Buying groceries is expensive. Food prices rose 25% from 2019 to 2023. And while grocery prices have remained relatively stable this year, they're still high.
If you're feeling the pinch of steep food prices -- 77% of US adults told CNET in a recent survey that grocery prices were their top source of sticker shock -- using a rewards card could help you earn a little back each time you tap at checkout. And the Discover it® Cash Back* is offering one of the best cash-back rates until September.
From July 1 to Sept. 30, 2024, you can earn 5% cash back (on up to $1,500 spent quarterly, then 1%) for grocery and Walmart purchases when you activate -- both online and in-store.
While this only gives you a three-month window to earn 5% on grocery purchases, strategically planning out bulk food purchases could help you take advantage of this high cash-back rate. Plus, we like that Discover offers a unique welcome bonus for new card members -- you can essentially double the cash back you earn at the end of your first year.
Everything you need to know about the Discover rewards
The Discover it Cash Back earns rewards for purchases that rotate each quarter, or about every three months. Each time the rewards change, you'll need to manually activate your rewards from your account.
It's a good idea to set up account alerts for when the new rewards go live. If you forget to activate by the start date (in this case, July 1), you'll only earn 1% cash back for your grocery and Walmart purchases until you do.
The card has no annual fee, meaning it can pair well with other cards. And of course, it offers a great welcome bonus. Discover will match the cash back you earn at the end of your first year with the card.
How to maximize your rewards
The best way to earn this high rewards rate through September is to first activate the new rotating bonus categories, then use this card each time you visit the grocery store, shop for groceries online or checkout at Walmart.
You'll earn 5% cash back up to the quarterly maximum of $1,500. That means you can earn a max of $75 each quarter before your rewards rate drops to 1% cash back.
If you're struggling with the cost of goods, earning a return on an essential purchase like groceries could help provide some relief. You could redeem your rewards as statement credits to reduce the overall balance of your account. An extra $75 could cover a week or more of groceries, depending on your budget.
Earning 5% on groceries is a rare offering, but some cards, like the Prime Visa, offer this rate year-round.
But using the Discover it Cash Back for the next three months has one key advantage if you're in your first year of membership -- you can essentially double your cash back with Discover's welcome bonus at the end of the year.
Which grocery stores are included in Discover's 5% back offer?
Most small and large grocery stores are covered, plus bakeries and meat lockers, but the card terms specifically list grocery purchases at Target and wholesale stores like Costco will not earn rewards.
How the Discover it Cash Back compares to other rotating rewards cards
The Discover card's top competitor is the Chase Freedom Flex®️*. It's another credit card with rotating rewards, but it has two advantages over the Discover card.
First, the Freedom Flex has more than just rotating rewards. There are also static reward categories that you can continue to earn rewards for even after you hit the card's quarterly earning cap for its rotating rewards.
Additionally, if you activate your reward categories late, the Freedom Flex lets you earn retroactive rewards for any qualifying purchases. However, this Chase card isn't offering grocery rewards for July to September, so if you're looking for help in the face of expensive food items, consider the Discover It Cash Back or another grocery credit card.
*All information about the Discover it® Cash Back and Chase Freedom Flex has been collected independently by CNET and has not been reviewed by the issuer.
