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

The Discover it Cash Back and Discover it Chrome not only come from the same issuer, but also offer the same 1 percent cash back rewards on general purchases, plus boosted rewards in other categories.

The major difference between these two Discover cards is their rewards structures. 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:

Rewards rate winner

Discover it Cash Back

• Why it won

  In a head-to-head battle on rewards, the Discover it Cash Back has a clear advantage over the Discover it Chrome. The Discover it Cash Back offers:

  • 5 percent cash back on activated rotating categories each quarter for up to $1,500 in purchases (then 1 percent)
  • 1 percent cash back on all other purchases

  
  The Discover it Chrome, on the other hand, offers:

  • 2 percent cash back on gas station and restaurant purchases on up to $1,000 in combined spending per quarter (then 1 percent)
  • 1 percent cash back on all other purchases

  
  Because the Discover it Cash Back offers a higher per-quarter spending cap than the Chrome, you’ll be able to rack up more cash back before your rate drops to 1 percent, which is why the Cash Back wins this round.

  There are, however, exceptions to keep in mind. The Discover it Cash Back yields higher spending rewards only if you remember to enroll in the rotating 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 2024 offers bonus cash back on gas station and EV charging, home improvement store and public transit purchases. Unless you are spending an average of $500 per month across these categories for that quarter, you may not be able to maximize the bonus.

  In comparison, the Discover it Chrome 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 and would spend more in these fixed categories, the Discover it Chrome may offer a better yield in terms of cash back.

Intro APR winner

Discover it Cash Back

• Why it won

  Both cards offer an introductory 0 percent intro APR on new purchases and balance transfers, but not for the same time periods. The Discover it Chrome offers a 0 percent intro APR on purchases for the first 6 months from account opening and a 0 percent intro APR on balance transfers for the first 18 months from account opening.

  Meanwhile, the Discover it Cash back offers a 0 percent intro APR on both purchases and balance transfers for 15 months.

  Both cards follow their intro APRs with a variable APR of 18.24 percent to 28.24 percent. They also both charge the same balance transfer fee: an introductory 3 percent which rises up to 5 percent on future balance transfers (see terms).

  The Discover it Cash Back wins because both its balance transfer APR offer and purchase APR offer last for over a year, while the Chrome’s purchase APR offer is only 6 months.

  However, just because the Cash Back wins, doesn’t mean it’s the right card for you. If you’re only interested in a 0 percent APR offer for a balance transfer and would welcome the extra couple of months to pay down your debt, then going with the Chrome’s 18-month 0 percent APR offer might be the better choice for you.

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 $300 in cash back rewards in a year just from quarterly rotating category spending. When the Cashback Match welcome offer is applied, that bonus goes up to $600.

Without activating the 5 percent bonus categories, however, that same $6,000 in spending would only earn $60 in cash back. You’ll also have to max out your bonus spending, which you might not do depending on what category is available for a given quarter.

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 $94,003 in 2022 while spending $72,967. This includes $9,343 in combined food spending ($5,703 at home, which we can equate to groceries, and $3,639 away from home, which we can equate to dining), $3,120 in gasoline and motor oil and $1,945 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 2023 calendar. In that year, cardholders could earn cash back in the following categories:

• January through March: Grocery stores, drug stores, select streaming services
• April through June: Restaurants and wholesale clubs
• July through September: Gas stations and digital wallets
• October through December: Amazon.com and Target

Based on the figures above, let’s say that your quarterly budget for select categories looked like this:

• $1,425.75 in grocery store purchases
• $909.75 in restaurant purchases
• $780 in gas station purchases
• $486.25 in apparel and services

That would mean spending $3,601.75 total in the above categories per quarter. Here’s what someone might earn per quarter with the Discover it Cash Back if they activated every bonus category in 2023 and stuck with the spending outlined for these categories:

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 $1,425.75 in grocery store spending, plus 1 percent on the remaining $2,176 spent in the other categories.

The second quarter would earn elevated cash back on $909.75 of restaurant spending, plus 1 percent on the remaining $2,692.

In the third quarter, the heightened cash back percentage would apply to $780 in gas station purchases, plus 1 percent on the remaining $2,821.75.

As for the fourth quarter, let’s assume that you bought all your apparel at Target or on Amazon.com, so you’d earn cash back on $486.25, plus 1 percent on $3,115.50.

Combined altogether, the average household that had used Discover it Cash Back for those categories per quarter would have potentially earned $288.11 in cash back. With the Cashback Match at the end of the first year, the total jumps to $576.22.

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 per quarter based on the same categories and the same level of spending:

In total, the average household using the Discover it Chrome for the above category spending could earn 2 percent cash back on $1,000 in combined restaurant and gas station purchases, plus 1 percent on the remaining $689.75 from those two categories. They will also earn 1 percent cash back on the remaining $1,912 from the other categories.

That comes out to $46.01 in cash back per quarter, which becomes $184.04 per year. After applying the Cashback Match offer, that sum jumps to $368.08 for the first year.

As you can see, the Discover it Cash Back has a much higher earning potential — but only if you’re diligent about activating your bonus categories and spending within those categories. If your quarterly spending is much lower and you don’t think you’ll keep up with the bonus categories, it might be best to go with the simpler Discover it Chrome.

Why should you get the Discover it Cash Back?

The Discover it Cash Back offers more cash back opportunities and higher rates throughout the year than the Chrome. 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 1 cent 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 or juggling changing categories, or who 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. Redemptions 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.

Because both cards have no annual fee, you can always add them both to your wallet or check out other popular cash back rewards credit cards to combine them with.