1 percent) with no activation needed. Here’s how the spending would break down based on the same categories:

• Grocery store spending: $53 in cash back
• Gas station spending: $43 in cash back (based on 2 percent cash back earned on $537 in gas station purchases each quarter)
• Restaurant spending: $61 in cash back (based on 2 percent cash back earned on $757.50 in restaurant purchases each quarter)
• Apparel spending: $18 in cash back

In total, the average household using the Discover it® Chrome for all its spending could earn $175 in cash back. After applying the Cashback Match offer, that sum jumps to $350.

With the same category spending, the Discover it® Cash Back card could earn $138 more cash back compared to the Discover it® Chrome card in the first year, and $69 more in subsequent years.

Why should you get the Discover it® Cash Back?

If your spending habits remain constant, the Discover it® Cash Back card potentially offers more cash back for everyday spending. To unlock the bonus, cardholders have to activate the bonus categories on their cards every three months. Even at the relatively low limit of $1,500 per quarter, maximizing the spending would yield more returns than the Discover it® Chrome.

Additional benefits

Like all Discover cards, the Discover it® Cash Back card comes with two distinct benefits. First, cardholders have the ability to “freeze” their card if it is lost or stolen. Users also have $0 fraud liability, so they aren’t on the hook for any unauthorized spending. Those who opt in can also get Social Security number protection, notifying account holders any time their number is found on the “dark web” or malicious websites.

Redemption options

One of the best things about the Discover it credit cards is that cardholders can use their cash back as soon as they earn it to erase purchases made on their card. Redemptions start at $0.01 and can be used to get statement credit on anything Discover it® Cash Back cardholders buy on their card.

Other redemption choices include gift cards, which start at $5 and go up to $200, and charitable donations. Another popular redemption option is using your cash back rewards for Amazon.com purchases at checkout. Just link your Discover it card to your Amazon account to start redeeming this way.

Recommended credit score

Because this is a rewards card, it’s recommended that applicants have good to excellent credit before applying. Our credit score recommendation is between 670 and 850 on the FICO scoring range.

Why should you get the Discover it® Chrome?

Although the Discover it® Cash Back card offers more potential rewards, there’s a lot to be said for simplicity. For those who don’t want the hassle of activating quarterly bonuses, juggling changing categories or just want simple rewards, the Discover it® Chrome offers easy-to-earn cash back rewards without jumping through any hoops.

Additional benefits

Like the Discover it® Cash Back card, the Discover it® Chrome comes with the ability to freeze lost or stolen cards, as well as the Social Security number tracker for those who opt in. Other benefits of all Discover cards include FICO score access for free each month and U.S.-based customer service.

Redemption options

In line with other Discover cards, cardholders can redeem their rewards as soon as they earn them. Rewards start at 1 cent and can be used as statement credits toward anything purchased on the credit card. You may also use your Discover cash back for Amazon.com and PayPal purchases, as well as gift cards and charitable donations.

Recommended credit score

Although the rewards potential may not be as high as with other cards, it’s still recommended that applicants have a good to excellent credit score, between 670 and 850.

The bottom line

For smart spenders, cash back rewards can offer a lot of advantages over time. Those who don’t mind doing some spending management could get big rewards from the Discover it® Cash Back card. On the other hand, those who seek simple and stable cash back rewards may prefer the Discover it® Chrome. Either option still provides long-lasting rewards that can help you get closer to your next big goal.