When my Discover platinum card recently renewed, I received a bright, shiny replacement card for it. Something more had changed though… my card’s logo and terms were different. I had been switched to a Discover More card.

Intrigued by what “more” could mean, I journeyed over to their website to find out. After logging into my Discover account and poking around a bit, I got a feel for what my new Discover More card had to offer. In this post, I’ll explore the highlights of what I learned and how this card compares to the other cash back credit cards available. Without further ado, let’s dive in …

Earning Cash Back on the Discover More Card

Regular Discover cards earn you cash back according to a tiered model, starting out at just one-quarter of one percent and work up to 1% cash back, given how much is spent on the card:

• $0 - $1,500 : 0.25%
• $1,501 to $3,000 : 0.50%
• $3,001 and up : 1.00%

Once the 1% tier has been reached, one shouldn’t get too comfortable though as the status resets back to the 1/4% starting line every 12 months.

Unlike the standard cards, the Discover More card can earn you a cool 5% cash back on certain purchases. The types of purchases you can earn 5% on is not fixed however, but rotates based on a schedule. Every three months, Discover picks different categories that are eligible for the 5% cash back rate. For 2008, the Discover card’s 5% rate is applied according to the schedule below:

• January – March : Airlines, Cruises, Hotels and Car Rentals
• April – June : Home and Fashion
• July – September : Gas and Hotels
• October – December : Restaurants and Movies

There is no maximum on the amount of cash back that can be earned; both for the special 5% rate and the standard rates for other purchases. What’s also good is that the cash back you’ll earn will never expire.

One surprise I found out about the 5% rate is that you need to manually enroll in Discover’s “Get More” program to qualify for it. Enrolling in the program took less than a minute on their website, so it was pretty painless. Even so, if you get a Discover More card, remember to enroll before making any qualifying purchases to receive the special 5% rate.

Earning Extra Cash Back Online

The card has another way to earn more rebates when shopping online. There’s a section of their website called ShopDiscover that has links to several well-known retailers such as Target, Circuit City and OfficeMax. When you click through one of these links and make a purchase, you’ll receive a percentage of your transaction back as a rebate. This rebate will be added to your total cash back earnings accumulations. The amount of rebate you can earn will vary by merchant, but it can be as high as 20% for certain ones.

ShopDiscover earns you money the same way Spree.com does, in that the online stores you buy from pays a “commission” for having a paying customer referred to them. Discover applies the commission it receives from your purchase toward your accumulated rebate earnings.

Personally, I don’t intent to use the ShopDiscover feature, as I already use Spree.com for my online purchases. Spree offers the same kind of thing as ShopDiscover, but with a greater overall cash back earnings potential.

Redeeming Cash Back Earnings

Cash back can redeemed in increments of $20. Once you’ve accumulated at least $20 in cash back, you can receive your earnings in one of three ways: as a credit to your card’s statement, a direct deposit to your checking account, or you can elect to donate your cash back to charity. Either way you go, how you redeem your earnings is the same, as there is an area of their website where you can request to receive what you’ve earned.

Other Tidbits About the Discover More Card

In addition to how cash back is earned, here are some other fast facts about this card:

• No annual fee
• 25-day grace period between your statement’s closing date and its due date
• 0% APR on purchases for the first 6 months, 10.99% thereafter
• 0% APR on balance transfers for 12 months

Please note that the interest rates listed above are as of the time of this writing. Double-check the terms with Discover to see if they may have changed. Also, there’s a 3% fee on balance transfer amounts, with a minimum of $10 and a max of $75. As readers of my blog know, I’m only a fan of using balance transfer offers for debt consolidation.

The Bottom Line

An increase in one’s total cash back earnings can be achieved with the strategic use of the Discover More card. For those willing to take on the extra hassle, this card can be used as a supplement to either the American Express Blue Cash or Chase Freedom cards. Under this arrangement, purchases in the current 5% Get More categories only are made with the Discover More card, with all others being made on the Amex or Chase cards.

For people who just want to use one card for all their purchases, I wouldn’t recommend the Discover More card. In most cases, one of the above two cards would likely yield a better total annual cash back.

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