Our experts answer readers' credit card questions and write unbiased product reviews (here's how we assess credit cards). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

amazon package
Discover's bonus categories for Q4 2023 include Amazon.com purchases.
  • The Discover it® Cash Back and the Discover it® Student Cash Back offer 5% cash-back bonus categories that change every three months.
  • In previous years, Discover would release the entire year of bonus categories in one go, but now they're taking the Chase Freedom Flex℠ approach and releasing quarterly.   
  • For Q4 2023 (October through December), the Discover rotating categories are Amazon.com and Target.
  • Read Insider's guide to the best rewards credit cards.

If you're looking to open one of the best cash-back credit cards, there are different earning structures to be aware of. Some cards offer a flat cash-back rate for all purchases, while others include extra rewards in specific categories, and a few (like some Discover credit cards) offer increased earnings in quarterly rotating bonus categories. 

The Discover it® Cash Back and Discover it® Student Cash Back are two of our favorite credit cards for students, college graduates, and folks new to credit. Cardholders earn 5% cash back on up to $1,500 spent in combined bonus categories (then 1%) that change every three months once activated, and 1% back on all other purchases.

But Discover is switching things up in 2023 and announcing quarterly bonus categories every few months instead of all once. Once you activate the 5% bonus through your Discover online account, the bonus will be in effect from the day you activate Discover It Cashback rotation

Discover has now announced the rotating bonus categories for the fourth quarter (October through December) of 2023. 

We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Discover it Cash Back Calendar 2023

From October 1 to December 31, 2023, Discover it® Cash Back, Discover it® Student Cash Back, and Discover More® (no longer available to new applicants) cardholders can earn bonus cash back on purchases made from two popular bonus categories: Amazon.com and Target.

It's important to remember that your 5% rewards earnings will be capped after the first $1,500 spent in combined purchases each quarter. Also, you must activate the bonus in your account in order to earn the cashback rate (otherwise 1% back). 

Here's what's included:

  • Amazon.com purchases include those made through the Amazon.com checkout, like digital downloads, Amazon Fresh orders, Amazon Local Deals, Amazon Prime subscriptions, and items sold by third-party merchants through Amazon.com's marketplace. It also includes purchases in-store at Amazon Go.
  • Target purchases include those made in the store at Target, Target.com, or through the Target app. Purchases from individual merchants and stand-alone stores within physical Target locations may not be eligible.

Note that using a digital wallet to pay at gas stations will only earn a total of 5% back.

Discover Q3 Categories

The Q3 Discover categories for 2023 are active from July 1 to September 30, 2023, and include gas stations and digital wallets. Make sure you've activated the categories to ensure you'll earn the bonus cash back.

Discover Q2 Categories

The Q2 2023 categories on eligible Discover cards were active from April 1 to June 30, 2023, and include restaurants and wholesale clubs. 

In 2022, we saw Discover cash back categories like gas stations, Target, fitness club/gym memberships, restaurants, and Amazon.com. Although we don't know what the future holds, it's safe to assume that the lineup for the rest of 2023 will include some of the same categories.

Previous Discover Rotating Categories

In Q1 2023, the rotating categories were grocery stores, drug stores, and select streaming services. The following were the rotating categories for 2022:

Q1 2022: January - March

Q2 2022: April - June

  • Gas stations and Target

Q3 2022: July - September

Q4 2022: October - December

How to Redeem Discover Cash Back Rewards

Discover offers more redemption options than many people realize. If you have any of its cash-back credit cards, you can apply rewards to your bill as a statement credit or request a direct deposit to your bank account, redeem them toward Amazon and PayPal purchases, or cash them in for gift cards from select retailers.

You can also donate your rewards to select charities, including:

  • American Cancer Society
  • ASPCA
  • American Red Cross
  • Children's Miracle Network
  • Junior Achievement
  • Juvenile Diabetes Research Foundation
  • Make-A-Wish
  • Operation Homefront
  • World Wildlife Fund

Other Cards With Rotating Categories to Consider

If you like the idea of earning a bonus in categories that rotate each quarter, you should consider the Chase Freedom Flex℠. Like its predecessor, the Chase Freedom® (no longer open to applicants), the no-annual-fee Chase Freedom Flex℠ offers 5% cash back in rotating categories after activation that are often different from Discover's in the same quarter. For Q4 2023, the Chase Freedom bonus categories are wholesale clubs, select charities, and PayPal.

With the Chase Freedom Flex, you'll earn 5% back (5x Chase Ultimate Rewards® points) on up to $1,500 spent in combined quarterly bonus categories after activation (then 1%), 5% back on travel purchases made through Chase Ultimate Rewards, 3% back on drugstore and dining purchases, and 1% back on everything else. Similar to Discover, you can redeem rewards from the Chase Freedom Flex for statement credits, cash back, gift cards, merchandise, and more.

If you also have a Chase Sapphire Preferred® CardChase Sapphire Reserve®, or Ink Business Preferred® Credit Card, you can turn your cash back into Chase Ultimate Rewards points and unlock more redemption options, including transferring points to Chase's airline and hotel partners, like United Airlines and Hyatt.

Read the original article on Business Insider