How does cash back work for debit cards and checking accounts?

Making money for spending money? It might sound too good to be true, but it’s a reality for some debit card holders. Debit cards like the Discover Cashback Debit card now offer a wide range of rewards and benefits to checking account holders, who are enjoying extra money in their pockets, added convenience, and more peace of mind thanks to all the advantages.  

Lately, debit card benefits have started to include overdraft protection, receiving your paycheck early,¹ online privacy protection, and more. But often the biggest benefit for debit card holders is the cash back they earn on purchases made with their cards. 

What does ‘cash back’ mean?

As a debit card benefit, “cash back” refers to money that a bank adds to your checking account in exchange for using the debit card associated with that account. The amount of money you receive thanks to a debit card’s cash back benefit can depend on several factors, such as the financial institution, the type of card, and the type of transaction. For example, some financial institutions will reward customers with a percentage of the amount they spend with their card, while others may give customers a predetermined dollar amount for using the card at particular stores or restaurants. Some financial institutions restrict rewards to certain categories of purchases, such as gas or travel. Each financial institution and card has its own rules for what it considers a qualifying purchase, so make sure you understand the terms.

How does cash back work on debit cards?

Cash back rewards for qualifying purchases made with your debit card will typically appear in your account after the close of each statement period. Depending on your bank, the money could be added into a dedicated section of your online banking portal for you to redeem, or it could be directly deposited into your checking account. Make sure you understand how cash back works for your particular debit card so that you know when you’ll see the funds, how much you’ll receive, if there are any limits, and what types of transactions qualify.

How does Discover cash back work?

The Discover Cashback Bonus for the Discover Cashback Debit card works by providing 1% in cash rewards to customers on qualifying purchases. Discover Cashback Debit card users can earn 1% cash back on up to $3,000 in debit card purchases each month.² That’s potentially $30 per month—or $360 per year—back in your pocket!

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When does cash back show up on Discover Cashback Debit Accounts?

Discover Cashback Bonus rewards will post to the Rewards Detail section of your account summary at the end of each month. You can view your Cashback Bonus amount in either the Discover Mobile App or the Online Account Center. 

Curious about the best way to redeem Discover Cashback bonus rewards? Well, you’ve got options. Through your account, you can manually transfer your Cashback Bonus into your Discover checking account, Online Savings Account, or Money Market Account. Discover customers are also able to enroll in Auto Redemption, which means Discover will automatically deposit your Cashback Bonus into your Discover Online Savings Account each month. Customers can also manually transfer their bonus to any Discover Credit Card Cashback Bonus^® Account.

Ready to open a Discover Cashback Debit Account?

If you’re ready to get the most out of your debit purchases, including 1% in cash rewards², then it’s time to get Discover Cashback Debit. Not only will you enjoy earning money on your everyday purchases, but you’ll also access amazing benefits like fraud protection, getting your paycheck up to two days early¹, and a network of over 60,000 fee-free ATMs.

Ready to get started? Open your Discover Cashback Debit account today.

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The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates.

¹ Early Pay is automatically available to checking, savings (excluding IRA savings), and money market customers who receive qualifying ACH direct deposits. At our discretion, and dependent on the timing of our receipt of the direct deposit instructions, we may make funds from these qualifying direct deposits available to you up to 2 days early. See our Deposit Account Agreement for more information.

² Earn 1% cash back on up to $3,000 in debit card purchases each month. See Deposit Account Agreement for details on transaction eligibility, limitations, and terms.